Overbond, an AI-driven fixed income analytics and trade workflow automation provider, has integrated Neptune Networks’ axe data to help buy-side traders more efficiently discover desired inventory within the dealer-axed universe.
Overbond will also expand the universe of securities covered by its analytics and trading algorithms by incorporating Neptune data into each single-tenant client environment on request.
Talking to The DESK, Overbond CEO Vuk Magdelinic said, “Buy side desks connected to the integrated offering will enjoy full blended coverage of all Overbond investment grade and high yield securities – more than 40,000 securities across EUR and USD markets.”
“All securities dealers will show their axes on Neptune, too, which will extend overall coverage of securities with unique inventory profiles and characteristics,” Magdelinic added.
Overbond AI will use axe data provided by Neptune — unique to each client — to enhance its size-adjusted pricing. This will be included in its analytics and trade automation suite, alongside the multiple price aggressiveness levels, separated bid/ask liquidity scoring and confidence scoring, which are already generated for every security.
Overbond smart order routing (SOR) algo allows clients to see the execution route given current market conditions. It uses a historical lookback alongside current dealer axes unique to the client, to determine the optimal dealer to engage for a specific security, given current market conditions. Incorporating live axe data from Neptune is intended to enhance the precision of this algo, the firm said.
Magdelinic told The DESK, “Overbond AI looks back across two years to calibrate and train the model on a specific buy-side desk execution profile. The historical data training and inclusion is a unique part of the Overbond client-specific service because after AI models are trained no client receives the same model output – it is completely unique to them.”
Byron Cooper-Fogarty, COO of Neptune, said, “Neptune has always responded to buy-side demand for connectivity to core workflow and analytical tools. The integration with Overbond is the latest step in that process.”
Overbond performs market monitoring, data aggregation and normalisation, and deep AI quantitative observation on more than 100,000 corporate bonds and fixed income ETFs. Applying proprietary artificial intelligence to pricing, curve visualisation, market liquidity, issuance propensity, new issuance spreads, default risk and automated reporting, Overbond enables trade automation and enhances trade performance and portfolio returns.
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