 | |
| Company type | Private |
|---|---|
| Industry | Financial Analytics |
| Founded | 2015 |
| Founder | Vuk Magdelinic Han Ryoo |
| Headquarters | , Canada |
Key people | Vuk Magdelinic (Chief executive officer) Behzad Nikzad (Chief of Data Science) |
| Website | www |
Overbond Ltd. is a Canadian financial technology company, specializing in fixed income analytics, and based in Toronto, Ontario.
Overbond was founded in 2015 by Vuk Magdelinic and Han Ryoo, two fixed income experts. [1]
In early 2016, it raised $7.5 million in seed financing from Morrison Financial, one of the largest seed financing rounds in Canadian history. [1] [2]
In January 2017, it launched a digital bond issuing service, called OverbondX. [2] In November 2017, Overbond announced it would expand to the American market, opening an office in New York. [3]
In 2023, Overbond launched their new artificial intelligence-based system. The system assists with both the buying and selling side of their online ordering system. [4] [5] The ordering system is an AI-based credit trading automation that can reach global customers within a fixed-income trading space. [6]
Overbond's main product is a platform providing predictions for the pricing and timing of new corporate bond issues. [7] The predictions are generated through the use of neural networks, based on credit ratings and secondary trading market data. [7] Traditionally, bond origination is done manually through banks, who contact potential investors to gauge the demand for an offering, and take a significant fee for their services. [7] The company claims that its platform provides more transparency, eliminates inefficiencies associated with the traditional approach. and reduces fees for the issuer. [3] It sells access to this platform on a subscription basis to corporate clients and institutional investors. In the Canadian market, Overbond has approximately 81 of 200 frequently issuing companies as clients, and approximately half of institutional investors. [7] Clients include Burger King, Molson Coors Brewing, Alimentation Couche-Tard and BCE Inc.; it has a total of 200 clients in all. [3]
As of early 2018, Overbond had approximately 40 employees. [3]
In February of 2019, Overbond's CEO Vuk Magdelinic was accused of fraudulent reviews on the popular workplace review website Glassdoor. Several reviews point out the similarity between positive reviews, and many point to Magdelinic as author. Many cite high turnover at the firm, with management being the core issue.
In economics and finance, arbitrage is the practice of taking advantage of a difference in prices in two or more markets – striking a combination of matching deals to capitalize on the difference, the profit being the difference between the market prices at which the unit is traded. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit after transaction costs. For example, an arbitrage opportunity is present when there is the possibility to instantaneously buy something for a low price and sell it for a higher price.
Finance refers to monetary resources and to the study and discipline of money, currency and capital assets. As a subject of study, it is related to but distinct from economics, which is the study of the production, distribution, and consumption of goods and services. Based on the scope of financial activities in financial systems, the discipline can be divided into personal, corporate, and public finance.
A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments. Financial regulators like Securities and Exchange Board of India (SEBI), Bank of England (BoE) and the U.S. Securities and Exchange Commission (SEC) oversee capital markets to protect investors against fraud, among other duties.
A municipal bond, commonly known as a muni, is a bond issued by state or local governments, or entities they create such as authorities and special districts. In the United States, interest income received by holders of municipal bonds is often, but not always, exempt from federal and state income taxation. Typically, only investors in the highest tax brackets benefit from buying tax-exempt municipal bonds instead of taxable bonds. Taxable equivalent yield calculations are required to make fair comparisons between the two categories.
Investment banking is an advisory-based financial service for institutional investors, corporations, governments, and similar clients. Traditionally associated with corporate finance, such a bank might assist in raising financial capital by underwriting or acting as the client's agent in the issuance of debt or equity securities. An investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making, trading of derivatives and equity securities, FICC services or research. Most investment banks maintain prime brokerage and asset management departments in conjunction with their investment research businesses. As an industry, it is broken up into the Bulge Bracket, Middle Market, and boutique market.
In finance, a convertible bond, convertible note, or convertible debt is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. It is a hybrid security with debt- and equity-like features. It originated in the mid-19th century, and was used by early speculators such as Jacob Little and Daniel Drew to counter market cornering.
Fixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule. For example, the borrower may have to pay interest at a fixed rate once a year and repay the principal amount on maturity. Fixed-income securities can be contrasted with equity securities that create no obligation to pay dividends or any other form of income. Bonds carry a level of legal protections for investors that equity securities do not: in the event of a bankruptcy, bond holders would be repaid after liquidation of assets, whereas shareholders with stock often receive nothing.
A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, mergers & acquisitions, or to expand business. It is a longer-term debt instrument indicating that a corporation has borrowed a certain amount of money and promises to repay it in the future under specific terms. Corporate debt instruments with maturity shorter than one year are referred to as commercial paper.
The bond market is a financial market in which participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market. This is usually in the form of bonds, but it may include notes, bills, and so on for public and private expenditures. The bond market has largely been dominated by the United States, which accounts for about 39% of the market. As of 2021, the size of the bond market is estimated to be at $119 trillion worldwide and $46 trillion for the US market, according to the Securities Industry and Financial Markets Association (SIFMA).
In finance, market data is price and other related data for a financial instrument reported by a trading venue such as a stock exchange. Market data allows traders and investors to know the latest price and see historical trends for instruments such as equities, fixed-income products, derivatives, and currencies.
The following outline is provided as an overview of and topical guide to finance:
Intercontinental Exchange, Inc. (ICE) is an American multinational financial services company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russell 1000, the company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada, and Europe; the Liffe futures exchanges in Europe; the New York Stock Exchange; equity options exchanges; and OTC energy, credit, and equity markets.
Robert W. Baird & Co. is an American multinational independent investment firm and financial services company. It is the principal U.S. operating subsidiary of Baird, an international, employee-owned financial services firm providing investment banking, capital markets, private equity, wealth management, and asset management services to individuals, corporations, institutional investors, and municipalities.
The Moscow Exchange is the largest exchange in Russia, operating trading markets in equities, bonds, derivatives, the foreign exchange market, money markets, and precious metals. The Moscow Exchange also operates Russia's central securities depository, the National Settlement Depository (NSD), and the country's largest clearing service provider, the National Clearing Centre. The exchange was formed in 2011 in a merger of the Moscow Interbank Currency Exchange and the Russian Trading System.
Liquidnet is a global institutional investment network that connects asset managers with liquidity. Liquidnet trades in 46 equity markets for over 1000 institutional investment firms who collectively manage US$33 trillion in equity and fixed income assets.
Mizuho Americas was established on July 1, 2016 as a US bank holding company, as the American corporate and investment banking arm of the Tokyo-based Mizuho Financial Group.
Equity crowdfunding is the online offering of private company securities to a group of people for investment and therefore it is a part of the capital markets. Because equity crowdfunding involves investment into a commercial enterprise, it is often subject to securities and financial regulation. Equity crowdfunding is also referred to as crowdinvesting, investment crowdfunding, or crowd equity.
Tradeweb Markets Inc. is an international financial technology company that builds and operates electronic over-the-counter (OTC) marketplaces for trading fixed income products, ETFs, and derivatives. Its customers include banks, asset managers, central banks, pension funds and insurance companies. Tradeweb's headquarters are in New York City.
MarketAxess Holdings Inc. is an international financial technology company that operates an electronic trading platform for the institutional credit markets, and also provides market data and post-trade services. It enables institutional investors and broker-dealers to trade credit instruments, including corporate bonds, and other types of fixed income products.
Lee Olesky is an American financial executive and entrepreneur. He is co-founder of Tradeweb and formerly served as the company's Chairman and Chief Executive Officer. Tradeweb is an international financial technology company that builds and operates electronic over-the-counter marketplaces for trading fixed income products, ETFs, and derivatives.