AXIS Module - Asset
The AXIS Asset Module directly supports modeling of the following types of investments:
- Sinking Fund Bonds
- Real Return Bonds
- Real Estate
- Stock Options (beta feature)
- Interest Rate Swap
- Currency Swap
- Derivatives for Hedging
- European equity index option
- Equity index forward
- Equity index Monthly Averaging Asian Option
- Equity index Daily Averaging Asian Option
AXIS also supports a seamless dynamic link to the BondEdge cashflow engine. This service is intended for modeling structured finance assets such as mortgage-backed securities (MBS) including collateralized mortgage obligations (CMO). To use this service, a separate license with Interactive Data Fixed Income Analytics is required.
In addition, AXIS allows asset projections to be imported from external applications using automated batch routines. Imported projection values that can be scenario dependent, include market value, book value, amortization of premium/discount, accrued interest, coupon cashflow, maturity cashflow and write downs can be entered into AXIS. These values can be scenario dependent.
AXIS provides a variety of methods for Market Value calculation, including:
- Present Value of Future Cashflows
- Unadjusted or Adjusted Yield Curve
- To Asset Maturity or Interest Reset Point
- Cashflows with or without defaults
- Black-Scholes Model for equity options and forwards
- Black Derman Toy Model for option embedded bonds
- Market Value Growth Rates (stochastic or deterministic)
- Depreciated Cost
- Simple and Scientific Amortized Cost
- Outstanding Principal
- BondEdge projected market values
Several of these methods also support solving for spread when a market value is provided.
The AXIS Asset Module generates the following Financial Projection details on a monthly or annual basis:
- Detailed cashflows such as bond coupons, mortgage and rental payments, dividends, capital repayments, administration fees and expenses.
- Asset movements arising from maturities, defaults, prepayments, calls.
- Earnings and income statement details such as earned income, amortization of realized and unrealized gains and losses, amortization of premium and discount.
- Balance sheet values and inforce statistics, including par values, book values, market values, etc.
- Multiple asset accounting bases functionality is available as a beta feature.