1. Cash Flow Engine Reference Guide
  2. Cash Flow Dictionary
  3. Cash Flow Columns
  4. Repricing Frequency (REPRICE_FREQ)
  5. Module Usage

8.2.129.2 Module Usage

Oracle ALM and Funds Transfer Pricing Reference REPRICE_FREQ when identifying Adjustable-Rate Instruments and calculating a Transfer Pricing Term or Forecasted Interest Rate.

Oracle ALM

In identifying an adjustable record, Oracle ALM uses ADJUSTABLE_ TYPE_CD and REPRICE_FREQ. If the ADJUSTABLE_TYPE_CD > 0 and the REPRICE_FREQ > 0, the record is adjustable.

  1. The Cash Flow Engine uses the REPRICE_FREQ to identify Repricing Events beyond the NEXT_ REPRICE_DATE. The Cash Flow Engine rolls forward from NEXT_REPRICE_DATE by the REPRICE_FREQ to define the record's remaining Forecasted Reprice Dates. Rolling by the REPRICE_FREQ continues until MATURITY_DATE.
  2. In defining the CUR_NET_RATE, CUR_GROSS_RATE, and TRANSFER_RATE on each Reprices Date, the Cash Flow Engine matches the record's INTEREST_RATE_CD (TP IRC from the selected TP Rule in the case of transfer rates), the Reprice Date and the REPRICE_FREQ to the appropriate term point on the Forecasted Interest Rate Code (IRC) in the Oracle ALM Forecast Rates Assumption Rule. To this derived rate, the Cash Flow Engine adds the relevant Margin Amount (MARGIN, MARGIN_GROSS). For Transfer Rate, if the Transfer Pricing option is selected in the ALM Process, the Cash Flow Engine will refer to the TP Rule selected in the process and will apply the appropriate TP Method and related TP IRC to determine the new TP Rate on the Reprice Date.
    • Any rate caps/floors, tease periods, and rounding is then applied.
    • ADJUSTABLE_TYPE_CD = 30 and 50 will not reference reprice date.

Oracle Funds Transfer Pricing

  • REPRICE_FREQ is used to identify whether records are adjustable or not. If REPRICE_FREQ > 0, the record is considered adjustable. If REPRICE_FREQ = 0, the record is fixed-rate.
  • For Adjustable-Rate straight term methodology, Oracle Funds Transfer Pricing matches the REPRICE_FREQ to the same term on the Transfer Pricing yield curve (Interest Rate Code) defined in Rate Management. For additional information, see the Last Reprice Date Expected Balance (LRD_EXPECTED_BAL).
  • FTP Adjustment Rules refer to REPRICE_FREQ when the Reference Term is set to Reprice Frequency. If the instrument is fixed rate and, therefore, does not have a reprice frequency, the calculation retrieves the rate associated with the term point equaling the original term on the instrument.