Fairways Debt enables you to set advanced options when editing the indexation of the transaction.
Navigate to the Debt & Derivatives Application
- Log in to your Fairways Debt account and select a customer account, if relevant.
- Navigate to Applications
> Debt & Derivatives.
Navigate to the Indexation of the Transaction...
... via the Actual Portfolio
- Click the relevant transaction to open its profile.
- Navigate to Life Cycle.
- Click Add Indexation Change.
... via the Draft Portfolio
- Click the relevant transaction to open its profile.
- Navigate to Overview.
- Click Edit in the panel where the indexation is located, in this example the Indexation panel.
Note: You can also navigate to the indexation from the Life Cycle tab in this portfolio. Then click Add Indexation Change.
Apply Advanced Indexation to a Transaction
- Select Advanced to expand the area with the corresponding options.
Note: The Advanced option displays when a floating index is selected for the transaction.
- Complete the form with all relevant details.
Note: Fields marked with an asterisk * are mandatory.
|
Area |
Description |
|---|---|
|
Interest Rate Computation |
Select or enter the data for the interest rate computation:
When the interest amount is calculated using either the compounded or the average method, the Daily Rate Calculation option is automatically displayed. You can then enter the following data:
Important: The daily spread is applied to the daily rate before the daily cap rate and/or the daily floor rate. The daily margin is applied to the daily rate after the daily cap rate and/or the daily floor rate. Valuation approximation! These daily spreads/caps/floors/margins are only applied to past fixings (past flows and accrual ones). They are not used to calculate forward rates (no option value). However, they are applied to period forwards to avoid valuation gaps. |
|
Fixing Date Rule |
Note: This area displays depending on the method selected. Set the options for the fixing date rule. |
|
Fixing Date Rule (End) |
Note: This area displays depending on the method selected. Set the options for the end of the fixing date rule. |
|
Reset Date Rule |
Note: This area displays depending on the method selected. Set the options for the reset date rule. |
|
Fixing Calendars |
Select the calendar(s) you wish to apply to the fixing. |
- Click Apply.
The configuration of the advanced options is applied to the indexation of the transaction.