Insight & Analysis

Press release: Overbond expands bond liquidity sourcing with new AI algorithm for matching bond buyers and non-traditional demand

Published: Apr 2019

27th March 2019 – Overbond Ltd., the first end-to-end fixed income markets fintech platform for AI predictive analytics, has launched COBI Matching, bond buyer matching AI algorithms suite, a new proprietary non-traditional demand sourcing and liquidity management automation solution.

COBI (Corporate and Government Bond Intelligence) is a comprehensive suite of Overbond algorithms and analytics tools that systematically price bonds and identify trade ideas across global fixed income market. COBI-Matching is an advanced AI algorithm family which makes ongoing observations of investor behavior, buying-patterns and rebalancing events. COBI-Matching identifies a set of traditional and non-traditional bond buyers, focusing on sector concentration, cross-currency classifications, credit rating profile and buying patterns. A variety of pre-processed data inputs flow into COBI-Matching algorithm, to generate best-fit bond buyer recommendations. Algorithms analyze more than 2,900 investor portfolios and rank investors’ interest based on their existing holdings and quarterly rebalancing.

“We are excited to offer enhanced liquidity sourcing to our buy-side clients and well as global issuers and dealer underwriters” says Vuk Magdelinic, CEO of Overbond. “Issuers or dealer underwriters now can systematically identify non-traditional liquidity pools and investors can benchmark their portfolio rebalancing decisions”.

Surviving next major liquidity crisis will not be as simple as merely selecting quality defensive bonds. In a market with no liquidity, price performance can be volatile and indiscriminate of credit fundamentals. COBI-Matching helps insulate investors from liquidity risk by providing robust pre-trade analytics and benchmarking. Issuers and dealer underwriters on the other hand can achieve investor diversification and liquidity benefits.

New algorithmic recommendations, including trade ideas, pricing tension and buyer preferences are made available to Overbond clients through its platform for front-end visualizations. Overbond also offers digital investor engagement software module that can seamlessly intake and benchmark investor preferences and appetite across large universe of comparable portfolios.

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