Term deposits/Loans
It is possible to handle Term deposits and loans in FA.
Configuration
Term deposit and loan security
Define a Security with Basic info:
Code = Recommended some logic containing dates and currency
Name = Recommended some logic containing dates and currency
Security type = Debt instruments (BOND)
Sub type = DY : Money Market Instruments
Multipliers = 100
Issuer = Recommended to set Counterparty
In Extra info tab set following parameters:
Issue date = Deposit/loan start date
Issue price = 100
Maturity date = Deposit/loan end date
Maturity price = 100
Calendar day convention = The agreed day counting convention
Frequency = Once
Fixings for floating rate note = Start date and agreed deposit/loan rate
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Variants of Term deposits and loans
It is possible to have variants of Term deposits/loans where it is multiple coupon periods both with Fixed rate and with a floating rate. The security configuration in Extra info then like a Bond.
Market data info
You need to maintain prices on Term deposits and loans manually or by importing. If you have prices from an external source these can be imported to FA just by saving a csv file and use Import - Import security prices
Coupon and maturity processing
Coupon and maturity processing is made with same routines as for Bonds. An important note is that for these Securities it will exist short positions in maturity processing. If a short position transaction type EXPSH - Expire short position must be used instead of EXP - Expire.
Transactions
In a Deposit transaction on start date you enter a Buy with the deposited amount. Unit price is 100.
If a Loan transaction then enter the opposite transaction, i.e. a Sell instead.
It is recommended to enter as Reference any identifier from other system or counterparty. Also recommended to track Counterparty.
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On end date book a the Coupon and Maturity (Expiration) transactions. These can be generated by scheduled Coupons and expiration process
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Position monitoring
The Term deposit/loans can be monitored like bonds.
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