About Coupon Period Fields

• Modified Following – Adjusted (ADJMBC). If a coupon is scheduled to pay on a nonbusiness day, with a Modified Following - Adjusted option, the coupon period end date is adjusted to include the next business day, unless the next business day falls in the next calendar month; in such a case, the coupon end date are adjusted back to the first business day preceding the non-business day. The owner of the bond is compensated for the extra days of interest accrued if the bond is paid on the next business day, or not compensated in the event that the bond is paid earlier.

• Modified Following – Unadjusted (MBC). If a coupon is scheduled to pay on a nonbusiness day, the coupon is paid on the next business day, unless the next business day falls in the next calendar month; in such a case, the payment date is the first business day preceding the non-business day. With the Modified Following - Unadjusted option, the actual Settlement Date of the coupon is changed, but the coupon period begin and end dates remain unchanged.

• Following Business Day – Adjusted (ADJFWD). If a coupon is scheduled to pay on a nonbusiness day, the coupon period end date is adjusted to include the next business day, and the owner of the security is compensated for the extra day of interest.

• Following Business Day – Unadjusted (FWD). If a coupon is scheduled to pay on a nonbusiness day, the coupon is paid on the next business day, and the owner of the security is not compensated for the extra day of interest. With Following Business Day Convention-Unadjusted, the actual Settlement Date of the coupon is changed, but the coupon period begin and end dates remain unchanged.

• Following Business Day - Adjusted Modified Payment Roll (ADJROLL). This option supports bonds with an adjusted forward payment roll convention. A forward roll payment roll convention occurs when the coupon period is adjusted forward due to a non-business day. In this case, the coupon schedule does not revert back to the previous scheduled coupon day but rolls forward based on the new coupon day.
  For example, a bond with a forward roll payment convention has a scheduled coupon date of the 17th of a month and the 17th occurs on a non-business day. Therefore, the coupon is paid on the next business day. In this example, the 18th of the month is the next business day and the owner of the bond is compensated one extra day of interest as a result of extending the coupon period. However, with the forward roll payment convention, the next coupon date does not revert back to the 17th of the month, but rather the next future scheduled coupon date to pay occurs on the 18th of the month, rolling forward, providing that day does occur on a business day.

• Preceding Business Day – Adjusted (ADJBACK). If a coupon is scheduled to pay on a nonbusiness day, the coupon is paid on the first business day preceding the non-business day.

• Preceding Business Day – Unadjusted (BACK). If a coupon is scheduled to pay on a nonbusiness day, the coupon is paid on the first business day preceding the non-business day.

Consider the example of a security paying on the fourth Thursday of every month. In the United States, the fourth Thursday in November is the Thanksgiving Day Holiday, and is therefore a nonbusiness day. If an issuer of this security pays the coupon on the next business day, and adjusts the coupon payment based on rolling the coupon end date forward, the SMF setup would be as follows. See the following figure that shows Issue Viewer's Long Term Debt panel with a Business Day Convention field set to Following Business Day - Adjusted.

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Coupon Day of Month

Coupon Day of Month (tag 10551). Specifies the day of the month in which the coupon is payable. If you select a value for Business Day Convention (tag 1536) other than None, you must specify the day of the month on which the coupon pays. You can enter a value from 1 to 31. Use 31 for Coupon Day of Month to use the last day of the month.

Business Calendar Name

Business Calendar Name (tag 1480). Specifies the business calendar for the security. The system uses the value to identify business days and non business days for the purposes of determining the coupon payment date and coupon payment schedules. It uses the Business Calendar in conjunction with the First Coupon Date, Last Coupon Date, Payment Frequency, Day of Month Override, Business Day Adjust, and Interest Payment Timing fields to generate the coupon schedule of a bond.

Day of Month Override

Day of Month Override (tag 1533). Identifies the day of the month or business day of the month on which the security is to pay income. This is based on the business calendar.

The system uses the Day of Month Override in conjunction with the Payment Frequency (tag 472) field to calculate coupons that pay on certain business days of the month, or that pay based on a certain occurrence during the month. Eagle Accounting provides a list of valid day-of-the-month override codes in the DAY MONTH OVRD code category, as part of the installation/upgrade process. The available options follow.

• 1_B (1st Business Day)

• 2_B (2nd Business Day)

• 3_B (3rd Business Day)

• 4_B (4th Business Day)

• 5_B (5th Business Day)

• 6_B (6th Business Day)

• 7_B (7th Business Day)

• 8_B (8th Business Day)

• 9_B (9th Business Day)

• 10_B (10th Business Day)

• 11_B (11th Business Day)

• 12_B (12th Business Day)

• 13_B (13th Business Day)

• 14_B (14th Business Day)

• 15_B (15th Business Day)

• 16_B (16th Business Day)

• 17_B (17th Business Day)

• 18_B (18th Business Day)

• 19_B (19th Business Day)

• 20_B (20th Business Day)

• 21_B (21st Business Day)

• 22_B (22nd Business Day)

• 23_B (23rd Business Day)

• LASTB (Last Business Day)

• NONE (No Override)

• WDC (Week Day of First Coupon)

Pay Quarterly on 4th Business Day of Month Example

For example, a security that pays quarterly, and on the 4th business day of the month, would have Payment Frequency set to Quarterly and the Day of Month Override field set to 4th Business Day (4_B). The First Coupon Date and Last Coupon Date must be in sync based on the Payment Frequency field and Day of Month Override values. 

The following figure shows Issue Viewer's Long Term Debt panel. The Payment Frequency field is set to Quarterly and the Day of Month Override field is set to 4th Business Day (4_B)

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Pay 4th Thursday of Month Example

If you want to set up a security that pays on the fourth Thursday of every month, you must set the Payment Frequency field to Monthly and the Day of Month Override field to WDC (Week Day of First Coupon). Eagle Accounting then determines which day of the month is the First Coupon Date, and generates the coupon schedule from that point forward. Again, note that the First Coupon Date and Last Coupon Date must be in sync, based on the Payment Frequency field and Day of Month Override values. An example of this setup follows. The following figure shows the Issue Viewer tool's Long Term Debt panel. 

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Interest Payment Timing 

Interest Payment Timing (tag 1523). Determines the coupon dates, when more than one possible set of coupon dates can be calculated. If you leave the field value null, by default Eagle Accounting uses the last day of the month for calculating coupons. For example, if the First and Last Coupon Dates of a security are the fifteenth of a month, and you entered Last Day of the Month in the Interest Payment Timing field, the Eagle Accounting earnings process recognizes that the Interest Payment Timing frequency is an invalid entry. Options include:

• Last Day of Month (LDM).

• Same Day of Month (SDM).

• None (NONE).

An example follows.

A security that pays semi-annual has a First Coupon Date of 2/28/99, and a Last Coupon Date of 2/28/05.

In the Interest Payment Timing field, if you select Last Day of the Month or leave the Interest Payment Timing field null:

• Eagle Accounting generates the coupon on February 28th (February 29th in a leap year) and August 31st.

If you select Same Day of the Month in the Interest Payment Timing field:

• Eagle Accounting calculates the coupon to occur on February 28th and August 28th.

Delay Days

Delay Days (tag 1799). Specifies the number of days between the end of the accrual period and the actual receipt of the coupon and principal payment. The system uses this value in the creation of coupons, paydown transactions, and payup transactions, as well as in the Cash Flow Projections report. Utilizes the Day Count Basis (tag 471) value to determine the actual receipts and settlements of the paydown and payup transactions.

Delay Days Type

Delay Days Type (tag 5074). Indicates whether the delay days are business days or calendar days. Options include:

• B (Business). Uses business days to identify delay days. The Business Calendar Name field (tag 1480) identifies the security's business calendar.

• C (Calendar). Uses calendar days to identify delay days.

Coupon Delay Days

Coupon Delay Days (tag 4908). Specifies the number of days to extend the coupon period. This field is not required for debt instruments.

Coupon Delay Days Type

Coupon Delay Days Type (tag 3999). Specifies whether the coupon delay days are business days or calendar days. This field is not required for long term debt instruments. Options include:

• B (Business). Uses business days to identify coupon delay days. The Business Calendar Name field (tag 1480) identifies the security's business calendar.

• C (Calendar). Uses calendar days to identify coupon delay days.

Maturity Delay Days

Maturity Delay Days (tag 3997). Specifies the number of days to delay generation of the maturity transaction. This field is not required for debt instruments.

Maturity Delay Days Type

Maturity Delay Days Type (tag 3998). Specifies whether the maturity delay days are business days or calendar days. This field is not required for debt instruments. Options include:

• B (Business). Uses business days to identify maturity delay days. The Business Calendar Name field (tag 1480) identifies the security's business calendar.

• C (Calendar). Uses calendar days to identify maturity delay days.

Ex-Interest Days

Ex-Interest Days (tag 3941). Specifies the number of calendar days prior to the coupon date that Eagle Accounting uses to identify the ex-date for this fixed income security. If an Ex Interest schedule is available for the security, the system uses the schedule values rather than this security-level field to identify the ex-date. Ex interest processing does not apply to cleared swaps and to securities trading flat. For more information, see About Ex Interest Processing.