About Schedules for a Security

You can add information for a security with a call, put, sink, custom sink, pre-refund, coupon/reset, PIK receivable mark to market, or ex-interest schedule. The schedule information identifies the security, type of schedule, and schedule effective date. It also includes specialized information based on the schedule type.

About the Schedule Table

The Schedule table stores the Call/Put/Sink/Pre-Refunded information for a security. During the earnings process, Eagle Accounting scans the Schedule table and uses the values in the schedule to calculate the appropriate yield for a security, based on the reference information and the accounting basis amortization rules. Eagle Accounting does not process Call/Put/Sink/Pre-Refunded payments or transaction information based on information in the schedule. Instead, Eagle Accounting processes such transactions based on information in the Corporate Action table. Only if the issuer calls the bond does a row need to exist in the Corporate Action table for Call/Put/Refund. Otherwise, the data should only reside in the Schedule table.

In contrast, Sink data and Custom Sink data should exist in both the schedule and corporate action tables at all times. If multiple source Call/Put/Refund data exists in the Schedule table, the Eagle Accounting amortization process uses the best price for each schedule type accordingly. However, for Sink data and Custom Sink data, the table should only contain one source. If multiple sources exist, the system raises an error during the earnings process.

You can also use the Schedule table to identify whether a Payment in Kind bond (PIK) is paying in shares for a given coupon period. Eagle Accounting uses values in the Payment in Kind schedule (Schedule Type, tag 1250) along with the value in the PIK URGL Flag (tag 3859) field to generate the unrealized gain loss on the period to date receivable for PIK Bonds.

And you can use the Schedule table to provide information for securities eligible for ex interest processing. 

About Changing Schedule Information

You can edit schedule information for a security with a call, put, sink, custom sink, pre-refund, coupon/reset, PIK receivable mark to market, or ex-interest schedule. Any time you change information in the Schedule table, Eagle Accounting recalculates the amortization yield the next time you run earnings, using the new values. If a value has changed in the Schedule table for a prior coupon period, you should Rollback and Replay earnings, or run a Retrospective Amortization event.

About Deleting Schedule Information

You can delete schedule information for a security. Any time you delete information in the Schedule table, Eagle Accounting recalculates the amortization yield the next time earnings are run, using the new values. If a value for a prior coupon period has changed in the Schedule table, you should Rollback and Replay earnings, or run a Retrospective Amortization event.

For non sink schedule types (Call, Put, Refund, PIK Receivable Market to Market), the delete procedure updates the Schedule table. It does not update the Corporate Action table.

About Sinking Fund Schedules

If a bond has a Sink provision, the data must be stored in both the Schedule table, as a Schedule Sub Type of SINK, and in the Corporate Action History table, as a Trans Type of PMT. As part of adding a sinking fund schedule the procedure, the add_schedule event, also adds the sinking fund schedule to the Corporate Action table. The Corporate Action Status entered for the schedule flows to the sinking fund’s corporate action record. In addition the sweep date on the corporate action is set to the system post date. Finally, to correctly process the security, the entire schedule amount must be equal to 1.00.

You can use the related event, ADD_SCHEDULE, for the Add Schedule process only. In the Add Schedule panel, Security Query Flag (tag 1256) = ADD, and in the Change Schedule panel, tag 1256 = CHANGE.

Add a Sink Schedule

When you add the sink schedule, the add procedure includes a check that ensures that the sum of all the rows does not exceed 1.00 and if the primary key already exists. It does this check for both the Schedule and Corporate Action tables. If the check generates an error during the insertion into the Schedule table, nothing is inserted into either table. If, however, the errors occur during the insertion into the Corporate Action table, the insert to the Schedule table is rolled back, and no rows are inserted into either table. As long as the check passes on both tables, the data is inserted successfully.

While writing data to the Corporate Action table, if a row does not exist, a new row is inserted. If a row already exists for the Sec Alias and Effective Date, and the schedule amount has not changed, no update takes place. If the schedule amount is different, the Corporate Action Cancel/Rebook procedure is called. As a result, the Status for the original row is updated to CL; a new row is inserted, and a CANCEL record for the original row is inserted. Both are set with a Status of RD. The CANCEL record has a Sweep Date set to sys date. As for the new corporate action record, if Effective Date of the original record <= sys date, the Sweep Date is set to sys date; otherwise, Sweep Date = Effective Date.

Change a Sink Schedule

During the update, if the primary keys do not exist, the update procedure generates an error message. Built into the procedure is a check to ensure that the sum of all the rows does not exceed 1.00. This check is done for both the Schedule and Corporate Action tables. If the check generates an error during the insertion into the Schedule table, nothing is inserted into either table. If, however, the errors occur during the insertion into the Corporate Action table, the insert to the Schedule table is rolled back, and no rows are inserted into either table. As long as the check passes on both tables, the data is inserted successfully.

While writing data to the Corporate Action table, if a row does not exist, a new row is inserted. If a row already exists for the sec alias and Effective Date, and the scheduled amount has not changed, no update takes place. If the schedule amount is different, the Corporate Action Cancel/Rebook procedure is called. As a result, the Status for the original row is updated to CL, a new row is inserted, and a CANCEL record for the original row is also inserted. Both records are set with a Status = RD. The CANCEL record has a Sweep Date set to sys date. As for the new corporate action record, if the Effective Date of the original record <= sys date, Sweep Date is set to sys date; otherwise, Sweep Date = Effective Date.

It is important to note that when calculating the sum, the existing row is not counted against the total; instead, the incoming value is used.

Delete a Sink Schedule

For sink schedules, the same procedure used to delete a sink schedule also deletes the corresponding sink payment record in the Corporate Action table. When you delete a schedule, the system physically removes the data from the Schedule table, and also physically removes any rows in the Corporate Action table that have Effective Date > sys date. If the Effective Date <= sys date, the system creates a CANCEL corporate action record, with a Sweep Date = sys date, and sets the original corporate action Status to CL.

About Custom Sink Schedules

You can use custom sink schedules in place of sink schedules for scenarios where you frequently need the ability to revise sink payments for securities where the payment differs from the expected payment. For details, see Manage Custom Sink Payments for Revised Sinking Fund Payments. If a bond has a Sink provision, and you use custom sink schedules, the system stores the data in both the Schedule table, as a Schedule Sub Type of CSTMSINK, and in the Corporate Action History table, as a Trans Type of PMT.

Adding, changing, and deleting a custom sink schedule is similar to adding, changing, and deleting a sink schedule. The major difference is that while a sink schedule always requires its Schedule Amounts to total to 1.0, the system does not enforce this restriction for a custom sink schedule when you set the Bypass Sink Check option to Yes. As part of adding a custom sinking fund schedule the procedure, the add_schedule event, also adds the custom sinking fund schedule to the Corporate Action table. The Corporate Action Status entered for the schedule flows to the custom sinking fund’s corporate action record. In addition the sweep date on the corporate action is set to the system post date. Finally, to correctly process the security, the entire schedule amount must be equal to 1.00. However, the system does not enforce that restriction if you set the schedule's Bypass Sink Check option to Yes. 

When you add a custom sink schedule, the system automatically adds the related corporate action announcement for the custom sink. When you change a schedule amount for a custom sink schedule entry, the system automatically changes the corresponding corporate action payment amount.

About Coupon/Reset Schedules

You can add a coupon and swap reset schedule for the legs of swap securities such as total return swaps, or you can have Eagle Accounting generate the coupon/reset schedule for you. The Schedule Type field (tag 1250) has a value of Coupon/Reset. For each entry in the schedule, you can enter the Effective Date, End Date, Valuation Date, Fixing Date, Cash Payment Date, and Reset Date, as appropriate. The global Reset Total Return Swap process, the Earnings process, and corporate action processing can use the schedule information. For more information, see Manage Swap Reset Schedules.

If you change a coupon/reset schedule, you may need to run rollback and replay in certain scenarios.

About Pre-Refunded Information Schedules

When there is partial pre-refunded information on a particular security, you should enter the prerefunded information under the Child security (refunding security). The reason is that Eagle Accounting uses the pre-refunded information as the new Maturity Date, and amortizes any market discount or market premium, to the pre-refunded date. If you set up the pre-refunded information under the Parent security, Eagle Accounting amortizes the total amount of amortization (the total discount/premium) of the security, instead of the portion of the premium/discount associated with the amount pre-refunded.

When you add the schedule, you set the Schedule Type field (tag 1250) to a value of REFUND. You can then enter the Effective Date, Price/Rate, Schedule Subtype, and Announcement Date. The Schedule Subtype, which is recognized in the amortization process, can have a value of Entire Issue Call, Mandatory Put, or Pre-Refunded.

About Payment in Kind Information Schedules

You can create a schedule for a Payment in Kind bond (PIK) to identify whether the PIK is payment in shares for a given coupon period. When you add the schedule, you set the Schedule Type field (tag 1250) to a value of PIK Receivable Mark to Market. You can then enter the Effective Date, End Date, and Schedule Amount. For a PIK receivable mark to market schedule, a nonzero PIKMTM schedule amount is required to post URGL. When you enter the schedule for a coupon period, you can enter the amount as the coupon rate / frequency (that is, .05 / 2 = .025). For more information, see About Security Reference Data for PIK Bonds.

About Ex Interest Schedules

You can create ex interest schedules for securities for each period where the bond trades ex coupon. Or you may receive ex interest schedules from third parties. When you add the schedule, you set the Schedule Type field (tag 1250) to a value of Ex Interest Schedule. You can then enter the Effective Date and Ex Interest Date values. For more information, see About Ex Interest Processing.