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How to Set Cap / Floor With a Value of 0 for an ALM Dynamic Process (Doc ID 2228349.1)

Last updated on MAY 14, 2021

Applies to:

Oracle Financial Services Asset Liability Management - Version 6.1.1 to [Release 6 to 8.1]
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Asset Liability Management (ALM)


How to set a Rate Cap/Floor with a value of 0 for an ALM dynamic process?

Is there a way to create a Product Characteristics assumptions for New Business in order for the Cap or Floor to have a level of 0%? If defining the Floor 0% and the Cap 1%, only the Cap is taken into consideration. If setting a Floor to 2% and a Cap of 0%, only the Floor is taken into consideration.  It appears that in order for the Cap or Floor to be taken into account, they need to be different than 0.

However, if it is required to set a Floor or Cap of 0% how to do this? Additionally, it appears the interface does not allow the use of negative values. The negative values, might also come in handy.  For example: the forecast values of the interest rate codes (IRCs) are going down to -4%.  The floor is not set for the IRC in the Forecast Rates screen (minimum rate is set to -99), as different products could have different floors (i.e, one of -1% and another one of -2%). How can these be setup to take those floors into account?

Please take into consideration, that in the Forecast Rates definition, the Minimum Rate is set to -99 as it is required for some rates in the Forecast Rates rule to have values under 0%.


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