Best executable AI pricing was created as part of Overbond’s suite of predictive algorithms for the fixed income capital markets. It algorithmically predicts the most optimal indicative new issue bond price as well as relative value secondary market best-execution bond price for global IG and HY issuers, utilizing machine- learning (ML) algorithms. The ML algorithms analyze millions of data points related to factors such as secondary levels, recent indicative new issue price quotations, company fundamental data elements, investor sentiment and sector comparables.
Overbond’s Primary Fixed Income Pricing model, COBI-Pricing, delivers on Price Discovery with competitive indicative new issue pricing. Clients can arrive at accurate indicative new issue pricing levels for issuers with only a fraction of the time and manual work required.
Overbond’s AI trade automation uses prices and liquidity scores generated for more than 100,000 fixed income instruments, refreshed every three seconds to enable bond trading desks to fully automate 30% of RFQs and execute an additional 20% with trader supervision. Facilitated by the speed of cloud computing, interoperability with other systems and the precision of AI, the models can be trained to customize pricing based on the desk's trading style and client risk preferences.
Read our Interoperability Case Study to learn how Overbond's COBI-Pricing LIVE AI model uses interoperability for trade automation.
Overbond's COBI-Pricing LIVE uses three layers of interoperability to automate trading: it ingests and aggregates data from multiple sources, it integrates with the legacy systems on the desk, and it communicates with electronic trading venues. Interoperability of COBI-Pricing LIVE with legacy internal systems means trading desks can make COBI-Pricing LIVE their own by accessing recorded transaction history to train the model according to the trading style of the desk and significantly decrease execution costs. Interoperability with electronic trading venues allows for the ability to trade on multiple platforms and opens the door for smart order routing, allowing desks to optimize execution.
Read our Smart Order Routing case study to learn more about Overbond's Smart Order Routing.
Overbond execution management system (EMS) interoperability is an application that displays real-time market data and analytics and is used by traders to transact orders automatically. Overbond EMS allows traders fast, seamless execution with any counterparty or venue on the street. Overbond EMS supports low-latency electronic and algorithmic trading and provides pre-trade tools to maximise automation in any market risk environment. EMS allows traders to work the order using a variety of suitable automation protocols and order types, including smart order routing (SOR), auto-RFQ, and one-touch adjustment
Read our Interoperability case study to learn more about Overbond's EMS Interoperability.
Create customized portfolios to evaluate overall liquidity and fair value pricing. You also have the ability to replicate ETFs for live pricing or produce optimal baskets for portfolio trading based on liquidity or sector diversification criteria. What’s more, you can simulate intraday ETF fair value through pricing of individual constituent bonds and strike end of day
Request demo for Overbond custom portfolio building feature, liquidity scoring of all portfolio holdings and ETF pricing tool.
Be proactive and anticipate future new issuances in your credit coverage. Assess potential new issuances by seamlessly analyzing complex criteria such as upcoming maturities, historic issuance patterns, seasonality, refinancing needs and sector issuance. Then position your portfolio accordingly for the secondary trading activity and/or new bond issuance participation.
Overbond’s primary fixed income prediction model for global issuance, COBI Bond Issuance International AI, combines the capabilities of COBI-Pricing, COBI-Issuance and COBI-Bond Buyer Matching and delivers on issuance discovery in all G-10 currencies with issuance opportunity monitoring and matching with institutional investment preferences.
An adaptive, real-time liquidity score is vital for today's risk mitigation measures on the trading floor. Overbond provides a live intraday Liquidity Score on individual bonds that you can use to assess secondary market tradability on any ISIN/CUSIP at any time. Utilize it for pre-trade decision-making or to assess hedging options for credit market-makers.
Read our Liquidity Scoring AI Model white paper that discloses model functioning, data intake and most relevant use cases.
Margin optimization minimizes the distance-to-cover at the point of execution of all new RFQs. Overbond’s margin optimization model captures various margin optimization measures and converts them to one unified all-optimized distance. It can be trained to the risk tolerance and execution style of the desk and helps sell-side traders optimize their hit ratio and increase profit.
Read our Margin Optimization AI white paper to learn how Overbond's Cobi Pricing model incorporates margin optimization to increase trading profit.
Overbond portfolio execution management system (PEMS) interoperability allows traders to monitor their portfolio holdings in real time on an individual security level and on the portfolio level simultaneously. One interface allows seamless analysis of issuer curve, liquidity scoring and best-executable pricing at the individual security level and at the portfolio level so that rebalancing needs and execution strategy be identified in an efficient manner.
Request demo for Overbond's Portfolio Execution Management System.
Rich-cheap analysis is used by buy-side desks to increase alpha by screening for mispriced fixed income securities. Overbond’s quantitative method for rich-cheap analysis combines both static and dynamic analysis of multiple factors with AI. It’s a mean-reversion valuation model designed to pre-identify bonds as rich ‘sell’ and cheap ‘buy’ candidates based on proprietary Overbond valuation metrics and AI non- linear optimization.
With the Overbond suite, buy-side desks around the globe can generate systematic return with a real-time, fully back-tested, proven and transparent methodology that is scalable and interoperable. Overbond’s rich-cheap model (RCM) provides a quantitative method for screening for mispriced fixed income securities.
Transaction cost analysis (TCA) is used to monitor executed trade prices compared to best-executable independent pricing source. Pre-trade TCA looks at known parameters and attempts to minimize the cost of transacting. Post-trade TCA looks at historical trades against a benchmark, best-executable independent pricing source (Overbond COBI LIVE) and attributes the costs to underlying causes in the market and is used to evaluate trade execution performance. Overbond’s AI-driven bond pricing and automation suite includes real-time TCA, providing clients with post-trade TCA, pre-trade TCA and AI optimised trade execution recommendations.
Our TCA Report measures transaction costs.