Quantitative Modeling and Analytics

XunpointingheatherPRAG’s quantitative and analytical capabilities form the core of our advice.  PRAG professionals keep abreast of market developments and advances in technology to provide sophisticated financial analysis.  We combine the beneficial aspects of off-the-shelf software, customized Excel spreadsheets and templates, third-party optimization modules and high-level programming using VBA with analytical techniques, such as linear optimization, binomial lattices and Monte Carlo simulations, to generate elegant solutions for the most complex problems in municipal finance.  Our approach allows us to combine quantitative models and qualitative analysis so our clients can make optimal policy decisions.

PRAG regularly designs and develops financial models for purposes ranging from broad perspective planning to a narrow focus at the transaction and even the sub-transaction levels.  Our long-term capital planning models encompass all aspects of our clients’ financial operations and can be formulated to provide advice on important decision points, including:

  • Revenue Versus Debt Financing
  • Timing Of Bond Versus Commercial Paper Issuances
  • Long-Term Bond Structure
  • Revenue Requirements
  • Financial Operating Ratios
  • PRAG applies its expertise to analyze financing options and identify market opportunities.  We have developed models to analyze and calculate items including call options, hedging efficiency, relative pricing between couponing options, arbitrage opportunities, escrow optimizations and swap valuations.