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The calculation of coupon rate for Argentinean domestic floating-rate bonds is carried out using the mechanism known on the international debt market as "in arrears". It differs from the traditional mechanism in advance" in the periodicity and the method of rate’s determination (resetting) – the rate is refixed daily and calculated as the arithmetic average of the reference rates published during the determined by the issuer period. The Argentinean floating-rate bonds are usually linked to the Argentine interbank deposit rates – BADLAR, TM20 and Tasas de interés por depósitos a 30 días. This daily changing rate is used not only to calculate the coupon payment at the end of the coupon period, but also for the daily calculation of ACI figure (accrued coupon interest). This calculation method is applied not only by the issuers of the corporate sector but also to the securities of the issuers of the municipal sector, as well as to the sovereign debt under local law of the Government of Argentina (for example, bonds BONAR and bills LEBAD).
The importance of this figure results not only from the complexity of its calculation and necessity to carry out this calculation daily, but also from the fact that on the Argentine organized debt market bonds are traded at so called «dirty price», therefore, in order to calculate the clean price, investor needs to know the ACI amount accrued on the date of calculation.
ACI on the current date is published in the main parameters section of the issue page. For calculation of the ACI amount on another date, a user should use the "Calculator" tool available on the issue page. In addition, users can find pdf files with the calculated ACI amount on a certain date for all outstanding domestic floating-rate bonds of Argentina here, in the «Comentarios» section (available for free download after registration). Cbonds has also prepared a template for calculation of ACI for needed set of Argentinean floating rate bonds on a necessary date.
|29/05/2020||Cbonds Started Calculating and Publishing Coupon Rates, Coupon Amounts, and ACI on the Argentinean Domestic Floating-Rate Bonds|