Bond and Fixed Income Analyzer

Prompt

Analyze the following fixed income investment and build a position recommendation.

Bond details (or fixed income portfolio overview):
- Security type: [TREASURY / CORPORATE / MUNI / HIGH YIELD / OTHER]
- Issuer: [COMPANY OR GOVERNMENT]
- Coupon: [RATE]%
- Maturity: [DATE]
- Current price: [PRICE]
- Current yield to maturity: [YTM]
- Credit rating: [RATING]
- My investment goal: [INCOME / PRESERVATION / TOTAL RETURN / DIVERSIFICATION]

Analyze:

1. **Yield Analysis** — YTM, current yield, and spread vs. comparable Treasuries. Is the spread adequate compensation for the risk?

2. **Duration and Interest Rate Risk** — Modified duration and convexity. Impact of a 100bps and 200bps rate move on price.

3. **Credit Analysis** (for non-government bonds):
   - Issuer financial health (leverage, coverage, liquidity)
   - Rating trend and outlook
   - Default probability estimate
   - Recovery rate assumption in default

4. **Call/Put Risk** — If callable, analyze the yield to call vs. yield to maturity. Reinvestment risk.

5. **Tax Considerations** — After-tax yield comparison (especially for munis).

6. **Portfolio Fit** — How does this position affect the overall portfolio duration, credit quality, and yield?

7. **Buy / Hold / Sell Recommendation** — With price target and exit criteria.