Intellibonds at SimCorp Global Client Summit 2023: Revolutionizing Portfolio Optimization and Credit Risk Analytics

20 April 2023

By Igor Tesinsky

Intellibonds took center stage as a sponsor, presenting a collaborative product workflow to aid in portfolio optimization.

At the SimCorp Global Client Summit held in Stockholm, Intellibonds took center stage as a sponsor, presenting a collaborative joint product workflow designed to empower SimCorp users in optimizing their fixed income portfolios and proactively manage credit risk

The summit, a pivotal gathering for SimCorp’s community of users, partners, and industry experts, offered a rich three-day experience immersed in cutting-edge technology and invaluable business insights. Engaging sessions, led by top-notch speakers, provided a comprehensive view of the latest tech advancements and strategic perspectives within the investment management realm.

As a sponsor and exhibitor at the summit, Intellibonds proudly showcased an integrated product workflow, harmonizing with SimCorp’s investment management platform, SimCorp Dimension. This innovative integration enables seamless importation of portfolio positions from SimCorp Dimension into Intellibonds’ platform with a single click.

Once imported, users gain access to a spectrum of statistical insights and data, inclusive multiple yield-enhancing alternative portfolios. These insights assist clients in improving investment returns and risk profile of active portfolios.

Besides this, IB also presented a Credit Suisse example, demonstrating how IB predictive algorithms were able to predict losses on junior subordinated instruments on Friday before the UBS takeover and those same algorithms switched to overweight recommendations on Credit Suisse senior unsecured bonds on Monday after the acquisition announcement. We have included a brief graphical illustration in the charts below. In both instances, IB predictive trade ideas generated significant investment returns for clients.

SimCorp's users, partners, and experts gathered to discuss cutting-edge technology conducive to portfolio optimization.

Intellibonds’ platform, leveraging Machine Learning and Artificial Intelligence, goes beyond conventional analytics. It harnesses trained algorithms to generate predictive risk data and financial metrics in critical areas like Security selection, Cash Flow matching, Market Leverage, and others. Furthermore, the platform’s functionalities include a relative value tab, facilitating a detailed comparison of a bond’s key pricing information with its closest peers.

The collaborative synergy between Intellibonds and SimCorp is designed to enhance users’ portfolio risk and return optimization. Through an optimizer tool, users gain granular control over various parameters, allowing adjustments in portfolio duration, credit rating, and turnover limits. The platform offers a customizable approach, enabling the application of filters, constraints, and objectives tailored to each user’s specific investment strategy. Furthermore, the platform monitors all holding and suggest proactively changes as well as issues predictive risk recommendations.

One of the noteworthy features is the provision for creating highly personalized portfolios by incorporating sector, rating, issuer, currency, and regulatory constraints. Users can apply their proprietary quant and risk models, optimizing outcomes aligned with their unique objectives.

Upon finalizing the portfolio setup, a simple click on ‘Optimize’ generates a list of trades. These trades are seamlessly imported back into SimCorp Dimension order management system via API, facilitating the generation of trade orders and expediting the execution process.

To gain a comprehensive insight into how Intellibonds’ joint product workflow with SimCorp enhances portfolio control and optimization, please contact your SimCorp account manager or book a demo directly on Intellibonds website. This collaboration marks a significant leap in empowering users to navigate, optimize and algorithmically monitor their investment portfolios with precision and efficiency.