How to close a Bond in advance (old way)

Created by Erik Åkerlund, Modified on Fri, 09 Feb 2024 at 11:20 AM by Karin Östergren

To close a bond in advance - you first need to decide if it is a 'Close' or 'Continuous' closing option.

This is entered on the original deal.

Close means that the closing deal will reduce or end the original deal. Continuous means that the two deals will be running in parallel until maturity date but the coupon will be netted if added on the same deal. 

If you wish to pay the coupon on the Sell amount and then receive the coupon on the buy amount you need to enter the buy amount as a separate deal with a different Deal ID to be able to both pay and receive the correct coupon amounts.

To enter bonds the old way (new deals) are not longer possible so if a bond that has been issued and are still registered as a bond "the old way" and have the closing option set to Continous you need to reenter the bond from the start. 

First set up the bond in Bond Defintion: Bond Definition Then register the original issued bond deal and then add the close (buy back) as an added deal: How to register a Bond deal

To Close the Bond that has been entered the old way and to write down the issued amount, press "Close" button.

For Accounting of closing of Bonds, please see related article;

Bond Accounting

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