1. Fairways Help Center
  2. Fairways Debt
  3. Debt Portfolio Management
  4. Portfolio
  5. Actions

Add an Indexation Change to a Transaction

  • Public

Updated .

Indexation changes in Fairways Debt occur when the rules defining the interest rates change, e.g. a new spread.

 

Navigate to the Debt & Derivatives Application
  1. Log in to your Fairways Debt account.
  2. Select a customer account.
  3. Navigate to Applications Applications.png > Debt & Derivatives.

 

Add an Indexation Change to a Transaction
  1. Open a transaction.
  2. Navigate to Life Cycle.
  3. Click Add Indexation Change.

    Note: For cash facilities, you can choose to apply a credit indexation change and/or a debit indexation change in the relevant sections.

Transaction_LifeCycle_EN.png

  1. Complete the form with all relevant details.

Note: Fields marked with an asterisk * are mandatory.

Field Description
Trade Date Timestamp of the change. The effective date must be later than the trade date.
Effective Date

Date from which the new rule takes place.

If the effective date is not an interest payment date, the payment immediately following this date is computed with both the previous interest rate (from the start date of the period to the reference date of the interest change action) and the new interest rate (from the reference date of the interest change action to the end date of the period).

Note: If a transaction is linked to a drawing phase with drawings using indexes that override the transaction index, any indexation change occurring before the end of the availability period will not change the overriden values. The indexation change will only become effective at the consolidation start date.
Index

Name of the index used to calculate the rate value, e.g. FIXED for fixed rate.

Notes:

  • Additional fields may display depending on your selection.
  • For cross-currency swaps, only Fixed and LIBOR rates are supported.
Interest Rate

Note: This field only displays for fixed indexes.

Fixed rate value in percentage.
Spread Spread (or margin) value in percentage.
Day Count Convention Used to compute the day fraction of an interest accrual period.
Apply to Credit and Debit Indexations

Note: This field only displays for cash facilities.

Option to apply the change to both the credit and debit indexations at the same time. This feature can be useful in particular in the case where the indexes used have been decommissioned.

Important:

In the event that the credit and debit indexation must be changed due to an index that is no longer in use, please follow these steps:

  1. Create an indexation change that will affect both credit and debit at the same time. Set the reference date for this change to a time period when the old index was quoted. This will ensure a smooth transition from one index to the other, and will prevent errors resulting from missing market data.
  2. If you need to specify different index characteristics for credit and debit, add another indexation change on the side you want to update.
  3. You can then delete the credit or debit indexation from the first simultaneous change that you no longer need, provided that the remaining indexation changes occur on a reference date when both the old and new indexes are quoted. Please note that if any part of the transaction occurs during a period when market data for one of the indexes is not available, an error will be generated.
  1. Click Apply to add the indexation change.

Note: The Advanced option displays when a floating index is selected for the transaction. For further information, see Apply Advanced Indexation to a Transaction.

IndexationChange_Add_EN.png

The indexation change displays.

IndexationChange_Added_EN.png

 

Related Documentation
Was this article helpful?
0 out of 0 found this helpful

Articles in this section

See more