A municipal commercial paper (CP) is a short-term zero-coupon transaction. It only has two flows: an initial drawing on the start date and a repayment on the maturity date.
Prerequisite
Contact your Finance Active consultant to:
Navigate to the Debt & Derivatives Application
- Log in to your Fairways Debt account.
- Select a customer account.
- Navigate to Applications > Debt & Derivatives.
Create a Municipal Commercial Paper
- Click Add Transaction > Loan > Municipal Commercial Paper.
- Complete the form with all relevant details.
Note: Fields marked with an asterisk * are mandatory.
|
Field |
Description |
|---|---|
|
Reference Code |
Unique reference of the transaction. Identifies the transaction in the portfolio. Note: The reference must be unique among all the entities managed in the account. |
|
External Reference Code |
Used by external systems to identify the transaction. Used when transactions are imported from or exported to another system. |
|
Principal |
Principal amount of the transaction. |
|
Currency |
Currency of the principal amount. |
|
Borrower |
Borrowing entity in the system. Note: If the municipal CP is booked in an municipal CP program, the borrower is automatically filled out with the value defined in the program. |
|
Lender |
Can be:
Note: If the municipal CP is booked in an municipal CP program, the lender is automatically filled out with the value defined in the program. |
|
Field |
Description |
|---|---|
|
Trade Date |
Date at which the transaction has been traded. From that date, the system takes the transaction into account as an item of the portfolio. |
|
Start Date |
Unadjusted start date of the transaction. |
|
Maturity |
Unadjusted maturity date of the transaction. |
|
Field |
Description |
|---|---|
|
Yield |
Annual yield of the transaction. |
|
Spread |
Spread (or margin) value in percentage. |
|
Used to compute the day fraction of an interest accrual period. |
|
|
In Advance Interest Payment |
Defines whether the interest amount should be paid at the start of the period. If enabled:
If disabled:
|
|
Field |
Description |
|---|---|
|
Adjustment mode for the interest calculation. The nominal start and end dates of the accrual period will be adjusted accordingly before computing the interest amount. |
|
|
Adjustment mode for the payment date. |
Enter the required custom attributes, if any.
- Enable Show Details after Validation to automatically open the new municipal CP profile once created.
- Click Apply.
The new municipal commercial paper displays in the draft portfolio.
