About Entity Setup for PIK Bonds

You can process unrealized gain/loss (URGL) for PIK Bond Interest Receivable that will be paid in shares. You can set the PIK URGL Flag field (tag 3859) at the entity/basis level to indicate whether PIK receivables are eligible for Mark to Market when the coupon is to be paid in bonds.

The following option is available in the Create/Edit Entity panel, the Create Master Fund panel, and the Add a Basis to a Portfolio panel. These panels are available in Portfolio Data Center and in Accounting Center.

Option	Tag	Description

Option

Tag

Description

PIK URGL Flag

3859

Indicates whether unrealized gain/loss is posted for a Payment in Kind (PIK) bond interest receivable. Options include:

Yes. Allows the accounting basis to post daily mark to market entries for interest receivable when a security has a processing security type (PST) of Interest Bearing Debt PIK (DBIBPK) and there is a PIK Receivable Mark to Market schedule for the coupon period.
No. The Accounting basis is not able to daily mark to market PIK unrealized.

For more information, see About Calculating URGL for a PIK Receivable Balance.