10.7.2.6 Principal Runoff Term

The Term of the principal runoff is determined by the input of a Tenor and Multiplier. For example, if you are defining the “Volatile” component of a non-maturity instrument, you would likely define the runoff term for the first amount as “1 Day”. In this case, Tenor = “1” and Multiplier = “Day”

Amount

The cash flow amount is defined as a percentage of the end-of-period balance. For example, in the case of the Non-Maturity behavior pattern type, if the assumption for the Volatile runoff amount is that 25% of the portfolio is to be categorized as "volatile", the input should be "25". The sum of the percentages for the Non-Maturity behavior pattern type must equal 100%. The "Total Percentage" is shown at the bottom of the Pattern detail area indicating the cumulative percentage.