Announcements,Fixed Income Forum,NEWS ROOM

How is the Market Reacting to SOLVE Px (Beta)?

 

Transcript:

Why launch with municipals and what has been the market reaction to solve price?

Why did we start with munis? A number of folks have asked that given the esoteric nature of the asset class and the highly nuanced features of it. And that’s part of the reason why. The complexity of what’s there, there’s a challenge component, but it also supports the need. More broadly speaking, from a technological perspective munis have been underserved for many years. So we view that as the opportunity, the demand is there.

There’s also the reality that in the Municipal space, you have a high proportion of illiquid bonds. And while on the one hand that’s challenging, on the other hand that supports again the need for a predicted price for liquid as well as illiquid securities.

We’re pretty confident that our models are doing a pretty good job there. Kind of wrapping that all together, you know, the municipal market has been and continues to be ripe for innovation. And I think this is another example of, you know, the innovations that we at SOLVE are bringing to the market. There’s an aspect of our business, which is creating efficiencies for clients, there’s an aspect of our business which is taking raw data and creating information for our clients, and I think this falls into that latter category; which is we’re taking lots of data that’s out there, applying some significant smarts in the form of artificial intelligence and being able to deliver a new type of information out there. Brings me to the second part of your question, which was the market reaction.

It’s been, in short order, it’s been very, very positive. It’s the kind of thing that people are saying is can be transformative if we can get it right. We are pretty confident in what we’re doing there. The firms, as I mentioned before, that have been accessing and providing us feedback on data have been great. As I mentioned, the feedback helps us refine.

We’ve also had a significant number of inbound requests to learn more about it. So there’s a buzz that’s been created because it is something different and something new, right? It is a predictive price, and that’s not something that anyone has been able to create with the unique data that we have available to us to feed the model. And so the market reaction has been really positive, and we’re going to look forward to moving from beta production and then over time moving into additional asset classes as well.

Disclaimer: 

SOLVE offerings are not intended to constitute investment advice, do not seek to value any security, and do not purport to meet the objectives or needs of specific individuals or accounts.  

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