Originally published on The Bond Buyer.
By Russell Feldman, COO at IMTC
In 2019, municipal fund flows had the best year on record and continue to break records into 2020. Still, despite the asset class swelling to potentially more than $4 trillion in size and roughly a million bonds outstanding, only 1% of those bonds trade on any given day.
The infrequency of trading these bonds speaks to the pain points facing today’s muni investors who must overcome the challenges of scalability, lack of liquidity and data quality that are currently plaguing the market. Investors often find it difficult to know what the right pricing for a given bond should be, and investment technology has fallen short of addressing these fundamental flaws.
IMTC, formerly known as CBXmarket, created its platform to give the municipal market the infrastructure to help generate alpha and enable humans to do what they do best. NOVA streamlines front-, middle- and back-office functions, including portfolio construction and optimization, risk management, performance evaluation, compliance monitoring and reporting.