Determination of yield curves
Reliable yield curves for your
investment and financing decisions
Yield curves play a central role in evaluating and managing financial decisions. They serve as a basis for valuing financial instruments such as bonds and derivative products. Moreover, they enable to derivation of appropriate discount rates. Furthermore, yield curves contribute to interest rate risk management, for example by supporting the planning of capital structures and the development of suitable hedging strategies.
Valuation of financial instruments
Yield curves are the basis for valuing financial instruments, such as bonds and interest-related derivatives.
Investment
decisions
Yield curves are essential measures to choose the best financing- and investment strategies.
Financial
Reporting
Yield curves play a decisive role in financial reporting — for example when calculating long-term provisions and evaluating risks.
Valid yield curves
We determine yield curves using scientifically approved as well as practically accepted methods and provide reliable analyses.
Yield curves for your needs
Yield curves are highly relevant for companies seeking to make sound financial decisions.
Valuation of bonds
Yield curves are used to discount bonds' future cash flows in order to assess their market value. Adjusting the yield curve to reflect creditworthiness, rating-related factors, and country-specific risk components is essential for accurate valuation.
Discount rates in IFRS accounting
In IFRS accounting, items are frequently depicted by the present value of their future cash flows. The prerequisite for this is the proper calculation of an appropriate discount rate. Typical areas of application include fair value valuations, the valuation of provisions as well as accounting for pension obligations.
Calculation of borrowing costs
Based on current market data, we derive risk-appropriate interest rates — using methods such as the analysis of comparable corporate bonds, or model-based approaches like Merton's structural models.
Risk Management and Hedging
Yield curves are a core component of risk management, particularly in the context of derivatives and interest rate hedging. Banks, insurance companies, and corporates rely on them to develop and assess strategies for mitigating interest rate volatility.
From science into corporate practice
Statistical & econometric methods
We apply scientifically approved methodologies, including approaches such as Nelson-Siegel and Svensson, which utilize piecewise regression or spline techniques to depict the yield curves relevant to your investment projects.
Reliable data sources
We use market data such as corporate bond yields, government bond yields or swap rates to provide you with reliable yield curves.
Individual use case
We go beyond standardized estimates by providing yield curves tailored to your specific needs.
What is a yield curve?
What information does the yield curve provide?
In which structures yield curves may occur?
What is an inverse yield curve?
.png)