GIOA MARCH 2010 How To Leverage Technology Rick Phillips Jason Klinghoffer Kevin Webb, CFA What on Earth Is Technology? Windows XP crashed. I am the Blue Screen of Death. No one hears your screams. Your file was so big. It might be very useful. But now it is gone. Having been erased, The document you're seeking Must now be retyped. What On Earth Is technology? Technology Defined: “...tools and machines that may be used to solve real-world problems.” Definition from http://en.wikipedia.org/wiki/Technology#Definition_and_usage What Real-World Problems Can We Solve? What Do You Need? Find Data * Called Bonds * New Issue Bonds * Economic Stats * Bond Pricing *Computer *Internet Access *Spreadsheet Find Information * Knowledge Engine * Economic forecasts *Mobile Apps to keep you informed on the go Bloomberg Can Answer, But It Cost$ Finding Called Bond Data FHLB Called Bond Data: www.fhlb-of.com/cgi-bin/UpcomingCall.cgi FNMA Called Bond Data: www.efanniemae.com/syndicated/documents/mbs/ debtmarketing/callmonitor/callmonitor_current.htm FHLMC Called Bond Data: www.freddiemac.com/debt/data/cgi-bin/recentlycalled.cgi? order=SD Called Bond Data Query Finding New Issue Data Treasury Issuance Data: www.treasurydirect.gov/RI/OFAuctions?form=histQuery FHLB New Issue Data: www.fhlb-of.com/data/GetEarlyReleaseBonds.xml FNMA New Issue Data: www.efanniemae.com/syndicated/documents/mbs/ debtmarketing/debtissued/callabledebtissued.htm FHLMC New Issue Data: www.freddiemac.com/debt/data/cgi-bin/issue_lookup.cgi? order=SD Or www.freddiemac.com/debt/funding/ Weekly_Issuance_Report.xls New Issue Data Filter Finding Economic Data Economic Data: www.freelunch.com Economic Data Query Use “My Basket” To Download Historical Data on up to 25 Economic Series into a spreadsheet Trade Reporting and Compliance Engine Purpose: Increase Price Transparency in the U.S. Corporate and Agency debt markets. History: 1998 - SEC asks NASD to adopt reporting regulation, create an historical pricing database, and establish surveillance program for U.S. Corporate debt market 2002 - TRACE goes online with limited corporate coverage. Corporate market fully integrated by 2005 2009 - FINRA wins approval for TRACE coverage of U.S. Agency market. Reporting went live on March 1st, 2010. TRACE Access Bloomberg: TRACE data available through Bloomberg subscription, data delayed beyond 15 minute window. Web Interface http://www.finra.org/ marketdata TRACE data available upon entry. TRACE Queries Breaking it Down What are prices telling us? - Trading levels with time, size and side variables - Differences vary on trading factors *Size, Liquidity, Dealer Interest, Etc. - Prices only reflected if traded Takeaways: - Prices are indications, not guarantees - GASB 31 and pricing source redundancy - Broker check - fair practice Finding Information Using Computation Knowledge Engine: www.wolframalpha.com Finding Economic Forecasts: www.cbo.gov WOLFRAMALPHA “What is a computational knowledge engine?” An engine that generates output by doing computations from its own internal knowledge base instead of searching the web and returning links. Questions About Itself What are you? Who are you? Where are you? Questions About you enter your name enter your birthday “where am i?” “what’s the answer to life?” Questions about Economics “Bond” - to get a bond calculator “Treasury Yield Curve” “unemployment rate california vs nevada” “us debt vs gdp AND greece debt vs gdp” “us federal debt” “how many roads must a man walk before you can call him a man?” WOLFRAMALPHA SAMPLES Economic Forecasts www.cbo.gov The Congressional Budget Office is a government agency that provides economic data to congress. The website provides economic forecasts that can be useful in providing estimates to councils and boards. Top 10 Mobile Apps to keep you productive & informed on the go 1 6 2 7 3 8 4 9 5 1 0 Other Cool Apps Out of This World Reading “Financial Modeling” by Simon Benninga Chapter Chapter Chapter Chapter Chapter Chapter 20: Duration 22: Modeling The Term Structure 23: Calculating Default-Adjusted Bond Returns 29: Excel Functions 30: Some Excel Hints 31-35: Excel Visual Basic for Applications “Mastering Financial Mathematics in Microsoft Excel” by Alastair L. Day Chapter Chapter Chapter Chapter Chapter 2: Basic Financial Arithmetic 3: Cash Flows 4: Bond Calculations 5: Bond Risks 16: Basic Statistics Out of This World Reading “Excel Hacks” by David & Raina Hawley Chapter Chapter Chapter Chapter Chapter 3: 5: 6: 7: 8: Naming Hacks Charting Hacks Hacking Formulas and Functions Macro Hacks Connecting Excel to the World “Against The Gods - The Remarkable Story of Risk” by Peter L. Bernstein Disclaimer The information herein has been obtained from sources Cantor Fitzgerald and Co. (“Cantor”) believes to be reliable, but Cantor does not represent or warrant that it is accurate or complete. This information has been prepared solely for informational purposes. It is not an endorsement of, or a solicitation to purchase, any of the products or services mentioned herein. Cantor disclaims all liability for the accuracy or completeness of the information provided by any vendors or contained in any websites mentioned herein.