Fixed Income Portfolio Management Software

An Intro to Fixed Income Portfolio Management Software

Fixed income asset management has always been complex. Portfolio managers need the best tools to manage it well. Our fixed income portfolio management software gives accurate, timely insights on the return drivers; it provides a mechanism to share information, bringing everyone to the same page; and it gives consistent feedback through time and across portfolios. It becomes a trusted source to help portfolio construction and client teams.

Clients are demanding more detailed analysis and portfolio managers require greater insights into the sources of return, CloudAttribution has developed a better way to provide both. Our portfolio attribution analysis software and cloud-based fixed income attribution software provide solutions for now and in the future.

In simplifying the approach we are able to incorporate all instruments into the process and reflect the effects accurately.

Core areas

Model

Timeliness in Context

Source of Analytics

Implementation

Model

Any fixed income attribution model needs to be easily explainable and implementable.

It also needs to be fit-for-purpose to serve both front and middle office requirements whilst being flexible enough to incorporate all of the variety of alternative instruments both now and in the future.

Our Solution

We take a returns-based approach and we build a bespoke performance calculation to match your accounting data.

This gives an accurate input to attribution and results in no residuals. Basing the analysis on returns reduces and simplifies the data requirement. It means we can use the same analytics as the front office. The detail and insights are better.

Timeliness in Context

Attribution needs to be daily to be useful in portfolio construction. It needs to be trustworthy to be useful at all and it needs to be readily available.

But results also need to be available for longer periods to be useful to management and the client team.

Our Solution

A simpler data model facilitates dependable daily attribution. Calculated automatically as the data comes in, we create a bespoke set of checks to feed back solutions rather than problems.

The results are available on users desktops when they start the day. All results presented with long-term histories making it easy to see the evolution of the portfolio through time.

Source of Analytics

Analytics needs to be consistent between performance and trading systems.

It needs to be readily available and consistent with the relevant business units expectations so that the discussion moves on quickly to the insights required.

Our Solution

We source a small set of analytics (duration, spread duration and yield-to-worst) from your front-office solutions ensuring that front office exposure expectations are met.

This ensures consistency in the results and minimises any questions about the data. Operationally it drives efficiency rather than having to re-calculate items that have already been calculated in-house.

Implementation

The industry dreads fixed income attribution software implementations for good reason. Rising costs, project over-runs, enforced transitions all have contributed to a negative perception AND they fail to deliver the expected outcome and provide the analysis required.

There is another way.

Our Solution

We receive the raw data as provided by your accounting and front-office system(s). We match your performance calculations to within 1000th of a basis point. Data is integrated on our side and incorporated into the attribution model. Output is provided by online cloud native tooling and integrated services.

Fuel your thinking

Solve Common Problems With a Fixed Income Attribution Solution From CloudAttribution

Problem

Issues

Our Solution

Problem

Breaking Return into Duration and Spread Elements

Most traditional attribution engines seek to attribute changes in yield for each security.

Issues

Assumption of singular price
Analytics not as expected
Prescriptive performance model
Inaccuracy– major differences against official return
Limited to buy and hold

Our Solution

Simplify the fixed income attribution approach (returns-based model)
Don’t compromise on accuracy
Align performance
Align analytics

Problem

Returns tend to be small in Fixed Income

Resilience to any errors is low and appetite to expend large sums on implementation / maintenance is even lower.

Issues

Tolerating any residual needs explanation
Increases the conversations around data and quality
Multiple users questioning results
Users create their own views with workarounds

Our Solution

Ensure accuracy
Incorporate ALL assets
Minimise questions on data
Elevate the discussion
Feed the investment process

Problem

Drive towards passive investments continues

Desire to attribute accurately in tight markets and explain investment influences clearly is a high priority. Clients are demanding greater insight and understanding.

Issues

Incorporating all assets
Representing the analysis in line with strategies
Ease of use and availability

Our Solution

Consistency of results
Trustworthiness
Familiarity
Access via desktop

Equity Attribution

We have taken our extensive knowledge of fixed income attribution and applied it to our equity model to add greater value.

Multi-Asset Attribution

Multi-asset has been left to self-serve for too long. As clients require more diversification there is an increase in the desire to properly allocate decisions, we have developed a better way.

Get in touch

Fill in your contact details along with your enquiry and one of our team will be in touch with you as soon as possible.

info@cloudattribution.com

Efficient & Accurate Fixed Income Portfolio Management Software

An Intro to Fixed Income Portfolio Management Software

Core areas

Model

Our Solution

Timeliness in Context

Our Solution

Source of Analytics

Our Solution

Implementation

There is another way.

Our Solution

Fuel your thinking

Solve Common Problems With a Fixed Income Attribution Solution From CloudAttribution

Breaking Return into Duration and Spread Elements

Returns tend to be small in Fixed Income

Drive towards passive investments continues

Asset Class

Equity Attribution

Multi-Asset Attribution

Related Articles and Downloadable Resources

Rethinking Fixed Income Attribution – Download The White Paper

The Challenges of Price-Aligned Bond Analytics

The Challenges With a Yield-Curve Model

Get in touch