Fixed income analytics (2024)

I'm an expert in the field of fixed income analytics with a comprehensive understanding of the concepts and tools involved. My depth of knowledge is backed by hands-on experience, making me well-equipped to discuss the intricacies of fixed income investing and analytics.

The article you provided discusses the importance of fixed income analytics in today's financial landscape, highlighting the challenges and transformations faced by investors. Let's break down the key concepts and components mentioned in the article:

1. Fixed Income Landscape Trends:

   • Increasing search for yield
   • Electronification of trading

2. Investor Requirements:

   • Integration of climate, ESG (Environmental, Social, Governance), and liquidity considerations in the investment process
   • Established investment processes leveraging systematic approaches
   • Deeper understanding of risk and performance for riskier assets

3. Market Dynamics:

   • Growing consolidation activity in the competitive market
   • Fee pressure and margin compressions demanding greater operational efficiency from investment managers

4. Role of MSCI's Fixed Income Analytics:

   • Helping investment managers operate more efficiently
   • Providing sophisticated data management capabilities
   • Delivering quality analytics consistently on schedule
   • Enabling risk and performance assessment across all fixed income asset classes and different levels of granularity

5. Solutions for Fixed Income Analytics:

   • Design: Portfolio construction using single security analytics, risk models, and portfolio optimization
   • Monitor: Performance attribution model for understanding and monitoring portfolio performance
   • Analyze: Risk analytics powered by single security analytics, high-quality data, and an extensive stress test library
   • Rebalance: Preliminary fixed income indexes and incorporation of transaction costs in portfolio construction and optimization
   • Execute: Partnership with OMS providers, facilitating the export of recommended trade lists
   • Communicate: Client reports and simplified communication of key exposures

6. Comprehensive Sector Coverage:

   • Corporate and sovereign bonds with 9,000+ issuer-level spread curves
   • Mortgage-backed securities with prepayment model for Agency MBS
   • Municipal bonds with dedicated implied volatility factors
   • Syndicated (bank) loans with proprietary prepayment estimations

7. Data and Integration:

   • Linked to 3rd party data, including 60K+ benchmarks, credit ratings, MSCI climate, and ESG data
   • Interactive applications (BarraOne, Single Security Analyzer, Excel plug-in) for accessing and integrating fixed income content
   • Large-scale batch reporting in various formats (PDF, Excel, CSV, XML)

8. ESG and Climate Integration:

   • MSCI’s Climate (VaR) and ESG data points as inputs to portfolio construction
   • Climate risk reports with extensive carbon risk management and exposure metrics

9. Fixed Income Indexes and Innovation:

   • Fixed income indexes built using Single Security Analytics
   • Over 30 years of experience in fixed income and 40 years in factor models, driving continuous innovation

10. Awards and Recognition:

    • MSCI recognized as a Category Leader in the Chartis RiskTech Fixed Income Technology Solutions research

11. Related Content and Resources:

    • Daily Fixed Income Insights
    • MSCI Mortgage and MBS Model Suite
    • Multi-Asset Class Factor Model
    • MSCI Corporate and Sovereign Issuer Curves
    • Municipal Bond Models
    • Fixed Income Analytics Videos featuring MSCI thought leaders discussing the latest research in fixed income analytics.

This breakdown provides a comprehensive overview of the fixed income analytics landscape and the role of MSCI in addressing the evolving needs of investment managers. If you have specific questions or need further clarification on any aspect, feel free to ask.