24.1 Overview of Maturity Mix Rules
Maturity Mix rules allow you to define the term distribution of new business added during each forecast period. Maturity Mix assumptions are set at the product and currency levels. For new volumes generated during a simulation run, you will define the maturity and amortization terms applied to the balances originated in each period, as well as specify a maturity distribution for the volumes originated. For example, mortgage originations may be divided into 25% - 5 Year Term / 30 Year Amortization, 25% - 7 Year Term / 30 Year Amortization, and 50% - 30 Year Term / 30 Year Amortization. You attach the set of maturity assumptions to apply to all new volumes within a Dynamic BSP Process by selecting the appropriate Maturity Mix rule.
In BSP, all new business processing occurs within BSP’s planning user interfaces. BSP does not directly support Dynamic Deterministic processes. When you process a new business forecast in BSP’s planning user interfaces, you operate within the context of a specific Forecast Set. For BSP, Maturity Mix rules are part of the definition of each Forecast Set.
New business assumptions are defined based on the combined inputs from the following 4 forecast related business rules:
- Product Characteristics
- Forecast - Pricing Margins
- Forecast – Maturity Mix
The procedure for working with and managing Maturity Mix rules is similar to that of other Oracle Balance Sheet Planning business rules. It includes the following steps:
- Searching for Maturity Mix rules. For more information, see the Searching for Rules section.
- Creating Maturity Mix Rules. For more information, see Creating Rules section.
- Viewing and Editing Maturity Mix rules. For more information, see the Viewing and Editing Rules section.
- Copying Maturity Mix rules. For more information, see the Copying Rules section.
- Deleting Maturity Mix rules. For more information, see Deleting Rules section.
As part of creating and editing Maturity Mix rules, you define Maturity Mix assumptions for applicable products. See: Defining Maturity Mix Rules.