23 Prepayment Rules

Prepayment Rules allow you to specify methodologies to model the loan prepayment, deposit early redemption behavior of products in your portfolio, and quantify the associated prepayment risk in monetary terms. For more information, see Define Prepayment Rules.

The methodologies contained in the Prepayment rule are referenced by both Transfer Pricing and ALM Processes. These prepayment assumptions are used in combination with cash flow based Transfer Pricing methods to generate the Transfer Pricing results.

The procedure for working with and managing the Prepayment Rule is similar to that of other Oracle Funds Transfer Pricing business rules. It includes the following steps:
  • Searching for Prepayment Rules
  • Creating Prepayment Rules
  • Viewing and Editing Prepayment Rules
  • Copying Prepayment Rules
  • Deleting Prepayment Rules
As part of creating and updating Prepayment rules, you can also define Prepayment Methodologies for all relevant products and currency combinations. See:
  • Defining Prepayment Methodologies
  • Defining the Constant Prepayment Method
  • Defining the Prepayment Model Method
  • Defining the PSA Prepayment Method
  • Defining the Arctangent Calculation Method

Oracle Funds Transfer Pricing provides you with the option to copy, in total or selectively, the product assumptions contained within the Prepayment, Transfer Pricing, and Adjustment Rules from one currency to another currency or a set of currencies or from one product to another product or a set of products.