Defining a Hybrid Curve with Hybrid Curve Type as Custom Weighted Average

To define a Hybrid Curve, perform the following steps:
  1. Select the Structure Type as Hybrid, and then select the Hybrid Curve Type as Custom Weighted Average.
  2. Select the Interest Rate Curves for the Hybrid Type and click Apply. Only one Interest Rate Curve Definition is allowed for selection.
    The screen displays the Hybrid Term Structure Weights for the selected Interest Rate Curves and the Merge type Hybrid Curve.
  3. By default, all the Term Points are selected and displayed. You can uncheck one or more Term Points.
  4. Enter the Terms and Multipliers for each of the selected Terms.
    OR Optionally, you can select the Moving Average Term toggle switch to define the Terms and Multipliers for the selected terms at once.
  5. Enter the Weights for the each term and respective Historical Effective Dates. By default, all the Weights are zero. You can change the values as per your requirement.
  6. Click Apply to save the Terms in the grid.