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 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, 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.
About Changing Schedule Information
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 procedures 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/Change 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 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.
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