Decay Methods

Decay methods determine how basic decay rates are calculated.

There are three available types of decay methods:

• Annual - Assumes that a constant portion of a non-maturity deposit account's balance decays each month. Decay speeds are entered as annual values. The Annual rate is calculated like the CPR prepayment method.
• Monthly - The decay rate is expressed as a monthly rate. The Monthly rate is calculated like the SMM prepayment method.
• % of Total Balance - A non-maturity deposit account's balance in the current month that is used to calculate decay amounts in all other time frames.

You can only use values between 0 through 100 percent for these methods.