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, Eagle Accounting has full support for securities in default 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 (position level
,)
Shut off amortization on a security, either at a security/accounting basis level or at an entity/accounting basis and security combination level
,(position level)
Shut off accruals and amortization on a security
/accounting basis level, either at a security/accounting basis level or at an entity/accounting basis and security combination level (position 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.