CBXmarket Launches Rules-Compliant Fixed Income Portfolio Optimization Module
Industry: Financial Services
CBXmarket, a financial technology company that develops innovative software solutions for fixed income investors, has expanded its OASIS platform to include a rules-compliant optimization module specifically designed to address challenges unique to the bond markets.
New York City (PRUnderground) April 23rd, 2019
The scope of the debt markets lends itself to the application of optimization algorithms that can synthesize mass quantities of information more efficiently than human analysts. However, legacy approaches to portfolio optimization designed for the equity markets struggle to account for structural nuances in the bond markets.
Leveraging their fixed income expertise, CBXmarket’s team developed an optimization module that accounts for bond market idiosyncrasies like illiquidity, high transaction costs and minimum piece sizes associated with individual credits. Users can also codify custom guidelines, targets and constraints across 350+ security- and portfolio-level metrics. This allows users to control for specific exposures while implementing investment strategies in the context of performing optimization exercises.
“A critical component of our optimizer is its scalability. Not only can the module generate trade suggestions in seconds, it can perform these calculations concurrently across thousands of portfolios,” said Casper Stromfeldt, Lead Engineer on the project. The result is a customizable solution that automates the arduous processes of constructing and rebalancing portfolios, investing excess cash and simultaneously prioritizing trade allocations across thousands of accounts.
According to CBXmarket’s CEO, Erik Zoega, “Firms that expect to remain competitive in the face of downward fee pressure driven by the shift towards passive investment products can’t afford to delay augmenting their teams with decision enhancement and process automation technology. Our clients are arriving at better outcomes in a fraction of the time it previously took to perform these exercises manually.”
About CBXmarket
CBXmarket develops cloud-based financial technology solutions for investment professionals.
CBXmarket’s OASIS allows fixed income investors to focus their time on alpha-generating initiatives. The combination of intuitive interfaces and powerful optimization techniques enables OASIS to streamline time-intensive portfolio management workflows. The system spans idea generation, decision support, risk management and compliance and integrates with custodial and execution partners to deliver seamless, straight-through processing.
OASIS optimization algorithms enhance investment outcomes and allocation decisions by proposing best-fit trades for portfolio construction and rebalancing. The platform allows investment managers to access granular security- and portfolio-level analytics, monitor holdings and perform detailed scenario analysis.
The team combines industry expertise with the brightest minds in software engineering to deliver cutting edge cloud technology that automates and streamlines the investment process.
