8.2.61.2 Module Usage
Oracle ALM Reference INDEX_ADJ_TYPE to determine whether the instrument is inflation-indexed and if it is inflation-indexed whether principal payment or interest payment or both are protected. Index Adjustment Type values are represented by code values as follows:
Table 8-20 Index Adjustment Type Values are represented by Code Values
| Code Value | Inflation Adjustment Type |
|---|---|
| 0 | Not applicable |
| 1 | Principal and Interest |
| 2 | Principal only |
| 3 | Interest-only |
- When Inflation Adjustment type is ‘0’, the instrument will not be treated as inflation-adjusted.
- When Inflation Adjustment type is ‘1’ (Principal and Interest), then both Principal and Interest are protected.
- When the Inflation Adjustment type is ‘2’ (Principal only), then the only Principal Cash Flow is protected.
- When Inflation Adjustment type is ’3’ (Interest only) then the only Interest Cash Flow is protected.
For more information, see the Inflation-Indexed Instrument.