Overbond will scale significantly, integrate new real-time data sources to increase the coverage of its AI trade automation and launch new data redistribution channels for clients
Overbond, the leading API-based credit trading automation and execution service in the global capital markets, has secured funding from Fitch Ventures, the equity investment arm of Fitch Group, which is a global leader in financial information services. Overbond will use the capital to grow its sales and marketing division with plans to open an office in London, U.K., and double its headcount over the coming year. In addition, through new cloud-based data redistribution channels, Overbond will grow its global presence, integrate new data sources to expand its AI models’ coverage and provide enhanced AI trade automation solutions for clients.
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Fixed income traders face heightened volatility and evaporating liquidity against a backdrop of rate hikes, inflation, and recessionary concerns. And over the last decade, the industry has been re-shaped by the development of new financial products, the emergence of electronic all-to-all platforms and the rise of non-dealer liquidity providers using algorithmic and high-frequency trading.
In this environment, sell-side traders face pressure to execute with unprecedented speed and it’s 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 standards for the fixed income markets.
This electronic and automated trading requires precise, live data. But significant data gaps persist because there’s no unified, central source for bond trade data and aggregating the available data into executable prices and liquidity measures requires sophisticated AI and cloud-based processing for models. Most bond trading desks lack the resources and expertise to do this in-house.
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Overbond partners with the world’s largest exchanges and capital markets data providers to access and aggregate global fixed income data.
“Credit trading desks need to automate to gain an edge in this environment, but they don’t have the in-house data aggregation or AI optimization capabilities to do that with precision. Overbond offers traders a way to bring precise, high-speed automation to their desktops. In addition, Overbond is fully interoperable with other systems on the desk so that traders can use a single interface. Now, with the new funding and data access, Overbond clients can trade faster, smarter, and more profitably,” said Vuk Magdelinic, CEO of Overbond.
“We are very pleased to support the next stage in Overbond’s development through our investment in the company. Their product is responding to a clear market need for better data to support trade automation. We also look forward to working with the team at Overbond to explore how their product might benefit Fitch Group companies,” said Shea Wallon, Managing Director, Fitch Ventures.
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