Does IB TWS include accrued interest in the net liquidating equity figure?

D

Daal

I'm referring to long bond positions (whether be it treasuries or corporate bonds). I don't think it does because frequently, when I sell a position the value that it was market before (lets say +$521) turns into something bigger (lets say +$745). The difference is the accrued interest that the buyer of the bond paid to you when you sold. Depending on how long you held the positon, that interest can add up (up to the date where the coupon is paid, in that date the accrued interest will reset).

I understand there is a tab that says accrued interest but I do not think that includes accrued interest from long bond positions.
 
Daal said:
I understand there is a tab that says accrued interest but I do not think that includes accrued interest from long bond positions.
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The accrued interest section definitely includes accrued margin and short interest expense, but I don't know about whether it includes accrued bonds interest or not. Please let us know if / when you figure it out. Maybe if you watch all the TWS numbers just before and just after you sell a bond, you can figure this out?
 
This is very relevant for people that hold bonds, specially bonds with big coupons. You have to pay the accrued interest right away when you buy the bond. Then you get your money back plus an additional amount when you sell (assuming you held for more than 1 day) or when the coupon is paid (typically every 6 months). Depending on where you are in that cycle you will look poorer than you really are
 
I suppose you could be out that accrued interest if the bond switches from trading the normal way to trading flat while you were holding it. Seems like a pretty conservative way to mark them, at least for investment grade issues.
 
What is the difference between NLV and NAV? My statement seems to add the accrued interest into the NAV.

Change in NAV Total
Starting Value
Mark-to-Market 1,021.78
Change in Interest Accruals 485.72
Commissions -297.56
Ending Value
 
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