Deferred Runoff Calculation Generates Wrong Result in RM 4.5.39
Last updated on JULY 31, 2017
Applies to:Oracle Risk Manager - Version 4.5 to 4.5.40 [Release 4.5]
Information in this document applies to any platform.
Oracle Financial Services Applications (OFSA) 4.5.39
Note: All OFSA 4.5 products have reached sustaining support.
Oracle Risk Manager process generates incorrect deferred run off (Financial Element 540) result as follow:
- The deferred run off computed by Oracle Risk Manager does not reconcile with expected results when AS_OF_DATE is between LAST_PAYMENT_DATE and NEXT_PAYMENT_DATE.
- The deferred run off computed by Oracle Risk Manager matches expected results when AS_OF_DATE is LAST_PAYMENT_DATE and PMT_FREQ_MULT=‘D’.
- The deferred run off amortization is higher than expected and completes much before maturity for instruments purchased at discount.
- The deferred run off is positive for some instruments purchased at premium followed by large negative run off in last bucket.
- Yield computed by Oracle Risk Manager is higher than expected value.
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