1. Cash Flow Engine Reference Guide
  2. Cash Flow Dictionary
  3. Cash Flow Columns
  4. Remaining Number of Payments (REMAIN_NO_PMTS_C)
  5. Module Usage

8.2.128.2 Module Usage

The Oracle ALM and Funds Transfer Pricing cash flow methodologies reference REMAIN_NO_PMTS_C when calculating and processing payments. The cash flow engine uses REMAIN_NO_PMTS_C to determine the number of payments that remain to be paid until the account matures.

Oracle ALM and Funds Transfer Pricing

The number of remaining payments is used by the cash flow engine for two purposes:

  • Definition of payment dates on which principal and interest are paid: As each payment is made during the life of the instrument, the cash flow engine reduces the REMAIN_ NO_PMTS_C by 1 and rolls the payment period forward by the PMT_FREQ. If the newly calculated REMAIN_NO_PMTS_C = 1, the cash flow engine no longer rolls the PMT_FREQ and makes the next (and final) payment on the MATURITY_DATE.
  • Amortization re-calculation purposes: When a re-calculation occurs (repricing or negative amortization event), the cash flow engine references the REMAIN_NO_PMTS_C for recalculation of amortization. Refer Current Payment section for detail.

There are some exceptions to the use of REMAIN_NO_ PMTS_C for balloon records and specific User-Defined Payment Patterns and schedules. Depending on the record characteristics, the cash flow engine recalculates the remaining number of payments itself in following cases:

  • Balloon Amortization: If ‘Amortization term > Original term’, the remaining number of amortized payments are calculated by adding the Amortization term to the origination date to determine the Amortization end date. The remaining number of payments are calculated by determining how many payments can be made from and including the Next Payment Date and this date. This is performed each time there is a need to derive Current Payment during the process of Cash Flow generation.
  • Payment Pattern: The remaining number of payments is calculated for patterns based on the payment frequency. As with conventional instruments, the amortization end date is used for payment recalculation. The remaining term is calculated using the difference between current cash flow date and the Next Payment Date. This term is divided by the active payment frequency and one additional payment is added to it for the payment on the Next Payment Date. This is performed each time there is a need to derive Current Payment during the process of cash flow generation when payment method is ‘% of Current Payment’.

Oracle Funds Transfer Pricing

The Transfer Pricing - Remaining Term Pricing Basis cash flow methodology for fixed-rate records uses REMAIN_NO_PMTS_C as described earlier.

The Transfer Pricing - Standard Pricing Basis cash flow methodology for adjustable-rate records calculates the remaining number of payments as follows:

  • REMAIN_NO_PMTS_C + number of payment periods between the NEXT_ PAYMENT_DATE and the LAST_REPRICING_DATE.
  • This is performed only once before starting Cash Flow Calculation to obtain number of interest and principal cash flows to be generated and used to derive the Current Payment amount.

The Transfer Pricing - Standard Pricing Basis cash flow methodology for fixed-rate records calculates the remaining number of payments as follows:

  • Original Term / Payment Frequency
  • This is performed only once before starting cash flow calculation to obtain number of interest and Principal Cash Flows to be generated.