About Security Reference Data for Partial Prerefunds

The security's Refund Indicator field (tag 3132) indicates whether a security is eligible for prerefunding.

You can manually add and change a prerefund schedule for a security. The system uses this reference information during the earnings process to calculate a yield for the security. 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 prerefunded date. If you set up the prerefunded 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. 

The system creates the pre-refunded transaction based on information you add in the Corporate Action panels. Only if the issuer calls the bond does a row need to exist in the Corporate Action table for the Refund; otherwise, the data should only reside in the Schedule table.