Bond Accruals

[Lhgoluboff]

Hi Mark,
For Corporate Bond investments where the income properties are set up, is there some setting to include accrued income at a given date (month end) in the portfolio valuation? If not, do I have to enter it manually each month and then what would be the best way to do this?

Thanks,
Louis

[Mark]

Hi Louis,

Yes, in several places there is an option to automatically include accrued interest. For example, in a Portfolio Performance report, if you turn on:

Options / Report Preferences... / Portfolio Performance / Include Accrued Interest

the whole report will factor in and include accrued interest. This same option is also available for the Executive Summary report. This option isn't available in the Portfolio Value report though, so it isn't available everywhere. However, it is something you can include in a Custom report as well. See the Custom report fields:

Accrued Interest
Value + accrued interest

Also, all of the yield calculations optionally account for accrued interest as well. See "Options / General Preferences... / Yields / Include Accrued Interest in Yield Calculations".