Investortools, a leading provider of fixed-income software solutions, has integrated Spline Data’s Predictive Municipal Bond Pricing into its platform. This collaboration aims to provide municipal bond investors and asset managers with real-time pricing capabilities, enhancing trading efficiency and potential for alpha generation.
Spline Data’s pricing model offers market-tested bond pricing, enabling fund managers and separately managed account (SMA) providers to evaluate market bonds against precise execution price estimates. According to Matthew Smith, founder and CEO of Spline Data, the predictive pricing model incorporates traditional municipal bond trading intuition to deliver immediate alpha generation and algo-like efficiency, moving beyond compliance requirements with outdated evaluation data. Smith stated, “Our integrated data with Investortools is an invaluable resource for traders and portfolio managers looking to immediately modernize their trading workflow in ways previously reserved for only the largest market participants.”
Through this partnership, Investortools’ users now have access to an advanced pricing algorithm that produces real-time bid and offer price estimates. This enables users to anticipate bid-list outcomes and position themselves effectively before liquidity providers place bids, potentially capturing additional value for end clients. Smith further noted, “By pricing the entire municipal bond universe every five minutes, we empower users to instantly and comprehensively act on trends across the entire market. This holistic view accelerates decision-making and enhances market responsiveness, even amid heightened volatility.”
Spline Data’s pricing model consistently maintains a median absolute error of less than six basis points when compared to prior five-minute intervals or actual traded prices. The model also exhibits near-zero skew, indicating balanced price predictions even during volatile periods. This consistency is designed to ensure reliable pricing that keeps pace with market movements, addressing potential lag or ambiguity in dynamic environments.
James Morris, Senior Vice President and Head of Sales at Investortools, commented on the integration: “High-quality intraday pricing is a critical input to automated trading workflows, including intelligent trade discovery and AutoEx. By integrating Spline Data into our platform, we’re equipping our clients to scale their trading operations, make quicker decisions, and construct better-performing portfolios.”
This collaboration reflects both companies’ focus on enhancing quantitative clarity and streamlining workflow automation. Investortools, with over four decades of experience, provides a comprehensive suite of solutions for fixed-income investment management, including portfolio, order, and execution management, performance analytics, 2a-7 compliance, and credit analysis. The company serves over 200 firms managing more than $1 trillion in assets. Spline Data specializes in independent, algorithmic pricing data for the municipal bond market, leveraging mathematical models to provide bond pricing and yield curves for buy-side and sell-side firms seeking to automate municipal bond market execution.
