Settlement conventions

The date used as the point for calculation is the settlement date for the bond, the date on which a bond will change hands after it is traded. For a new issue of bonds the settlement date is the day when the bond stock is delivered to investors and payment is received by the bond issuer. The settlement date for a bond traded in the secondary market is the day that the buyer transfers payment to the seller of the bond and when the seller transfers the bond to the buyer. Different markets will have different settlement conventions for example, UK gilts normally settle one business day after the trade date (the notation used in bond markets is T+ 1) whereas Eurobonds settle on T + 3. The term value date is sometimes used in place of settlement date, however the two terms are not strictly synonymous. A settlement date can only fall on a business date, so that a gilt traded on a Friday will settle on a Monday. However a value date can sometimes fall on a nonbusiness day. 

Some market idiosyncrasies such as settlement conventions are an important part of a valuation model but irrelevant to a risk model. 

Metals precipitated with chemicals are removed by settlement in a basin. Because industrial metals removal processes frequently include filtration, basin effluent passes through a rudimentary filter of straw, conventional filters being considered impractical for unattended operation at a site lacking electricity. Also, provision is made to spray neutralized effluent upstream of the basin to strip carbon dioxide that may inhibit flocculation by depressing the pH,11 as ample hydraulic head is available at the site. Dewatered solids would be placed in a mine cavity. 

In the event of a dispute between State Parties, or between a State Party and the Agency, concerning the interpretation or application of this convention, the parties to the dispute shall consult with a view to the settlement of the dispute by negotiation or by any other peaceful means of settling disputes acceptable to them. 

Usually, horizontal pressure vessels and tanks are supported on two vertical cradles called saddles. The use of more than two saddles is unnecessary and should be avoided. Using more than two saddles is normally a stress-related issue, which can be solved in a more conventional manner. The reason for not using more than two saddles is that it creates an indeterminate structure, both theoretically and practically. With two saddles, there is a high tolerance for soil settlement with no change in shell stresses or loading. Even where soil settlement is not an issue, it is difficult to ensure that the load is uniformly distributed. Obviously there are ways to accomplish this, but the additional expense is often unwarranted. Vessels 40-50 ft in diameter and 150 ft long have been supported on two saddles. 

In order to value a bond with the settlement date between coupon payments, we must answer three questions. First, how many days are there until the next coupon payment date From Chapter 1, we know the answer depends on the day count convention for the bond being valued. Second, how should we compute the present value of the cash flows received over the fractional period Third, how much must the buyer compensate the seller for the coupon earned over the fractional period This is accrued interest that we computed in Chapter 1. In the next two sections, we will answer these three questions in order to determine the full price and the clean price of a coupon bond. 

The last step in this process is to find the bond s value without accrued interest (called the clean price or simply price). To do this, the accrued interest must be computed. The first step is to determine the number of days in the accrued interest period (i.e., the number of days between the last coupon payment date and the settlement date) using the appropriate day count convention. For ease of exposition, we will assume in the example that follows that the actual/actual calendar is used. We will also assume there are only two bondholders in a given coupon period— the buyer and the seller. 

For settlement purposes there are separate rounding conventions applied to the zero-coupon and coupon-paying issues. For zero-coupon bonds there is no rounding in the calculation, but the settlement price is rounded to the nearest krona. Coupon bonds are rounded once before you get to the settlement price, the clean price is rounded to three decimal places before adding on accrued interest. The settlement price is then rounded to the nearest krona. 

Calculation of the coupon income is the difference between the accrued interest bought in at the time of purchasing the cash market bond subtracted from the accrued interest received when the bond is sold. Market conventions play an important role here, for example How many days between trade and settlement How many days in a month How many days in a year In the United Kingdom the market convention is actual number of days in a month and a 365 days in a year. In Germany the convention is actual number of days in month and 360 days in a year. 

In our illustration we will assume that the frequency of settlement is quarterly for the fixed-rate payments, the same as with the floating-rate payments. The day count convention is the same as for the floating-rate payment, actual/360. The equation for determining the euro amount of the fixed-rate payment for the period is... 

Soydemir, C. (1994, October). Earthquake-induced settlements in silty sands for New England seismicity. Ground failures under seismic conditions. In S. Prakash P. Dakoulas (Eds.), Proceedings of the ASCE Convention, GSP. 44, ASCE (pp. 77-90), Atlanta, GA. 

The procedure for estimating consolidation settlements is conventionally based on Skempton and Bjerrum s modification of Terzaghi s theory of consolidation. The p-e curve is normally obtained from an oedometer test on a saturated sample. 

It seems that the settlement of the problem to avert emergency situations and to ensure ecological safety during the elimination of CW dumps would be most reasonably organised in two stages and under the supervision of an inter-governmental control body consisting of representatives of the Baltic states, Russia and other developed countries, participants of the Chemical Weapons Convention... 

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