TORONTO & LONDON–(BUSINESS WIRE)–Overbond, the leading API-based credit trade automation and execution service in global capital markets, has secured funding from Fitch Ventures, the equity investment arm of Fitch Group, which is a world leader in financial information services. Overbond will use the capital to expand its sales and marketing division with plans to open an office in London, UK and double its headcount over the coming year. Additionally, through new cloud-based data redistribution channels, Overbond will strengthen its global presence, integrate new data sources to extend the coverage of its AI models, and provide enhanced trade automation solutions through AI to its customers.
Bond traders face heightened volatility and evaporating liquidity amid rising rates, inflation and fears of recession. And over the past decade, the industry has been reshaped by the development of new financial products, the emergence of all-in-one electronic platforms, and the rise of non-market liquidity providers using algorithmic and high-end trading. frequency.
In this environment, sell-side traders face pressure to execute with unprecedented speed and it is harder for buy-side traders to generate alpha. As a result, electronic trading and the use of AI for analysis and trade automation are the new normals for fixed income markets.
This electronic and automated commerce requires accurate and live data. But significant data gaps persist as there is no unified central source for bond trading data and aggregating available data into actionable prices and liquidity metrics requires sophisticated AI and processing. cloud-based for templates. Most bond trading desks lack the resources and expertise to do this in-house.
Overbond partners with the world’s largest exchanges and capital market data providers to access and aggregate global fixed income data.
“Credit dealing desks need to automate to gain an edge in this environment, but they lack the in-house data aggregation or AI optimization capabilities to do so accurately. Overbond offers traders a way to bring precise and fast automation to their workstations. Additionally, Overbond is fully interoperable with other systems on the desktop so traders can use a single interface. Now, with new funding and access to data, Overbond clients can trade faster, smarter and more profitably,” said Vuk Magdelinic, CEO of Overbond.
“We are very pleased to support Overbond’s next stage of development through our investment in the company. Their product addresses a clear market need for better data to support trade automation. We also look forward to working with the Overbond team to explore how their product could benefit Fitch Group companies,” said Shea Wallon, Managing Director of Fitch Ventures.
Overbond is a developer of artificial intelligence-based data and analytics and trade automation solutions for the global fixed income markets. Overbond performs market monitoring, data aggregation and normalization, and in-depth quantitative AI observation on over 100,000 corporate bonds and fixed income ETFs. By applying proprietary artificial intelligence to pricing, curve visualization, market liquidity, issuance propensity, new issuance spreads, default risk and automated reporting, Overbond enables the automation of trades and improves trading performance and portfolio returns. Toronto-based Overbond’s clients include global investment banks, broker-dealers, institutional investors, corporations and governments in the Americas, Europe and Asia. For more information, please visit www.overbond.com.
About Fitch Ventures
Fitch Ventures is the equity investment arm of Fitch Group, a global leader in financial information services with operations in more than 30 countries. With dual headquarters in London and New York, Fitch Group is owned by Hearst.
Fitch Ventures invests in innovative and emerging technology companies in the fast-moving financial services industry to accelerate their business growth. The portfolio companies benefit from the strategic support and expertise of Fitch Group and Hearst.