Good evening from Argentina,
I am a new PP user and I have been trying out the software, which I find very useful and user-friendly.
The problem I have detected is that I cannot find how to configure a new instrument for the management of bonds used in the Argentine market (with coupon payments and periodic amortizations).
Perhaps someone had the same problem and was able to solve it?
Perhaps this functionality is planned to be incorporated in a future update?
Thank you in advance.
Hello, maybe here ?
Managing bonds in Portfolio Performance offers flexible options for recording them either as securities or through cashflow accounts. Here are the key insights for both methods:
- As Securities:
- Detailed representation of the bond in your portfolio.
- Tracking of purchases, interest payments, and redemptions.
- Useful for performance analysis at the security level.
- Through Accounts (Cashflow):
- A simpler method for tracking cashflows.
- A good choice if you only want to monitor the financial impact of the bonds.
- No detailed security management necessary.
In both cases, you should determine in advance how in-depth you want to integrate the bonds into your portfolio.
Example
Option 1: Record as a Security
Create the Bond as a Security:
Go to “Securities” and create the bond as a new security.
Name of the Bond: XYZ AG 2025
Symbol: You can use a symbol like “XYZ_BOND_2025”.
You can set up the bond like a normal security without a price data source, or you can manually enter the prices if you wish (often, the price remains constant around the nominal value).
Booking the Purchase of the Bond:
Go to “Buy/Sell” and book a purchase:
- Date: Date of purchase (e.g., 01.01.2021)
- Quantity: 1 (for a bond with a nominal value of 1,000 EUR)
- Purchase Price per Unit: 980 EUR (bought below par)
- Total Cost: 980 EUR
- Fees: If you had fees for the purchase, you can enter them here.
Recording Annual Coupon Payments (Interest):
You can book the coupon payments as dividends or interest, as Portfolio Performance also supports interest payments:
Go to “Interest” or “Dividends” and add a new entry:
- Date: The date of the coupon payment (e.g., annually on 31.12.)
- Amount per Bond: 50 EUR (5% of 1,000 EUR)
- Quantity: 1 (number of bonds)
This records the interest as income in your account.
Repeat this step annually for the entire term of the bond.
Redemption of the Bond at Maturity:
At the end of the term (e.g., 31.12.2025), you can book the bond as a sale:
- Date: 31.12.2025
- Quantity: 1 (for 1 bond)
- Selling Price per Unit: 1,000 EUR (redemption value)
- Fees: If there are any fees, you can record them.
This will remove the bond from your portfolio, and you will receive the redemption amount of 1,000 EUR.
Option 2: Record through an Account (Cashflows)
If you place less importance on the detailed recording of the bond as a security and only want to track the cashflows (purchases, interest, redemptions), you can also represent this through an account. In this case, you treat the bond as an investment, and the interest and redemption payments as cashflows.
Create an Account for Bonds:
Create a new account, e.g., Bond Investment Account.
Booking the Purchase of the Bond:
Book a debit for the purchase of the bond:
- Date: 01.01.2021
- Amount: -980 EUR (bought below par)
- Purpose: Purchase of Bond XYZ AG 2025
Recording Annual Coupon Payments:
Book credits for the annual coupon payments:
- Date: 31.12.2021 (and for each subsequent year)
- Amount: +50 EUR (coupon payment)
- Purpose: Coupon Payment Bond XYZ AG 2025
Redemption of the Bond at Maturity:
Book the redemption amount as a credit in the account:
- Date: 31.12.2025
- Amount: +1,000 EUR (redemption of the bond)
- Purpose: Redemption Bond XYZ AG 2025
Hi,
Thanks for the quick reply.
I found another thread on the forum with the same issue I have raised and with a greater level of detail.
Cost basis modification transaction type - #29 by enslave913?
I will follow that thread to see if they arrive at a complete solution to the issue.
Thanks again for the support.