Bond Search Tool
Instructions
The external Bond Search tool is an advanced query tool that allows you to search for bonds using specific filter criteria based on two different queries: the OAS (Option-Adjusted Spread) and YTW (Yield to the Worst). Results display in a separate Bond Details table which can be exported to the Risk Navigator and opened as a what-if portfolio for further risk analysis.
Although the query is external (and works best with Firefox) access to the Bond Search can only be gained through
To Access the Bond Search Tool
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Access Classic
The Query opens in the browser, and comprises three main parts:
The Query
You can query for bonds issued by agencies, government or corporate bonds. Use these fields to define bond search criteria (similar to scanners). The less criteria you specify the larger the number of bonds that will be returned. You must define at least one criterion for the search to begin.
Using the Query Criteria
As you define the search criteria for bonds, the Search button on the bottom right of the tool will return the number of bonds that meet your criteria.
1 - Enter one of multiple tickers, separated by commas
2 - Select the Moody's rating(s) and/or collateral type.
3 - Expand the industries by using the "+" sign.
4 - Select "Search" to populate the results. Monitor the search button for number of bonds that match your criteria.
Criteria is optional, but at least one criterion must be specified to make the search valid. Filter fields includes:
| Field | Description |
|---|---|
| Issuer Name |
Specify a ticker or group of tickers, separated by commas. |
| Moody's Rating/Collateral Type | Select one or multiple choices. |
| Option Flag |
Select one or multiple flags (definitions from Investopedia): Bullet: A debt instrument whose entire face value is paid at once on the maturity date. Bullet bonds are non-callable. Bullet bonds cannot be redeemed early by an issuer, so they pay a relatively low rate of interest because of the issuer's exposure to interest-rate risk. Both corporations and governments issue bullet bonds, and bullet bonds come in a variety of maturities, from short- to long-term. Callable: The main cause of a call is a decline in interest rates. If interest rates have declined since a company first issued the bonds, it will likely want to refinance this debt at a lower rate of interest. In this case, company will call its current bonds and reissue them at a lower rate of interest. Puttable: A bondholder can redeem puttable bonds on certain dates and at certain prices. The advantage of these bonds to an investor is that if market yields rise and the value of the bond falls below the put price, the investor can exercise the put option and stem his losses to the put price. Of course, the special advantages of put bonds mean that some yield must be sacrificed. Sinkable: A sinkable bond issuer is required to buy a certain amount of the bond back from the purchaser at various points throughout the life of the bond, at a set sinking price. Issuers set aside money in their sinking fund to repay the money owed based on the bond's par value. If interest rates fall below the nominal rate of the bond, sinking fund provisions can allow the company to repay all or part of the amount owed, and refinance the remaining balance to the lower rate. |
| Issuer Type | Select agency, corporate, government or All. |
| Coupon Frequency | The per-year frequency of coupon payments. |
|
Open Amount |
Specify a range to search. |
| Query Type |
Option-Adjusted Spread - A measurement tool for evaluating price differences between similar products with different embedded options. A larger OAS implies a greater return with greater risk. For an OAS scatter plot, toggle the x-axis to display to Duration. Yield to the Worst - Yield to worst is calculated on all possible call dates. It is assumed that prepayment occurs if the bond has call or put provisions and the issuer can offer a lower coupon rate based on current market rates. The yield to worst will be the lowest of yield to maturity or yield to call (if the bond has prepayment provisions); yield to worst may be the same as yield to maturity but never higher. |
| Industry | Select multiple industries; use the "+" sign to drill down into the list to more detailed sectors. |
The List
The results of a bond search are presented in a list, where each bond populates allowing you to view more detail.
To Display the Results List
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After filters are defined, click the Search button and the Scatter Plot will populate.
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Click a bond on the Scatter Plot to view more information on this product.
