Warrant Bonds 
Purpose
You use the warrant bond scenario to process bonds to which a warrant allowing subscription to the stocks of the issuer is attached.
Prerequisites
In order to use the scenario for warrant bond management, you must have:
- Created the class master data for the warrant bond cum and the warrant bond ex (differentiation using the quotation type (cum or ex)) plus the warrant.
- Executed period-end closing for the warrant bond cum.
- Maintained the position indicators for the warrant bond ex and the warrant.
Process Flow
You can buy or sell warrant bonds within transaction processing.
For details, see the
Bonds scenario.
When you come to exercising the right vested in the bond, the following functions are available:
- Detaching the warrant from the bond (Function: Exercise security right)
This function automatically reduces the previous warrant bond cum position and increases the warrant bond ex and warrant positions.
- Exercising the warrant (Function: Exercise security right)
For details, see the
Warrants scenario.You manage your warrant bond cum positions and your warrant bond ex positions with the same functions used for standard
bonds.
Result
With the help of the warrant bond scenario, you have exercised the warrant carried by a warrant bond.