Bond management with the ability to model loans



By: Kade Boone

The key with loans or leases is to produce level payments with denominations set to the penny. To structure a loan or lease with DBC Finance, follow these three simple steps:

  1. Bond component: With a bond component, set the interest to monthly, starting one month after the date of the lease or loan. All monthly maturities must be created in the same bond component. For example, if the loan or lease is for 10 years, the number of monthly payments is 120. The rates, prices, and penny denomination are the same for all monthly maturities.
  2. Solution: Set the solution to level and the fiscal period to monthly to ensure the loan or lease produces level payments.
  3. Calculation: Calculate the loan or lease in DBC Finance. This enables the solution to produce level payments every month from any report, including bond solution and bond debt service reports.

Modelling loans or leases is just one of the many types of structuring that can be easily set up in DBC Finance. Simply create a bond component within one series and make the changes outlined above – it’s that easy. For more information about the many DBC municipal finance options, you can:

If you have any questions about SS&C’s DBC municipal finance products, email solution@sscinc.com.