8.6 Defining Advices for Rolled Over Drawdowns

In the Product Events Definition screen, you can define the events for which advices are to be generated, for drawdowns involving the product. An advice is generated when a drawdown is rolled over. As mentioned, you can rollover a drawdown only if the Allow Rollover option is selected for the drawdown product it involves.

Generation of advices upon rollover, if specified, as follows:

• When the drawdown is rolled over with interest (that is, the entire outstanding amount in the original drawdown is rolled over without any component of the original drawdown being liquidated), the liquidation advice for the original drawdown is not generated. Instead, a rollover advice, with the details of the liquidation of the original drawdown and its subsequent rollover into a new drawdown, is generated.
• When the drawdown is rolled with an amount, that is not the entire outstanding amount in the original drawdown, the liquidation advice(s) for the original drawdown is generated along with the rollover advice.