BondWave LLC's portfolio analytics suite, Effi, has introduced a new feature, Rules, where users can filter attributes of bonds in their portfolios.
Michael Ruvo, BondWave's CEO, described Rules as an "overlay" to each portfolio, where users can apply criteria including 20 different portfolio constraints and almost 20 different objectives.
Through Rules, users can filter for single attributes, like callability, or combine attributes to create "strategies," such as "short, conservative, tax-exempt." Effi will automatically apply those rules to portfolios, helping users comply with Reg-BI and create investment strategies, a press release from the company said.
"You can profile each client, you can establish rules based on their specific investment objectives, risk tolerance, etc.," Ruvo said. "And you can create and service bespoke custom bond portfolios that align with those objectives for those clients."
Most of the rules apply to all asset classes, but some are specific to municipals, including state of issue, underlying rating and use of proceeds.
"So, perhaps you're somebody who lives in Connecticut, and you always want to invest in Connecticut munis, and you want a minimum rating of AA, but you want to avoid hospital and healthcare bonds. There's a way to create that type of rule set," Ruvo said. Users can also set limits on saturation for particular states or uses of proceeds.
Ruvo said he expects Rules to change and grow once it's on the market. Users may want different criteria or think of different uses for the feature, and BondWave will adapt the product as needed.
BondWave tries to add several
