Primary Reinvestment Model
Optimize reinvestment of maturing bonds in primary auction markets
Coming Soon
This model will help structure reinvestment strategies for maturing positions:
- Calculate maturing amounts from selected positions
- Allocate across upcoming primary auctions
- Compare duration before/after reinvestment
- Analyze income change (old vs new coupon rates)
- Assess HTM classification impact
- Model MTM sensitivity of new allocation
💰Maturing Positions
Select positions reaching maturity:
- View all maturing bonds by date
- See principal + final coupon amounts
- Current portfolio duration contribution
- Current annual income from position
- Select multiple bonds if needed
🎯Reinvestment Allocation
Allocate proceeds to new bonds:
- Select from upcoming primary auctions
- Specify allocation percentages
- See expected yields for each auction
- Compare new vs old coupons
- View duration change
Analysis Output
The model will provide a comprehensive comparison table:
| Metric | Before | After | Change |
|---|---|---|---|
| Total Face Value | 100,000,000 | 100,000,000 | - |
| Annual Income (KES) | 13,500,000 | 16,250,000 | +2,750,000 |
| Portfolio Duration (yrs) | 5.2 | 6.8 | +1.6 |
| HTM Classification | Eligible | Eligible | ✓ |
Primary Market Benefits
Reinvesting at primary auctions often provides better execution than secondary markets, especially for large amounts. You get auction-determined pricing and contribute to new issuance demand. This is ideal for HTM portfolios where you plan to hold to maturity.
Strategic Considerations
When reinvesting, consider: (1) Duration management - match your liability profile, (2) Income objectives - higher coupons vs capital gains, (3) Liquidity - new vs reopened bonds, (4) Rate outlook - lock in if expecting cuts, stay short if expecting hikes.