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Month: December 2023

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News

Liquidnet to integrate bondIT’s AI-driven credit research into its electronic trading platform

The two firms announce their collaboration to advance traders’ ability to anticipate critical market changes

NEW YORK/TEL AVIV (HERZLIYA), December 18 2023 – Liquidnet, a leading technology-driven agency execution specialist, and bondIT, a leading provider of next-generation investment technology, announced today their partnership to integrate bondIT’s Scorable Credit Analytics into Liquidnet’s Fixed Income electronic trading platform. The collaboration aims to empower traders to anticipate market trends, mitigate credit risk and make informed investment decisions faster.

Leveraging data science, Explainable AI (XA) and Machine Learning expertise, bondIT’s Scorable enables fixed income investors to anticipate changes in credit ratings and spreads, and identify investment opportunities ahead of the market. With this integration, the 700+ fixed income member firms who currently have access to Liquidnet’s primary and secondary market trading protocols for corporate bonds, will gain access to valuable insights and a more informed view on credit markets directly within their Liquidnet application.

Nicholas Stephan, Global Head of Fixed Income Product and Partnership Programs at Liquidnet, said:  “We are thrilled to be able to enrich the Liquidnet platform with a service of Scorable’s caliber. With this integration, our goal is to give access to crucial information to investment firms of all sizes. Our Members will have seamless access to a wide range of credit data giving them an extra edge ahead of making their trading decisions.”

Amidst the most attractive yields in more than a decade, investor demand for fixed income has surged notably in recent months. However, rising concerns over credit risk in a challenging economic and geopolitical climate emphasizes the need for careful investor choices.

Dr. David Curtis, Head of Global Client Business at bondIT, who emphasized the significance of this collaboration, added: “Bonds are back, but so is risk. Technology becomes an ever more important ally in this dynamic financial landscape. The synergy between bondIT’s AI-driven Scorable Credit Analytics and Liquidnet’s platform empowers traders with actionable insights, enabling them to stay ahead in today’s volatile markets.”

This latest collaboration represents one of many new additions planned that highlights Liquidnet’s commitment to advance its Liquidnet Credit offering beyond an execution system.

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About Liquidnet

Liquidnet is a leading technology-driven, agency execution specialist that intelligently connects the world’s investors to the world’s investments. Since our founding in 1999, our network has grown to include more than 1,000 institutional investors and spans 49 markets across six continents. We built Liquidnet to make global capital markets more efficient and continue to do so by adding additional participants, enabling trusted access to trading and investment opportunities, and delivering the actionable intelligence and insight that our customers need. For more information, visit www.liquidnet.com and follow us on Twitter @Liquidnet.

About TP ICAP Group plc

TP ICAP is a world-leading markets infrastructure and data solutions provider. The Group connects buyers and sellers in wholesale financial, energy and commodities markets. We are the world’s largest wholesale market intermediary, with a portfolio of businesses that provide broking services, trade execution, data & analytics, and market intelligence. www.tpicap.com

About bondIT

bondIT provides next generation front office investment technology. The company combines data science, explainable-AI (XAI) and advanced technologies with fixed income investment know-how to help improve the performance, accuracy and efficiency of clients’ investment processes and businesses. bondIT is privately owned and paving the way for financial institutions of all sizes to integrate the power of greater technology into their investment processes. bondIT adheres to the highest privacy and security standards and is SOC 2 certified by Ernst & Young. www.bonditglobal.com

© 2023 Liquidnet Holdings, Inc. and its subsidiaries. Liquidnet, Inc. is a member of FINRA/SIPC/NFA. Liquidnet Europe Limited is authorised and regulated by the Financial Conduct Authority in the UK, is licensed by the Financial Sector Conduct Authority in South Africa and is a member of the London Stock Exchange and a remote member of the SIX Swiss Exchange. TP ICAP (EUROPE) SA is authorised by the Autorité de Contrôle Prudentiel et de Résolution and regulated by the Autorité des Marchés Financiers and is a remote member of the Warsaw Stock Exchange. Liquidnet Canada Inc. is a member of the Canadian Investment Industry Regulatory Organization and a member of the Canadian Investor Protection Fund. Liquidnet Asia Limited is regulated by the Hong Kong Securities and Futures Commission for Type 1 and Type 7 regulated activities and is regulated by the Monetary Authority of Singapore as a Recognized Market Operator. Liquidnet Japan Inc. is regulated by the Financial Services Agency of Japan and is a member of JSDA/JIPF. Liquidnet Australia Pty Ltd. is registered with the Australian Securities and Investment Commission as an Australian Financial Services Licensee, AFSL number 312525. Liquidnet Singapore Private Limited is regulated by the Monetary Authority of Singapore as a Capital Markets Services Licensee, CMSL number CMS 100757-1. Liquidnet Holdings, Inc. and its subsidiaries are part of TP ICAP Group plc.
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Blog

Transforming Fixed Income Portfolio Management with Machine Learning and AI Technology

Fixed income portfolio management presents unique challenges for financial professionals. Continually evolving market conditions, diverse instruments, and dynamic interest rates create a complex landscape where expertise and insight are crucial for achieving success. As a result, asset managers and wealth managers are increasingly turning to sophisticated technology and analytics to navigate and excel in this intricate market. One such technology gaining momentum in the fixed income investment space is the use of machine learning and artificial intelligence (AI) to analyze vast sets of data and make data-driven decisions.

Machine learning and AI algorithms can effectively process and analyze massive datasets at a speed and scale unmatched by traditional methods. These groundbreaking technologies have the potential to enhance fixed income portfolio management processes, offering valuable insights, improved risk assessment, and predictive capabilities.

In this blog article, we will delve into the benefits of harnessing machine learning and AI-driven solutions for fixed income portfolio management, with a focus on bondIT’s innovative platform. We will discuss how the platform’s advanced analytics, customizable tools, and seamless integration enable asset managers and wealth managers to make informed decisions and achieve higher risk-adjusted returns. Additionally, we will explore practical applications and competitive advantages gained by leveraging these cutting-edge technologies in fixed income investment management.

  1. The Value of Machine Learning and AI in Fixed Income Portfolio Management

Investing in fixed income securities is a notoriously complex endeavor. The challenges associated with managing diversified portfolios, monitoring multiple sources of risk, and identifying opportunities for yield enhancement require precise, data-driven decision making. Enter machine learning and AI – powerful analytical tools capable of transforming the fixed income investment landscape.

By processing vast amounts of data at scale and speed that far exceed human capability, machine learning and AI algorithms provide unparalleled insights, enabling asset managers and wealth managers to:

– Discover hidden trends and connections: Machine learning algorithms excel at identifying patterns within large, complex datasets, uncovering interrelationships between various factors that can impact fixed income security performance.

– Improve risk assessment: AI-driven credit analytics can analyze risk factors more comprehensively and efficiently than traditional methods, allowing professionals to make proactive adjustments to their fixed income allocations.

– Optimize portfolios for risk-adjusted returns: AI-based optimization algorithms can design portfolio allocations that carefully balance risk and return considerations, improving the overall performance of fixed income strategies.

  1. Harnessing bondIT’s AI-Driven Platform for Fixed Income Portfolio Management

bondIT’s AI-driven platform offers a comprehensive suite of tools, analytics, and capabilities specifically designed to enable asset managers and wealth managers to make better, data-driven decisions in fixed income portfolio management:

– Advanced credit analytics: With its AI-powered analytics, bondIT’s platform delivers critical insights into issuer credit quality, risk factors, and potential return drivers. This data enables investment professionals to build portfolios that carefully balance risk and reward objectives.

– Portfolio creation and optimization: bondIT’s platform integrates AI-driven algorithms for portfolio creation, enabling users to maximize risk-adjusted returns by intelligently diversifying holdings and mitigating concentration risks.

– Customizable solutions: bondIT’s flexible platform allows investment professionals to tailor their fixed income investment strategies to meet specific client goals, risk tolerances, and investment preferences.

– Analytics at scale: bondIT’s AI capabilities empower users to analyze a vast universe of fixed income securities, quickly and efficiently, to uncover hidden opportunities and relative value trades.

  1. Practical Applications of bondIT’s AI-Powered Solutions in Fixed Income Portfolio Management

bondIT’s sophisticated, AI-driven platform offers a wealth of practical benefits for asset managers and wealth managers seeking to enhance their fixed income investment strategies:

– Data-driven insights: Leverage bondIT’s AI capabilities to uncover actionable market insights, helping professionals to navigate evolving fixed income markets and outperform industry benchmarks.

– Automated portfolio management: Utilize bondIT’s platform to automate and streamline portfolio construction, optimization, monitoring, and reporting processes, freeing up time and resources for other strategic activities.

– Robust risk management: Employ bondIT’s advanced credit analytics to understand risk factors across the fixed income spectrum, from individual securities to entire portfolios, enabling investment professionals to make informed decisions and actively manage risks.

– Enhanced client communication: bondIT’s platform enables users to generate detailed, analytical reports that clearly demonstrate the strategic value of their fixed income investment decisions, which can enhance client trust and satisfaction.

  1. Competitive Advantages Gained through Embracing bondIT’s AI-Driven Fixed Income Solutions

By leveraging bondIT’s machine learning and AI-driven platform, asset managers and wealth managers can gain distinct competitive advantages within the fixed income investment sphere:

– Differentiated services: Offering unique, data-driven fixed income investment capabilities enabled by bondIT’s AI-powered solutions can help firms stand out from competitors and attract new clients.

– Enhanced decision-making capabilities: Harnessing the insights and analytics provided by bondIT’s platform empowers users to make informed, data-driven decisions, ultimately leading to enhanced portfolio performance.

– Time and cost efficiency: By automating complex fixed income portfolio management tasks, bondIT’s platform enables investment professionals to focus on other strategic activities that drive growth, resulting in both time and cost savings.

– Stronger client satisfaction and retention: The ability to deliver customized, performance-driven fixed income investment solutions through bondIT’s AI-powered platform can enhance client satisfaction and improve long-term client relationships.

Revolutionizing Fixed Income Portfolio Management with bondIT’s AI-Enabled Solutions

The integration of machine learning and AI technologies in fixed income portfolio management is reshaping the industry and creating new possibilities for success. bondIT’s AI-driven platform empowers asset managers and wealth managers to make informed, data-driven decisions that lead to improved portfolio management and ultimately, better financial outcomes for their clients.

Unlock the full potential of fixed income investing by harnessing the power of bondIT’s machine learning and AI-driven platform. Embrace advanced analytics, customizable tools, and seamless integration to revolutionize your fixed income portfolio management strategy and deliver superior results to your clients. Enjoy our fixed income portfolio optimization solution today!