First step is to register the security in Bond definitions.
Go to Market Data / Bond Definition
Fill in the Basics
Name Fill in the name of the paper, this will be shown at the blue banner of the deal and is possible to get out in a report column.
ISIN The ISIN is used when mapping imported market data and it is also a report column.
Market valuation; Treasury system can do the market valuation from the market price or by calculate from the yield curve.
Closing option; Close means that a buy back or a sell before maturity date will create a realised result at the closing day and close part of the position. Continuous means that there will be 2 deals one sell and one buy back and the realised result will be on maturity date of the bond and the cashflows will not be netted. If issuing a bond and the closing option is Continuous the custodian will also be shown.
Issuer or Investor; Also a report column
Programme amount Fill in the currency and if you are a Issuer you can also fill in the total program amount. It is also a report column.
Counterparty; If you are the issuer fill in the IPA, if you are investing the fill in the Issuer and the Custodian
Begin date If you are an Issuer fill in the begin date of the program if you are investing fill in the the latest coupon date before you buy
End date End date of the Bond
EMTN the payments will by default go to IPA
MTN payments will by default go to broker
Zero coupon no coupon will be created
CPI linked Not developed yet
Privet Placement Not developed yet
Norwegian certificate Only one coupon with payment date on maturity date. Not longer than 1 year
Future Daily settlement
Payment Period the payment period of the coupons
First payment roll date By default it will show begin date + the payment period , but if the first period is broken the next payment will be from the first payment roll date + the payment period.
Average or FIFO Effects calculation of gain /loss and Fx gain/loss when closing the position earlier than maturity date.
Record Date is the cut-off date in order to determine which owner will receive the coupon.
Reconciliation date offset how many days before the payment date any bought/sold bonds will be taken into account for the next coupon payment. If a bought bonds is 1 day after the reconciliation date it will not affect this coupon payment.
Decimals price Number of decimals used when calculating the yield
Use denomination in calculations Check if calculation should be done per unit/post
Denomination of notes Posts/units the bond is traded in (can in some cases cause small differences in coupon amount)
Different field are shown depending of Interest type
Base interest -The current interest (used to be able to calculate the correct accrued interest (bought/sold coupon)
Spread- The spread added to the base interest
Interest amount decimals By default the coupon has the same number of decimals as the currency , usually 2 but if the coupon should be rounded, fill in number of decimals for the coupon here.
Use observation shift -relevant for bonds with risk free rate, read more in article IBOR transition
Fixing Period -the frequency that the interest (coupon) should be fixed
First fixing roll date -first fixing date, the frequency will be calculated from this date
Interest floor Type -Base interest floor, only look at the base interest. Total interest floor looks at the base interest + the spread
Interest Floor -default is 0% but an other rate could be chosen
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