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Scotiabank Digital Banking Lab

Overbond


Capital Markets & Trading | Toronto, ON | Founded: 2015 | Employees: 20 | www.overbond.com

PHONE: (416) 559-7107 | LINKEDIN PROFILEBLOOMBERG PROFILE | WIKIPEDIA

Last updated January 14, 2019 | To download a PDF version, click here

Company Overview

Overbond is transforming how global investment banks, institutional investors, corporations and governments connect and access the fixed income market. Overbond platform provides predictive bond analytics utilizing world’s most advanced AI models in finance. We are enhancing market transparency and liquidity with digital tools and processes that eliminate inefficiencies in fixed income information flow, reducing execution costs and minimizing regulatory compliance risks. In addition to the benefits above, Overbond platform helps market participants with price discovery and liquidity risk management. Overbond facilitates precise market analytics with AI predictions in fixed income that help market participants better gauge market demand while increasing connectivity. Founded in 2015, Overbond has delivered more than 3000 credit investment opportunities.

Senior Management

Vuk Magdelinic: CEO (2015–Present). Previously: Risk and Regulatory Consulting Manager, PwC. (2012-2015); Fixed Income Sales Trader, CIBC (2009-2012); Management Consultant, Deloitte (2008-2009). Education: B.A.Sc., Electrical and Computer Engineering, University of Toronto; MBA (2008), Ivey Business School.

Kuntal Dave: Fixed Income Product and Sales (2018–Present). Previously: Rates and Macro Research Analyst, Royal Bank of Scotland Business (2013-2018); Financial Planning, ICICI Bank (2011-2013); Cross-Asset Valuation, Deutsche Bank (2010-2011); Risk Advisory Services, BDO India (2007-2010). Education: Bachelor of Commerce, Mumbai University; CPA.

Seyed Nabavi: Data Science and Engineering (2018-Present). Previously: Data Scientist, Message Hopper (2017-2018); Research Scientist, University of Ottawa (2012-2017). Education: Master of Electrical and Computer Engineering, University of Ottawa; Master of Electronics Engineering, Azad University.


History

Before launching Overbond, Vuk worked on the fixed income sales trading floor at CIBC. Vuk felt the process of corporations raising money in the bond market could be streamlined in a more efficient manner. With his extensive knowledge of fixed income, he launched Overbond, the first fintech platform for digital bond issuance. Vuk implemented the strategy to pivot Overbond product line in 2017 to focus on AI data analytics. The Company emerged from the MaRS fintech cluster and the Communitech technology innovation super-cluster – both globally renowned centres for technology and innovation and has since 2015 been a prominent member of fixed income data analytics ecosystem. Overbond’s team is comprised of industry professionals in the fields of fintech, capital markets, and regulatory compliance. In 2017, Overbond expanded its operations into the United States, bringing most advanced AI pricing and issuance predictions algorithms to large sell-side and buy-side users.[1]

[1] https://www.news.overbond.com/overbond-expansion-u-s-multiplies-bond-issuance-opportunities-new-digital-channels-increase-fixed-income-market-liquidity

Funding

In 2016, Overbond raised $4.5 million in financing through a seed round from Morrison Financial Services Ltd[2]. The Company used the proceeds to expand their digital platform. Overbond is a Series A stage venture.

[2] http://www.marketwired.com/press-release/overbond-secures-75m-in-seed-financing-2134845.htm

Key Corporate Developments

Press Releases: https://www.news.overbond.com/category/press-releases
Sept 12, 2017: Overbond Expands Primary Bond Market Deal Capabilities
May 8, 2017: Swap Pricing Calculator Added To Overbond Corporate Bond Intelligence Toolkit

 

Business Highlights

Strategy

With the challenging situation arising in the post financial crisis era with the bond market being at an historical low, there comes an opportunity to improve the primary and secondary fixed income market. The Overbond platform, a digital platform for fixed income analytics, provides better price discovery and employs powerful AI modeling on big-data to provide predictive market signals and pricing. Overbond is the first fully-integrated platform to connect bond market issuers, dealers, and fixed-income investors data sets. The cloud-based platform modernizes all aspects of bond information flows by providing price discovery, real-time market updates, and custom reporting and analytics, while reducing infrastructure and transaction costs for issuers, dealers, and investors. With the Overbond platform, all stakeholders have the ability to better price discover and access trade flow in challenging times in the fixed income market, resulting in better liquidity risk management in the fixed income market. Historically, Overbond has seen 55% month-over-month user growth and aims to continue to expand its user-base internationally.

Products/Pricing

Corporate and Government Bond Intelligence (COBI): A comprehensive suite of Overbond AI algorithms that enhance relationships between investors and corporate bond issuers through better price discovery, leading to more efficient deal benchmarking, participation, and execution.

  1. AI driven supply and demand matching - Experience stronger engagement with fixed income market participants through an extensive issuer, dealer and investor AI powered network.
  2. Investment opportunity network – Overbond’s digitally-enabled investment opportunity network offers exclusive access to curated opportunities to match your investment portfolio.
  3. Enhanced transactional capabilities - Transact with confidence by drawing on proprietary analytics and comprehensive real-time market data.

Overbond's COBI (Corporate and Government Bond Intelligence) engine uses big data technology and machine learning to predict primary debt capital markets pricing and deal data. COBI Opportunities provides investors with curated investment ideas for new debt issues. COBI allows issuers and investors to receive curated analytics, pre-deal sentiment analysis and engage in private debt deals. 

The implementation of machine learning methods and AI for investment improves prediction accuracy for the future prices of bonds and guides secondary market bond trading.[3]

[3] https://www.economist.com/finance-and-economics/2018/05/10/a-canadian-startup-applies-machine-learning-to-corporate-bond-issuance

 

Technology

Overbond’s proprietary machine learning and predictive analytics capabilities deliver fixed income investment opportunities via web mobile applications available for both iOS and Android devices. Overbond’s machine learning algorithms are driven by neural networks, a type of AI that is able to forecast the pricing and timing of issuing new credit. The service is fully active in the Canadian market and recently became active in the American market.

Distribution/Logistics

Overbond is based in Toronto, with offices in New York as well. With a staff of 40 people, Overbond is able to service Canadian and U.S. investors and institutions through its digital platform.


Competitors

As the first fintech platform for advanced AI capital market analytics in fixed income segment, Overbond does not have any direct competitors, but instead competes with traditional bond markets in-house analytics that financial institutions have developed over time.  

 

Corporate Profile Created By: Cassie Gobin, Ivey BMSc/HBA 2020