The 2019 Fixed Income Technology Landscape
Part 4: Implementing a Solution
This is the final piece of a four-part series covering current technology for fixed income investment managers. While Part One examined the inefficient pain points of disparate tools and manual input that asset managers face, Part Two discussed front-to-back-office and best-of-breed management systems that can facilitate processes and help realize long-term portfolio goals. Part Three showed how the future of automation and AI can further streamline tasks to optimize your chosen system, and Part Four will demonstrate how CBXMarket offers solutions to modernize and integrate your team seamlessly into the ever-shifting technological landscape shaping the future.
As discussed throughout this series, the changing regulatory environment and increased competition among investors have altered the operating landscape for bond managers. The compression of margins and increased appetite for alpha have led many asset managers to revisit not only their investment strategies, but also how their organizations utilize technology.
Technology, despite being slowly adopted by fixed income managers, has the unique ability to help an organization reach its potential. With more data to ingest than ever before, the task of collecting it, performing calculations and gleaning insights can quickly become an organizational headwind if not appropriately managed. Turning a technological weakness into a strength requires business leaders to take a consultative approach to determine the best solution for their organization. Many tools today are built both with functionality and usability in mind, the latter being often overlooked in the past.
The efficacy of a solution is only maximized when there are high utilization rates. Spec’ing out automation and workflows needs to be coupled with a strategic approach to managing the implementation. Asset managers require a high-touch and custom implementation process that will complement their investment processes. Key stakeholders and all users across the organization need to buy into and understand the value of the transformation process. The CBXmarket team works very closely with customers to ensure that the entire process is managed for success.
CBXmarket was founded to address some of the systemic issues that we observed through years working in the technology industry. At CBXmarket, we take a thoughtful approach to implementations, working with clients as partners, and developing process automations to accommodate the unique needs of investment organizations. CBXmarket’s OASIS system was developed as a best-of-breed portfolio management solution to address many of the challenges fixed income investors face today that were discussed in prior sections. The platform addresses many of the nuanced business requirements of bond managers.
Powered by a comprehensive bond market database, process automation and portfolio optimization capabilities simplify investment decisions and support higher touch client engagement. OASIS empowers investors to proactively monitor client accounts, automatically construct and rebalance portfolios and ensure adherence to client- or strategy-specific guidelines. The system helps streamline time-intensive investment management and related processes from pro-forma trade analysis to scenario analysis across a plethora of portfolios at once.
The system includes tools to support risk and compliance teams and provide PMs with a solution for portfolio rebalancing and performance reporting. With OASIS you can enhance investment decision-making, minimize manual workflows, improve operational efficiency, consolidate and connect with existing technology. OASIS is unique in that our team is constantly developing and deploying new tools and features on the platform to ensure that users will always benefit from the latest innovations to support their portfolio management operations.
CBXmarket’s OASIS connects with custodians’ systems for automatic daily portfolio updates, so maintaining connectivity between the separate applications deployed in best-of-breed strategies will no longer be a headwind for asset managers.
OASIS also has a world-class optimizer to ensure a list of bonds generated will be ideally suited to your portfolio needs. The optimizer utilizes machine learning and employs proprietary algorithms to recommend transactions for your portfolio like maximizing yield or to minimizing duration. OASIS enables the user to send the suggested transactions from the optimized portfolio to its state-of-the-art trade blotter and order management system. OASIS provides seamless connectivity with your external EMS so your traders won’t have to enter the same thing into two systems. This reduces a redundancy, providing a more efficient solution for traders to manage execution.
A survey of 500 investment executives in State Street’s 2018 “New Routes to Growth” survey, concluded that the top two challenges faced were integrating new technologies with existing infrastructure and processes & lack of expertise to manage the implementation process across the organization.
CBXmarket’s team has expertise deploying complex systems across some of the largest Fortune 500 companies, accounting for not only system design but also organizational buy-in and knowledge transfer.
CBXmarket works intimately with its clients to ensure the roll-out across the organization goes smoothly and seamlessly. Our unique implementation model breeds user engagement and buy-in from an early stage. CBXmarket not only blends a collaborative approach to implementation alongside an emphasis on technology & development, but also works to build an ongoing partnership with your company.
As technology continues shifting towards a streamlined future, AI and automation will play integral roes in alleviating the pain points of inefficient manual processes. A best-of-breed system can give your team a customized upper hand in realizing long-term strategic goals. With OASIS at the forefront of portfolio optimization solutions, CBXmarket offers solutions that enable you navigate hurdles and maximize your firm’s potential in the digital age.
This paper is intended for information and discussion purposes only. The information contained in this publication is derived from data obtained from sources believed by CBXmarket to be reliable and is given in good faith, but no guarantees are made by CBXmarket with regard to the accuracy, completeness, or suitability of the information presented. Nothing within this paper should be relied upon as investment advice, and nothing within shall confer rights or remedies upon, you or any of your employees, creditors, holders of securities or other equity holders or any other person. Any opinions expressed reflect the current judgment of the authors of this paper and do not necessarily represent the opinion of CBXmarket. CBXmarket expressly disclaims all representations and warranties, express, implied, statutory or otherwise, whatsoever, including, but not limited to: (i) warranties of merchantability, fitness for a particular purpose, suitability, usage, title, or noninfringement; (ii) that the contents of this white paper are free from error; and (iii) that such contents will not infringe third-party rights.