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

8.2.124.2 Module Usage

Oracle ALM

Oracle ALM references RATE_FLOOR_LIFE when calculating a forecasted interest rate for adjustable-rate records.

  • For 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. This is to assign a Forecasted Rate. The margin is then added to this Forecasted Rate. Any rounding, rate caps/floors (RATE_FLOOR_ LIFE), and tease periods are applied, and the resulting rate is applied to the record as the repriced rate. If the Forecast Rate plus margin < RATE_FLOOR_LIFE, the Cash Flow Engine sets the record's forecasted rate = RATE_FLOOR_LIFE. Rounding and tease periods are then applied.

    Note:

    For any Forecasted Rate changes throughout the life of the instrument, the Cash Flow Engine references RATE_FLOOR_LIFE.
  • For Interest Rate Floor (Interest Rate Derivatives) accounts, the Rate_Floor_life field is used to store the Floor Strike rate. The Cash Flow Engine will calculate Interest Cash Flow when the underlying floating rate will go below given Rate_Floor_Life.

Oracle Funds Transfer Pricing

Oracle Funds Transfer Pricing does not reference RATE_FLOOR_LIFE because it processes Cash Flows within Repricing Periods.