24 Prepayment Models

This module describes the procedure to build Prepayment Models using Prepayment Model Rules. This chapter covers the following topics:

• Overview of Prepayment Models
• Create Prepayment Models
• Prepayment Rate Calculation
• Editing Prepayment Models
• Editing Prepayment Rates in a Prepayment Model
• Editing Prepayment Rate Calculation
• Prepayment Rate Data Loader

The Prepayment Model consists of the Prepayment Dimensions and the Bucket Values for these Dimensions. To define the Prepayment Model Structure, you can select a maximum of three prepayment dimensions. After the dimensions and the number of buckets (tiers) are defined, you need to assign values to the buckets.

The procedure for working with and managing Prepayment Models is similar to that of other assumption rules.

Overview of Prepayment Models

The Prepayment Model rule allows you to build Custom Prepayment Models. These Prepayment Models can be referenced by a Prepayment Rule to Model Prepayment Behavior of instruments based on a range of instrument level attributes.

The procedure for working with and managing Prepayment Models is similar to that of other Oracle Asset Liability Management business rules. It includes the following steps:

• Searching for Prepayment Models: For more information, see the Search for Rules section.
• Creating Prepayment Models: For more information, see the Create Rules section.
• Viewing and Editing Prepayment Models: For more information, see the View and Edit Rules section.
• Copying Prepayment Models: For more information, see the Copy Rules section.
• Deleting Prepayment Models: For more information, see the Delete Rules section.
• Loading Prepayment Models through a staging table: For more information, see the Prepayment Rate Data Loader section.