Adding Custom Key Rates

Use this information to add custom key rates.

  1. Navigate to Setup > Key Rates.
  2. Select "" Add.
  3. Select Rate for the Type.
  4. Choose the category that this rate belongs to in the Belongs To field.
    • Other
    • Any custom category

    When a yield curve category is selected, several additional fields must be defined.

    Tip: The Belongs To field can also be used to move existing key rates to different categories.
  5. Enter a unique Rate Name.
  6. Define whether the numeric value that you enter in Yield Curve Term refers to Days or Months.
    This field is available for yield curve key rates only. Points on a yield curve are arranged in ascending term order.
  7. Enter the rate for the selected date for the Current Rate.
  8. Enter positive or negative values for Profitability FTP Spread and Pricing FTP Spread for yield curve key rates only.
    The values entered in these fields add to or subtract from the Current Rate. When you save the custom key rate, the effect of these fields is seen in the FTP Profitability and FTP Pricing columns that appear when you highlight the yield curve category. Adjusting the FTP spreads affects the cost of funds and value of funds calculations.
  9. Select Custom for the Formula if you want to use a formula for key rate calculations.
    This option is not available if Use Key Rate Tie is selected. If you apply a custom formula, then the rate that is determined from the formula is applied for the entire month.
    For example, formulas can be used to create blended rates on key rates that you can assign on the Funds Transfer Pricing page.
    1. Select Customize Formula to define a formula for the key rate on the Customize Formula page.
    2. Enter the Formula.
      Switch between Data and Functions for the Type to build your formula. If Formula is selected, then use the Function drop-down list to show more formula options. If Data is selected, then use the Account and Time Frame fields to customize the formula.
    3. Select Results to review the formula results.
    4. Select Apply.
  10. Select Use Key Rate Tie, and then complete the fields.
    This option is not available if you are using a custom formula.
    1. Select a Key Rate.
    2. Select Manual or Calculated Spread for the Spread Method.
    3. Enter the Spread value if you selected Manual for the Spread.
    The rate for the key rate tie appears in Ending Rate.
  11. Select Lifetime Limits, and then complete the fields.
    1. Enter the Cap.
    2. Enter the Floor.
  12. Select Periodic Limits, and then complete the fields.
    1. Enter the Max Rise.
    2. Enter the Max Fall.
  13. Select Save.

After a new key rate is created, you can change the Time Frame and Current Rate fields to update its rate. If you have not manually entered a rate for a particular date, then the most recent prior rate appears.

Note: When you change a Time Frame date, every key rate on the Key Rates page shows a rate that corresponds to the selected date.
Parent topic: Key Rates