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bond-relative-value

Analyze fixed income relative value with spread decomposition and scenario stress testing.

1|Updated Mar 5, 2026
Search Tags:#risk management#fixed income#yield curve#relative value#bond analysis#spread decomposition
One-click install
npx skills add https://github.com/smrik/ai-fund --skill bond-relative-value-smrik
Or copy as Structured Prompt for Agent▼
Please help me install this Agent Skill.
Skill: bond-relative-value
Source: https://github.com/smrik/ai-fund/tree/main/skills/partner-built/lseg/skills/bond-relative-value
Command: npx skills add https://github.com/smrik/ai-fund --skill bond-relative-value-smrik

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve?

This Skill addresses the complexity of determining whether a bond is rich, cheap, or fair by automating the synthesis of pricing, yield curves, credit spreads, and stress testing.

Core Features & Use Cases

  • Spread Decomposition: Automatically breaks down total spread into risk-free, credit, and residual components to isolate true value.
  • Scenario Stress Testing: Computes P&L and price changes across various rate shock environments to validate investment theses.
  • Use Case: An analyst needs to determine if a corporate bond is undervalued compared to its peers; this Skill computes the residual spread and runs rate sensitivity scenarios to provide a clear buy or avoid recommendation.

Quick Start

Use the bond-relative-value skill to analyze the richness of the bond with ISIN US1234567890 against the current government and credit curves.

Frequently Asked Questions about bond-relative-value

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I determine if a corporate bond is rich or cheap compared to its peers?▼

By decomposing the total bond spread into risk-free, credit, and residual components, you can isolate the true relative value. Calculating the residual spread reveals whether a corporate bond is fundamentally undervalued or overvalued compared to its peer group.

What is credit spread decomposition in fixed income relative value analysis?▼

Credit spread decomposition breaks down a bond's total spread into risk-free, credit, and residual components. This separation isolates true relative value by distinguishing baseline rate risk from specific credit risk and market mispricing.

How do I run scenario stress testing for bond price changes across rate shocks?▼

Scenario stress testing computes projected P&L and price changes across various interest rate shock environments. This validates investment theses by modeling rate sensitivity and simulating yieldbook scenarios to forecast potential fixed income returns.

Do I need MCP tools for bond pricing and yieldbook scenario simulation?▼

Yes, comprehensive relative value analysis requires access to MCP tools for bond pricing, interest rate curves, credit curves, and yieldbook scenario simulation. These tools supply the necessary data to automate richness and cheapness assessments.

What's the best way to analyze a bond ISIN against current government and credit curves?▼

The best approach integrates bond pricing data with current yield curve context and credit spread decomposition. This comprehensive relative value analysis assesses whether a specific bond ISIN is rich, cheap, or fair against current government and credit curves.

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