Relative Value Analysis

Value Squared: Superior Fixed Income Decisions with Advanced Analytics

With SOLVE Relative Value Analysis, fixed income specialists benefit from superior analytics to drive trading workflows, understand price richness, and compare various metrics like price, spread and yield values.

SOLVE Relative Value Analysis

Introducing SOLVE Relative Value Analysis

Experience the power of SOLVE Quotes‘ and SOLVE Px’s newest feature! Now, users can effortlessly assess and visualize the dynamic changes in a bond’s value over time, thanks to enhanced SOLVE Px capabilities. Currently available for municipal bonds, this groundbreaking tool will soon extend its coverage to additional asset classes. Elevate your trading strategies and capitalize on market movements with unparalleled precision.

Features & Benefits

  • Users can quickly assess if bonds are rich or cheap relative to their historical performance to help decide whether to buy, hold, or sell based on predicted trade value. 
  • Sort columns to quickly view price movements for each security over a defined date range. This allows our users to make informed trading decisions by easily spotting trends and anomalies in price, spread or yield changes over a defined date range, allowing our clients to react promptly to changes and stay ahead of the market. 

 

  • Traders can leverage the SOLVE Quotes search feature to identify a group of similar bonds for comparison. The filtering capabilities in the summary columns enable users to exclude bonds that are currently considered rich or cheap relative to their performance over time.  
  • In addition to using the search feature, our buy-side clients can also analyze their portfolio positions to look for relatively rich or cheap positions, or to find positions with significant price movements.  
  • The SOLVE Px Relval tab presents an organized and detailed view of price, spread, and yield values for each side of the market over various periods for a specific bond. This equips our clients with valuable insights to make more informed trading decisions. 
  • Sort through columns to quickly view price movements for each security over a defined date range, allowing users to make informed trading decisions by easily spotting trends and anomalies in price changes over a defined date range. 

SOLVE Relative Value Analysis Empowers

Relative value analysis allows them to cut through the noise and identify potential trading opportunities by comparing the price, yield and spread of a security, cohort and sector. Deriving this data of one asset to similar assets, can reveal whether an asset is rich or cheap relative to its peers, thus enabling them to make informed decisions about buying or selling based on these price discrepancies, potentially leading to profit generation.

In similar fashion to traders on the buy-side, sell-side market professionals can gain valuable insights into pricing and securities that best suit their clients’ preferences. Armed with these analytics, sell-side traders can enrich client conversations with actionable insights and present them with practical options for their portfolio investments.
Portfolio Managers: Relative Value Analysis allows them to identify potential investment opportunities by comparing the valuation metrics of different fixed income securities.
Relative value analysis offers significant benefits to risk managers by providing crucial data on spread changes, which are essential for effective risk management. This analysis helps identify when spreads are widening, indicating potential credit risk or liquidity issues, and enables them to take proactive measures. By automating the process of loading portfolios and conducting analytics on price spreads and associated risks, risk managers can better monitor the health of their portfolios. The ability to sort metrics based on spread changes allows them to pinpoint which assets have experienced the most significant widening, thus flagging securities that may be at greater risk. This comprehensive approach to monitoring and managing risk ensures that risk managers are well-equipped to safeguard investments and enhance the overall stability of their portfolios.

SOLVE Empowers

SOLVE Px introduces a fully AI-generated predictive pricing solution to provide a more transparent, accurate, and comprehensive view of predictive bond prices for more informed decision-making. 

  • Save valuable time by seeing the next trade level for a representative institutional trade, generated fully by Artificial Intelligence and is trained on several hundred feature inputs, including Reference Data, Trade Data, and SOLVE’s proprietary Muni Quote data collected from its market contributors. 
  • SOLVE Px (Beta) will provide a helpful point of reference to SOLVE clients interested in buying or selling a Municipal bond position, providing indicative bid or offer levels, or analyzing different positions. 
  • SOLVE Px (Beta) provides full market coverage – a price for nearly every outstanding Municipal bond regardless of whether they do or do not have recent quotes or trades. 
  • Access prices generated on 900,000+ outstanding fixed coupon Municipal bonds, regardless of whether they have recent quotes or trades.  
  • Predict different trade types in the market with SOLVE Px (Beta) providing both a Bid and an Offer price. 
  • Ensure independence and empower your valuation professionals and third-party administrators by providing them with direct access to Municipal bond predictive pricing. 
  • SOLVE clients interested in buying or selling a Municipal bond position, providing indicative bid or offer levels, or analyzing different positions gain a helpful point of reference with SOLVE Px (Beta) predictive pricing.
  • Save time and grow your business with analyses powered by predictive pricing on 900,000+ outstanding fixed coupon Municipal bonds.  
  • Price discovery, portfolio tracking, and workflow tools for market makers to compare pricing, automate internal processes, and more. 
  • Enrich your pricing models with access to predictive pricing on 900,000+ fixed coupon Municipal bonds. 
SOLVE Relative Value Analysis Fact Sheet Cover

Learn even more about SOLVE Relative Value Analysis

Value Squared: Superior Fixed Income Decisions with Advanced Analytics

Additional Resources

Looking for even more information? Check out these one-pagers, articles and videos!

The SOLVE Px Fact Sheet

Get answers to commonly asked questions.

The SOLVE Overview Fact Sheet

Save Time. Reduce Risk. Build your Business.

SOLVE Px – SOLVE’s Proprietary AI-Driven Municipal Bond Predictive Pricing

Download the whitepaper.

2024 Buy-Side Fixed Income Technology Innovation: A Matter of Workflows

A TabbFORUM article.

SOLVE Px Q4 2024 Model Update

Predictive Pricing Model Update.

The Power of SOLVE Quotes™ in SOLVE Px

Increased accuracy in predictions.

AI and Smarter Pricing Data in Fixed Income

AI is reshaping the Fixed Income markets.

Save Time. Reduce Risk.
Build Your Business.

Integration Partners

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The SOLVE Platform represents a powerful combination of data, analytics, and workflow tools that save time, reduce risk and drive the growth of your fixed income business.

The SOLVE Platform represents a powerful
combination of data, analytics, and workflow
tools that save time, reduce risk and drive
the growth of your fixed income business.

Save Time. Reduce Risk. Build Your Business.

Save Time. Reduce Risk.
Build Your Business.