Method notes

Methodology

Each signal includes a plain-English formula and its direct source. All calculations are deterministic and traceable.

Reference mode

You are in a source-of-truth workspace. Use this page for audit-ready formulas, then return to operational surfaces to apply decisions.

How to use this page

Use these formulas to validate the live signal feed, align with finance partners, and share audit-ready methodology links with stakeholders.

Next steps

When you are ready, move to the live signals report to validate each data lane.

Formula map

Pick the formulas that answer your immediate question.

Base rate

Signal formula

Uses the 1-month Treasury yield; falls back to 3-month if missing. This anchors the cost of capital in the current policy environment.

Best for

Sets the baseline for capital tightness and runway planning.

Yield curve slope

Signal formula

10-year Treasury yield minus 2-year Treasury yield. A negative slope signals risk aversion in credit markets.

Best for

Explains the risk appetite score and recession signals.

CPI inflation (YoY)

Signal formula

Year-over-year change in CPI-U. Tracks consumer inflation pressure across the basket of goods and services.

Best for

Used to contextualize pricing and margin pressure narratives.

Unemployment rate (U-3)

Signal formula

Headline unemployment rate for the civilian labor force. Indicates labor market tightness and potential demand softness.

Best for

Signals hiring appetite and demand resilience in planning.

BBB credit spread (OAS)

Signal formula

ICE BofA BBB option-adjusted spread. Higher spreads imply tighter credit conditions and lower market risk appetite.

Best for

Supports board-level risk narratives and financing timing.

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