8.2.56.2 Module Usage

Oracle ALM and FTP

Oracle ALM and Oracle FTP Cash Flow Methodologies use HOLIDAY_CALC_OPTION_CD to determine the Interest calculation logic when the Holiday Calendar is applied.

There are two options for Holiday Calendar Calculation 1= Shift Dates Only, 2=Recalculate Payment.

• When the Holiday Calculation Method is "Shift Dates Only", Interest cash flow is calculated using Holiday unadjusted payment and reprice dates. Interest output is then posted to Holiday adjusted payment dates (if payment date falls on Holiday). Interest cash flow is shifted to the Holiday Adjusted Payment Date.
• When the Holiday Calculation Method is “Recalculate Payment” Payment and Reprice Dates are the first holiday adjusted. Interest is calculated using holiday adjusted payment and reprice dates. As payment and reprice dates can get Holiday adjusted, and even move to a new time bucket, there can be a change in Interest Cash Flow output.

  Note:

  Payment and Reprice Dates for a record is adjusted, when the Holiday Calendar is referred, and the dates fall on a holiday. The determination of Holiday Adjusted Dates depends on the rolling convention selected. For information, see the HOLIDAY_ROLLING_CONVENTION_CD section.

For example, NEXT_PAYMENT_DATE and NEXT_REPRICE_DATE for a record are 15/12/2016 with PMT_FREQ and REPRICE_FREQ equal to 1M. The following payment and reprice dates will be 15/1/2017, 15/2/2017, and 15/3/2017.

If 15/12/2016 and 15/2/2017 dates are Holiday, with the rolling convention of Following Business Day, payment and reprice day moves to 16/12/2016 and 16/2/2017 (next working day which is not a holiday). Therefore, Holiday Adjusted Payment and Reprice Dates will be 16/12/2016, 15/1/2017, 16/2/2017, and 15/3/2017.