4.27.2.1 Elevating Buy Participation

The following steps are involved in the elevation of a silent buy participant to normal status.

1. Loans QT send the trade amendment for elevation from Participation to Assignment.
2. The system considers this amendment as an exception and initiates the trade cancellation event, to cancel the participation positions.
3. Amendment of the trade happens for changing the deal type, followed by the elevation event which marks the elevation of the trade.
4. The system, internally, books assignment type of buy deals with the counterparties involved. Funding memo or trade settlements is not applicable for such trades.

You cannot perform any further operations on these trades.

If bank buys participation from different counterparties, you need to create separate LB contracts (tranche/drawdown) for all counterparties representing bank participation. Any agency activity involved with the borrower needs to be performed for each of these LB contracts separately.

Multiple tranches can be created with the same CUSIP to support this activity. But there can be only one tranche for each CUSIP and settlement party combination.