About Capital Structure Code Derivation for a Security
- Nancy Cohn (Deactivated)
- Kinga Huszno
In the Edit Security Insurance Information panel, when you maintain the SMF insurance-related information and elections, you can specify a value for the NAIC Cap Structure Code field, preempting derivation by the ISTAR Refresh/Valuation process.
The following table illustrates the ISTAR Refresh/Valuation derivation for capital structure codes, based on the value of SECURITYDBO.FIXED_INCOME.OBLIGOR assigned to the security. The derived value is assigned to the security and stored in the NAIC_CAP_STRUCTURE_CODE field in the ISTAR XReference table unless a security level override exists.
Capital Structure Code | Obligor |
|---|---|
1 | SR SECURED |
3 | SR SUB DEBS |
3 | SR SUB NOTES |
3 | SR SUBORDINATED |
3 | SUB NOTES |
3 | SUBORDINATED |
Per NAIC guidance, as a general rule, a security is Senior Unsecured Debt unless otherwise indicated. By default, for debt securities, if the Obligor is any other value or is not assigned, Eagle defaults a value of 2 (Senior Unsecured Debt).
A Capital Structure Code of 4 is automatically assigned to Exchange Traded Funds – as Identified by the SVO and Bond Mutual Funds – as Identified by the SVO.