Asia HQ Global Investment Bank: Enhancing Fixed Income Strategies with ML-Powered Analytics

CLIENT CHALLENGES

  • Client Sponsor: Fixed Income Technology Lead, Asia HQ Investment Bank based in UK
  • Client Need: Advanced data and technology capabilities to process and analyze bond trading data, specifically for RFQ’s, to enhance the decision-making process for the Bonds trading desk, and to support fixed income sales team with data analytics requests to generate insights

OUR SOLUTION

  • Deployed 2 data scientists to support the bond trading desk by developing predictive analytics and optimizing data workflows, starting in Q4 2023. Utilizing Databricks for data processing, MLFlow for managing the machine learning lifecycle, and PySpark for algorithm development, they are enhancing decision-making tools and operational efficiency for the trading team.
  • Acquire
    • Bond RFQs datasets stored on the Databricks platform.
    • Datasets (Bonds):
      • Client / Trader
      • Deal details (quantity, price, yield), bond information (rating, sector)
      • RFQ attributes (status, type, validity)
  • Prepare
    • Pre-processing:
      • Data cleansing was performed to remove duplicate and anonymous RFQs, ensuring the quality and reliability of the data for further processing and analysis.
    • Real-time streaming:
      • Developing in Databricks to display updated calculations in real-time.
  • Analyze
    • Client-Bond Recommendation Engine:
      • Building predictive models to calculate the likelihood of top 10 bonds to recommend to client, and vice versa, identifying top clients likely interested in specific bonds, optimizing bond-client match efficiency.
      • Enhancement through hyperparameter optimization and features enrichment.
  • Consume
    • Client Trading Analytics:
      • Dashboard views deployed to proprietary interface.
    • RFQ Overview Dashboard:
      • Databricks interface integrated with in-house tools.

KEY BENEFITS

  • Precision in Client Engagement: By analyzing RFQs and client transaction data, the desk gains insights that can pinpoint which clients are more likely to engage in trades, allowing for targeted and effective client outreach
  • Operational Efficiency: Implementation of automated data cleansing and advanced analytics translates into efficient and effective calculation processes, optimizing the desks bonds trading workflow
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