bond-relative-value

Spread decomposition extracts risk-free, credit, and residual liquidity components by pricing a bond against market curves. This isolates the true value drivers so you can determine whether a bond is rich, cheap, or fairly priced.

Scenario analysis for bond relative value applies parallel rate-shock scenarios to assess P&L sensitivity. Running these shocks across curves tests the robustness of your rich or cheap recommendation under different market conditions.

Yes, bond pricing coordinates yield curve and credit curve inputs to derive underlying components. Combining these curves allows you to separate the risk-free rate from the credit spread and any residual liquidity premium.

Determining if a bond is rich or cheap involves comparing decomposed G-spread and credit spread components against scenario outputs. The end-to-end workflow prices the bond, isolates the components, and synthesizes a final recommendation.

Yes, spread decomposition coordinates directly with fixed income risk analytics and historical pricing summaries. These MCP tools provide the market inputs and historical context needed to produce accurate scenario results and recommendations.