STAR Fixed Income Processing Guide V8.2

This document demonstrates the setup and requirements for processing Fixed Income securities in STAR, and also explains the use and function of the instruments involved.

This document:

• Provides an overview and understanding of Fixed Income instruments.
• Shows how to properly set up Fixed Income Security Master and Reference data.
• Provides the necessary information for setting up an entity and accounting basis for Fixed Income processing.
• Illustrates how to create amortization rules, and explain how STAR calculates amortization.
• Describes how to establish Earn Thru Date calendars.
• Provides details about STAR Fixed Income methodology, including:
• Rollback and Replay of earnings
• "True-up" of accruals due to incorrect traded interest or a late day trade
• Correcting earnings on a life-to-date number, based on period-to-date information
• Calculation of amortization yields based on discount cash flow models, and the flexibility STAR provides when establishing amortization
• Tax Withholding and Reclaim processing
• Default bond processing
• Establishing accounting dates for non-business days
• Provides detailed scenarios showing how processing in STAR works, and what the expected results are.

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