Incorrect Cash Flow Weighted Term Transfer Rate Based On Generated Cash Flows
(Doc ID 2957069.1)
Last updated on DECEMBER 06, 2024
Applies to:
Oracle Financial Services Funds Transfer Pricing - Version 8.1.2 and laterInformation in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Analytical Applications Infrastructure (OFSAAI / AAI)
Oracle Financial Services Funds Transfer Pricing (FTP)
Symptoms
On FTP 8.1.2 it appears that the LIQUIDITY_PREMIUM_RATE assigned incorrectly based on Cash Flows.
Have an instrument with AMRT_TYPE_CD=801 (Level Principal Schedule) which is transfer priced on Cash Flow Weighted Term method. The FSI_D_PAYMENT_SCHEDULE supplies the cash flow dates and amounts to FSI_O_PROCESS_CASH_FLOWS.
The problem is that the rate which this instrument picks up from detailed cash flows to report in FSI_D_INVESTMENTS.TRANSFER_RATE does not match up with the term point from the ORIGINATION_DATE to the AS_OF_DATE of the instrument.
It is required to prove out the rate that is assigned to this instrument to our business partners, based on the cash flows produced.
LIQUIDITY_PREMIUM_RATE assigned in FSI_D_INVESTMENTS: 0.747731
EXPECTED BEHAVIOR
It is expected that the rate assigned should be a linear interpolation between 0.774728 & 0.780883 in FSI_O_PROCESS_CASH_FLOWS for CASH_FLOW_DATEs 2/20/2023 & 3/20/2023 for 28th FEB 2023.
Changes
Cause
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In this Document
| Symptoms |
| Changes |
| Cause |
| Solution |
| References |