Introducing the Ai SPARK Comparable Module
November 6, 2024
Ai Spark — AI-Driven Credit Risk Analysis Solutions
ai-spark.com
As institutional investors respond to an improving economy boasting lower interest rates, manageable inflation and respectable employment numbers, they have returned their attention to the bond market looking for deals.
Normally this is a task for portfolio managers, their analysts, or outsourced to a network of broker-dealers to scour the market for deals that align with a buyer’s criteria. Even with an experienced team, it is a daunting task, if not impossible for them to accurately search through constantly changing deals.
If this were the residential home market, you or I would use the likes of Zillow, MLS or Realtor.ca to define a search and receive a list of properties that match our criteria. However, in the bond market, this type of search is not commercially available — at least not until now.
“Honestly, this evolved out of our client discovery process. It revealed this gaping hole where Ai SPARK could apply our service to deliver a comparable service to the bond market,” says Matt Fiordaliso, Head of Product at Ai SPARK. “This expansion fits perfectly within our Mission and delivers immediate value to subscribers looking to optimize their portfolio, are challenged with limited resources or any bond market participant interested in a more efficient workflow, especially around the price challenge process.”
Using Excel and starting with a list of bonds, provided by the user, Transparent Autonomous Risk Algorithm (TARA™) searches for select characteristics in current deals, then returns summarized data and analytics for comparable bonds.
Having saved hours of time, a user then takes this targeted list to begin their internal review process (also performed by Ai SPARK’s service) and ultimately make final decisions.
Because Ai SPARK’s credit research service constantly updates its predictions, each search returns the most current comparable deals. And according to Mr. Fiordaliso, new search criteria are being tested. “It’s all about meeting the needs of our subscribers. As their challenges become clear or change, we’re here to meet those needs.”
The Ai SPARK Comps module covers corporate loans and commercial real estate bond markets, with plans to expand into residential real estate bonds. The module is an add-on to the Ai SPARK service, delivered through API or an Excel Add-in, and access is granted by a service managing subscriber permissions.
For a demo, please email the Ai SPARK team at info@ai-spark.com.
“This expansion fits perfectly within our Mission and delivers immediate value to subscribers looking to optimize their portfolio, are challenged with limited resources or any bond market participant interested in a more efficient workflow, especially around the price challenge process.”
– Matt Fiordaliso,
Head of Product at Ai SPARK