BondIT is a technological asset management solution designed for fixed income portfolio management. Our software platform has been developed using the latest software methodologies and is capable of managing and generating proposals for fixed income bonds including municipal bonds and corporate bonds. BondIT enables faster and more efficient portfolio construction and analysis, saving time and resources. Our state of the art asset management software is designed for investment firms and financial advisors seeking to manage fixed income ETF objectives, individual bonds and fully diversified portfolios. Managers can develop workable rebalancing options and investment strategies in a matter of minutes rather than hours, delivering actionable and compliant fixed income fund proposals faster. Our technological solution is data agnostic, enabling firms of any size to seamlessly integrate with our platform with compliance, reporting and execution systems to deliver strategic investment proposals instantly.
Traditionally, asset management and fixed income investment strategies have been devised by portfolio managers using internally created systems, workflows or offline spreadsheets. The task of generating viable fixed income high yield investment proposals may take hours to achieve in this manner, as will usually result in higher costs and lower business efficiency. Portfolio managers have to spend more time developing portfolio optimization strategies than responding to market conditions. BondIT changes all of that by providing a fully automated portfolio construction process in a matter of minutes freeing up portfolio managers for doing what they do best – monitoring the market.
BondIT is the asset management software that digitizes fixed income analytics to return instantly workable fixed income risk analysis. As an API-first platform, our software solution includes a full set of API’s to perform all portfolio management tasks, including optimization. We have designed our asset management tools to be data agnostic so managers and financial advisors can leverage BondIT’s optimization engines from within the systems that they currently use. Seamless integration is achieved through intelligent design, seeking to increase the efficiency of workflows and free up valuable resourcing time and capacity. Client managers can spend more time doing what they do best while portfolio managers can concentrate on developing faster and more efficient investment strategies.
What is asset management?
Asset management within the context of fixed income bonds means the management of investment portfolios comprising bond investments. There are two types of investment options investors can choose from: municipal (government) bonds and corporate bonds. Fixed income investing is generally considered lower risk than investing in stocks as bonds are less likely to be impacted by market fluctuations in the same way that stocks are. Bonds typically last between 3 and 5 years and pay regular interest payments (also known as coupon payments). At the bond’s maturity – the end of the bond term – the issuer returns to the investor their principal investment amount.
There are few things that can impact the risk of fixed income bonds with government bonds generally considered less risky than corporate bonds. Municipal bonds – also known as government bonds – are fixed income investment opportunities issued in the form of debt securities by states, municipalities or counties to finance capital expenditure projects. These kinds of bond funds include large infrastructure construction such as roads and public facilities. Investing in municipal bonds is particularly attractive for investors in high-income tax brackets looking for secure fixed income assets. Government bonds are essentially loans made by investors to governments in the United States in the form of individual bonds and the interest income generated from these fixed income options is usually exempt from federal taxes as well as remains tax-free in most states and local governments. This makes them ideal revenue sources, often returning cash flows from either the project itself or from collected taxes.
Some government bonds will be backed by dedicated property taxes while others are payable from general funds available to whichever entity has issued them. If there are problems with the bond issuer being able to meet their payment obligations, then this is usually addressed by raising taxes like property tax to cover the costs or finding some other way to generate the income they need such as selling government assets. If they default on a payment, then that default risk is managed by the judiciary.
Corporate bonds work in much the same way. They are also debt securities issued by organizations seeking cash flow investment. They may be start-up companies or established businesses and they guarantee the regular payment of their interest with their credit rating. Choosing which corporate bonds to buy issued by private companies means choosing between two types of fixed income options: investment-grade corporate bonds and non-investment grade bonds. Corporate bonds guarantee the payment of the bonds they issue with sales, operations and other assets that they may own. These types of bonds are typically higher risk than government bonds. High-risk bonds are also higher yield investment options, but credit risk means that the investor must assume the risk of default – that they may not receive their interest payments nor have their principal investment amount returned to them at the bond’s maturity. The corporate bonds market may look attractive for investors and clients seeking ways to fund their children’s college tuition costs or fund their retirement. The potential high yield of corporate bonds may outweigh the risks and investors may rate bonds based on this potential rather than seeking more secure, lower-paying fixed income instruments. BondIT completes portfolio optimization automatically, generating proposals and re-balancing options tailored to the needs of the individual client.
Essentially, deciding what type of fixed income trade works best, such as whether municipal bonds or corporate bonds are an appropriate investment option, is dependent upon the investor’s understanding of the inherent risks and possible revenue they may generate. As fixed income securities managers, financial advisors and asset managers have a tough task presenting all viable investment options to their clients. That’s where BondIT can help.
BondIT also delivers recently developed game-changing advanced laddering. This is delivered in the same intuitive user interface and is ideal for managers who are building either standard or custom ladders of municipal, corporate, and government bonds. It’s also able to support managers seeking to build fully diversified broad-market portfolios. BondIT aligns optimal portfolio construction with client-specific needs, a critical advancement in today’s planning-centric wealth management space. Pre-retirement liabilities such as a down-payment on a home or vacation property, children & grandchildren’s college tuition – ultimately, the retirement nest egg itself – can now be custom-immunized in the advisor/client planning environment. Post-retirement, asset accumulation shifts to decumulation, and wealth management’s focus shifts to generating efficient income distribution throughout retirement. BondIT’s income ladder tool was designed with the flexibility to generate bond ladders and income streams in whatever frequency and amount a client requires to align with idiosyncratic gifting, philanthropic, or other requirements.
BondIT can be accessed anywhere and anytime without any further software licencing obligations. You use BondIT your way and when you need it, relying on powerful insights driven by intuitive data management and efficient workflows. Our Intuitive User Experience is specifically designed to ensure that everyone who uses BondIT achieves the same functionality and powerful investment management, delivering income asset management strategies which return real results for investors, increasing total return. As a data-agnostic system, it integrates with any enterprise system cleanly and efficiently, as well as any portfolio management workflow. This makes it an agile system capable of delivering results for every manager using any system.
The optimization algorithms within BondIT’s bond allocation software are enhanced by machine learning, working in tandem with managers to consistently deliver trade opportunities and portfolio repositioning solutions generated with amazing speed. These solutions are curated using portfolio risk analytics which support real-time decision making. You support and manage your portfolios quickly, responding faster to changing market conditions and evaluating potential optimization strategies with lightning speed.
We have created the solution to a twofold problem faced by all asset management firms. The first part of this problem is in how the business is managed. Asset management businesses face ongoing margin compression from fee erosion, regulatory pressure and increasing competition. Part of the answer to this problem is to rapidly and radically improve productivity and efficiency. Automating workflows wherever possible reduces time spent and wasted resourcing which is why BondIT can deliver instant efficiency. But we offer you more than just automated workflows. We actively support your business productivity and efficiency by delivering scaled access to new technology-driven distribution channels, harnessing the power of machine learning to maintain fast and efficient solutions.
Your business will be able to manage portfolios faster and more cheaply using the power of our technological solutions. BondIT remains fully customizable based on your business and the needs and requirements of your clients which means that you can use our standard features and analytics or choose to work closely with us to develop bespoke features designed to support your business and your clients, your way. Contact us today to speak with a consultant about what our asset management software platform can offer to your business.
BondIT Walkthrough – Platform Introduction
Watch an introduction to the BondIT asset management platform.