Fixed income trading has enjoyed something of a renaissance in recent years. While regulations continue to restrict investors, technology has provided an even faster way to get the data insights you need.

New developments in fixed income analytics software have made getting the critical data you need to make informed decisions much easier.

In this post, we’ll explore why fixed income data is fundamentally important when trading in this area. We’ll outline several crucial aspects to better understand what this process is all about.

The Purpose of Fixed Income Analytics Software

Fixed income analytic tools, at their heart, can help you weed through the data to find key insights. The challenge of today’s market is the sheer volume of data. Finding your way through that data, and identifying what is relevant to your strategy, is an immensely challenging task.

Data sources and types may only give you partial insights and lead to missing vital aspects relative to your strategy. Furthermore, the number of sources to draw on data is immense and ever-changing. An analytics platform solves this issue by bringing together these data sources from an integrative perspective and provide accruate high quality analytics for your trading portfolio management.

The idea is to offer you a more open view of the market and respond to shifts and changes.

Market volatility challenges even the most seasoned investors — and we have all seen this in recent years. The objective of analytics is to keep your perspective aware of the market in real-time. You can then modify and refine your strategy to make changes based on this ever-moving source of information.

What Fixed Income Data Provides

Fixed income analytics software helps you better understand the nuances of your portfolio and assess the best choices for your risk and return profile. Most crucially, you can manage your cash flow and make decisions with more confidence.

Cash Flow

You can check the history of interest and principal returns. You can also scale out hypotheticals on future income.

The data can be viewed to assess trends and identify potential areas of opportunity.

Fixed Income Positions

You can get an overview of your holdings based on your portfolio or accounts. Then, you can organize and group these listings to match your preferences. You can also manage the information through lists and by exporting data to Excel or PDF.

Summary of Calculations

You can view your total market value for CDs,all types of bonds, and others. You can also compile data for average prices, maturity years, interest income, and total par value.

Overall Analytics and Trends

Here you can better assess overarching trends, manage your risks, and recognize where to potentially diversify.

• Portfolio credit rating: You can check credit ratings based on the overall portfolio distribution.
• Credit quality: You can check the credit ratings for each of your bond funds.
• Projected duration: Tools can provide you with an estimate of the potential fluctuation in a bond or distribution based on continually updated data including analyics using forward rate curves for floating rate bonds..
• Portfolio diversification: You can view your assets based on where and how they are invested. Examples include industry or sectors.
• Asset allocations: You can understand your use of proceeds and the sorts of municipal bonds you hold in your portfolio.

Get in Touch to Schedule a Demo

Fixed income data and analytics give you more insight at the tip of your fingers than at any point in history. Of course, that does not remove the challenge of knowing how to use that data.

This is where Clarity by investment-soft can help.

Our software offers intuitive, functional, and precise tools to help you navigate this complex investment domain better.

To learn more about our software and schedule a demo, reach out to our team today.