WHere do I enter a factor to adjust the price of CMO?

Your help says to enter the factor to adjust the price and thus value of a CMO such as an FNMA or FHLMC bond? Where do I do this?

Comments

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited August 2020
    There's no place within Quicken itself to enter the factor. 
    I've never owned a CMO so I'm sort of flying blind here but understanding that payments to you from a CMO have both a principal and an interest component it seems like the correct accounting for each payment received would require that the dollars be split up accordingly.  That is, to account for each receipt of cash you'd record two transactions, one a "Return of Capital" and the other an "Interest Income."  I'd think the return of capital entry should result in a correct "factor."
    Of course if you bought the CMO at a premium or discount then there should be an amortization of the premium or discount too.
    It has always struck me that the correct accounting for a CMO can be quite complex.  I'd hope the broker's statements would provide the correct information.
  • I have the same issue with two mortgage backed securities and opened a ticket with support. Quicken does not support this security type and has no field to capture the Factor. Quicken calcs market value as price times shares, without considering the factor. Market value can only be tracked manually, and securities would need to be in a separate account that is not updated online. Return of Capital Transactions update the cost basis. You would adjust the price of the security by the factor, which is published monthly. Ticket is 8045933 if you want to voice your support for a product enhancement.