35 Stochastic Rate Indexing
The purpose of the Stochastic Rate Index Rule is to establish a relationship between the risk-free Interest Rate Codes (IRCs) and the other interest rate codes or indices. With this relationship established, you can forecast rates on any instrument tied to an IRC and as the risk-free rates change. The change in the non risk-free interest rates will depending on the established relationship.
The following are the non risk-free interest rate codes:
- Prime
- LIBOR
- Administered rates
- 11th District COFI
The Stochastic Rate Index Rule is used only in stochastic processing. For more information, see the Defining Stochastic Rate Indexes section.
The procedure for working with and managing the Stochastic Rate Index Rule is similar to the other Oracle Asset Liability Management Business Rules. It includes the following steps:
- Search Stochastic Rate Index Rule. For more information, see the Searching for Rules section.
- Defining Stochastic Rate Index rules
- View and Edit Stochastic Rate Index Rule. For more information, see the View and Edit the Rule section.
- Copy Stochastic Rate Index Rule. For more information, see the Copy the Rule section
- Delete Stochastic Rate Index Rule. For more information, see the Delete the Rule section