Rollover: Reset Tenor And Borrow Lend Indicator Is Defaulting For Child Contract (Doc ID 3070675.1)

Last updated on FEBRUARY 05, 2025

Applies to:

Symptoms

On : 14.7.0.0.0 version, Implementation Support

ACTUAL BEHAVIOR
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Rollover: Reset tenor and borrow lend indicator is defaulting for child contract from product not Contract.


EXPECTED BEHAVIOR
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Reset tenor and borrow lend indicator is defaulting for child contract from Contract

STEPS
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The issue can be reproduced at will with the following steps:
1.Create two days back dated RFR revolving loan for 60M GBP for three days
2.Interest and Principal: Repayment schedules on maturity date
3.Interest call form :
4.Alternate risk free rate: Yes and Rate code: SONIA
5.Code usage: Auto and rate revision method: auto
6.Look back: Yes and Look back days: 5
7.Rate compounding: Yes and RFR rounding unit: 4
8.Base computation method: Compound
9.Margin/CAS computation method: Simple
10.CAS: 0.4
11.Margin details tab: keep only RFRMARGIN component and delete remaining margin components
12.Reset tenor: Null and Borrow/Lend indicator: Null
13.Save and authorize
14.Perform rollover booking for revolving loan
15.Unlock DD contract an capture below mentioned details in split rollover screen
16.Split rollover screen for one contract:
17.Interest parameters basis, Holiday parameter basis, Settlement Basis, Schedule basis, MIS biostudy Basis: Contract
18.Default Fronting: New contract
19.Amount: Principal
20.Liquidate interest: Yes and Liquidate principal: Yes
21.Capture rollover product, Principal rollover amount
22.Rollover amount : Less than standing principal amount.
23.Rollover Type: Auto
24.Maturity Days: Parent contract maturity date + 3 days
25.Save and Authorize
26.Child contract created.

Changes

Cause

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