Disp Date


Key Disp Date in
Ledger Entry refers to the disposal date of the referenced traded asset, provided the asset has been disposed before its natural maturity.
If the asset has not been disposed, this entry here must be left empty.
A defined disposal date cannot be earlier than the date in
Acq Date
Note, the disposal date DD is assumed known (becomes available information) only on DD and thereafter.
Before DD, the asset is assumed as having a remaining lifetime that extends to its natural maturity.

For example, consider a tradable being a 10-year bond issued on Janyary 1, 2020 with maturity January 1, 2030 that happens to carry a Ledger Entry with Disp Date = January 1, 2025
If one attempts to calculate its price as of a date prior to January 1, 2025, the result will be the PV of all remaining bond flows until January 1, 2030 because as of that valuation date it is not yet known that the bond will be disposed in the future.
The alternative treatment, whereby the bond's cash flows after January 1, 2025 were ignored, would result in the bond's mispricing from the valuation date's point of view.

In fact, all quantities calculated based on information available prior to DD - such as the asset price or carry - must take into account all cash flows, since they should ignore the not-yet-known fact that the asset will be disposed at DD

With regard to what cash flow dates are precisely considered, the following holds:

It is assumed the asset is disposed at the COB (Close Of Business) time of the date DD, which limits exposure only to those asset-linked cash flows occurring before or at DD
Therefore, the related income calculated by the
Price function between any time and DD will also include a likely cash flow occurring on DD