Convert Positions for Expected Credit Losses

In the Conversion of Position to Eagle STAR panel, which you can access from the Book Trade tool, you can process conversion transactions that reflect group-level Expected Credit Losses for fixed income positions that are Long. These fields are displayed only for fixed income positions that have an ECL Method field value of Non-US Treatment with regulatory categories of FVOCI/AC or an ECL Method field value of US Treatment with regulatory categories of AFS/HTM. Otherwise, these fields are hidden.

The Conversion of Position to Eagle STAR panel includes the following fields for fixed income positions associated with Expected Credit Loss.

Option	Tag	Description
Conversion Information Local
Purchased Impaired	16999	Indicates whether the position is credit impaired. Options include: No. Default. The position is not credit impaired. Yes. The position is credit impaired.
Expected Credit Loss Local	16990	Specifies the value of the local Expected Credit Loss allowance. If you specify a value, you must additionally specify a value for the Regulatory Intent field and the Expected Credit Loss Stage field.
Regulatory Intent	2921	Indicates the regulatory intent associated with positions that have a regulatory category of AFS (Available for Sale). You must specify a value if you enter a value for the Expected Credit Loss Local field. Options include: Intent to Sell. This value appears if you enter a value for the Expected Credit Loss Local field. Likely Required to Sell. Not Likely Required to Sell. Default. ???? Regulatory Intent – available for regulatory category AFS. Regulatory Intent is required if the user enters an amount in the ECL local field; ‘Not Likely Required to Sell’ will be defaulted. If the user selects Regulatory Intent “Intent to Sell” or “Likely Required to Sell” the ECL Local/Base fields will not be available.
Expected Credit Loss Stage	7100	Identifies the Expected Credit Loss stage. You must specify a value if you enter a value for the Expected Credit Loss Local field or if you set the Purchased Impaired option to Yes. Options include: Stage 1. Stage 2. Stage 3. The system assigns this value if you set Purchased Impaired to Yes. ??? This says IFRS only. Does that mean applies only to positions that use an ECL Method field value of Non-US Treatment or say only IFRS?

For conversion transactions on IFRS accounting bases, Eagle accounting rules and posting matrix post ECL ledger entries to Accumulated Undistributed Income and Accumulated Allowance For ECL.

For conversion transactions on US GAAP accounting bases, Eagle accounting rules and posting matrix post ECL ledger entries to Cost Of Investments and Accumulated Allowance For ECL.