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Re: Treasury TIPS

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Posted by Mark on June 22, 2006 at 18:29:13:

In Reply to: Treasury TIPS posted by jim on June 22, 2006 at 18:15:39:

: I can not believe I am the first one to hit the problem of how to handle Treasury Inflation Protected Securities (TIPS) for I find nothing on the message board! How should the twice a year inflation adjusted pricipal be treated in FM? It is interested but it is reinvested in the bond. However the number of bond owned does not change just the principal value of the bond. FM won't let me reinvest the increase in the bond principal without a price and number of bonds.

: Help!


Hi Jim,

Can you give some more information on how you're tracking this before the principal is adjusted? Maybe you can give some examples of what you paid, and how you recorded it, in terms of shares, and pricing. Is this something that has a daily share price that is changing, or are you keeping it at a constant $1? I might be better able to offer some ideas once I understand better.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software




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