9.15 Product Code- LKBR

This topic provides the detailed explanation on the LKBR product.

Business Scenario

The ‘LBKR’ product is used to create Floating Rate Bonds issued by corporate, Banks or Government authorities.

Synopsis (ex. High level features etc.)

• The Floating Rate bond portfolios are handled by this product.
• It can handle Bonds issued at Discount/Par/Premium with positive and Risk Free Rate Indexes (RFR).

Detailed Coverage

The ‘LKBR’ Instrument product covers the following features,

Table 9-15 Detailed Information

Detailed Coverage	Description
Type of the Product	Floating Bonds Instrument
Tenor	Weeks
Redemption Type	Quantity
Interest Type	Floating
Quantity Quotation	Nominal
Price Quotation	Deal Price
Interest Quotation	Plus Accrued
Auto Initiation	Auto Initiation of Corp Actions
Coupon Processing & Actual Value Date	Actual Value date (Forward), Coupon Plotting(Forward)
Provisioning	Manual
Holiday check required	Local, Currency and Financial Center Holiday
Restrictions	None
Rate Fixing	0 days before start of Next Coupon period
Interest	Floating Component - INT_SELBRFR Interest Details – Primary Interest, Accrual Required and Accrual enabled Rate Type – Floating Floating Rate Type – Periodic Rate Code – USDSOFR Rate Source – Reuters Tenor – 1M Rate Code Amendment is allowed Rate Amendment is allowed Amend after Association Alternative Risk-Free Rate enabled Alternative Risk-Free Rate Preferences Lookback – 2 days Base Computation Method – Simple Spread/Margin Computation Method – Simple Spread Adj Computation Method – Simple Rate Compounding Method – NCCR  Rates Currency – USD Rate Fixing Days – 0 Minimum Rate – 0.1 Maximum Rate – 100 Minimum Spread – 0.1 Maximum – Spread – 10

Additional information

The following are the maintenance required in OBTR to use the LKBR product for Securities Portfolios.

• Branch Parameter
• Messaging Parameter
• Local, Currency and Financial Center Holidays
• Security Batch Maintenance
• Market code and price maintenance
• SK Location Maintenance
• Security, Deal, Portfolio and Combination Products
• Security Product, Deal product and Portfolio product preference classes
• Portfolio definitions