10.7.8 (Mandatory - Deterministic) Defining Forecast Rate Scenarios

Forecast Rate scenarios allow you to define your deterministic modeling scenarios including projections for future interest rates, future currency exchange rates, and future economic indicators. The cash flow engine uses interest rate forecasts to project cash flows, including pricing new business, re-pricing existing business, calculating prepayments, determining discount methods, and determining rate-dependent forecast assumptions.

The Forecast Rates scenario rules use interest rate codes, currency codes and economic indicator codes defined/stored in Rate Management, including all the activities and reporting currencies and the primary, or functional, currency at your institution.

Defining a Forecast Rate Scenario is a mandatory step in setting up and configuring the Oracle BSP Application.

Note:

OFS BSP supports Forecast Rate Scenarios having only one baseline forecast for each Interest Rate Code (IRC). BSP does not support Forecast Rate Scenarios having multiple forecast scenarios for each IRC.