With a multi-year decline in dealer inventories and higher capital requirements, sharp increase in aggregate outstanding debt instruments, and proliferation of riskier instruments like leveraged loans, the subject of bond market liquidity risk has been attracting attention throughout financial institutions, regulators, and policy makers. Although liquidity risk affects most, if not all, bond market participants, it has a tremendous impact on open-ended mutual funds and several similar product categories, which allow their shareholders to request redemptions at any time. Therefore, effective liquidity risk management is most critical during times of market distress.

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. Through this, clients can mitigate risk, increase efficiency and generate portfolio alpha.

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. It’s a mean-reversion valuation model designed to pre-identify bonds as rich “sale” and cheap “purchase” candidates based on proprietary Overbond valuation metrics.