Nelson and Siegel

The Nelson-Siegel model is a way to describe the structure of interest rates across different maturities, helping us understand how yields change over time. It uses mathematical formulas to capture the typical shape of the yield curve—often rising, falling, or flat—by considering factors like short-term interest rates, long-term trends, and how the curve bends. Financial professionals use it to analyze, forecast, and interpret interest rate movements efficiently, making sense of complex data with a straightforward approach.