Considerations for Setting Up Floating Rate Securities

Before you set up Floating Rate or Inverse Floating Rate securities, Eagle recommends that you review this section to understand the initial data requirements and ongoing maintenance needed for these securities.
Because the data requirements for setting up and maintaining floating rate securities are more complex than those needed to maintain Variable Rate securities, some Eagle clients prefer to set up Floating Rate securities (or Inverse Floating Rate securities) as Variable Rate securities. Because Floating Rate securities require more overall data than Variable Rate securities, they require more time for setup and maintenance.
If the "all in" rate is available, use of the Variable Rate methodology can offer several benefits. Because Variable Rate securities have fewer data requirements, they are less prone to missing data problems and can require less maintenance over time.
Otherwise, you can create Floating Rate securities so long as you are willing to maintain all the necessary data for the securities over time. You should base your decision on a variety of factors, such as the availability of data feeds, the amount of Floating Rate related data you need to provide (for example, look back data, underlying index data), and the overall completeness and accuracy of your available data.