1. Cash Flow Engine Reference Guide
  2. Cash Flow Dictionary
  3. Cash Flow Columns
  4. Interest Rate Code (INTEREST_RATE_CD)
  5. Module Usage

8.2.65.2 Module Usage

Oracle ALM

The Cash Flow Engine references INTEREST_RATE_CD when calculating a Forecasted Interest Rate for an ALM Process.

  1. The detail record's INTEREST_RATE_CD has a corresponding reference in the Oracle ALM Forecast Rate Assumption Rule and related Rate Management Interest Rate UI. The Rate Management Interest Rate code screen is where the term structure and Historical Rate values are managed. The Forecast Rates UI is where the Forecast Rates are input for each IRC across all required scenarios.
  2. At a Repricing Event (or a TEASER_END_DATE) for an adjustable-rate record, the Cash Flow Engine matches the INTEREST_RATE_CD, REPRICE_FREQ, and repricing date of the detail record to the Forecast Rates assumption rule attached to the ALM Process. After matching the rate from the Forecast Rates rule, the cash flow engine adds the MARGIN amount and applies any teases, rate caps/floors, and rounding to derive the rate that is applied to the record.

    Note:

    As explained in the Adjustable Type Code (ADJUSTABLE_TYPE_ CD) section, the cash flow engine does not reference Repricing Date information for ADJUSTABLE_TYPE_CD = 30 or 50.
  3. The exact value of the INTEREST_RATE_CD is user-defined, but it must be within the range of 1 - 99999.
  4. Note, fixed-rate records do not reference an INTEREST_RATE_CD and can be defaulted to a value of 0.

Transfer Pricing

Oracle Funds Transfer Pricing does not reference INTEREST_RATE_CD because it processes Cash Flows within repricing periods.