Attachment Notification Message

Definition

Attachment Notification Message. Notification of the combination of different security types to create a unit.

Units usually comprise warrants and bond or warrants and equity. Securities may be combined at the request of the security holder or based on market convention. Examples of automatic ones: If you have a unit with warrants and the warrants expore, they would be detached immediately. Is there a Notification? They would have to break up the unit as the unit no longer exists. Have to deliver off the unit and put the bond back into the client's account or into you position as an operation. depositories would change the CUSIP from the Unit CUSIP to the Bond CUSIP. Who initiates? The issuer has to do this based on the terms. Attachment and Detachment also applicable to Tranches in CDOs. At some point a tranch might attach at 6 and detach at 10% for example. This might be a corporate action as it is declared when the issue is created - the attachment and deta chment points are specified inthe prospectus for the deal and would not be seen as a corporate action.

SWIFT full text: "The combination of different security types to create a unit. Units are usually comprised of warrants and bond or warrants and equity. Securities may be combined at the request of the security holder or based on market convention."

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.