SOLVE, the fixed income data and pricing solutions provider, has launched of SOLVE Px, an AI-driven pricing tool for the high-yield (HY) and investment-grade (IG) corporate bond markets.
The new tool delivers predictive, trade-level pricing across more than 100,000 corporate bonds, supporting fixed income professionals operating in often illiquid and fast-moving markets. Built on machine learning models trained with over 300 feature inputs, including proprietary quote data from SOLVE, SOLVE Px provides dynamic pricing that adjusts in real time to evolving market conditions.
“We are constantly looking to optimise the model with a focus on the main KPI – minimising the prediction error to actual trade prints,” Eugene Grinberg, CEO of SOLVE, tells TradingTech Insight. “With that we are spending a lot of time innovating and feature engineering to drive towards this goal. One of SOLVE’s advantages is our proprietary quotes data, which drives a large amount of the model’s predictive ability.”
According to SOLVE, this proprietary Quotes dataset improves model accuracy by over 34% compared to models without access to the data, as detailed in a whitepaper the company recently published.
SOLVE Px delivers real-time, size-specific pricing at Bid, Mid, and Offer levels, along with estimates for Price, Yield, and Spread. Data is available via the SOLVE Quotes web application, FTP and FIX feeds, with API and Excel integrations in development. The tool incorporates two key components: SOLVE Quotes, which aggregates real-time bids and offers from market participants across over 50,000 daily securities and 20 million+ quotes; and a machine learning model informed by reference, trade, and quote data.
The tool is launched alongside the expansion of SOLVE’s Relative Value Analysis capability – originally developed for municipal bonds – to corporate credit. This enhancement allows users to visualise changes in a bond’s value over time and assess how market conditions influence price behaviour.
Commenting on the integration of these tools, Grinberg notes: “It is becoming harder for firms to compete without a modern toolbox which requires access to key datasets and analytical tools to drive faster and more confident decision making. Whether trading via voice and email ‘the old fashioned way’ or deploying automation and algorithms, traders are facing a landscape that is rapidly innovating, making it essential to keep up with the latest trends in predictive analytics.”
As AI continues to gain traction in fixed income markets, Grinberg sees broader implications for the future of trading technology: “Once trading professionals get more confident with the models and proficient at using predictive analytics, I believe it will drive the space much more towards automation and algorithmic strategies with improved speed and quality of trade execution and idea generation. If firms are not actively investing in these tools today, they will find it harder and harder to remain competitive.”
With SOLVE Px, the company aims to offer both buy-side and sell-side users a more transparent, data-driven framework for trade discovery, execution, and portfolio management across the corporate bond space.
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