5.3.5.1 Create Add-on Rate Rule

You create an Add-on Rate Rule to define Add-on Rate Methodologies for your products.

To create the Add-on Rate Rule:

1. From the LHS menu, select Assumption Specification, and then select Add-on Rate Rule.

   Figure 5-66 Add-On Rate Rule - Definition Mode

   
   

   

   
   
2. Select the Add-on Rate Type from the Add-on Rate Type Selection section.

   Figure 5-67 Add-On Rate Type Selection

   
   

   

   
   
3. Conditional Assumptions - The Conditional Assumption feature allows you to segregate your product portfolio based on common characteristics, such as Term to Maturity, Origination Date, and Repricing Frequency, and assign specific Add-on Rate Methodologies to each of the groupings.

   Figure 5-68 Conditional Assumption

   
   

   

   
   

   The Filters field displays the View and Edit buttons. You can verify the existing Filters by clicking the View button. Click the Edit button if you want to modify the Filter condition.

   Note:

   If an instrument record does not meet any of the conditions, then the rule logic reverts to the Standard Assumption that is directly assigned to the Product/Currency combination.