[Verse 1] When bonds don't trade and prices hide The market's thin, no bids in sight Illiquid bonds need special care We'll find their worth with methods fair Look around for bonds alike Same rating, term, and credit type [Chorus] Matrix pricing, find the way Comparable bonds will light the day Interpolate between the lines Credit spread and yield combines Matrix pricing, don't you see Valued bonds through similarity [Verse 2] Take a bond that's five years long But trading data's weak or wrong Find a three-year, find a seven Both are trading, that's our heaven Draw a line between their yields The five-year price this method yields [Chorus] Matrix pricing, find the way Comparable bonds will light the day Interpolate between the lines Credit spread and yield combines Matrix pricing, don't you see Valued bonds through similarity [Bridge] Credit rating must align Industry and structure fine Government curve as our base Add the spread to find the place When the market's dark and quiet Matrix keeps our books compliant [Verse 3] Say our bond yields six percent But is that number really meant? Check the sector, check the grade See what similar bonds have paid Benchmark plus the credit spread That's how matrix bonds are read [Chorus] Matrix pricing, find the way Comparable bonds will light the day Interpolate between the lines Credit spread and yield combines Matrix pricing, don't you see Valued bonds through similarity [Outro] When liquidity runs dry Matrix pricing gets us by Fair value from the bonds we know That's how illiquid pricing flows
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