1. Asset Liability Management Cloud User Guide
  2. Business Rules Administration
  3. Application Specific Rules
  4. Pricing Margin

4.3.10 Pricing Margin

The Pricing Margin Rules allow you to define pricing margins (or spreads) for your new business originations. As with all forecasting rules, Pricing Margins are based on the Multi Dimensional Balance Sheet Structure (MDBSS). Pricing margins are defined period by period using your selected Time Bucket definition for each MDBSS node and, potentially, each currency. Pricing margins work together with an underlying base Interest Rate Curve (specified in Product Characteristics) to determine note rate pricing for new business volumes. New business assumptions are defined based on the combined inputs from the following forecast related business Rules:

  • Product Characteristics
  • Pricing Margins
  • Forecast Balance

All forecast Rules use the MDBSS. Rules intended to be processed together must share a common MDBSS.

When you require more complex definitions of pricing margins to model unique account pricing details, user-defined repricing patterns can be used.