Why is SOLVE Px (Beta) Launching with Municipals? A Few Reasons Why

Transcript:

Why is SOLVE Px launching with Municipals?  

So we’re often asked — SOLVE plays in many asset classes in fixed income, across credit, across securitized products, Munis — so why start in Munis? I think there are a few answers and even though the goal is to ultimately unveil SOLVE PX across our range of asset classes, there are a few reasons why Munis are interesting.  

One is the state of data and technology in Municipal markets has always been lagging in comparison to credit and securitized products. So there’s absolutely a need that was expressed by our clients for this type of offering. 

Municipal bonds are numbered close to a million individual securities. So all the problems that exist and all the information asymmetries and challenges that normally exist in fixed income markets are only amplified in Munis given their sheer number. 

And there’s another element of Munis which we find interesting: over three quarters of Municipal bonds are held by retail investors. And it’s no secret that the execution that the retail side of the business typically experiences is not nearly as good as the institutional side. So by creating this data set, this predictive data set in Munis, we see this as a way to empower the wealth management side of the market to get better confidence and better execution on behalf of retail investors. 

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.