Capital markets software provider Overbond has secured funding from financial information service Fitch Ventures, to grow its global presence and integrate new data sources to expand its artificial intelligence (AI) models’ coverage.
Overbond has previously partnered with various exchanges and capital markets data providers to access and aggregate global fixed-income data.
Through the funding, Overbond AI will be able to further integrate Fitch Group corporate analytics into its aggregated data feeds, and provide enhanced AI trade automation solutions for its clients.
Fixed-income traders face heightened volatility and evaporating liquidity against a backdrop of rate hikes, inflation, and recessionary concerns, says Overbond.
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, the company adds.
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 standards for the fixed-income markets, according to Fitch Ventures.
Commenting on the funding, Shea Wallon, managing director at Fitch Ventures, says: “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."
Vuk Magdelinic, CEO of Overbond, comments: “Credit trading desks need to automate to gain an edge in this environment, but they do not have the in-house data aggregation or AI optimisation capabilities to do that with precision. Overbond offers traders a way to bring precise, high-speed automation to their desktops. Now, with the new funding and data access, Overbond clients can trade faster, smarter, and more profitably.”
