1. Cash Flow Engine Reference Guide
  2. Cash Flow Dictionary
  3. Cash Flow Columns
  4. Rate Cap Life (RATE_CAP_LIFE)
  5. Module Usage

8.2.119.2 Module Usage

Oracle ALM

Oracle ALM references RATE_CAP_LIFE when calculating a forecasted interest rate for adjustable rate records. Existing business adjustable-rate records:

The Cash Flow Engine matches the REPRICE_FREQ, INTEREST_RATE_CD, and the reprice date to the information contained in the Forecast Rates assumption rule to assign a forecasted rate. The margin is then added to this forecasted rate. Any rounding, rate caps (RATE_CAP_LIFE), or floors and tease periods are applied, and the resulting rate is applied to the record as the record's repriced rate.

  • For accounts beyond the tease period: After the rounding and rate change minimum is applied to the forecast rate plus margin, if the resulting rate is > RATE_CAP_LIFE, the cash flow engine sets the record's forecasted rate = RATE_CAP_LIFE.

For Interest Rate Cap (Interest Rate Derivatives) accounts, the Rate_Cap_life field is used to store the Cap Strike rate. The Cash Flow Engine will calculate interest cash flow when the underlying floating rate will go above given Rate_Cap_Life.

Oracle Funds Transfer Pricing

Oracle Funds Transfer Pricing does not reference RATE_CAP_LIFE because it processes Cash Flows within repricing periods.