7.3 Application Specific Rules

This section covers the following topics:

1. Behavioral Assumptions: This section contains information about behavioral assumptions of Asset Liability Management Cloud Service, for example, Prepayment rules, Prepayment models, etc.
2. Forecast Rates: Forecast Rate scenario assumptions allow you to define future interest rates, future economic indicators, and future currency exchange rates. Use interest rate forecasts to project cash flows, including pricing new business, re-pricing existing business, calculating prepayments, and determining discount methods. Use Economic Indicator forecasts to include in behavioral modeling and scenario/stress analysis. Use currency exchange rate forecasts to account for the effects of currency fluctuations on income.
3. Process Definitions: This section provides the details on processes of Asset Liability Management Cloud Service.

• Forecast Rates
  
• Behavioral Assumptions
  This section covers the following topics:
• Forecast Assumptions
  This section covers the following topics:
• Transfer Pricing Rules
  
• Add-on Rate Rules
  Add-on Rate Rules allow you to specify Methodologies to calculate Add-on Rates and Breakage Charges for the relevant products in your portfolio.
• Processes
  This section covers the following topics: