Manage Debt Transactions for Expected Credit Losses

In certain Receive and Buy transaction panels, you can manually book a trade for a debt transaction associated with expected credit losses (ECL). You can book ECL against domestic or foreign assets to capture all asset-level accounting. And you can book ECL against foreign assets where the accounting system properly differentiates between write-up and write-down and account for them differently to properly capture variations in FX rate.

You can define ECL information in the following trade panels for debt securities with expected credit losses:

Open Debt Bond. For detailed information, see Book Trades for Debt Bonds.
Open Discount Bond (LT/ST). For detailed information, see Book Trades for Discount Bonds.
Open Inflation Linked Bond. For detailed information, see Book Trades for ILBs.
Open MBS/ABS/IO/PO. For detailed information, see Book Trades for MBSs.
Open TBA. For detailed information, see Book Trades for TBAs.
Receive Security. For detailed information, see Process a Manual Receive and Deliver Transaction.

Each of these panels includes the following fields specific to transactions on debt securities associated with expected credit loss.

Option	Tag	Description
Expected Credit Loss Information
Purchased Impaired	16999	Indicates whether the trade is credit impaired. Options include: No. Default. The trade is not credit impaired. Yes. The trade 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 Expected Credit Loss Stage field.
Expected Credit Loss Base	16991	Displays the value of the base Expected Credit Loss allowance.
Expected Credit Loss Stage	7100	Identifies the Expected Credit Loss stage for use with IFRS. The stage tracks the credit quality status of financial instruments. 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. Have not deteriorated significantly in credit quality or have low credit risk. Stage 2. Deteriorated significantly in credit quality since initial recognition (unless low credit risk at reporting date) and not having objective evidence of impairment. Stage 3. The system assigns this value if you set Purchased Impaired to Yes. Group-level assets cannot be accounted for in Stage 3. ??? 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 IFR

Manage Debt Transactions for Expected Credit Losses

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