Brokered CDs, and cash in limbo

[Bruce]

This might be similar to the trade-date vs settlement date, but longer duration.

I placed an order for a new-issue brokered CD (Schwab) about 10 days before the CD actually issued. Internal to Schwab, they show the cash "pulled" from my cash account the day I placed the trade. It's still "there" ... it's earning that whopping 0.01% interest ... but it's committed, so they subtract it from the total.

In Fund Manager on the day I placed the trade, I created a new asset for the CD, but I showed the trade-date as the day the CD would be created. Fund Manager worked exactly like I expected; on the day the CD was created, my cash account was debited and the new asset showed up on my asset list.

Good ol' Schwab download though ... I now have two cash debits: the day I executed the trade is the downloaded date, and the day the CD was created is the Fund Manager date. The easy answer is to just delete the download entry from the register. But is there a more precise way to do this in Fund Manager that matches the Schwab flow?

Thanks.

[Mark]

Hi Bruce,

You could create an investment to track that "there" cash. I'm guessing there is some sweep vehicle. So, on the date you placed the order:

Sell Cash
Buy Sweep

and on the day the CD is purchased:

Buy CD
Sell Sweep