A distressed or a defaulted bond can be defined as a bond for which the issuer has defaulted on their debt obligations, and/or has filed for protection under Chapter 11 of the U.S. Bankruptcy Code. The term "default" refers to an issuer's failure to pay interest or principal on a scheduled repayment date.
Eagle Accounting fully supports the processing of default bonds, by allowing you to:
- Shut off accruals on a security, either at a security/accounting basis level or at an entity/ accounting basis and security combination level,
- Shut off amortization on a security, either at a security/accounting basis level or at an entity/accounting basis and security combination level,
- Shut off accruals and amortization on a security/accounting basis level, either at a security level or at an entity/accounting basis and security combination level, and
- Stop the maturity processes when the bond is in default.
Eagle Accounting does not calculate accrued interest purchased or sold when purchasing or selling a bond that is in default.