About Bond Characteristic Code Derivation for a Security

In the Edit Security Insurance Information panel, when you maintain the SMF insurance-related information and elections, you can specify a value for the Bond Characteristic field, preempting derivation by the ISTAR Refresh/Valuation process.

The following table illustrates the ISTAR Refresh/Valuation derivation for bond characteristic codes.

Value

Derivation

Value

Derivation

1

If DB% and Call Flag = "Y" and Make Whole Call Flag = "Y"

2

If DB% and Call Flag = "Y" and No values in the call schedule are below par value

3

If DB% and Call Flag = "Y" and there are values in the call schedule below par value

4

Term Loan Securities – This characteristic code is restricted to items captured in scope of SSAP No. 43R – Loan-Backed and Structured Securities

5

Variable coupon bonds where the interest payments vary during the life of the transaction

6

If Processing Security Type = "DBFBIO"

7

Bonds where the issuer’s obligation to make payments is determined by the performance of a different credit other than that of the issuer, which could be either affiliated or unaffiliated

8

If Processing Security Type like "DB%" and Mandatory Convertible Flag (10354) = "Y"

9

Other types of options solely at the discretion of the issuer

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