Hello Experts!
Recently I have come across a problem with automatic calculation of installment repayments in TRM interest rate instrument (product type 55A-100). The situation is the following:
System: ECC 6.0, EA-FINSERV level 18
Product type: 55A
Transaction type: 100
Amount invested: 1000 USD
Start term: 15-Jan-2013
End term: 15-Jan-2018
Interest structure: fixed rate 7.5%, calc. method Act/ActY(ISDA), frequency Monthly
Repayment structure: Installment repayment, amount=0, frequency Monthly, first period = Include fully, last period = Include fully, calc. method Act/ActY (ISDA).
After such input the cash flow is automaticall y build and is ok (monthly installment equals 16.39 USD and this is correct). Afterwards there is an early repayment:
Amount repaid: 980 USD (flow category 11 - Principal Decrease) - inserted in "Other changes in cap.structure" after receiving bank statement.
Payment and Calculation Date: 20-Jan-2013
So after such manipulations the cashflow (installment repayments) is recalculated in a very strange way. Remained 20 USD of principal amount are divided by system in 3 installments only:
28-Feb-2013 5.00 USD
28-Mar-2013 5.00 USD
28-Apr-2013 10.00 USD
This situation occurs also nearly for all amounts which is multiple of 5 (or recently 6). This business situation is a bit unusual but we have come across it in practice. Moreover we have tested the situation on another system (ECC 6.0, EA-FINSERV level 12) - the distribution of the remained 20 USD of outstanding amount takes place almost till the end term of the deal, and monthly installment amount is 0.33 USD distributed till 15-Oct-2016 (the last one is 5.15 USD on 15.11.2016).
Looking forward for any suggestions.
Best regards,
Maxim