Overbond AI Expands Bond Pricing Algorithm For G-10 Global Currencies, Sources New Liquidity and Cross-Border Access
Overbond Ltd., the first end-to-end fixed income markets fintech platform for AI predictive analytics, has launched COBI-Pricing International (COBI PI), bond pricing AI algorithm that can price yield curves in all G-10 global currencies, measuring issuance likelihood based on cost of capital benefits and cost of swapping proceeds between currencies. Based on proprietary Overbond AI Bond Buyer Matching algorithm launched earlier this year, Overbond sources new liquidity and cross-border access integrating buying preferences from traditional and non-traditional investors in all G-10 local markets.
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-Pricing is an advanced AI algorithm family which makes ongoing observations of secondary market pricing in peer-issuer clusters, issuer fundamentals, investor behavior, buying-patterns and rebalancing events. COBI-Pricing identifies pricing tension and relative value ‘cheap’ or ‘expensive’ market signals. The new algorithm is calibrated by traditional and non-traditional bond buyer preferences, sector concentration, cross-currency classifications, credit rating profile and historical bond price trending analysis. A variety of pre-processed data inputs flow into COBI-Pricing algorithm, to generate best-fit yield curves and comparisons with yield curve shapes across all issuer peers. Algorithms analyze more than 5,800 issuer curves and more than 3,100 institutional investor portfolios to optimize pricing output.
“We are excited to offer COBI bond pricing algorithm tuned in all G-10 currencies and provide enhanced liquidity sourcing to our clients” says Vuk Magdelinic, CEO of Overbond. “our clients now can systematically identify global set of most attractive issuance or investment opportunities, incorporating non-traditional liquidity pools specific to each individual local market”.
Overbond COBI-Pricing will advance systematic monitoring of bond prices across G-10 currencies and as such market liquidity and inherent price volatility. COBI-Pricing International helps issuers identify immediate benefit of issuance in different currency pairs and recommends timing window. Algorithm helps institutional investors lower liquidity risk and enhance cross-border access by providing robust pre-trade analytics monitoring global opportunities. Dealer underwriters on the other hand can achieve client revenue diversification and enlarged bond distribution benefits.
New algorithmic bond price recommendations, including pre-trade ideas, pricing tension signals and buyer preference monitoring are made available to Overbond clients through its cloud-accessible platform for front-end visualizations. Overbond also offers bond pricing feeds via on-demand real-time API access.
Founded in 2015, Overbond is transforming how global investment banks, institutional investors, corporations and governments connect and access fixed income market through advanced AI analytics. Overbond’s fully-digital platform and suite of AI algorithms (COBI) eliminates inefficiencies, provides systematic price discovery and predictive analytics to all counterparties in fixed income market.
The company’s growing client base includes buy-side institutions with over $2 trillion of assets under management globally, across both passive and active strategies as well as regulatory reporting regimes. As well as global corporate and government issuers with more than $20 billion in outstanding bonds.