Bonds & Fixed Income

Bond valuation follows well-established fixed income mathematics—the present value of coupon payments plus principal repayment, discounted at appropriate market yields. Credit analysis determines the risk premium required above risk-free rates.

Duration measures interest rate sensitivity—longer-duration bonds experience larger price swings as rates change. Credit rating and issuer quality establish the baseline risk assessment, though market spreads reflect real-time risk perception that may diverge from rating agency views. Call provisions create optionality that must be valued.

Our methodology references current market prices for traded bonds and calculates theoretical values using yield curves and credit spreads for less liquid issues. We assess call risk, credit trajectory, and relative value versus comparable securities.