How-to: Close a Bond transaction

Bond - Close of an open position

First deal – Sell of a Bond 100M. Entered as a Sell, Open

Second deal – A partial Buy back, 60M. There are two different ways of handling this.

1 – The second deal entered as ‘Close’ transaction.

2 –The second deal entered as an ‘Open’ transaction.

Option 1 - Netting Sell and Buy transactions

· The net amount of Sell and Buy, 40M, remains as position.

· The future coupon payments are based on the net position of 40M.

· Accrued interest in reports is calculated on the net position.

Enter a new transaction as a Buy, Close. Save

Click on the Close button to open up the ’Close transactions’ form

On the left side you will see the transactions that can be closed. Note! 

There could be several transactions in the list.

Double click on the reference number to the left to perform the close procedure

or enter the reference number manually on the right hand side

The partial close is done. Click on ‘OK’ to return to the Bonds form.

Undo Closing: Double click on the reference number on the right hand side. 

Click on ‘OK’ to return to the Bonds form and change the deal from ‘Close’ to ‘Open.

Option 2 - Sell and Buy transactions are kept separately as a liability and an asset position.

· The Sell amount of 100M will be presented as a liability position.

· The Buy amount of 60M will be presented as an asset position.

· The future coupon payments are based on the net position of 40M.

· Accrued interest in reports is calculated as an interest expense on the sold amount and as an interest income on the bought amount.

Enter a new transaction as a Buy, open. Save and you are done.