Overbond Extends into Primary Bond Market

Toronto-based Overbond,
a fintech entrant into the new bond issuance market, has launched an end-to-end
platform and support framework for primary bond origination.

The fully-digital platform
for primary bond issuance provides, the firm says, higher transparency, better
price discovery, and investor diversification for all counterparties in the
primary bond market. The company further claims it is the first
fully-integrated platform to connect bond market issuers, dealers, and
fixed-income investors.

“We are the first
fintech company focused on bringing the multi-trillion-dollar primary bond
market closer to a completely digital approach,” says Vuk Magdelinic, CEO
of Overbond. “While much of the financial services market is embracing
digital processes to streamline how they do business, primary bond origination
remains one of the few asset classes that still relies on manual processes.”

The new platform
modernises all aspects of bond origination by providing secure communications,
real-time market updates, and custom reporting and analytics, while reducing
infrastructure and transaction costs for issuers, dealers, and investors, the
firm says.

This is the company’s
second launch this year, earlier in 2016 it launched Overbond BPS, a solution
that improves issuer-dealer communication and provides market analytics. The
latest launch adds another layer of functionality by connecting investors to
the network.

“With the addition of
the investor-dealer module,
Overbond has achieved its first goal of bringing all bond market participants
together on a transparent, secure, and highly efficient cloud-based platform,”
the firm says. “With the Overbond platform, dealers now have access to digital
price discovery tools, while investors have more efficient access to

The secondary bond
market, which directly impacts pricing benchmarks in the primary bond market,
has seen a significant reduction in trading volumes in recent years. Overbond
says that factors contributing to this decline include increasingly strict
industry regulations and the manual approach used in trading fixed-income
securities – including origination and communication processes that have not
changed significantly in more than 50 years.

 “Overbond is
solving this decades long challenge for the entire primary bond market using a
digital approach that brings all stakeholders together so that bond issuance
can be digitally facilitated, and benchmark prices can be discovered more
efficiently,” says Magdelinic.

Twitter @lamboPnL


Colin Lambert

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