We have developed an intuitive and easy to use fixed income portfolio management platform, ideal for managing individual bonds as well as diversified portfolios. BondIT has been designed using cutting edge data science and software development methodologies which work to deliver an easy user interface you can navigate to find in-depth optimizing strategies that ensure your business not only meets your investors’ goals but exceeds them. Construct optimal fixed income trade portfolios immediately as well as apply portfolio optimization strategies to existing fixed income options.
Build standard or custom ladders of bonds – as well as a fully diversified broad-market portfolio – with BondIT. Effortlessly align optimal fixed income investment portfolio construction with client-specific needs and support your clients’ investment goals alongside their life goals. Protect vital pre-retirement liabilities as well as meet post-retirement needs in today’s planning-centric wealth management space with BondIT.
How to buy individual bonds?
Income investors are usually drawn to buying individual bonds because they tend to offer a reliable source of cash flow but how well they can rate bonds will depend on how well they understand the market. A well-diversified bond portfolio will usually provide predictable returns for bond funds, offering less volatility than equities and generally a higher yield than money market funds. The bond markets are even reliable when interest rates are low, offering opportunities for fixed income high yield options like emerging market bonds. Although, these types of corporate bonds can come with substantially higher fixed income risk than municipal bonds and government bonds like treasury bonds.
An investor can by a bond or fixed income fund either through a broker or directly from an issuing authority. Buying individual bonds means that the investor can lock in a specific yield over a specific period, helping to ensure their income from their new bond. The bond will have a maturity date and a specified yield to maturity offering strategic stability while the yield on a bond mutual fund or fixed income ETF will fluctuate over time. Individual bonds can be purchased as new issues or on the secondary market, but it is important to remember that they must be purchased whole.
When an investor chooses to invest in new issue bonds, this means that the individual bonds are purchased on the primary market and they can be acquired at what is known as the ‘offering price’. The yield of corporate bonds can look very lucrative but the things to bear in mind when searching for corporate bonds to buy include learning and understanding the credit quality of the fixed income bonds – whether it is a junk bond/non-investment grade or an investment-grade bond – the maturity (how long for the bonds to mature), the interest rate (fixed or floating) and how the interest payment (or coupon) is paid. A brokerage account is required to cover the purchase price and any commissions your broker might charge for the acquisition. Non-investment grade individual bonds are typically offered by start-ups and other firms with an unreliable credit rating. They typically offer high yielding opportunities but at higher credit risk. It’s possible for an investor who invests in bonds like this to not receive payment at all. This is known as the default risk.
Individual investors can make a lot of income success navigating the bonds market on their own but more often than not their investment interests are managed by an advisor or portfolio manager. BondIT is the intuitive asset management system designed to help portfolio managers optimize fixed income securities to deliver consistent investment returns for their clients. It does this by replacing the need for complex internal analysis with a single-source asset management tool capable of integrating seamlessly with any enterprise system. BondIT does your analysis for you, delivering proposals that are actionable and compliant from the moment of creation.
Our hosted solution connects multiple sources of data and research to deliver optimized investment ideas which are aligned with any investment requirement. Users can generate portfolio ideas leveraging alternative data, proprietary insights, mandates and inventory. BondIT generates investment portfolios which take into account all aspects of your investment objectives and mandates, enabling you to create investments strategies and proposals for fixed income markets. Our solution offers fixed income managers the ability to connect to virtually any source of strategic data. This data is then used intelligently by the BondIT platform to deliver fixed income market proposals faster than ever before. We have developed a faster, more intuitive way to optimize fixed income workflows so you can manage portfolio risk and optimize portfolio management.
With our asset management software, your fixed income investments are monitored and analysed for optimal solutions and then kept up to date with portfolio and universe data inputs to ensure that proposals can be transmitted to compliance, reporting and execution systems efficiently, reducing wasted time and resourcing. You remain in control of BondIT’s real-time portfolio monitoring and management with permission-based sharing across all enterprise systems. Income portfolio management is achieved and optimized through efficient delivery of actionable scenarios generated directly from BondIT quickly. Managers can respond to interest rate risk and other fluctuations in the market instantly, evaluating multiple solutions delivered by BondIT. Our powerful ‘Solve Anyway’ feature ensures that managers and advisors have a solution for their clients even when constraints are considered infeasible.
We can roll out BondIT’s standard features as-is or we can work intensively with your business to develop fully customizable features designed to work specifically for your business goals. For more information about how BondIT can help your business save valuable time and money optimizing fixed income portfolios and help you reach your investment goals, contact one of our customer service team today.