Overbond, the API-based credit trading automation and execution service for the global capital markets, has secured funding from Fitch Ventures, the equity investment arm of Fitch Group, the financial information services provider. The capital will help Overbond grow its sales and marketing division as it plans to open an office in London and double its headcount over the coming year. Overbond will also make use of new cloud-based data redistribution channels to grow its global presence, integrate new data sources to expand the coverage of its AI models, and provide clients with enhanced AI trade automation solutions.
Fixed income traders today face the dual challenge of heightened volatility and evaporating liquidity against a backdrop of rate hikes, inflation, and recessionary concerns. In the last ten years, the industry has evolved with the development of new financial products, the rise of electronic all-to-all platforms and an increase in non-dealer liquidity providers using algorithmic and high-frequency trading.
With sell-side traders under pressure to execute with unprecedented speed and buy-side traders looking for new ways to generate alpha, electronic trading and the use of AI for analysis and trade automation have become the new standards for the fixed income markets. In September last year, Overbond launched an AI-driven model to provide buy-side fixed income desks with a quantitative method for extracting alpha, by screening for mispriced fixed income securities
“We at Fitch are impressed with the redistribution agreements Overbond has in place. We’re excited by Overbond’s plans to grow internationally and strongly believe in their ability to scale aggressively,” says Shea Wallon, Managing Director, Fitch Ventures.
“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,” adds Vuk Magdelinic, Overbond’s CEO. “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,”
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