Individuals and financial institutions regularly rely on third parties to perform sensitivity analysis and risk assessments on fixed income securities. Often times, these services come at substantial transactional costs or with monthly subscription fees. These analytics should be in your hands, and now they are.
Bonds: Simplified is a dynamic interface for you iPhone that provides flexible, reliable, in-depth capabilities that cannot be found on any other financial calculator.
Centered on fixed-rate mortgage-backed securities, Bonds: Simplified now gives you the ability to understand what goes into the valuation assumptions, and stress those results across prepayment speeds and interest rate environments. This includes not only instantaneous rate movements, but also horizon rate movements. You have the ability to not only pick how much the yield curve will shift up or down, but also over what time horizons.
Features include:
- Set basic MBS parameters to get a quick look at expected yield
- Input starting price or target yield
- Set prepayment sensitive based on rate movements (-300 to +300)
- Use instantaneous rate shock slider to compare initial speed versus rate environments
- Interpolate monthly yield curve and prepayment speeds on a dynamic calculator that allows you to determine when rates move, how much, and where those impacts are acceptable
- Side-by-side prepayment sensitivity tables, using PSA and/or CPR speeds
- Graphical representations of periodic balances and estimated income
- Detailed table of scheduled principal, unscheduled principal, and periodic CPR speeds
- Update rates in the App from the US Treasury on a daily basis for spread analysis
- Includes a basic fixed rate bullet bond calculator
- Output .csv file and email the results to yourself or colleagues — not a black box!
- Avoid homegrown spreadsheets, prone to errors
Many more updates are planned for the future to help provide insightful analytics and analysis as it suits the users needs.
Note: All price calculations and valuation results are estimates and are not to be relied upon for actual investment transactions.