Identifies the name of the accounting rule established in the Create Accounting Rules panel. You must create this value prior to creating an amortization rule, and can select all established accounting rules from a list. When the system performs a lookup for the accounting rule, Eagle Accounting populates tag 4629, which is the Instance Number for the accounting rule. When you submit a new amortization rule, Eagle Accounting also creates an Instance Number (tag 4256) for the amortization rule. The system provides the following accounting rules for amortization/accretion:

• DefaultEY. Constant yield amortization.
• DefaultEYAmortAtDisp. Effective yield amortization with amortization at disposition.
• DefaultSL. Straight line amortization.
• DefaultSLAmortAtDisp. Straight line amortization with amortization at disposition.
• DefaultSLA. Straight line actual amortization.
• DefaultSLAAmortAtDisp. Straight line actual amortization with amortization at disposition.
• DefaultNone. No amortization.
• DefaultNoneAmortatDisp. No amortization with amortization at disposition.

Optional. Identifies the processing security types (PST) to which the amortization accretion rule applies. If you:

• Select a value for this field, the rule you are adding applies to securities with that processing security type, provided you do not set up a rule for a Primary Asset ID that also has that security type. For more information, see Understand the Amortization/Accretion Security Type.
• Leave blank this field, along with Amortization Accretion Rule Type, Issue Name, and Primary Asset ID fields, the rule you are adding applies as the accounting basis default, or a generic rule, for the Accounting Basis.

If you define the rule at the security level, specifies the name of the security. Otherwise, if you leave this field blank, the system applies the rule to all securities within the entity.

Issue Name, Cross Reference ID (tag 14), and Cross Reference Type (tag 1432) are optional fields. Entering a value in either the Cross Reference ID or Issue Name field creates an amortization rule at the position level for that specific security identifier. If you perform a lookup on either the Issue name or Cross Reference ID field, Eagle Accounting returns the other field's value, and also returns Security Alias (tag 10) to the panel (this field is hidden and locked). You can only select securities with processing security types eligible for amortization in this panel.

If you define the rule at the security level, specifies the cross reference or primary asset identifier type for the security, such as CUSIP, ISIN, and SEDOL. Otherwise, you can leave this field blank.

Issue Name (tag 961), Cross Reference ID (tag 14), and Cross Reference Type (tag 1432) are optional fields. Entering a value in either the Cross Reference ID or Issue Name field creates an amortization rule at the position level for that specific security identifier. If you perform a lookup on either the Issue name or Cross Reference ID field, Eagle Accounting returns the other field's value, and also returns Security Alias (tag 10) to the panel (this field is hidden and locked). You can only select securities with processing security types eligible for amortization in this panel.

If you define the rule at the security level, specifies the identification number of the cross reference or primary asset ID for the security. Otherwise, you can leave this field blank.

Issue Name (tag 961), Cross Reference ID (tag 14), and Cross Reference Type (tag 1432) are optional fields. Entering a value in either the Cross Reference ID or Issue Name field creates an amortization rule at the position level for that specific security identifier. If you perform a lookup on either the Issue name or Cross Reference ID field, Eagle Accounting returns the other field's value, and also returns Security Alias (tag 10) to the panel (this field is hidden and locked). You can only select securities with processing security types eligible for amortization in this panel

Required. Specifies the beginning date that the system begins to apply the amortization rule to the fund. If the rule should no longer be applied after a certain date, you enter the End Date (tag 221) on the Edit Amortization & Accretion Rules panel, and then create a new amortization rule in the Create Amortization & Accretion Rules panel with a Rule Begin Date equal to the previous Rule End Date, plus one day.

For example, if the End Date of a previous amortization rule is December 31st, the Begin Date of the new amortization rule is January 1st.

Determines how to recognize amortization on bonds. You can use this field in conjunction with the Begin Date and End Date fields to establish separate amortization rules for tax lots purchased at a Market Discount and at a Market Premium, at an Accounting Basis-level, at a Processing Security Type-level, and/or at a Security ID-level.

Options include Market Discount, Market Premium, Both, and None. If you select a value of Both or None, the amortization rule applies to both market discount and market premium tax lots. The system prevents you from setting up a separate amortization rule for either market premium or market discount.

Specifies the tax status of the securities to which the amortization/accretion rule applies. Used in conjunction with the Begin Date and End Date fields to establish separate amortization rules for taxable non-taxable securities at an accounting basis-level, at a processing security type-level, and amortization/accretion security type or to create a simple rule for both taxable and non taxable. The system uses the Federal Tax Indicator field (tag 1545) at the security level to determine the security's tax status.

For example, you can use this field working with the Amortization/Accretion Election field to establish an amortization rule for taxable bonds purchased at a Market Premium to utilize a yield to Best Call and an amortization rule for non taxable bonds purchased at a market premium to amortize a Yield to worst.

Options include:

• Taxable
• Non-Taxable
• Both (Default)

Specifies the type of amortization methodology that Eagle Accounting can lock in and apply. Options include:

• Default. The legacy amortization methodology utilized in Eagle Accounting prior to the 2017 release. The Default amortization methodology is prospective by nature with the ability to offer ad hoc retrospective amortization true ups. Prospective in nature means that when an amortization yield is calculated and applied, the amortization is calculated from the start of the current coupon period up to the current earn thru date. In the event that a retrospective amortization calculation is executed, that retrospective amortization yield is held constant for the current coupon period. The next following coupon period, Eagle Accounting will calculate a new prospective yield based upon projected cash flows and amortize cost as of the start of the coupon period. If you select this option, the Prospective Amortization Yield Recalculation Frequency field becomes visible and required. The Prospective Amortization Yield Recalculation Frequency tells the Amortization Process when and under what conditions to recalculate amortization yields.
• Prospective. The Prospective amortization methodology is very similar to the Default amortization methodology, where amortization yields and changes in amortization are calculated and applied prospective from the start of the coupon period. The difference is that the prospective amortization methodology does not allow any retrospective amortization calculations. If you select this option, the Prospective Amortization Yield Recalculation Frequency field becomes visible and required.
• Retrospective. The retrospective amortization methodology calculates the initial amortization yield at time of purchase, locks that yield in, and does not recalculate and apply a new amortization yield until a retrospective amortization calculation is executed. It then holds that yield constant until another retrospective amortization yield is recalculated. If you select this option, the Automatically Apply Retrospective Amortization field becomes visible and required. You can manually invoke Eagle Accounting's retrospective amortization calculation or can schedule it to execute based upon certain conditions or frequency.
• PAC NPV. In the Default and Prospective amortization methodology for yield-based amortization methods, Eagle Accounting amortization process determines the amortization for the current coupon period by calculating and apply the amortization yield to the start of the coupon period's book cost and applying the appropriate amortization method in order to determine the amount of total income that is contributed by amortization as opposed to stated income. The income is then allocated across the days in the period. If you select this option, the Automatically Apply Retrospective Amortization field becomes visible and required.
  
  The PAC method takes a different approach where a yield is used to discount future cash flows to derive a net present value (NPV) calculation. This NPV is then used as the end of period book cost for comparison against the beginning of period book cost. The PAC method locks in and utilizes the initial cash flows to discount future cash flows to derive an amortization yield.
  
  For discount lots, when the end of period net present value of the lot is greater than the beginning of period book cost (adjusted for interim principal cash flows (factor payments and amortized cost of sales), the difference is recorded as deferred market discount. If the end of period adjusted NPV is less than the beginning of period book cost, no deferred market amortization discount is accrued.
  
  For premium lots, when the end of period net present value of the lot is less than the beginning of period book cost (adjusted for interim principal cash flows (factor payments and amortized cost of sales), the difference is recorded as premium amortization. If the end of period adjusted NPV is greater than the beginning of period book cost, no premium amortization discount is accrued. 

Specifies the amortization/accretion method. For more information, see Understand the Amortization/Accretion Method. Options include:

• Constant Yield 1. Calculates where the amortization should be each day, life-to-date, based on the constant yield amortization calculation and the security's day count.
• Constant Yield 2. Calculates the period-to-date amortization using the constant yield amortization formula and divides the calculated period-to-date amortization by the actual number of days in the coupon period.
• Level Yield 1. Calculates where the amortization should be each day, life-to-date, based on the level yield amortization calculation and the day count of the security.
• Level Yield 2. Calculates where the amortization will be at the end of the period and then divides the total amount of amortization by the actual number of days left in the periods.
• Level Yield Daily Compounding 1. Calculates amortization using the level yield 1 calculation, but compounds the amortization daily, rather than on the coupon date of the security.
• Level Yield Daily Compounding 2. Calculates amortization using the level yield 2 amortization calculation within coupon periods that have daily compounding.
• Straight Line. Calculates amortization by adjusting the cost of the holding toward par by equal daily amounts, throughout the life of the bond. The daily amortization/accretion delta for straight line amortization is calculated by subtracting the original cost from par, then dividing the result by the number of days in the life of the issue, from settlement date. Straight-line amortization is used mainly for short-term debt securities, but you can use it for any security type if appropriate. The system supports two different methods of calculating straight-line amortization: Straight Line Actual and Straight Line.
• Straight Line Actual. Calculates amortization using the daily factor amount, which is calculated by subtracting the original cost from par, then dividing the result by the actual number of days in the life of the issue from settlement date. This amortization method uses an actual day count to determine the amortization daily delta (the daily change in the amortized amount). For example, a bond with a 30/360 Day Count basis using this amortization method would have an amortization daily factor applied on the 31st day of the month.
• None. Does not calculate amortization/accretion.

• Yes. Allows the earnings processes to automatically calculate a retrospective adjustment based on the values in the Retrospective Type field and Retrospective Amortization Recalculation Frequency field.
• No. Default. Eagle Accounting's earnings process does not automatically calculate a retrospective adjustment.

Determines the starting point for the retrospective amortization calculation date when executing an automatic retrospective adjustment. This field appears when you set the Automatically Apply Retrospective Amortization field to Yes. Options include:

• Conversion/Settlement Date. Eagle Accounting calculates the amortization based on the Settlement Date of the lot. It allows you to "true up" amortization based on the conversion date going forward on lots converted on to Eagle Accounting, and settlement date forward for lots purchased on to Eagle Accounting.
• Original Settlement Date. Eagle Accounting calculates the amortization based on the Original Settlement Date. It allows you to "true up" amortization based on the Original Settlement Date of the lots converted onto Eagle Accounting, and from the Settlement Date for lots purchased directly into Eagle Accounting. This option acts exactly like a Retrospective Amortization Calculation when you change the amortization rule based on an effective date.

Determines when and under what conditions the system performs an automatic retrospective amortization calculation. This field appears when you set the Automatically Apply Retrospective Amortization field to Yes.

When you set up an amortization/accretion rule to automatically recalculate yields when third party cash flows change, third party cash flow changes include changes to source, cash flow type, requested speed type, and effective date. Changes also include new or cancelled records with a Released status, or an update from a Pending Status to a Released status.

When you set up an amortization/accretion rule to automatically recalculate yields when third party prepayment speeds change, prepayment speed changes include changes to source, effective date, and security alias.

Options include:

• 1_M (Monthly). Eagle Accounting calculates an initial yield as of settlement date of the tax lot. Every 1 month starting from the retrospective start date, Eagle Accounting automatically calculates a new yield and calculates retrospective amortization adjustment when earnings is invoked. If you select this option, you must specify a value for the Retrospective Amortization Recalculation Frequency and Retrospective Roll Convention fields.
• 3_M (Quarterly). Eagle Accounting calculates an initial yield as of settlement date of the tax lot. Every 3 month starting from the retrospective start date, Eagle Accounting automatically calculates a new yield and calculates retrospective amortization adjustment when earnings is invoked. If you select this option, you must specify a value for the Retrospective Amortization Recalculation Frequency and Retrospective Roll Convention fields.
• 6_M (Semiannual). Eagle Accounting calculates an initial yield as of settlement date of the tax lot. Every 6 month starting from the retrospective start date, Eagle Accounting automatically calculates a new yield and a retrospective amortization adjustment when earnings is invoked. If you select this option, you must specify a value for the Retrospective Amortization Recalculation Frequency and Retrospective Roll Convention fields.
• 12_M (Annual). Eagle Accounting calculates an initial yield as of settlement date of the tax lot. Every 12 months starting from the retrospective start date, Eagle Accounting automatically calculates a new yield and a a retrospective amortization adjustment when earnings is invoked. If you select this option, you must specify a value for the Retrospective Amortization Recalculation Frequency and Retrospective Roll Convention fields.
• CF/PRE (Third-party cash flow or prepayment speed changes). Eagle Accounting calculates an initial yield as of settlement date of the tax lot. It calculates a new yield and retrospective adjustment when either applicable third party cash flow or applicable prepayment time series information changes.
• CF/PRE/FRE (Third-party cash flow/speed/coupon period changes). Eagle Accounting calculates an initial yield as of settlement date of the tax lot. It calculates a new yield and retrospective adjustment when either applicable third party cash flow or applicable prepayment time series information changes and at the start of every coupon period.
• FRE (Beginning of coupon period). Eagle Accounting calculates an initial yield as of settlement date of the tax lot. It calculates a new yield and retrospective adjustment at the start of each coupon period.
• ICF (Initial Third Party Cash Flow released). Eagle Accounting calculates an initial yield as of settlement date of the tax lot. It calculates a new yield and retrospective adjustment when there are changes to the applicable intial third party cash flow record.
• NONE (None). Eagle Accounting calculates an initial yield as of settlement date of the tax lot. When the earnings process is invoked, it calculates a new yield and does not calculate a retrospective adjustment.

Further defines the automatic retrospective calculation schedule. Options include Last Day of the month and Same Day of the month.

For example, if the First Retrospetive Amortization Start Date was 20170930, the Retrospective Amortization Frequency is quarterly, and Retrospective Roll Convention is Same Day Of Month. The Earnings process automatically calculates a Retrospective Amortization adjustment every December 30, March 30, and June 30. In the same example, with exception the Retrospective Roll Convention is set to Last Day of Month. The Earnings process automatically calculates a Retrospective Amortization adjustment every September 30, December 31, March 31, and June 30.

Determines when and under what conditions the system performs a prospective amortization calculation. This field appears when you set the Amortization Methodology field to either Default or Prospective. For more information, see Understand the Prospective Amortization Yield Recalculation Frequency. Options include:

• 1_M (Monthly). Eagle Accounting calculates an initial yield as of settlement date of the tax lot and every 1 month starting from the prospective start date. If you select this option, you must specify a value for the Prospective Amortization Start Date and Prospective Roll Convention fields.
• 3_M (Quarterly). Eagle Accounting calculates an initial yield as of settlement date of the tax lot and every 3 months starting from the prospective start date. If you select this option, you must specify a value for the Prospective Amortization Start Date and Prospective Roll Convention fields.
• 6_M (Semiannual). Eagle Accounting calculates an initial yield as of settlement date of the tax lot and every 6 months starting from the prospective start date. If you select this option, you must specify a value for the Prospective Amortization Start Date and Prospective Roll Convention fields.
• 12_M (Annual). Eagle Accounting calculates an initial yield as of settlement date of the tax lot and every 12 months starting from the prospective start date. If you select this option, you must specify a value for the Prospective Amortization Start Date and Prospective Roll Convention fields.
• CF/PRE (Third-party cash flow or prepayment speed changes). Eagle Accounting calculates an initial yield as of settlement date of the tax lot and when there are changes to third party cash flow data, prepayment time series data, and at the start of every coupon period.
• CF/PRE/FRE (Third-party cash flow/speed/coupon period changes). Eagle Accounting calculates an initial yield as of settlement date of the tax lot and when there are changes to third party cash flow data, prepayment time series data, and at the start of every coupon period.
• DEF (Reference data affecting amortization yield (D)). Default. Every time there is a change in an SMF Field that affects yield calculation, the earnings process calculates a new amortization yield(s) the next time earnings are run. Eagle Accounting uses the SMF Earnings indicator field to track changes to SMF reference fields that affect yields.
• DEFCF (Changes for amort yield and third-party cash flow). Every time there is a change in an SMF field that affects yield calculation and any change to data in the third party cash flow table, the earnings process calculates new amortization yields.
• FRE (Beginning of coupon period (FRE). Eagle Accounting calculates an initial yield as of settlement date of the tax lot. It only calculates new yields at the start of each new coupon period.
• ICF (Initial Third Party Cash Flow released). Eagle Accounting calculates an initial yield as of settlement date of the tax lot. It only recalculates a new yield if there are changes to the initial Third Party Cash flow record.
• NONE (None). Eagle Accounting calculates an initial yield as of settlement date of the tax lot. It does not recalculate the amortization yield for the life of the tax lot, regardless of changes to reference information.

Determines amortization on caps/floors. This option does not apply to Average Cost. Options include:

• No Restriction. Amortization can move in any direction and can amortize away from the redemption price. For example, things that could cause amortization to move away from par include scalloping, long or short coupon periods caused by business day convention overrides, and put or call information.
• Book Price Cannot Move Away From Par. In the event that amortization is moving away from par (due to a mathematical anomaly or call or put data), the system does not apply amortization during that period and recalculates a new yield at the start of the next coupon period. Calculation of the new yield is based upon the amortized cost as of that date and the applicable amortization rule.

Specifies whether the system amortizes at disposition. Options include:

• Yes. Amortize at disposition. Post market premium amortization, OID amortization, and acquisition premium to the general ledger and subledger on a daily basis.
• No. Do not amortize at disposition. Post amortization/accretion to the subledger and general ledger on a daily basis based on the amortization rule.

Specifies whether you want to recognize OID (original issue discount) amortization on bonds issued at a discount price. The system determines OID eligibility by checking the OID Indicator field (tag 218) on the security master file. Options include:

Further defines the automatic Prospective calculation schedule. This field appears when you set the Prospective Amortization Recalculation Frequency field to either Monthly, Quarterly, Semiannual, or Annual. Options include Last Day of the month and Same Day of the month.

For example if the First Retrospetive Amortization Start Date was 20170930, the Prospective Amortization Frequency is quarterly, and Prospective Roll Convention is Same Day Of Month. The Earnings process will automatically calculate a Prospective Amortization adjustment every December 30, March 30 and June 30. In the same example, with exception the Prospective Roll Convention is set to Last Day of Month, The Earnings process will automatically calculate a Prospective Amortization adjustment every September 30, December 31, March 31 and June 30.

Controls the directions that amortization can move in. This option does not apply to Average Cost. Options include:

• No Restriction. Amortization can move in any direction and can amortize away from the redemption price. For example, things that can cause amortization to move away from par include scalloping, long or short coupon periods caused by business day convention overrides, and put or call information.
• Book Price Cannot Move Away From Par. In the event that amortization is moving away from par (due to a mathematical anomaly or call or put data), Eagle Accounting does not apply amortization during that period and recalculates a new yield at the start of the next coupon period. Calculation of the new yield is based upon the amortized cost as of that date and the applicable amortization rule.

NOTE: If you set up a security to amortize, regardless of how the amortization rule allows the security to amortize away from par, or does not allow the security to amortize away from par, Eagle Accounting always amortizes to the redemption date and redemption price. (Redemption date and redemption price includes Maturity Date and Maturity Price, the date and price calculated for the worst call date, or the date and price calculated to the best put date.) 

Specifies whether the system amortizes at disposition. Options include:

• Yes. Amortize at disposition. If you select this option and you purchase the security at a discount, Eagle Accounting only posts Market Discount Amortization and Acquisition Discount Amortization to the general ledger at time of disposition. Beyond this, Eagle Accounting only posts the amount of amortization so as not to create a loss on the disposition. If you purchase the security at a premium, Eagle Accounting posts Market Premium Amortization, OID Amortization, and Acquisition Premium to the general ledger and sub ledger on a daily basis. Also, you must select Yes if you plan to set the Paydown Costing Allocation field to the Accelerated Market Discount Recognized method.
• No. Default. Do not amortize at disposition. Eagle Accounting posts amortization/accretions to the subledger and general ledger, based on the amortization rule, on a daily basis.

Determines whether Eagle Accounting recognizes OID amortization for an OID eligible bond that was repurchased at a discount and which OID methodology to apply in the calculation of Acquisition Premium and Acquisition Discount. Eagle Accounting determines OID eligibility by checking that the OID Eligible (tag 218) field on the SMF is set to Yes, and that the Issue

Price of the bond is less than the

Maturity Price. If you recognize OID amortization, then for an OID eligible bond, Eagle Accounting calculates the adjusted issue price (calculation follows) for the settlement date of the bond, based on the

Constant Yield 2 method of amortization

. Options include:

• Yes. Eagle Accounting recognizes two different streams of amortization : an based upon the following methodology:
  1) OID stream of amortization, from the adjusted issue price to redemption date and redemption price, and an acquisition .
  2) Acquisition premium/discount stream from the purchase price of the bond to the adjusted issue price, from the purchase price of the bond to the adjusted issue price.
  Adjusted Issue Price = Issue Price + (amount of OID previously included in the gross income of the holder - amount of any payment previously made, other than qualified stated interest).
• No. If If you set this Recognize OID field to No, and the OID Indicator field on the SMF is set to Yes, the system Eagle Accounting only recognizes market discount amortization if the security is purchased at a discount, and the entity/ accounting basis recognizes market discount amortization. 

• Constant Yield Differential. If the OID Indicator field on the SMF is set to Yes and the Issue price of the bond is less than the maturity price, the system calculates the adjusted issue price for the settlement date of the bond based on the constant yield 2 method of amortization. The OID income is calculated in the same way it is when you select a value of Yes for this field. To calculate the amortization income, the system starts with the amortization stream from purchase price to maturity date and price. The OID stream value is then subtracted from the amortization stream value to compute the amortization income posting. If the purchase price is greater than the adjusted issue price at purchase (acquisition premium), the amortization income is negative. The Constant Yield Differential method does not apply to the Straight Line or Straight Line Actual amortization method. Eagle Accounting recognizes:
  1) OID stream of amortization, from the adjusted issue price to redemption date and redemption price.
  2) Acquisition Premium/Discount, calculated by total market amortization yield which in turn calculates the total amortization of tax lot. The total daily calculated amortization is then subtracted from the calculated daily OID to produce the Acquisition Premium/Discount Delta.

Indicates whether to use different amortization methods for original issue discount (OID) and market amortization. This field appears if you set the Recognize OID field to Yes. Options include:

• Use Main Amort Rule Method. Default. Indicates that you do not want amortization methods used for OID and market amortization to differ.
• Straight Line. Indicates that you want market discount amortization to use the straight line method and OID amortization to use your default amortization method. Select this option only if your default amortization method is not straight line. For example, if your default amortization method is constant yield, you can select this option to maintain separate amortization streams for OID and market discount amortization, using the straight line method for market discount and constant yield for the original issue discount stream.

Specifies whether you want to net the OID (original issue discount) amortization and the acquisition premium on the general ledger. Options include:

• Yes. For OID eligible bonds purchased at a discount, but still above the adjusted issue price, the system nets the values of the acquisition premium stream and OID amortization steam on the general ledger, and tracks the acquisition premium and OID amortization separately on the subledger. The system calculates the acquisition amortization premium stream daily delta in proportion to the amount of the OID being recognized.
• No. The system tracks the acquisition premium and OID amortization stream separately on the general ledger and subledgerconstant yield for the original issue discount stream.
• Use Main Amort Rule Method. Default. Indicates that you want to use the amortization methods specified in the Amortization/Accretion Method (tag 113) field for OID and market amortization.

Specifies whether you want to net the OID (original issue discount) amortization and the acquisition premium on the general ledger. For more information, see Understand the Premium Proportional Option. Options include Yes and No.

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Determines whether the guaranteed minimum in deflation protected ILB (inflation linked bond) securities is used in determining daily ILB income. This is specific to the derivation of daily ILB income. The current ILB index ratio is used in accrual and amortization processing. Options include Yes and No (Default).

Determines the amortization streams to which the system should apply the DeMinimis test, and what action should take place if a security fails the DeMinimis test. The DeMinimis test determines whether the amount to amortize is greater than ¼ of 1% (.0025) of the redemption price, multiplied by the number of complete years to redemption date. Options include:

• OID Only. The system only applies the DeMinimis test to the OID amortization stream.
• All Discount Purchases. The system applies the DeMinimis test to the entire total discount amortization stream. If you select this option, DeMinimis does not apply to securities bought at a market premium.
• Acquisition/Market Discount. The system applies the DeMinimis test to the market discount stream or for an acquisition discount amortization stream (an acquisition discount amortization indicates that an OID eligible bond is purchased below the adjusted issue price.
• Apply Each Independently. The system applies the DeMinimis test to the market discount stream and OID stream independently. If it determines the market discount stream to be deminimis, it discontinues the market discount stream. If it determines the OID stream to be deminimis, it discontinues the OID stream.
• None. The system does not apply the DeMinimis test.

Identifies what action takes place if the amortization stream specified in the DeMinimis Test Application field (tag 3935) fails the DeMinimis test. Options include:

• Discontinue Amortization Streams. If you set DeMinimis Test Application to All Discount Purchases, the Within DeMinimis Test Action field displays a value of Discontinue Amortization Streams, and you cannot change it. If you set DeMinimis Test Application to OID Only, you can set the Within DeMinimis Test Action field to a value of Discontinue Amortization Streams.
• Apply OID Only. If you set DeMinimis Test Application to Acquisition Discount/Market Discount, the Within DeMinimis Test Action field displays a value of Apply OID Only, and you cannot change it.
• Discontinue Amortization Streams. If you set DeMinimis Test Application to Apply Each Independently, the Within DeMinimis Test Action field displays a value of Discontinue Amortization Streams, and you cannot change it.
• Apply Market Discount. If you set DeMinimis Test Application to OID Only, you can set the Within DeMinimis Test Action field to a value of Apply Market Discount.

Specifies whether the system factors the call dates and prices into the amortization calculation. The system uses the calls, puts, sink, and pre-refunded information in the Schedule table for yield calculation, but processes calls, puts, sink payments, and transactions based on information in the Corporate Action table. Options include:

• Yield to Worst Call Date. Calculate the yield and amortization target date to the call date and price that gives the lowest yield for the tax lot. If the security is not called at the worst call date, calculate to the next worst call date. If no call date is available after the worst call date, amortize to maturity date. When calculating a yield to worst, the system includes the yield to maturity date and price in the calculation, so in some cases, the yield to worst could be the maturity date and price.
• Yield to Next Call Date. Calculate the yield and amortization target date to the next available call date and price in the schedule. If the security is not called at the next call date, calculate to the next call date in the schedule. If no call date is available after the last call date in the schedule, the system amortizes to maturity date.
• Yield to Next Call Date with Suspense. Amortize to the next call date and price while suspending any amortization of premium or accretion of discount if the next call date and price would cause the tax lot to amortize away from par.
• Do Not Recognize Call Feature. Ignore the call schedule located in the schedule table for the purpose of calculating an amortization yield and amortization target date.
• Yield to Best Call with Suspense. Select the call/put date and price between the yield date and maturity date that gives the highest yield. The yields to maturity and any pre-refunding are included as if they were calls. Calls and puts after any pre-refunding date are ignored. If this call/put price would cause amortization to move away from the bond's par value, hold amortization constant until this call/put date. When the call or put is not executed, repeat the process to find the highest remaining yield and its call or put date. While this calculation is intended for use with taxable securities purchased at a premium, it operates on any holding that meets the amortization/accretion rule's selection criteria.

Specifies whether the system factors the put dates and prices into the amortization calculation. The system uses the calls, puts, sink, and pre-refunded information in the Schedule table for yield calculation, but processes calls, puts, sink payments, and transactions based on information in the Corporate Action table. Options include:

• Do Not Recognize Put Feature. Ignore the put schedule located in the schedule table for the purpose of calculating an amortization yield and amortization target date.
• Yield to Best Put Date. Calculate the yield and amortization target date to the put date and price that gives the highest yield. If the security is not put at the best put date, calculate to the next best put date. If no put date is available after the best put date, amortize to maturity date. When calculating a yield to best, the system includes the yield to maturity date and price in the calculation, so in some cases, the yield to best could be the maturity date and price.
• Yield to Next Put Date. Calculate the yield and amortization target date to the next put date and price in the schedule. If the security is not put at the next put date, calculate to the next put date in the schedule. If no put date is available after the last put date in the schedule, the system amortizes to maturity date.
• Yield to Next Put Date with Suspense. Amortize to the next put date and price while suspending any amortization of premium or accretion of discount if the next put date and price would cause the tax lot to amortize away from par.

Determines whether the pre-refunded date is used during amortization. Options include:

• Recognize Pre-refunded Date. Default. This option supports legacy processing.
• Do Not Recognize Pre-refunded Date.
  
  • Recognize Pre-refunded Date using Announcement Date.

Indicates whether you want to recognize the step bond as a regular variable rate bond. Options include:

• Yes. The system recognizes the step bond as a variable rate bond. Future variable rates are ignored when calculating the amortization yield for the step bond.
• No. The system does not recognize the step bond as a variable rate bond. Future variable rates are recognized when calculating the amortization yield for the step bond.

Indicates the price methodology to use for convertible securities during amortization. Options include:

• Embedded Equity Option Value. Allows for the separation of the embedded equity option value from convertible bond acquisition cost by deriving the fixed income bond cost and utilizing that for amortization. The calculation for fixed income bond cost is as follows:  Fixed Income Bond Cost = Convertible Bond Acquisition Cost - Embedded Equity Option Value. If the fixed income bond cost is at a premium, the system amortizes to the system derived maturity price plus the embedded equity option value.
• Stated Redemption Price at Maturity. Default. Considers the value of the stock in determining the target maturity price. The calculation is as follows: Conversion Ratio * Market Value of Underlying Stock/10.

Determines which external cash flow record to use. If the system does not find a match, it uses the values in the Amortization Method field (tag 113) and Prepayment Assumptions field (tag 4518) to drive the calculation of amortization yields. Options include:

• Yes. Allows you to use externally calculated cash flows in the calculation of an amortization yield. The system discounts the cash flows in the Vendor Cash Flow table and applies amortization based on the amortization method established for the particular amortization rule. For example, if the amortization/accretion rule is established as constant yield 2, the system discounts the cash flows and applies amortization based on a constant yield 2 methodology. If you select this value, the Third Party Cash Flows Source Name field, the Cash Flow Type field, and the Requested Speed field appear, and are required.
• No. Does not use externally calculated cash flows in the calculation of an amortization yield.
• Automatic Adjustments. (Not used).

Specifies processing for changes to the change application amortization rule's begin and end dates. The system uses this field when you create a new accretion/amortization rule to replace an existing accretion/amortization rule. Options include:

• Prospective. Calculates the amortization yield based on the book cost, as of the amortization previous end date, and applies the new amortization rule going forward from the newly effective amortization rule begin date.
• Retrospective from Settlement Date. Calculates the amortization based on the settlement date of the lot. It allows you to "true up" amortization based on the conversion date going forward on lots converted to the Eagle system, and settlement date forward for lots purchased to the Eagle system.
• Retrospective Amortization from Original Settlement Date. Calculates the amortization based on the original settlement date. It allows you to "true up" amortization based on the original settlement date of the lots converted to the Eagle system, and from the settlement date for lots purchased directly to the Eagle system. This option acts exactly like a retrospective amortization calculation when you change the amortization rule based on an effective date.