11.9.1 Behavior Pattern Structure

There are three types of behavior patterns:

• Non Maturity*
• Non-Performing
• Devolvement and Recovery

These behavior patterns differ in how they allow you to categorize cash flows based on the specific behavior type being modeled.

The following lists summarize the various payment types available for each type of behavior pattern:

• For Non Maturity behavior pattern, the payment types available are Volatile and Core.
• For Non Performing behavior pattern, the payment types available are Substandard, Doubtful, and Loss.
• Devolvement and Recovery behavior pattern, the payment types available are:
  • Sight Devolvement
  • Sight Recovery
  • Usance Devolvement
  • Usance Recovery

The non-maturity behavior pattern provides an additional option to create a Replicating Portfolio. The Tractor TP Method exclusively uses the replicating portfolio type pattern.