Conditions: Drawable Bonds

Structure

When you enter conditions, you enter the general condition characteristics followed by the individual condition items of the various condition types. Also, under the general condition characteristics, you can access the editing functions for the redemption schedule sets and their redemption schedules.

General Condition Characteristics

Here we distinguish between the fields that are predefined in the system (including required-entry fields) and those that you can set up yourself using the field selection function in Customizing (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 ).

Interest calculation area

  • Interest calculation method - the system provides you with a selection of methods (required entry)

    The interest calculation method is defined by the quotient TAGE / TAGEBASIS (days / day basis).

    See also : Using the F-1 help for the field Interest calculation methods , you can see the definitions of the different methods used to calculate the Days and the Day basis.

    In the conditions detail, you specify for each condition item whether interest is to be calculated linearly or exponentially.

Repayment area

  • Repayment type (required entry). Choose InstalRepayt .

  • In the Active set field, choose the redemption schedule set (RS set) that is to be the active redemption schedule set .

    You can assign various redemption schedule sets (RS sets) to a class. If you assign only one redemption schedule set to a class, this automatically becomes the active redemption schedule set. If more than one redemption schedule set exists, you can choose which of them is to be the active set.

    The securities account cash flow for the class shows the planned records for the redemption flows. These are taken from the data for the active redemption schedule in the active redemption schedule set.

    To create and edit redemption schedule sets and redemption schedules for a class, choose ( Detail Repayt plan sets ).

    See also:

    Editing Redemption Schedule Sets and Redemption Schedules

Effective interest rate area

  • Effective interest rate method - the system provides a selection of 5 methods:

    • Price specification

    • AIBD/ISMA

    • MOOSMÜLLER

    • BRAES

    • US method

    • Linear

  • Interest calculation frequency: Specified in months, the frequency is required for the interest calculation methods for Moosmüller and for the US Treasury procedure.

  • Effective interest rate: Use the button Calculate effective interest rate to display the effective interest rate calculated from the class conditions.

    The effective interest rate is calculated for the cash flows that are marked as relevant.

    See also:

    IMG documentation by choosing Start of the navigation path Securities Next navigation step Transaction Management Next navigation step Flow Types (Transaction) Next navigation step Define Flow Types End of the navigation path .

Condition Items

The following sections describe how to enter condition items for drawable bonds .

In Customizing you assign a range of different condition types to the various product types belonging to this product category.

You can represent fixed-interest, percentage-quoted and unit-quoted bonds as well as variable-interest bonds using these condition types.

You can set most of the entry fields for each condition type as optional, required or display fields using the field selection function in Customizing by choosing Start of the navigation path Securities Next navigation step Master Data Next navigation step Product Types Next navigation step Condition Types Next navigation step Define Condition Types. End of the navigation path The sample Customizing settings delivered with the system allow you to enter the condition types described in this section.

Notes for Processing

  • When you create a new class, the system displays different condition items according to the entries you made in Customizing when you chose Assign Condition Types to Condition Groups . If a condition type was set to Hide in Customizing, it is not displayed, and you have to call it up by choosing ( Insert additional items).

  • If a condition item is not filled, it is not displayed in change mode. You can, however, include it again by choosing ( Insert line).

  • To enter a condition type more than once - for example, in order to show a staggered rate of interest - go to the corresponding condition item and choose ( Insert line).

    The first condition item is valid until the Effective from date of the second condition item.

    By pressing ( Duplicate line ), you can make it easier to enter the second condition item for the same condition type. The selected condition item will be copied, and you simply have to enter the Effective from date and other changes (e.g. the new interest rate and/or a new interest payment frequency).

  • To add a zero condition , for example, to suspend an interest payment one year before the final due date, add a new condition item. Enter the Effective from date for the zero conditions, and go to the condition details . There, you enter the indicator for zero conditions in the field Condition form.

  • Choose the Cash flow button in the upper part of the screen to check your entries. In the fictitious cash flow you see whether the entries result in the required flows.

    The cash flow is only displayed in position currency. Local currency is not translated since no company code is recognized within the class data.

    The cash flow displayed is that resulting from the active redemption schedule in the active redemption schedule set.

  • To delete a condition item, select it and choose ( Delete line ).

  • You can see an open or locked padlock icon in front of every condition line.

    • open means that the condition item can still be changed.

    • closed means that it cannot be changed because some flows have already been posted for this condition item.