Understand Accrual Factors for a Security

Accrual factors represent the period-to-date factor for a given effective date. The system uses this factor during the earnings process to calculate the accrual ptd for a holding. For example, an accrual factor with an effective date of January 9 would include all the interest up to and including January 8. The system multiplies the accrual factor by the position’s current quantity and price multiplier to determine the ptd accrual value.

You can use one of the following general approaches to calculate accrual factors:

• Earnings Process Calculates Accrual Factors. In this legacy approach, the Eagle system calculates accrual factors during the earnings process. The earnings process then uses those accrual factor calculations. The system does not store the accrual factors.

• Third Party Calculates Accrual Factors. You can load accrual factors from a third party source. The system stores the accrual factors. The earnings process then uses those accrual factor calculations. By extracting the accrual factor calculation out of the earnings process, Eagle clients can benefit from performance improvements, as less time is needed during the earnings process.

You can also maintain accrual factors manually.