Yield Curve Simulation Excel Model & Automated Commentary
Originally published: 05/05/2019 08:35
Publication number: ELQ-82754-1
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Yield Curve Simulation Excel Model & Automated Commentary

Yield Curve Simulation Model (automated commentary) showing global impacts of yield curves on bond valuations

Description
This model is intended to show the level of automation that is possible (and has been possible for some time) both inside and outside of an Excel model.

The power of Monte Carlo simulation is heavily under utilised and this model will demonstrate how its possible to simulate 1000's of iterations whilst visually seeing the impact of those without a human turning the handle each time.

The level of volatitilty on something like interest rate can then be seen and understood much more clearly whilst also enabling the user not to get too bogged down into the detail of whats going on (unless they want to).

This leverages all the power of Excel, Powerpoint and the presentation skin and then Modeler which connects the 2 applications together to enable visualisation of modeling.

This is part of a broader topic of visual influencing which is now possible to enable better decision making by those that are not highly skilled in Excel or at risk of breaking the Excel model every time they change something.

The abiilty to change live during a meeting will also save time, provide a better and more engaging meeting and provide a way in which decisions can be made collaboratively rather than just by those that control the model (which is often the case).

The visualisation also shows whether there are any issues with the underlying logic or assumptions in the model as its possible to see trends visually and live.

All decisions made can then be emailed immediately during or post the meeting in the form of a pdf with annotation if required.

This Best Practice includes
1. Excel model 2. PowerPoint 3. Modeler file 4. PDF report

Acquire business license for $25.00

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Further information

To reflect how its possible to not only provide higher financial literacy but also to automate but historical and forward looking commentary using nothing else by Excel and a few fancy formulas. The tool also demonstrates a complex global trend in yield curve volatility due to events that occur and how these can impact bond valuations.

Education, automation and innovation

Commercial and client engagements without some degree of customisation.


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