When and how floating interest rates are automatically updated
Interest rate fixing involves two aspects: firstly, when a new interest rate comes into effect, and secondly, from which date the interest rate is retrieved. It concerns how variable interest rates are automatically updated with new values.
In the event view, this is illustrated through an example where the interest rate is fixed on November 30, 2023, with the value from November 28, 2023. The next interest rate fixing occurs on February 29, 2024, with the value from February 27, 2024. Therefore, the interest rate fixing has an interval of 3 months and an interest retrieval two days before the interest rate fixation.
You can determine how often the interest rate is updated by specifying the interest rate fixation interval at the position's registration. Additionally, you can adjust the number of days before the interest rate fixation that the interest rate is retrieved, with the default setting being two banking days, which can be adjusted in the event view.