Skip to content

What-If Analysis

This document specifies the requirements for CalcBridge's what-if scenario simulation capabilities.

Overview

What-if analysis enables portfolio managers to simulate the impact of trades, rating changes, and market movements on compliance tests and portfolio metrics before committing to actual transactions.

Requirements

Functional Requirements

ID Requirement Priority Status
WI-001 Users shall create scenarios with multiple hypothetical trades Must Have Implemented
WI-002 Simulation shall calculate compliance impact for all tests Must Have Implemented
WI-003 Results shall show before/after comparison Must Have Implemented
WI-004 Scenarios shall be savable and shareable Should Have In Progress
WI-005 Side-by-side scenario comparison shall be supported Should Have Implemented
WI-006 System shall validate trade executability Must Have Implemented

Trade Types

Type Description Impact
Buy Add or increase position Increases portfolio par
Sell Remove or reduce position Decreases portfolio par

Simulation Engine

The simulation engine:

  1. Takes the current portfolio as baseline
  2. Applies proposed trades (buy/sell)
  3. Recalculates all portfolio metrics
  4. Runs all compliance tests
  5. Compares baseline vs projected results
  6. Generates impact analysis

Impact Analysis

Metric Comparison
Total Par Baseline vs projected
Weighted Average Spread Change direction and magnitude
Weighted Average Rating Improvement or deterioration
CCC Exposure Percentage change
Diversity Score Change in diversification
OC/IC Tests Cushion changes

User Stories

US-WI-001: Simulate Trade Impact

As a Portfolio Manager I want to simulate the impact of a proposed trade So that I can make informed trading decisions

Acceptance Criteria:

  • Simulation completes within 3 seconds
  • All compliance tests are recalculated
  • Results show clear improvement/deterioration indicators
  • Trade validation prevents impossible trades (e.g., selling more than held)

US-WI-002: Compare Scenarios

As a Portfolio Manager I want to compare multiple trade scenarios side by side So that I can choose the optimal strategy