5.3.2.1.2.5 Inflation Adjustment Attributes

Select the Inflation Indexed Instrument check box on the Define Core Product Attributes secondary tab to enable the Define Inflation Adjustment Attributes secondary tab. .

Note:

To enable the Define Inflation Adjustment Attributes secondary tab, select the Adjustment Type as Conventional Adjust, Conventional Fixed, Level principal, or Non-Amortizing.

Figure 5-154 Inflation Adjustment Attributes tab to define the Product Characteristic Rule


Inflation Adjustment Attributes tab to define the Product Characteristic Rule

Table 5-42 Fields to add the Index Adjustment attributes for New Businesses and their Descriptions

Field Behavior
Index Name Lists all Economic Indicators defined through the user interface.
Index Adjustment Type

Determines the type of Index Adjustment. Available options are:

Principal and Interest

Principal Only

Interest Only

Capital Protection Category

Determines capital protection to be provided to Inflation Indexed Instruments. Available options are:

No Floor: Does not provide any downside protection.

Floor of 1: Protects the downside movement.

Max during Life: Gives maximum advantage using maximum Index factor for calculation.