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.