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Option
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Tag
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Description
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Coupon
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70
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Specifies the rate at which the security accrues interest. It is expressed as an accrual rate. A value of zero is required for zero coupon bonds.
Eagle Accounting uses the rate in the Coupon field in the earnings process for securities with a Fixed coupon type. For securities with a Variable Rate, Unscheduled Variable Rate, Step Coupon, Floating Rate, and Inverse Floating Rate Coupon types, the system does not use this field in the earnings process; it uses it for reference and reporting only.
If the value of this field changes after a position exists, provided the Coupon Type is Fixed, the change affect the current and future coupon periods' earnings. Prior coupon periods' earnings are not affected by a change to this field, unless earnings are rolled backed to that period and then rolled forward, or a trade is backdated for a previous coupon period and thus, when earnings roll forward, they pick up the new value when the earnings process runs.
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Coupon Type Code
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97
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Indicates the type of coupon associated with the security. Options include:
- Floating Rate. The security has fixed coupon dates and uses a variable rate that is based on an underlying index and index offset to calculate the coupon to use for earnings. You must enter the rate in the Variable Rate table.
- Variable Rate. The security has fixed coupon dates and uses a variable rate based on the security identifier to calculate the coupon for use in earnings. You must enter the rate in the Variable Rate table.
- Inverse Floater. The security has fixed coupon dates and uses a variable rate whose coupon rate is calculated inversely to the underlying index to which it is attached. When you select this value, the system displays the following fields: Inverse Floater Rate, Inverse Floater Multiple, Underlying Issue Name, Underlying Asset ID, and Index Offset. You must enter the rate in the Variable Rate table.
- Step Rate. The security has fixed coupon dates and uses a variable rate based on the security identifier to calculate the coupon for use in earnings. You must enter the rate in the Variable Rate table. The system recognizes this option as a step bond (also called a step coupon bond, step up bond, or step down bond).
- Fixed Rate. The security has fixed coupon dates and has a fixed coupon rate to calculate the coupon for use in earnings.
- Unscheduled Variable Rate. The security has unscheduled payments and accrues interest based on a rate you enter in the Variable Rate table.
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Day Count Basis
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471
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Specifies the number of days assumed in a month or year when interest rates are quoted. For more information, see the Fixed Income Processing Guide.
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Payment Frequency
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2287
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Specifies the frequency at which the security pays interest. Eagle Accounting provides a complete list of valid payment frequencies in the PAYMENT FREQ code category, as follows. The following values show the Payment Frequency value, along with the Payment Frequency Code value in parentheses.
- Daily (1_D)
- Weekly (7_D)
- Monthly (1_M)
- Bi-Monthly (2_M)
- Quarterly (3_M)
- 3 Times a Year (4_M)
- Semi-annual (6_M)
- 28 Days (28_D)
- 35 Days (35_D)
- 49 Days (49_D)
- 91 Days (91_D)
- 182 Days (182_D)
- Annual (12_M)
- At Maturity (Mat)
For MBS/ABS securities, valid Payment Frequencies in Eagle Accounting include Monthly (1_M), Quarterly (3_M), Semi-Annual (6_M), and Annual (12_M).
NOTE: The first and last coupon date must be in sync with the payment frequency of the bond.
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Payment Frequency Code
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472
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Specifies the code that represents the payment frequency.
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Business Day Convention
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1536
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Determines when a coupon should pay interest should the scheduled coupon due date occur on a non-business day.
The system uses the Business Day Convention (tag 1536) in conjunction with Payment Frequency (tag 472), and it can also be used in conjunction with Day of the Month Override (tag 1533) (provided that field's value is set to Week Day of Coupon), to determine how Eagle Accounting should calculate a coupon period when the coupon end or begin date occurs on a non-business day (or when a coupon should pay if the scheduled coupon due date occurs on a non-business day). Whether or not a day is a business day is determined by the calendar for the security's Issue Country, and not the entity's calendar. The difference between adjusted and unadjusted elements of the business day payment conventions has to do with whether accruals are affected by rolling from one payment date to the next. Adjusted Business Day Conventions have their coupon periods and accruals adjusted for non-business days, and unadjusted Business Day Conventions have the actual Settlement Date of the coupon adjusted, based on business days. The valid Business Day Convention codes and the corresponding Business Day Conventions follow.
- Modified Business Day – Adjusted (ADJMBC). If a coupon is scheduled to pay on a nonbusiness day, with a Modified Business Day Convention-Adjusted, the coupon period end date is adjusted to include the next business day, unless the next business day falls in the next calendar month; in such a case, the coupon end date are adjusted back to the first business day preceding the non-business day. The owner of the bond is compensated for the extra days of interest accrued if the bond is paid on the next business day, or not compensated in the event that the bond is paid earlier.
- Modified Business Day – Unadjusted (MBC). If a coupon is scheduled to pay on a nonbusiness day, the coupon is paid on the next business day, unless the next business day falls in the next calendar month; in such a case, the payment date is the first business day preceding the non-business day. With Modified Business Day Convention-Unadjusted, the actual Settlement Date of the coupon is changed, but the coupon period begin and end dates remain unchanged.
- Following Business Day – Adjusted (ADJFWD). If a coupon is scheduled to pay on a nonbusiness day, the coupon period end date is adjusted to include the next business day, and the owner of the security is compensated for the extra day of interest.
- Following Business Day – Unadjusted (FWD). If a coupon is scheduled to pay on a nonbusiness day, the coupon is paid on the next business day, and the owner of the security is not compensated for the extra day of interest. With Following Business Day Convention-Unadjusted, the actual Settlement Date of the coupon is changed, but the coupon period begin and end dates remain unchanged.
- Following Business Day - Adjusted Modified Payment Roll (ADJROLL). This option supports bonds with an adjusted forward payment roll convention. A forward roll payment roll convention occurs when the coupon period is adjusted forward due to a non-business day. In this case, the coupon schedule does not revert back to the previous scheduled coupon day but rolls forward based on the new coupon day.
For example, a bond with a forward roll payment convention has a scheduled coupon date of the 17th of a month and the 17th occurs on a non-business day. Therefore, the coupon is paid on the next business day. In this example, the 18th of the month is the next business day and the owner of the bond is compensated one extra day of interest as a result of extending the coupon period. However, with the forward roll payment convention, the next coupon date does not revert back to the 17th of the month, but rather the next future scheduled coupon date to pay occurs on the 18th of the month, rolling forward, providing that day does occur on a business day. - Preceding Business Day – Adjusted (ADJBACK). If a coupon is scheduled to pay on a nonbusiness day, the coupon is paid on the first business day preceding the non-business day.
- Preceding Business Day – Unadjusted (BACK). If a coupon is scheduled to pay on a nonbusiness day, the coupon is paid on the first business day preceding the non-business day.
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Specifies the day of the month in which the coupon is payable. If you select a value for Business Day Convention (tag 1536) other than None, you must specify the day of the month on which the coupon pays. You can enter a value from 1 to 31.
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Business Calendar Name
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1480
Specifies the business calendar for the security. The system uses the value to identify business days and non business days for the purposes of determining the coupon payment date and coupon payment schedules. It uses the Business Calendar in conjunction with the First Coupon Date, Last Coupon Date, Payment Frequency, Day of Month Override, Business Day Adjust, and Interest Payment Timing fields to generate the coupon schedule of a bond.
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Day of Month Override
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1533
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Identifies the day of the month or business day of the month on which the security is to pay income. This is based on the business calendar.
The system uses the Day of Month Override in conjunction with the Payment Frequency (tag 472) field to calculate coupons that pay on certain business days of the month, or that pay based on a certain occurrence during the month. Eagle Accounting provides a list of valid day-of-the-month override codes in the DAY MONTH OVRD code category, as part of the installation/upgrade process. The available options follow.
- 1_B (1st Business Day)
- 2_B (2nd Business Day)
- 3_B (3rd Business Day)
- 4_B (4th Business Day)
- 5_B (5th Business Day)
- 6_B (6th Business Day)
- 7_B (7th Business Day)
- 8_B (8th Business Day)
- 9_B (9th Business Day)
- 10_B (10th Business Day)
- 11_B (11th Business Day)
- 12_B (12th Business Day)
- 13_B (13th Business Day)
- 14_B (14th Business Day)
- 15_B (15th Business Day)
- 16_B (16th Business Day)
- 17_B (17th Business Day)
- 18_B (18th Business Day)
- 19_B (19th Business Day)
- 20_B (20th Business Day)
- 21_B (21st Business Day)
- 22_B (22nd Business Day)
- 23_B (23rd Business Day)
- LASTB (Last Business Day)
- NONE (No Override)
- WDC (Week Day of First Coupon)
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Interest Payment Timing
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1523
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Determines the coupon dates, when more than one possible set of coupon dates can be calculated. If you leave the field value null, by default Eagle Accounting uses the last day of the month for calculating coupons. For example, if the First and Last Coupon Dates of a security are the fifteenth of a month, and you entered Last Day of the Month in the Interest Payment Timing field, the Eagle Accounting earnings process recognizes that the Interest Payment Timing frequency is an invalid entry. Options include:
- Last Day of Month (LDM).
- Same Day of Month (SDM).
- None (NONE).
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Delay Days
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1799
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Specifies the number of days between the end of the accrual period and the actual receipt of the coupon and principal payment. The system uses this value in the creation of coupons, paydown transactions, and payup transactions, as well as in the Cash Flow Projections report.
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Delay Days Type
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5074
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Indicates whether the delay days are business days or calendar days. Options include:
- B (Business). Uses business days to identify delay days. The Business Calendar Name field (tag 1480) identifies the security's business calendar.
- C (Calendar). Uses calendar days to identify delay days.
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Coupon Delay Days
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4908
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Specifies the number of days to extend the coupon period.
This field is not required for debt instruments.
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Coupon Delay Days Type
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3999
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Specifies whether the coupon delay days are business days or calendar days. Options include:
- B (Business). Uses business days to identify coupon delay days. The Business Calendar Name field (tag 1480) identifies the security's business calendar.
- C (Calendar). Uses calendar days to identify coupon delay days.
This field is not required for long term debt instruments.
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Maturity Delay Days
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3997
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Specifies the number of days to delay generation of the maturity transaction.
This field is not required for debt instruments.
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Maturity Delay Days Type
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3998
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Specifies whether the maturity delay days are business days or calendar days. Options include:
- B (Business). Uses business days to identify maturity delay days. The Business Calendar Name field (tag 1480) identifies the security's business calendar.
- C (Calendar). Uses calendar days to identify maturity delay days.
This field is not required for debt instruments.
Add Payment Frequency Examples
Eagle Accounting can support any bonds that pay on a certain number of days every coupon period and/or certain number of months every coupon period. If there is a payment frequency that Eagle Accounting does not currently have established, you can add a Code Value to the Payment Freq code category using the following format: Number of days in each coupon period, followed by an underscore and then a capital D - if the bond pays in number of Days. If the bond pays in number of Months, the code value Number of months in each coupon period, followed by an underscore and then a capital M.
Code Value for Every 84 Days Example
For example, if an entity owns a bond that pays every 84 days, you can create a Code Value of 84_D in the PAYMENT FREQ code category.
To create a code value for this example:
- In Accounting Center, in the left navigation, click Setup > Codes.
You see the Codes workspace. - Click the Search chevron to expand the Search pane.
- Select search criteria such as a Code Name of PAYMENT FREQ and a Source Name of EAGLE PACE, and then click Search.
You see a row for the for the PAYMENT FREQ code category, - Expand the row to view related code values, and confirm that you need to add a new value.
- Click Add Code Value at the end of the list of codes.
You see a new row. - Enter 84_D in the Code Value Short Description column, Every 84 Days in the Code Value Long Description column, and EAGLE PACE in the Source Name column.
Code Value for Every 5 Months Example
In this example, where an entity owns a bond that pays every 5 months, you can create a Code Value of 5_M in the PAYMENT FREQ code category. See the following figure.
Interest Payment Timing Example
A security that pays semi-annual has a First Coupon Date of 2/28/99, and a Last Coupon Date of 2/28/05.
In the Interest Payment Timing field, if you select Last Day of the Month or leave the Interest Payment Timing field null:
- Eagle Accounting generates the coupon on February 28th (February 29th in a leap year) and August 31st.
If you select Same Day of the Month in the Timing of Payment field:
- Eagle Accounting calculates the coupon to occur on February 28th and August 28th.
Day of Month Override Examples
Pay Quarterly on 4th Business Day of Month Example
For example, a security that pays quarterly, and on the 4th business day of the month, would have Payment Frequency set to Quarterly and the Day of Month Override field set to 4th Business Day (4_B). The First Coupon Date and Last Coupon Date must be in sync based on the Payment Frequency field and Day of Month Override values.
The following figure shows Issue Viewer's Long Term Debt panel. The Payment Frequency field is set to Quarterly and the Day of Month Override field is set to 4th Business Day (4_B)
| Info |
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Last Coupon Date means last modal coupon date or last normal coupon date, and Business Day refers to a valid business day based upon the business calendar that is populated in the Business Calendar field (tag 1480) for the security. |
Pay 4th Thursday of Month Example
If you want to set up a security that pays on the fourth Thursday of every month, you must set the Payment Frequency field to Monthly and the Day of Month Override field to WDC (Week Day of First Coupon). Eagle Accounting then determines which day of the month is the First Coupon Date, and generates the coupon schedule from that point forward. Again, note that the First Coupon Date and Last Coupon Date must be in sync, based on the Payment Frequency field and Day of Month Override values. An example of this setup follows. The following figure shows the Issue Viewer tool's Long Term Debt panel.
Business Day Convention Example
Consider the example earlier on this page, of a security paying on the fourth Thursday of every month. In the United States, the fourth Thursday in November is the Thanksgiving Day Holiday, and is therefore a nonbusiness day. If an issuer of this security pays the coupon on the next business day, and adjusts the coupon payment based on rolling the coupon end date forward, the SMF setup would be as follows. See the following figure that shows Issue Viewer's Long Term Debt panel with a Business Day Convention field set to Following Business Day - Adjusted.
How Eagle Accounting Creates the Coupon Schedule
Eagle Accounting uses the Coupon Date and Payment Frequency fields to create the complete coupon schedule of the bond, from issuance to maturity date.
Create the First Coupon Period
Eagle Accounting calculates the cash flow from the Settlement Date of the trade, to create the expected cash flow for the calculation of amortization yield, trade yield, generation of future cash flows, and for accrual processing. Eagle Accounting uses the period from Dated Date to First Coupon Date to create the first coupon period, because the first coupon period of a security can be a long-length coupon period, a short coupon period, or a normal length coupon period.
- A Long Length Coupon Period is a coupon period that contains more accrual days than would normally occur, based on the payment frequency of the bond.
- A Short Length Coupon Period is a coupon period that contains less accrual days than would normally occur, based on the payment frequency of the bond.
Create the Second to Penultimate Coupon Period
Eagle Accounting then uses the First Coupon Date, Payment Frequency, Interest Payment Timing, Day of Month Override, Business Day convention and Last Coupon Date to create the second to penultimate (penultimate means 2nd to last) coupon period. Last Coupon Date stands for last modal coupon date or last normal coupon date. In most cases the Last Coupon Date field should be sent to the penultimate coupon because the Last Coupon Date can have a short, normal, or long coupon period.
Create the Last Coupon Period
Eagle Accounting then calculates from the Last Coupon Date to Maturity Date to generate the last coupon period, because the last coupon period can have a short, long, or normal coupon period. Note that you can set the Last Coupon Date to the maturity date, if the security has a last modal (normal length) coupon period. However, it is suggested that, as a norm, you set the Last Coupon Date as the penultimate coupon date, to avoid incorrectly setting up the Last Coupon Date. If the Last Coupon Date is not in sync with the values in the Payment Frequency, Interest Payment Timing, Day of Month Override, Business Day Convention, and Last Coupon Date fields, an error occurs in Eagle Accounting when the earnings process is invoked. You see an error message in Automation Center's Exceptions workspace, indicating an invalid Last Coupon Date.
To facilitate entering and validating the Last Coupon Date, Eagle Accounting provides the Calculate/Validate Last Coupon Date field and the Valid Last Normal Coupon Date field.
About Unscheduled Coupons
If the security does not have a logical payment frequency, or has a payment frequency that cannot be derived from the Coupon Payment fields, you must set up the security with an Unscheduled Variable Rate security Coupon Type. The Unscheduled Coupon Type field allows you to enter a rate, date, and a cash movement flag in the Variable Rate table. Each time a rate and date is entered in the Variable Rate table with the Cash Movement Flag field set to Yes, Eagle Accounting drops a coupon payment. An example of a security that should be set up with an Unscheduled Variable Rate Coupon Type is a security that changes payment frequency over the life of the bond, or a bond that has a First Coupon Date that is not the normal expected day that the bond pays in the future.
Last Coupon Date Calculation and Validation
To facilitate entering and validating the Last Coupon Date, Eagle Accounting provides the following options.
Calculate/Validate Last Coupon Date (tag 2337). Determines whether Eagle Accounting validates the Last Coupon Date value. Options include:
- Calculate Last Coupon Date. Eagle Accounting calculates and displays a valid last coupon date in the Last Coupon Date field based on the values in the Payment Frequency, Payment Timing, Business Calendar, Business Day Adjust, and Day of Month Override. Note that Eagle Accounting can only calculate a Normal length or short last coupon period when asked to calculate a short last coupon date.
- Validate Last Coupon Date. Eagle Accounting calculates a valid Last Coupon Date based on the values in the First Coupon Date, Last Coupon Date, Payment Frequency, Payment Timing, Business Calendar, Business Day Adjust, and Day of Month Override. Eagle Accounting returns the value in the Valid Last Normal Coupon Date field (tag 2311). If the dates in the Valid Last Normal Coupon Date field and value in the Last Coupon Date (tag 474) field do not match, Eagle Accounting generates the following error : (ERR): Last Coupon Date is not valid" in the Valid Last Normal Coupon Date field (Errors/Warnings column). If the value in the Last Coupon Date field and Valid Last Normal Coupon Date (tag 2311) field do match, the system does not generate an error message. See the following figure.
Valid Last Normal Coupon Date (tag 2311). Displays the calculated penultimate coupon, based upon the values in the Payment Frequency, Payment Timing, Business Calendar, Business Day Adjust, and Day of Month Override fields.
Coupon and Type Fields
Coupon (tag 70). Specifies the rate at which the security accrues interest. It is expressed as an accrual rate. A value of zero is required for zero coupon bonds.
Eagle Accounting uses the rate in the Coupon field in the earnings process for securities with a Fixed coupon type. For securities with a Variable Rate, Unscheduled Variable Rate, Step Coupon, Floating Rate, and Inverse Floating Rate Coupon types, the system does not use this field in the earnings process; it uses it for reference and reporting only.
If the value of this field changes after a position exists, provided the Coupon Type is Fixed, the change affect the current and future coupon periods' earnings. Prior coupon periods' earnings are not affected by a change to this field, unless earnings are rolled backed to that period and then rolled forward, or a trade is backdated for a previous coupon period and thus, when earnings roll forward, they pick up the new value when the earnings process runs.
Coupon Type Code (tag 97). Indicates the type of coupon that is associated with the security. The options include Floating Rate (X), Inverse Floating Rate (R), Variable Rate (I), Step Coupon (S), Fixed Rate (F), and Unscheduled Variable Rate (V). This field is required. When Coupon Type is set to X, I, S, F, R, or V, the Coupon field in the SMF (tag 70) is for reference only, because the system does no processing on tag 70.
Options include:
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Coupon Rate = Index on Floating Rate security + Index Offset
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Coupon Rate = (Inverse Floater Rate - (Inverse Floater Rate Multiplier * (Index on Floating Rate Security + Index Offset)))
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- The system then only uses the Coupon Rate field (tag 70) on the SMF for reporting and does no processing with that field.
- The Interest Payment Frequency (tag 1523), Business Day Convention, and Day of Month Override (tag 1533) tags become available for reporting purposes only, because Eagle Accounting drives all coupon information off of the data in the Variable Rate table.
- The system uses the Payment Frequency (tag 2287) and Payment Frequency Code (tag 472) for the periodicity for calculating the amortization and trade yield.
The following tables compare the coupon types.
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Coupon Type
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Coupon Code
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Definition
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Floating
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X (see note)
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Fixed coupon dates. Variable coupon rate. Coupon rate is calculated off of an index.
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Variable Rate
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I (see note)
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Fixed coupon dates. Variable coupon rate.
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Step Coupon
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S (see note)
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Fixed coupon dates. Variable coupon rate.
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Fixed
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F
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Fixed coupon dates. Fixed coupon rates.
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Unscheduled
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V (see note)
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Variable coupon periods/Variable coupon rate. Each time a coupon changes, Eagle Accounting drops a coupon.
| Info |
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When you set the Coupon Type to Floating (X), Variable Rate (I), Step Coupon (S), or Unscheduled (V), the Coupon field in the SMF (tag 70) is for reference only, because the system does no processing on tag 70. |
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Step Bond
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Variable Rate
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Floating Rate
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Unscheduled Variable Rate
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Predetermine Coupon Rates
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Yes
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No
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No
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No
...
Logic to derive Income Dates
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Yes
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Yes
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Yes
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No
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Coupon Rate Calculated off an Index
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No
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No
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Yes
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No
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Basis Points Adjustment
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No
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No
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Yes
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No
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Coupon Rates Can Change
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Yes
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Yes
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Yes
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Modified Following – Adjusted (ADJMBC). If a coupon is scheduled to pay on a nonbusiness day, with a Modified Following - Adjusted option, the coupon period end date is adjusted to include the next business day, unless the next business day falls in the next calendar month; in such a case, the coupon end date are adjusted back to the first business day preceding the non-business day. The owner of the bond is compensated for the extra days of interest accrued if the bond is paid on the next business day, or not compensated in the event that the bond is paid earlier.
Modified Following – Unadjusted (MBC). If a coupon is scheduled to pay on a nonbusiness day, the coupon is paid on the next business day, unless the next business day falls in the next calendar month; in such a case, the payment date is the first business day preceding the non-business day. With the Modified Following - Unadjusted option, the actual Settlement Date of the coupon is changed, but the coupon period begin and end dates remain unchanged.
Following Business Day – Adjusted (ADJFWD). If a coupon is scheduled to pay on a nonbusiness day, the coupon period end date is adjusted to include the next business day, and the owner of the security is compensated for the extra day of interest.
Following Business Day – Unadjusted (FWD). If a coupon is scheduled to pay on a nonbusiness day, the coupon is paid on the next business day, and the owner of the security is not compensated for the extra day of interest. With Following Business Day Convention-Unadjusted, the actual Settlement Date of the coupon is changed, but the coupon period begin and end dates remain unchanged.
Following Business Day - Adjusted Modified Payment Roll (ADJROLL). This option supports bonds with an adjusted forward payment roll convention. A forward roll payment roll convention occurs when the coupon period is adjusted forward due to a non-business day. In this case, the coupon schedule does not revert back to the previous scheduled coupon day but rolls forward based on the new coupon day.
For example, a bond with a forward roll payment convention has a scheduled coupon date of the 17th of a month and the 17th occurs on a non-business day. Therefore, the coupon is paid on the next business day. In this example, the 18th of the month is the next business day and the owner of the bond is compensated one extra day of interest as a result of extending the coupon period. However, with the forward roll payment convention, the next coupon date does not revert back to the 17th of the month, but rather the next future scheduled coupon date to pay occurs on the 18th of the month, rolling forward, providing that day does occur on a business day.Preceding Business Day – Adjusted (ADJBACK). If a coupon is scheduled to pay on a nonbusiness day, the coupon is paid on the first business day preceding the non-business day.
Preceding Business Day – Unadjusted (BACK). If a coupon is scheduled to pay on a nonbusiness day, the coupon is paid on the first business day preceding the non-business day.
Consider the example of a security paying on the fourth Thursday of every month. In the United States, the fourth Thursday in November is the Thanksgiving Day Holiday, and is therefore a nonbusiness day. If an issuer of this security pays the coupon on the next business day, and adjusts the coupon payment based on rolling the coupon end date forward, the SMF setup would be as follows. See the following figure that shows Issue Viewer's Long Term Debt panel with a Business Day Convention field set to Following Business Day - Adjusted.
Coupon Day of Month
Coupon Day of Month (tag 10551). Specifies the day of the month in which the coupon is payable. If you select a value for Business Day Convention (tag 1536) other than None, you must specify the day of the month on which the coupon pays. You can enter a value from 1 to 31. Use 31 for Coupon Day of Month to use the last day of the month.
Business Calendar Name
Business Calendar Name (tag 1480). Specifies the business calendar for the security. The system uses the value to identify business days and non business days for the purposes of determining the coupon payment date and coupon payment schedules. It uses the Business Calendar in conjunction with the First Coupon Date, Last Coupon Date, Payment Frequency, Day of Month Override, Business Day Adjust, and Interest Payment Timing fields to generate the coupon schedule of a bond.
Day of Month Override
Day of Month Override (tag 1533). Identifies the day of the month or business day of the month on which the security is to pay income. This is based on the business calendar.
The system uses the Day of Month Override in conjunction with the Payment Frequency (tag 472) field to calculate coupons that pay on certain business days of the month, or that pay based on a certain occurrence during the month. Eagle Accounting provides a list of valid day-of-the-month override codes in the DAY MONTH OVRD code category, as part of the installation/upgrade process. The available options follow.
1_B (1st Business Day)
2_B (2nd Business Day)
3_B (3rd Business Day)
4_B (4th Business Day)
5_B (5th Business Day)
6_B (6th Business Day)
7_B (7th Business Day)
8_B (8th Business Day)
9_B (9th Business Day)
10_B (10th Business Day)
11_B (11th Business Day)
12_B (12th Business Day)
13_B (13th Business Day)
14_B (14th Business Day)
15_B (15th Business Day)
16_B (16th Business Day)
17_B (17th Business Day)
18_B (18th Business Day)
19_B (19th Business Day)
20_B (20th Business Day)
21_B (21st Business Day)
22_B (22nd Business Day)
23_B (23rd Business Day)
LASTB (Last Business Day)
NONE (No Override)
WDC (Week Day of First Coupon)
Pay Quarterly on 4th Business Day of Month Example
For example, a security that pays quarterly, and on the 4th business day of the month, would have Payment Frequency set to Quarterly and the Day of Month Override field set to 4th Business Day (4_B). The First Coupon Date and Last Coupon Date must be in sync based on the Payment Frequency field and Day of Month Override values.
The following figure shows Issue Viewer's Long Term Debt panel. The Payment Frequency field is set to Quarterly and the Day of Month Override field is set to 4th Business Day (4_B)
| Info |
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Last Coupon Date means last modal coupon date or last normal coupon date, and Business Day refers to a valid business day based upon the business calendar that is populated in the Business Calendar field (tag 1480) for the security. |
Pay 4th Thursday of Month Example
If you want to set up a security that pays on the fourth Thursday of every month, you must set the Payment Frequency field to Monthly and the Day of Month Override field to WDC (Week Day of First Coupon). Eagle Accounting then determines which day of the month is the First Coupon Date, and generates the coupon schedule from that point forward. Again, note that the First Coupon Date and Last Coupon Date must be in sync, based on the Payment Frequency field and Day of Month Override values. An example of this setup follows. The following figure shows the Issue Viewer tool's Long Term Debt panel.
Interest Payment Timing
Interest Payment Timing (tag 1523). Determines the coupon dates, when more than one possible set of coupon dates can be calculated. If you leave the field value null, by default Eagle Accounting uses the last day of the month for calculating coupons. For example, if the First and Last Coupon Dates of a security are the fifteenth of a month, and you entered Last Day of the Month in the Interest Payment Timing field, the Eagle Accounting earnings process recognizes that the Interest Payment Timing frequency is an invalid entry. Options include:
Last Day of Month (LDM).
Same Day of Month (SDM).
None (NONE).
An example follows.
A security that pays semi-annual has a First Coupon Date of 2/28/99, and a Last Coupon Date of 2/28/05.
In the Interest Payment Timing field, if you select Last Day of the Month or leave the Interest Payment Timing field null:
Eagle Accounting generates the coupon on February 28th (February 29th in a leap year) and August 31st.
If you select Same Day of the Month in the Interest Payment Timing field:
Eagle Accounting calculates the coupon to occur on February 28th and August 28th.
Delay Days
Delay Days (tag 1799). Specifies the number of days between the end of the accrual period and the actual receipt of the coupon and principal payment. The system uses this value in the creation of coupons, paydown transactions, and payup transactions, as well as in the Cash Flow Projections report. Utilizes the Day Count Basis (tag 471) value to determine the actual receipts and settlements of the paydown and payup transactions.
Delay Days Type
Delay Days Type (tag 5074). Indicates whether the delay days are business days or calendar days. Options include:
B (Business). Uses business days to identify delay days. The Business Calendar Name field (tag 1480) identifies the security's business calendar.
C (Calendar). Uses calendar days to identify delay days.
Coupon Delay Days
Coupon Delay Days (tag 4908). Specifies the number of days to extend the coupon period. This field is not required for debt instruments.
Coupon Delay Days Type
Coupon Delay Days Type (tag 3999). Specifies whether the coupon delay days are business days or calendar days. This field is not required for long term debt instruments. Options include:
B (Business). Uses business days to identify coupon delay days. The Business Calendar Name field (tag 1480) identifies the security's business calendar.
C (Calendar). Uses calendar days to identify coupon delay days.
Maturity Delay Days
Maturity Delay Days (tag 3997). Specifies the number of days to delay generation of the maturity transaction. This field is not required for debt instruments.
Maturity Delay Days Type
Maturity Delay Days Type (tag 3998). Specifies whether the maturity delay days are business days or calendar days. This field is not required for debt instruments. Options include:
B (Business). Uses business days to identify maturity delay days. The Business Calendar Name field (tag 1480) identifies the security's business calendar.
C (Calendar). Uses calendar days to identify maturity delay days.
Ex-Interest Days
Ex-Interest Days (tag 3941). Specifies the number of calendar days prior to the coupon date that Eagle Accounting uses to identify the ex-date for this fixed income security. If an Ex Interest schedule is available for the security, the system uses the schedule values rather than this security-level field to identify the ex-date. Ex interest processing does not apply to cleared swaps and to securities trading flat. For more information, see About Ex Interest Processing.