4.1.9.4.4 Other Attributes

The assumptions made on the Other Attributes tab apply to both current position data and new business balances.

The common Product Characteristic fields listed on the Other Attributes tab are as follows.

Figure 4-25 Other Attributes Tab to Define the Product Characteristic Rule

Table 4-23 Fields to define the attributes for Product Characteristic Rule and their Descriptions

Fields	Behavior
Model with Gross Rates	If the institution has outsourced loan serving rights for some of the assets (most typically mortgages), the rates paid by customers on those assets (gross rates) will be greater than the rates received by the bank (net rates). For these instruments, both a net and gross rate will be calculated within the cash flow engine and both gross and net rate financial elements will be output. The gross rate is used for prepayment and amortization calculations. The net rate is used for income simulation and the calculation of retained earnings in the auto-balancing process.
Option Adjusted Spread	The Option Adjusted Spread is used during stochastic processing only. It is an adjustment to the stochastic discount factor used in calculating market value and value at risk. Valid values for this spread are between -5.000% and 5.000%, but the value of less than 2.00% is recommended for the best results. For more information about the calculation of discount factors, see the Oracle Financial Services Cash Flow Engine ReferenceGuide.
Currency Gain or Loss Basis	Currency Gain or Loss Basis determines how exchange rate fluctuations are reflected in financial element results for each product and currency combination. The choices are: Temporal Historical Basis Current Rate For more information on the cash flow calculations associated with currency gain or loss recognition techniques, see the Oracle Financial Services Cash Flow Engine Reference.
Interest Credited	This option allows interest payments to be capitalized as principal on simple or non-amortizing instruments.
Percent Taxable	Percent Taxable specifies the percent of income or expense that is subject to the tax rates defined in the active Time Bucket Rule. This is used with the Auto-balancing option in the ALM Process Rules. Percent taxable must be set up for each product and reporting currency or product and default currency combination.
Pay Equivalent Compounding Convention	In most cases, interest rates are not adjusted for the differences in pay-basis between the quote basis of the pricing index and the payment frequency of the account to which the index is assigned. Some instruments, notably Canadian Mortgages, follow a convention that the interest rates are adjusted. In this case, the Pay-Equivalent Compounding Convention must be set to Semi-Annual Quoting Convention. For other accounts, the convention must be set to Do Not Adjust.
Holiday Calendar	The default value is Blank and is Enabled. This drop-down list contains the list of all holiday calendar definitions defined in the Holiday Calendar window.
Interest Calculation Logic	There are two options: Shift Dates Only Recalculate Payment
Rolling Convention	The default value is Unadjusted and is Enabled, only when Holiday Calendar is selected in the preceding field. This drop-down list contains the following values: Actual or Un-adjusted Payment on an actual day, even if it is a non-business day. Following business day The payment date is rolled to the next business day. Modified following business day* The payment date is rolled to the next business day unless doing so would cause the payment to be in the next calendar month, in which case the payment date is rolled to the previous business day. Previous business day The payment date is rolled to the previous business day. Modified previous business day* The payment date is rolled to the previous business day unless doing so would cause the payment to be in the previous calendar month, in which case the payment date is rolled to the next business day. *Many institutions have month-end accounting procedures that necessitate this.
Discount Rate Margin
Discount Rate Margin Type	Rate Spread Price of instrument paer 100

Note:

The Holiday Calendar attributes can be applied directly to the instrument records for an existing business. If they are not applied to the records, the engine will use the definition from the Other Attributes tab to apply Holiday Calendar for existing and New Business.