Hello. Welcome to the fixed income session of the Bloomberg Essential Online Trai
ning Program. My name is Kyle Ashworth, and today we’ll be discussing the analytic
s and data monitors that we have available within fixed income on the Bloomberg
The first tool that we want to use to look at news, news for fixed income. S
o what we’ll do is we’ll navigate down to the bottom of the menu, and we’ll click on 1
4 NBOND for bond news. Clicking that, it’ll load a very familiar page for you. Thi
s is the news categories. And you’ll notice on the top left in the toolbar it says
bonds. So now we have our top bond news.
This isn’t just our top bond news, but also we can choose popular news, and we
can also see all news for bonds. You can customize the type of fixed income new
s by either clicking on customize and choosing from there, or if you click new s
earch you can also type in additional fixed income topics like credit markets, m
unicipal bonds, additional categories that I already have in my particular monit
Now for the next screen that we would like to look at is economic calendar.
This is another screen that you should be familiar with already from the other v
ideos, but let’s type in ECO for economic calendar. And from here, specifically fo
r fixed income, we can focus on releases within the top left menu. If we click t
he economic releases and go down to government auctions, this is going to bring
up the auctions for the United States in particular. You can change the country.
If you want to put in Germany, you can type in Germany.
And notice if we go back to the United States, all the current releases are
in white and all the future releases are going to be in amber, just like before.
If you want to see the results of those, you can again click into that release
and you can see that data in there as well the news stories listed below.
Now for an overview of the global fixed income markets, we can type WB for w
orld bond markets, and then hit the go key. Notice that we have our countries on
the left hand side, and across from those we have columns for information like
price, the change in price, yield, change in yield, a charge of the yield.
And then on the right side, we have a relative value performance of how do w
e look – how is the yield now versus the average over a period? In this case, we’re
comparing the yield of now in blue versus the average, which is in three months.
You can change that easily by clicking one week, for example, and now you can s
ee if the yield is wider or tighter than the average that you specified on the t
In addition, you can change the maturity of the bonds. If you want to look a
t five years, change it to five years and that’ll update – that’ll update accordingly.
It’ll show you the individual securities here. If you want to see any additional
information from those, you can actually click on the name of the country, and t
hat’ll take you into a deeper level menu where now you can see the different tenor
s of that curve. You can see the curve spreads, butterflies, additional informat
ion there that you can explore.
Let’s hit the menu key. We also have two additional tabs. If you click on spre
ads, that’ll give you spreads relative to the country you have selected. If you wa
nt to see spreads relative to Italy, we can choose Italy from the list. And now
it’s giving you the spread of Italy versus the United States in blue.
Additionally, you have the spread chart and the historical comparison availa
ble just like in the bonds tab. Lastly, we have the curves tab. And what that’s do
ing is it’s letting you compare all these countries with a side by side of each po
int on that curve so you can get a quick and real-time update of those curves an
d how they’re moving.
Now WB is a monitor with real-time information that rates (ph) currently tra
ding in the market. For an overview of bond yield forecasts, we can look at BYFC
and hit go. Now BYFC will give you bond yield forecasts for multiple points on
the curve, as well as three-month benchmark rates, as well as tenor spreads that
you can specify up on the top right. You can narrow down the countries or focus
on the countries based on your region on the top.
And going back to let’s say the United States, BYFC has six quarters worth of
forecasts. And these forecasts are contributed to us by economists and market re
searchers on a monthly basis by our Bloomberg monthly news surveys. When you cli
ck into the particular bond tenor, it’ll mention who forecasts, as well as the sta
tistical information that corresponds with those surveys and when they were rece
For a real-time monitor of benchmark rates, you can use BTMM. BTMM is our tr
easury and money markets monitor. This can be specified by country. You can chan
ge your country on the top left and then navigate based on the region and choose
the country directly from there. Now we have rates from – deposit rates, all of o
ur benchmark rates. It also includes treasury rates on the left side, as well as
even the gold spot rate and equity index futures. This is a great way for marke
t players and for you to get a pulse in real time what the rates are as they cha
nge in the market.
To conduct curve comparison, to look at a curve for a particular country, to
look at their CDS curve, rate curve, we can look at all those by typing CRVFgo
for curve finder. Within the curve finder, along the top the tabs will show you
what types of curves we have available. Within those, we can navigate by country
. We can also look on the far side and see based on those countries what we have
Now in our example, let’s search for the A US corporate curve. If we go to cre
dit and then we look at industrial, we can then select the A. And we wanted to s
ee this in US dollars, so we can click on US industrials A BVAL curve. Now that
we have selected that curve, we can go to the bottom right and click show select
ed curves. Now we can see the curve for the US industrial A curve where we have
the one-year through 30-year rate. These are the yields of the curve, and we als
o have some additional curves on the far right that I’ve added in the past.
But right now we’re only seeing the industrial A curve. We have the yields dow
n here on the bottom, and if we want to see this as of a historical date, then w
e can see how did that curve look one week ago. If we click on the one W at the
top, now we can see the current curve versus the curve of one week ago, and then
the spread between those two. If we want to enter a custom date instead, we can
enter those dates here by clicking, and then we can put in the dates on the top
Now if we want to specify a custom date, we can go to the more tab. Then onc
e we select, we can drop the custom date and then enter, let’s say, March 9, 2012.
When we click update, now our curve will show March 9, 2012, along with the oth
er dates there. If we want to add another curve and see how does this industrial
curve compare to, maybe we could use the US swap curve here, we can just check
that curve. And now you’ll see the other curve is in a different color and you can
see them charted against each other. You can always unselect – you can always rem
ove those curves as you like. If you want to add a curve that’s specific, you can
click to browse, and then use that same menu and navigation to go to your next c
The last thing I want to show you with the curve is to click menu to go back
. And we can see these data points numerically in a table if we scroll our mouse
or hit the page forward key on our keyboard, which is the green key next to our
menu key that you used before. Now you can see for each curve what that histori
cal date was in the table.
All the applications we’ve discussed today have all been market monitors and b
road-level overview. Now let’s move into actually finding a screen for securities.
Then we’ll close with looking at individual security applications.
Now, to start, the easiest application that we have to do a security find is
to actually use SECF, go. SECF is our security finder. And what that allows you
to do is to browse Bloomberg’s universe of securities and statistics. Now the sec
urity finder is really in two sections. The top is our control area, which allow
s you to look at the individual tabs by asset class, as well as the search tool
at the very top left. The second half is really the output section, the section
that’s going to show you the results in a table, and then it’ll let you search by re
Now let’s say that we have an example where we want to search for a bond from
IBM. We can click on 32FI, and then notice that we have always additional button
s across the bottom. Now we have this for corporates, but in addition, if you ha
ppen to look for bond futures, interest rate swaps, credit default swaps, loans,
those are available there too. For IBM, we’ll stay on corporate. And then in the
issuer name, we can type in IBM for International Business Machines. Alternative
ly, you could also type in IBM as the ticker since that’s the actual corporate tic
ker for IBM.
Here we can actually look through the list and search what coupon we were lo
oking for. We can do that, or we can actually narrow it out and type in 7.5 and –
if that’s the coupon we’re looking for – and then it’ll show it right there. It’ll give us
brief statistics in that list. And then when you’re ready to actually load that s
ecurity for analysis, then you can actually click on that security and it’ll launc
h that for you. Now if you would rather use the search box instead of narrowing
it down through these filters, you can clear that from the list. And then in the
top where it says search, you can type IBM. We were looking at the 7.5 percent
coupon. When we hit go, then again it’ll show us our result here.
If you wish to do a more sophisticated search, you can definitely do that wi
thin Bloomberg. In order to do that search, you would type SRCH and then hit go.
Within SRCH, you can do an advanced search for corporates and government bonds.
To do so, start out with clicking on the top red – top right red advanced search
button. Now you’ll see your difference choices on the left for your filtering. If
you wish to specify an issue date or a maturity date, you can go into issuance i
nformation 2, click there, and then you can enter that information here.
Additionally, covenants. You can definitely select any one of these check bo
xes. You can just definitely notice these gray tabs as you scroll across the top
. This is where you’re going to get your additional information. You can narrow it
down by credit ratings and choose. Let’s say you want to use S&P ratings and you
want to include only investment grade in your search.
Now you can either individually select, or you can click investment grade an
d then click update. You can also – if you want to specify a particular range of y
ields or a particular price range, you can click 7, inventory and analytical dat
a. And then down here in the middle you can specify your prices or your yields.
We’ll make our search very broad and we’ll put in 1 to 10 percent, and then click up
date. This is – this is not the exhaustive list. You can click any one of these. A
nd you’ll notice that we also again have additional tabs here if you want to sort
by sector. The list goes on.
Now let’s click 1 go. The way to see your search results is to click 1, go to
search. Notice that we have over 30,000 results. We’ll only see 5,000 of those res
ults in this screen. In addition, if you were to export this to Excel, which you
can definitely do, that will also be limited to a maximum of 5,000 results, jus
t as – as a note for that.
You can also save this search. If this is a search that you need to run agai
n, then you can go to options, save search, and then you can come back to this s
earch in the future and rerun it. And in the future, you may have – you’ll have the
opportunity to have those different results.
Now let’s – let’s look at screens that pertain to individual securities. Before we
were looking at a bond with a 7.5 percent coupon from IBM. We can type IBM at t
he top, and then 7.5. Notice that our auto complete helps find that security. So
you can use SECF that we discussed before, or you can use auto complete to type
in your security if you have the – the information here, like we do. You can that
to select your security, or you can also type it in as your CUSIP (ph) or other
identifier there and it’ll help find it for you.
We’ll click it from that list, and that automatically loads the security for u
s. You’ll notice that we have this menu of applications that we can run. And we wo
n’t have time to discuss these today, but definitely explore these for your analyt
ics for relative value hedging, things that you can look forward to in the futur
The particular screen that we’re looking for right now is the description page
. So click on 16 DES on the top right. Now notice on the description page we hav
e the core information, including issuer, the type of issuer it is, the sector t
hat they’re in. We have the coupon – coupon frequency, core information about that s
ecurity. On the left side, we have navigation. We can look at information such a
s covenants. We can look at bond ratings. If you want to see historical bond rat
ings for this issuer, then you can actually click on the expansion tabs to see t
hose right in the screen.
In addition to that, you can also see if there’s multiple coupons or if there’s
a schedule, if it’s callable or puttable, things like that. You can click into sch
edules. It’s grayed out if it’s not available. In addition to the information that w
e have in the bond description, we also have a tab for issuer-level information.
Let’s click on 22 issuer description. And particularly, we can look at 4 debt sum
mary to look at their distribution.
Now here we have nice charts and breakdowns, but note that in these individu
al tabs on the left we can also launch the individual applications directly by c
licking on them. If we expand this window, now we can see the full application f
or our debt distribution. And here we can see IBM, and then we can also see the
companies that are part of that business where we can see the issuer and subsidi
aries. As we scroll down, we can see that entire list.
One additional note is that you can also group your debt distribution by whe
ther it’s just the issuer – only obligations of the current issuer. You can narrow d
own that debt based on its group. Let’s close that. Notice that we have more than
just the debt distribution. We also have major creditors who own that bond, cred
it health as in financial ratios to give you a better perspective on not just th
at particular issue, but also that issuer.
Now, to move from core information – core descriptive information to actual an
alytics to run yield analysis on this particular security, we can type YA and hi
t go for yield analysis. On this page, you can see that we have additional tabs,
one for yield and spread. We can then move to pricing to see descriptive inform
ation. But let’s stay on the yield and spread tab just for a moment.
The yield and spread analysis screen will let you price a fixed income secur
ity, calculate risk, hedge amounts, and see market data. You can input custom sp
reads. So in this case it’s the spread to bench, and it’ll reprice your security bas
ed on your input. So here we put a spread to bench of 20 basis points and it rec
alculated our price and yield.
In addition, we can change how we calculate our yield if it’s yield to worse (
ph), or yield to maturity, or yield to a custom date. We can also enter in histo
rical dates in our historical settle (ph), and you just type that in here. We ha
ve our spreads. You won’t need to know – if you’re not familiar with these types of sp
reads, if you hover your mouse over them, it’ll give you a brief description of wh
at those are.
On the right side, we have our risk measures, risk and convexity. We have ou
r risk hedge. These are against the benchmark that you select here. And then als
o, it calculates our accrued interest and all-in price. We can move across the t
abs along the top, and now we can pricing. Pricing based on what’s available on th
e market from the trace reporting, from our runs messages, things like that, des
criptive information or snapshots from what we had on the description page that
we looked at just prior to this screen. We have relative value graphs to see not
just what it is today, but how that’s changed over time.
And then custom gives you full customization of what type of information you
want to see on each page. You can click into any one of these tabs to then laun
ch that individual analysis within that section of the screen. If you like this
custom tab or any of these tabs, you can change the order by dropping it across,
and then it’ll set that way for you going forward.
The final screen we’d like to discuss today is a credit monitor that you can t
ype GCDS. Notice again we used auto complete. We can select it here or hit go. A
nd what GCDS does is it shows you credit default swap spreads based on the secto
rs that you choose. You can set it by region. You can import a portfolio or – base
d on an equity index, a launch pad monitor. It gives you a very wide range of so
urces to pull that from, as well as the full customization of what spreads you w
ish to see.
In my setup here, we can look at it by region. We have it set up for the Ame
ricas, although we can set it for global. Here I have listed for banks, but we c
an choose by any sector listed in this drop menu. We can choose to sort out whet
her we want to see investment grade or high yield. And then we can choose which
tenor of the CDS curve we wish to view. And lastly, we can choose which pricing
source we want to narrow that down by. We can choose CMA New York, for example,
or we can also use a Bloomberg composite price here, which is what we’ll use going
Now, on the right-hand column are all securities or all the issuers where we
have CDS pricing based on our selections up here. If we choose to check off the
box, then it’ll add that – that name to that chart, and you’ll notice it’s added that i
n the legend if it’s available. We also can see the average spread for all 35, or
we can do – we can click on average of selected and then see that charted. So we c
an say which names are above the average, which names are below the average.
To conclude that example, notice that our highest spread on the chart is cur
rently Morgan Stanley. Notice that on the legend it highlights the name. That is
currently trading above the average, which is 201. Notice that if I put my curs
or on the actual – the average of selected, then it also highlights which line tha
t is. The average is at 201. So GCS is a great tool to not just narrow out the i
ndividual names that you want to chart on a graph, but also let’s you easily compa
re those not just against each other but also against as a group average.
And just as a note, if you never get your mouse to the very top right hand c
orner, you can see that there’s an icon with a green arrow. You can click on this
green arrow and drag that into Excel, and that’ll move the information from the sc
reen into Excel for you. This concludes are session on fixed income essentials.
If you need any future assistance, please feel free to hit the help key twice fo
r immediate assistance from our 24/7 global help desk. Thank you.