Credit trading automation software Overbond closes investment from Fitch Ventures

API-based credit trading automation and execution service Overbond has received an investment from Fitch Ventures.

This capital will enable Overbond to grow its sales and marketing division and open an office in London. Overbond will also double its headcount over the coming year.

Additionally, Overbond plans to grow its global presence, integrate new data sources to expand its AI models’ coverage and provide enhanced AI trade automation solutions for clients.

Overbond claims that fixed income traders face heightened volatility and evaporating liquidity against a backdrop of rate hikes, inflation and recessionary concerns. Over the past decade, the industry has been re-shaped by the development of new financial products, electronic platforms and non-dealer liquidity providers using algorithmic and high-frequency trading.

Due to this, sell-side traders are pressured to execute with speed. This has led to electronic trading and the use of AI for analysis and trade automation.  These, however, rely on precise and live data, which is hard when there are significant data gaps and no unified, central sources for bond trade data.

Overbond partners with exchanges and capital markets data providers to access and aggregate global fixed income data.

Vuk Magdelinic, Overbond CEO, said, “Credit trading desks need to automate to gain an edge in this environment, but they don’t have the in-house data aggregation or AI optimization capabilities to do that with precision.

“Overbond offers traders a way to bring precise, high-speed automation to their desktops. In addition, Overbond is fully interoperable with other systems on the desk so that traders can use a single interface. Now, with the new funding and data access, Overbond clients can trade faster, smarter, and more profitably.”

The company previously partnered with AxeTrading, providing its customers with access to Overbond’s analysis tools.

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