Understanding instrument lifecycle events emitted by LUSID

LUSID can automatically emit lifecycle events for supported term instruments with maturity dates, enabling you to handle those events in a seamless and consistent manner.

Important: Instrument events are disabled by default. To enable them, register a recipe with every portfolio you wish events to impact. More information.

For example, LUSID emits a BondCouponEvent each time a bond coupon is due. No user input is required, providing you have mastered the underlying instrument as either type Bond, ComplexBond or InflationLinkedBond in the LUSID Security Master. In addition:

LUSID provides a BondCouponEvent default transaction template that automatically generates a transaction representing the coupon amount on the ex-date. You can override this default template if you wish, but it is not necessary.
You must implement a BondCoupon transaction type to confer a suitable economic impact on automatically-generated coupon transactions. We provide a recommendation, which you can either implement as-is or change if desired.

Note: Instruments of type Equity do not have a lifecycle in the normal sense but you can load a stream of corporate actions and trigger LUSID to emit appropriate events. More information.

With the transaction type in place, for each portfolio with a holding in the bond instrument on the ex-date of each coupon, LUSID automatically:

Generates an output transaction scaled to your holding in that portfolio, and enriched with extra information such as gain/loss or a tax calculation.
Implements the economic impact prescribed by the transaction type, for example adding the coupon amount to a particular cash balance.

Recommended reading: Handling bond coupon, principal and maturity events.

The following lifecycle events are available or planned. For more information, start by calling the GetTransactionTemplateSpecification API for that event.

LUSID instrument type	Lifecycle events emitted by LUSID	Transaction types needing implementation (click for recommendations)	Notes (see also Troubleshooting)	Status
Bond, ComplexBond, InflationLinkedBond	`BondCouponEvent`	BondCoupon	For a `Bond` example, see this tutorial. To override a particular bond coupon or principal payment amount, manually load an appropriate event. More information coming soon. To handle a bond default and terminate lifecycle events, manually load a `BondDefaultEvent`.	Available
	`BondPrincipalEvent`	BondPrincipal
	`EarlyRedemptionEvent`	`BondEarlyRedemption` (if elected) `BondEarlyRedemptionAccrued` (if elected and interest > 0)
	`MaturityEvent`	Maturity
MBS (modelled as a ComplexBond)	`MbsCouponEvent`	MbsCoupon		Available
	`MbsPrincipalEvent`	MbsPrincipal
	`MbsPrincipalWriteOffEvent`	MbsPrincipalWriteOff
	`MbsInterestShortfallEvent`	MbsInterestShortfall
	`MbsInterestDeferralEvent`	MbsInterestDeferral
	`MaturityEvent`	Maturity
CdsIndex, `CreditDefaultSwap`	`CreditPremiumCashFlowEvent`	CreditPremiumCashFlow	For a `CdsIndex` example, see this tutorial.	Available
	`ProtectionPayoutCashFlowEvent`	ProtectionPayoutCashFlow
	`MaturityEvent`	Maturity
`EquityOption`, ExchangeTradedOption	`OptionExerciseCashEvent`	CashSettledOptionExercise (if cash settled)	For an `ExchangeTradedOption` example, see this tutorial.	Available
	`OptionExercisePhysicalEvent`	PhysicallySettledOptionExercise (if physically settled) CallOptionPhysicalExercise (if physically settled call option) PutOptionPhysicalExercise (if physically settled put option)
	`ExpiryEvent`	Expiry
`EquitySwap`	`MaturityEvent`	Maturity		Available
`FlexibleDeposit`	`DepositInterestPaymentEvent`	`DepositInterestPayment`		Available
	`UpdateDepositAmountEvent`	`UpdateDepositAmount`
	`DepositCloseEvent`	`DepositCloseInterestPayment` `DepositCloseFinalBalanceRepayment` `DepositClose`
`FlexibleLoan`	`LoanInterestRepaymentEvent`	`LoanInterestRepayment`		Available
	`LoanPrincipalRepaymentEvent`	`LoanBalanceReduction`
		`RevolvingLoanFacility` (if revolving loan)
		`TermLoanFacilityLimitDecrease` (if term loan)
`ForwardRateAgreement`	`MaturityEvent`	Maturity		Available
Future	`FutureMarkToMarketEvent`	FutureMarkToMarket	For an example, see this tutorial.	Available
Future	`FutureExpiryEvent`	FutureCashSettlement	For an example, see this tutorial.	Available
FxForward	`FxForwardSettlementEvent`	FxForwardDomPrincipal and FxForwardFgnPrincipal (if deliverable) `NdfSettlement` (if NDF)	For a deliverable `FxForward` example, see this tutorial.	Available
FxForward	`MaturityEvent`	Maturity		Available
`FxSwap`	`FxForwardSettlementEvent`	`FxForwardPrincipal`		Available
`FxSwap`	`MaturityEvent`	Maturity		Available
`InflationSwap`	`SwapCashFlowEvent`	SwapCashFlow		Available
`InflationSwap`	`MaturityEvent`	Maturity		Available
`InterestRateSwap`	`SwapCashFlowEvent`	SwapCashFlow		Available
	`SwapPrincipalEvent`	SwapPrincipal
	`MaturityEvent`	Maturity
`Repo`	`MaturityEvent`	Maturity		Available
`TermDeposit`	`TermDepositInterestEvent`	`TermDepositInterest`		Available
	`TermDepositPrincipalEvent`	`TermDepositPrincipal`
	`MaturityEvent`	Maturity
`TotalReturnSwap`	`MaturityEvent`	Maturity		Available