How To Fix RY774 - Credit spread ignored: yield curve type &1 is not supported

SAP Error Message - Details

• Message type: E = Error

• Message class: RY - Messages for RM Basis

• Message number: 774

• Message text: Credit spread ignored: yield curve type &1 is not supported

What causes this issue?

Credit spreads are ignored in the event of yield curve types with the
following property:
The
<DS:DE.JBDCCUSE>Use Continuous Compounding Procedure</> indicator is
set.

System Response

The credit spread is not applied during NPV calculation.

How to fix this error?

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message RY774 - Credit spread ignored: yield curve type &1 is not supported ?

  The SAP error message RY774, which states "Credit spread ignored: yield curve type &1 is not supported," typically occurs in the context of financial instruments and risk management within SAP systems, particularly when dealing with yield curves and credit spreads in valuation processes.
  Cause:
  The error is triggered when the system encounters a yield curve type that is not recognized or supported for the specific operation being performed. This can happen due to several reasons:
  
  Unsupported Yield Curve Type: The yield curve type specified in the transaction or configuration is not defined in the system or is not compatible with the current settings.
  Configuration Issues: There may be a misconfiguration in the financial settings or in the yield curve definitions within the SAP system.
  Data Entry Errors: Incorrect data entry or selection of yield curve types in the transaction can lead to this error.
  Missing Customization: If the system has been customized, the necessary configurations for the yield curve type may not have been implemented.
  
  Solution:
  To resolve the RY774 error, you can take the following steps:
  
  
  Check Yield Curve Configuration:
  
  Navigate to the configuration settings for yield curves in your SAP system (usually found in the Financial Services or Treasury modules).
  Ensure that the yield curve type referenced in the error message is defined and properly configured.
  
  
  
  Review Transaction Data:
  
  Verify the transaction or document that triggered the error. Check if the yield curve type is correctly selected and matches the available configurations.
  If necessary, change the yield curve type to one that is supported.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for information on supported yield curve types and their configurations.
  
  
  
  System Updates:
  
  Ensure that your SAP system is up to date with the latest patches and updates, as newer versions may include additional yield curve types or fixes for related issues.
  
  
  
  Contact SAP Support:
  
  If the issue persists after checking configurations and data, consider reaching out to SAP support for assistance. They can provide insights specific to your system setup and help troubleshoot the issue further.
  
  
  
  Related Information:
  
  Yield Curves: Yield curves are graphical representations of interest rates for different maturities. They are crucial in financial modeling and risk management.
  Credit Spreads: A credit spread is the difference in yield between a risk-free bond and a bond with credit risk. It is used to assess the risk premium associated with a particular investment.
  SAP Modules: This error is often encountered in modules related to Treasury and Risk Management (TRM) or Financial Services (FS).
  
  By following these steps, you should be able to identify the cause of the error and implement a solution to resolve it.