Overbond launches new AI algorithm for bond pricing


Overbond, a Toronto-founded AI and FinTech company, has launched a new bond pricing AI algorithm that can price yield curves in all G10 currencies.

“Our clients now can systematically identify a global set of most attractive issuance or investment opportunities.”

The company offers a digital platform for primary bond issuance and gives investment banks and institutional investors access to the primary fixed income market. The new AI product, Corporate and Government Bond Intelligence Pricing International (COBI PI), is a suite of algorithms and analytics tools value bonds and identifies trade ideas, analyzing more than 5,800 issuer curves and more than 3,100 institutional investor portfolios to enhance pricing output.

“Markets remain heavily reliant on segregated and manual data operations between counterparties and as a consequence, disparate data sets,” the company said in a recent white paper. “These disparate data sets cause the market to suffer from information asymmetry and decentralization. As a result, insight from available data is fragmented and disseminated through manual exchanges between counterparties.”

The new COBI PI algorithm can price yield curves for the Euro, the pound sterling, the Japanese yen, the Swiss franc, the Norwegian krone, the Swedish krona, and the US, Canadian, Australian, and New Zealand dollars.

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Founded in Toronto in 2015, Overbond seeks to transform how investment banks, institutional investors, corporations, and governments access the fixed income market through advanced AI analytics. In 2016, the company raised a $7.5 million seed round, before partnering with Thomson Reuters to integrate Reuters’ income market data and analytics.

In 2017, the company expanded its presence in the US by opening an office in New York’s Grand Central Tech, and launched the Corporate Bond Intelligence Tool Swap Pricing calculator, offering analytics and visualization capabilities for capital markets participants. The company launched its AI Bond Buyer Matching algorithm earlier this year and it client base includes institutions with over $2 trillion in assets under management globally.

“We are excited to offer COBI bond pricing algorithm tuned in all G-10 currencies and provide enhanced liquidity sourcing to our clients,” said Vuk Magdelinic, CEO of Overbond. “Our clients now can systematically identify a global set of most attractive issuance or investment opportunities, incorporating non-traditional liquidity pools specific to each individual local market.”

Image courtesy Overbond.

Isabelle Kirkwood

Isabelle Kirkwood

Isabelle is a Vancouver-based writer with 5+ years of experience in communications and journalism and a lifelong passion for telling stories. For over two years, she has reported on all sides of the Canadian startup ecosystem, from landmark venture deals to public policy, telling the stories of the founders putting Canadian tech on the map.

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