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See the following figure for a sample grouped amortization rates schedule.
Linkage of Convertible Bonds
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Considerations during implementation include:
If converting entities onto Eagle, once conversion activity is booked, the NAIC Designations on the conversion activity may need to be updated to allow for proper IMR treatment of future sales.
If the designation as of conversion date differs from the designation as of the date of purchase, the historical designation should be updated to reflect the initial designation. A historical designation should be added for a date equal to the trade date of the activity. This is used at the time of disposal to determine the holding period designation delta.
If the designation of the security was ever a 6 for bonds or 4, 5 or 6 for preferred stock prior to conversion onto Eagle, the Max NAIC Designation (ISTAR.LOT_POSITION.BV_INCOME_EXP_IND) should be updated to reflect this designation. Alternately, historical designations should be added for any securities that ever had one of these designations. These historical designations are used when populating the Max NAIC Designation on the first conversion record in the ISTAR warehouse, and are ultimately used at the time of disposal when determining maximum designation used to determine IMR eligibility.