Warrant Bonds

Definition

Warrant bonds are bonds to which one or several warrants is/are assigned. Warrant bonds are either traded cum (with a warrant) or ex (without a warrant).

You can exercise the corresponding warrant during the option period and trade it separately to the bond.

Note Note

  • You can use the Warrant Bond (060 ) product category to map warrant bonds in the standard system. To define a product type, in Customizing for the Transaction Manager choose Start of the navigation path Securities Next navigation step Master Data Next navigation step Product Types Next navigation step Define Product Types. End of the navigation path

  • You create the cum warrant bond, the corresponding warrant, and the ex warrant bond as classes. When you create a cum warrant bond, you must have already defined the classes of the warrant and the ex warrant bond.

  • You can separate a warrant from the cum warrant bond and exercise a warrant or execute the expiration of the warrant. To do this, on the SAPEasyAccess screen choose Start of the navigation path Treasury and Risk Management Next navigation step Transaction Manager Next navigation step Securities Next navigation step Trading Next navigation step Security Rights Next navigation step Exercise End of the navigation path (FWER) . When you detach a warrant from the cum warrant bond, the warrant is then posted. At the same time the positions of the cum warrant bond are transferred to the positions of the ex warrant bond.

End of the note.

See also:

Class

Warrants