1. Cash Flow Engine Reference Guide
  2. Cash Flow Calculations
  3. Cash Flow Calculation Process
  4. Notes about Reprice Event
  5. Customer Rate Definition

7.8.17.2 Customer Rate Definition

Repricing characteristics (rate caps, floors, periodic change limits) are based on the customer rate. In a standard processing run, the current net rate is defined as the customer rate. However, when Modeling with Gross Rates option is used, the customer rate is defined as the Current Gross Rate.

  • If the 'ACCRUALBASISCD_FLAG' column in the SETUP_MASTER table is set to N, then Engine calculates the Interest for Reprice Event for the number of days and divided by 365 denominators. This is the existing behavior of Engine.
  • If the 'ACCRUALBASISCD_FLAG' column in the SETUP_MASTER table is set to Y, then Interest for Reprice Event is calculated for days and denominator of provided Accrual Basis code will be used.

Below are the examples:

  • If ACCRUAL_BASIS_CD in (1 (30/360), 2(Act/360)), then the interest is computed using 360 as the denominator.
  • If ACCRUAL_BASIS_CD in (3 (Act/Act), 5 (Act/Act)), then the interest is computed using the Actual number of days in the year as denominator.
  • If ACCRUAL_BASIS_CD in (4 (30/365), 6 (Act/365)), then the interest is computed using 365 as the denominator.