Incorrect BSP New Business Beginning/Ending Transfer Rate for Straight Term FTP (Doc ID 2211871.1)

Last updated on DECEMBER 07, 2016

Applies to:

Oracle Financial Services Balance Sheet Planning - Version 8.0.2.0.2 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)

Symptoms

On : 8.0.2.0.2 version, Calculation Engine

Wrong transfer pricing result for product defined to use straight term FTP method.


Steps:
1. A CD product defined to use a straight term FTP method.
    The default maturity mix is 33% 1M, 32% 3M, 35% 6M.
    The yield curve holding forecast rates for June FY2016 has the following forecast rates: 1M =.4425, 3M =.646, 6M = .9339.
    Assigned this yield curve as both the market rate interest rate code and the transfer rate interest rate code n COA characteristics,
    Amrt type code is 700, non-amortizing.

2. The calculated rates are correct for new add balance, but the calculated transfer rates are incorrect.
    It appears that the 1M rate of 4.425% is being assigned for all three terms.

Cause

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