Bond Issue

Definition

Bond issues are issued, fixed-interest securities. Remaining capital is repaid in full on the due date.

Use

In Transaction Manager, you can edit the following activities for bond issues:

  • Issue of securities

  • Complete or partial redemption of an issued securities position

  • Increase the liability securities position using multiple issues

  • Purchase your own securities and thereby increase your asset securities position

Note Note

In Transaction Manager, you can display the Product Categories Bond (040) and Bond with Installment Repayment (042).

End of the note.
Prerequisites

To edit and manage bond issues, you must make the following settings:

  • You have created a Class for the security. The class determines the structure of a security (for example, interest rate, repayments, end of term). On the SAP Easy Access screen, choose transaction FWZZ..

  • You have created your own liability Securities Account for the issue.

    Note: You can use securities accounts for multiple issues. You use the securities account to determine standard information, such as payment methods, and to generate the cash flow.

  • You have created the issue using the transaction Create Financial Transaction (FTR_CREATE).

Integration

You use the same functions and trading and back office process for bond issues as for securities. However, you also select product types and categories.

You can assign interest rate derivatives that have already been created (SWAP, CAP, FLOOR) to the issue positions. You use the ICH reference ID to carry out this assignment. You can use this reference to display both the bond issue and the interest rate hedges in the Issue Hedge report.

The following transactions are also available for bond issues: