Bond Buyer: Infrequent trading, lack of liquidity nag munis
Read about the state of the muni industry, the record year it had in 2019 and how technology is enabling muni managers, as published on The Bond Buyer.
March 3, 2020
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.
Read the full article on Bond Buyer’s website…
This paper is intended for information and discussion purposes only. The information contained in this publication is derived from data obtained from sources believed by IMTC to be reliable and is given in good faith, but no guarantees are made by IMTC with regard to the accuracy, completeness, or suitability of the information presented. Nothing within this paper should be relied upon as investment advice, and nothing within shall confer rights or remedies upon, you or any of your employees, creditors, holders of securities or other equity holders or any other person. Any opinions expressed reflect the current judgment of the authors of this paper and do not necessarily represent the opinion of IMTC. IMTC expressly disclaims all representations and warranties, express, implied, statutory or otherwise, whatsoever, including, but not limited to: (i) warranties of merchantability, fitness for a particular purpose, suitability, usage, title, or noninfringement; (ii) that the contents of this white paper are free from error; and (iii) that such contents will not infringe third-party rights. The information contained within this paper is the intellectual property of IMTC and any further dissemination of this paper should attribute rights to IMTC and include this disclaimer.
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