Use the Interest Rate Policy window to establish the minimum and maximum percentage of your total funding or investments that you want to associate with a fixed interest rate. You can set up a global interest rate policy for all companies in Treasury, or you can set up interest rate policies for specific currencies. For example, you can set a policy where only 5 to 20 percent of your USD funding deals are allowed to be fixed rate deals.
You can also use the Interest Rate Policy window to establish your maturity profile policy. A maturity profile policy sets the percentage of maturities that you want to occur during certain time periods. For example, you could set a policy where 25 percent of your deals are allowed to mature within a 1 to 3 month period, 50 percent are allowed to mature within 3 to 9 months, and 25 percent are allowed to mature in 9 months or more.
Use the Interest Rate Policy window to establish your interest rate policies by currency.
In the Interest Rate Policy window, select the currency for which you want to establish an interest rate policy. Choose All if you want to set a policy for all currencies.
In the Invest/Fund field, choose Invest to set the policy for total investments or choose Fund to set the policy for total funding.
In the Min % Fixed and Max % Fixed fields in the Interest Rate Policy region, enter the minimum and maximum percentage of your total investments or funding for which you want to allow fix interest rates.
In the Maturity Profile Policy region, define the maturity profiles for the interest rate policy by doing the following:
Suggestion: To create an effective maturity profile policy, ensure that you define a policy for all possible maturity time frames. If you define multiple maturity profiles, leave the Period From field in the final maturity profile blank so that Treasury retrieves all maturities.
In the Period From and Type fields of the Maturity Profile Policy region, define the earliest time for which you want to set the policy. For example, 0 Months.
In the Period To and Type fields, define the latest time for which you want to set the policy. For example, 3 Months.
Enter a description of the maturity you are specifying.
In the Maximum Band field, enter the percent of total maturities that you want to associate with the time frame. For example, enter 10 to allow only 10 percent of your interest funding to have maturities during the specified time frame.
Save your work.