12.2 Interest Rate Forecasting

The available IRC Forecasting Methods are as follows:

Table 12-12 List of IRC Forecasting Methods

Method	Description
Flat	Interest rates stay constant throughout the forecast.
Structured Change	The user defines rate changes for each term point over specified periods.
Direct Input	The user manually inputs the interest rate for each modeling bucket and term.
Implied Forward	The interest rates will be derived from the term structure of the IRC. This method is available only for yield curves, which are IRCs that consist of multiple terms. If the selected IRC is a single point index, this option is disabled.
Change From Base	The scenario represents a delta from another scenario. This option is available only if the Forecast Rates ID has more than one scenario. Otherwise, this option is disabled.
Yield Curve Twist	The user defines the short point, anchor point, and long point and related shock amount for each.

This section explains calculations for the Structured Change, Implied Forward, Change from Base Interest Rate, and Yield Curve Twist Forecast Methods.