How to register a Bond deal

Created by Erik Åkerlund, Modified on Tue, 3 Sep, 2024 at 2:03 PM by Teuvo Suoraniemi

In order to register a Bond deal, the Bond instrument must be configured in Bond Definition - Bond Definition

The easiest way is directly from Bond Definition after saving clicking on New Deal button. Then you will open up the registration form in Deal input.

The actual Bond instrument set up in Bond Definition is already filled in:

Enter the Legal entity.

Check that the correct Bond Definition has been choosen and that Begin date and End date is correct (it inherits from the Bond Definition).

Add Relevant Tags (if not already set up relevant tags for Bonds in Tag Rules)

Check that the correct Default bank account has been added in Bank Accounts.

Click Save in the menu row above.

The Coupon plan will be generated in Transaction Tab.

If click on Refresh the tags will be shown in the Summary.

To enter the actual issued or invested transaction you need to do it in Buy / Sell / Close tab.

Coupon plan will be shown in the Transactions tab.

Buy/Sell/Close

The next step is to enter the actual deal information, this is done in the Buy/Sell/Close tab.

If multiple Buy/Sell will take place during the life time of the Bond those will be entered in this tab as well.

An issued Bond where buy back is done, this is entered as a Close, i.e. part of the position (or all of the position) is closed.

Depending how the bond should be settled it is possible to choose both from the Broker's and the IPA's accounts to set as Counterparty Account.

If an additional fee should be entered on the bond deal (besides the premium/discount) that should be amortized according to the effective interest method, this fee is registered directly on the Buy/Sell deal, in the new fee fields.

Transactions tab

In the Transactions tab all events will be shown for the Bond deal, including complete coupon plan and all Buy/Sell/Close information. In the Transactions tab Fixing Status is also available.

When marking a Buy/Sell/Close transaction, the individual deal information will be shown on top that can be useful for e.g. confirming the deal against bank note.

Note! The Yield is always shown as Compounded. Also when it is less than one year to maturity. Banks may show the interest as simple in deal confirmations.