Market Events Tool is primarily a PnL scenario analysis tool which can be used to stress test the performance of any given butterfly or bond curve strategy. It includes a full revaluation given a specific scenario, forward PnL calculations using recorded bond spread moves, and provides traders with a forward view to monitor their trading ideas dynamically via what-if scenario analysis and identification of potentially relevant events.
Market Events Tool allows traders to record and save historical bond spreads on the fly, which in return are used for position scenario analysis. Investors can stress test their trading strategies and determine how it will perform within a given market scenario, such as Brexit impact on bond spreads, or a country’s rating downgrades and default events.
Traders can customise, by selecting any bond or a set of bonds, historical market events to stress test their portfolio of butterfly and bond curve positions in order to observe and graphically analyse the trade performance based on these specific market events scenarios.