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How to Model a CD

The HiddenLevers system can analyze Consumer Deposits in a portfolio. To add a CD position to a new portfolio, first log in to your HiddenLevers account and navigate to Data Center at the top and select Custom Assets.

 

Then, click the blue "Add Fixed Income" button on the top left. 

 

The Fixed Income creator will pop up, where you can enter the details of the Fixed Income instrument.

 

Now, enter the appropriate values for each field. To model a CD, one must:

Check the box labeled “Hold to Maturity?” This tells the system to disregard interest rate risk.

Rating: One must enter AAA for the rating. This tells the system to not consider credit risk.

Other fields:

Name for Clients/Reports - A unique name for the holding which will appear on any reports.

Yield (%) – The yield to maturity, or current yield if there is no maturation.

CUSIP (optional) – You may add a CUSIP if you desire

Currency – The default is USD, you may select another currency if needed.

Coupon – Enter the annual coupon %. Also select the frequency of the coupon payment.

Share? – Do you want to share this instrument with others in your firm?

Maturity – When does the fixed income mature? Leave blank if no maturation.

Once we have the details for our position entered, clicking on the blue "Submit" button will enter the data into the HiddenLevers database and generate a unique identifier for your holding that you can use in other portfolios.  The format of the unique identifier is FI followed by a six digit number.

HiddenLevers supports industry-level historical data for fixed income. The proposal sections (historical graph, total return, annualized return, drawdown, investment growth, and risk measures) reflect both the equity and fixed income portions of a portfolio.

This price history is automatically set based on the general sector of the investment. Here are the

current mappings:

  • Any US Treasury fixed income will use the Barclays 3-7 Year Treasury Bond data for price history.
  • Other fixed income instruments use Barclays US Aggregate data.

These are the defaults, but they can be changed in your Model Settings.