Valuation adjustments for debt securities expanded to allow wider discretionary yield adjustments so mutual funds reflect current market yields. The circular expands the discretionary yield adjustments for valuation of rated and unrated debt securities held by mutual funds, with distinct treatment for instruments of up to two years and those over two years, increasing the allowable upward and downward adjustments and raising discretionary add ons over mandatory discounts for unrated instruments; other valuation provisions remain unchanged and the revisions take effect immediately to align net asset value with prevailing market yields.
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Provisions expressly mentioned in the judgment/order text.
Valuation adjustments for debt securities expanded to allow wider discretionary yield adjustments so mutual funds reflect current market yields.
The circular expands the discretionary yield adjustments for valuation of rated and unrated debt securities held by mutual funds, with distinct treatment for instruments of up to two years and those over two years, increasing the allowable upward and downward adjustments and raising discretionary add ons over mandatory discounts for unrated instruments; other valuation provisions remain unchanged and the revisions take effect immediately to align net asset value with prevailing market yields.
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