Enhancing Investment Efficiency:
How AI-Driven Co-Pilots Helped an Institutional Investor Optimize Credit Strategies and Risk Management
Analyst Co-Pilot
A rapidly growing hedge fund handling multiple long/short credit strategies was struggling with the volume and complexity of finding and then monitoring trade ideas in the public credit markets. Resource constraints at this relatively young company exacerbated the difficulties in staying on top of their trades and ahead of the markets. Their trades also required complex cross-currency and interest rate hedges.
Our Analyst Co-Pilot was the solution enabling them to transform their investment process, improve returns and enhance efficiencies across the platform.
Our Analyst Co-Pilot was the solution enabling them to transform their investment process, improve returns and enhance efficiencies across the platform.
Private Debt Co-Pilot
A large insurance company invested in the private credit market to capitalise on attractive returns in a growing sector. It provided loans to businesses in infrastructure and real estate. Although the credit team had strong analytical capabilities, they lacked a clear method for demonstrating compliance with the PRA’s regulatory expectations—particularly given the need for in-house expertise to assess this asset class.
Our Private Credit Debt Co-Pilot delivered a tailored rating framework, drawing on comparisons with similar investments globally and across sectors. This equipped the insurer to optimise matching adjustment and satisfy the regulator’s requirement to justify the credit default adjustment.
Our Private Credit Debt Co-Pilot delivered a tailored rating framework, drawing on comparisons with similar investments globally and across sectors. This equipped the insurer to optimise matching adjustment and satisfy the regulator’s requirement to justify the credit default adjustment.
PM Co-Pilot
Our client, a leading institutional asset manager handling multi-billion-dollar credit portfolios, struggled with inefficiencies in analyzing private, structured, and public credit markets. Traditional research methods couldn’t keep up with the growing data complexity, and managing OTC derivative overlays required significant manual effort. They sought an AI-driven solution to transform their investment process
AlphaOne
Our client, a leading institutional asset manager handling multi-billion-dollar credit portfolios, struggled with inefficiencies in analyzing private, structured, and public credit markets. Traditional research methods couldn’t keep up with the growing data complexity, and managing OTC derivative overlays required significant manual effort. They sought an AI-driven solution to transform their investment process
Predictive Scores
Our client, a leading institutional asset manager handling multi-billion-dollar credit portfolios, struggled with inefficiencies in analyzing private, structured, and public credit markets. Traditional research methods couldn’t keep up with the growing data complexity, and managing OTC derivative overlays required significant manual effort. They sought an AI-driven solution to transform their investment process
The Problem:
Insurer sought to enhance productivity within its public debt division, as analysts spent excessive time manually projecting financial forecasts to generate internal risk scores and often missed on material risk changes occurring in a broader investment universe. This inefficiency led to higher capital charges and rather poor investment performance.
IBT Solution:
Analyst Co-Pilot is a multi-algorithmic, AI-powered financial forecasting system designed for public debt securities. It automates market data capture, including new issuances, and enhances forecasting accuracy as well as learn from interactions with the user. By streamlining analysis and reducing manual workload, the system boosts analyst and investment team overall efficiency, accelerates decision-making, and prevents capital charges.
The Results:
- Gained a Competitive Edge – Faster, data-driven insights and investment research enabled Insurance Fund to stay ahead of the market major risk events.
- Maximized Analyst Productivity – Automated workflows allowed analysts to focus on high-value strategic tasks rather than manual data crunching.
- Optimized Time Allocation – Reduced administrative burden and centralized access enabled more efficient resource management and improved investment team collaboration.
By implementing Analys Co-Pilot, Insurance Fund transformed its public debt analysis process, driving superior risk management and operational efficiency
Private Debt Co-Pilot
The Problem:
Pension fund trustee has responsibility for onerous reporting requirements to regulators and members of the scheme. Fund managers covering the private credit investments made by the scheme provide performance charts but this does not help thee trustee in knowing how much risk they are running and Value at risk numbers provided by fund managers are opaque and not lifetime in nature.
Providing Market-To-Market (MTM) analysis is a challenge for all private credit investors. Fund reporting is vital for fair redemptions if open and for investor confidence if closed. Pension fund trustees (and insurance company investors) need to justify to auditors and to regulators MTM moves driven by credit and liquidity issues
Providing Market-To-Market (MTM) analysis is a challenge for all private credit investors. Fund reporting is vital for fair redemptions if open and for investor confidence if closed. Pension fund trustees (and insurance company investors) need to justify to auditors and to regulators MTM moves driven by credit and liquidity issues
IBT Solution:
IBT Technologies’ multi-algorithmic solutions and data base provide a reliable and accountable MTM level for private credit investments as well as enabling holders of private credit investments to rank and rate their portfolios.
The Results:
- Trustees and investors can provide reliable information on MTM levels and risk to regulators and auditors. Enhanced compliance and comparisons enabled. Risk management improved. Time saved.
PM Co-Pilot
The Problem:
Asset Manager managed several complex fixed income portfolios, relying on spreadsheet-based portfolio construction. Workflows between portfolio managers (PMs), risk analysts and the quant desk were fragmented, leading to missed investment opportunities, frequent constraint breaches, and productivity inefficiencies. Additionally, the need to incorporate internal risk frameworks, proprietary bond scoring models and custom reporting discouraged the use of external optimization tools.
IBT Solution:
The PM co-pilot is a highly customizable, firm-specific solution that enables seamless implementation of unique portfolio models, bespoke scoring and reporting as well as risk frameworks.
Key Features:
- Intelligent Optimization and monitoring Engine – Generates high-performance portfolios while strictly adhering to custom constraints.
- Dynamic Data Integration – Ensures real-time portfolio updates, eliminating outdated data issues.
- Enhanced Liquidity & Cost Analysis – Incorporates transaction costs and liquidity considerations for optimal trade execution.
- Alternative Trade Recommendations – Provides a curated list of similar trades to enhance portfolio performance.
The Results:
- Portfolio Construction and Rebalancing Time Cut from Days to Seconds – PMs and Quants now work with close to real-time data, ensuring optimal investment decisions.
- Improved Portfolio Performance – Improved internal risk scores and/or returns across all portfolios without materially deviating from a selected benchmark.
- 100% Compliance with Constraints – Proactive elimination of possible breaches while maintaining investment strategy integrity.
By integrating PM Co-Pilot, Asset Manager streamlined portfolio construction, enhanced efficiency, and improved performance, giving PMs the agility to grow AUM and strengthen client relationships.
AlphaOne
The Problem:
Hedge fund was looking for additional sources of alpha within their long/short credit strategy to enhance returns. Existing highly manual investment processes were inefficient and meant only a fraction of the universe could be covered comprehensibly. Investment decisions based on outdated quant models often led to sub optimal returns. Manual single name selection led to undesirable biases in the portfolio, making isolating alpha more difficult and costly.
IBT Solution:
Harnessing our cutting edge multi algorithmic scoring engine we provide stand-alone long/short trade ideas as well as specific pair trades aiming to generate enhanced investment returns over a 1-3 month horizon. Trade ideas are generated on extensive preset or user specified investment universes and are delivered daily, weekly or monthly via API, SFTP or Email.
The Results:
- Having relevant trade ideas at the time of rebalancing streamlines the investment process while the quality of our models helps to generate meaningful outperformance. The availability of closely matched longs and shorts allows for creation of a naturally hedged portfolio, isolating alpha and reducing hedging costs.
Predictive Scores
The Problem:
Asset Manager managed several complex fixed income portfolios, relying on spreadsheet-based portfolio construction. Workflows between portfolio managers (PMs), risk analysts and the quant desk were fragmented, leading to missed investment opportunities, frequent constraint breaches, and productivity inefficiencies. Additionally, the need to incorporate internal risk frameworks, proprietary bond scoring models and custom reporting discouraged the use of external optimization tools.
IBT Solution:
The PM co-pilot is a highly customizable, firm-specific solution that enables seamless implementation of unique portfolio models, bespoke scoring and reporting as well as risk frameworks.
Key Features:
- Intelligent Optimization and monitoring Engine – Generates high-performance portfolios while strictly adhering to custom constraints.
- Dynamic Data Integration – Ensures real-time portfolio updates, eliminating outdated data issues.
- Enhanced Liquidity & Cost Analysis – Incorporates transaction costs and liquidity considerations for optimal trade execution.
- Alternative Trade Recommendations – Provides a curated list of similar trades to enhance portfolio performance.
The Results:
- Portfolio Construction and Rebalancing Time Cut from Days to Seconds – PMs and Quants now work with close to real-time data, ensuring optimal investment decisions.
- Improved Portfolio Performance – Improved internal risk scores and/or returns across all portfolios without materially deviating from a selected benchmark.
- 100% Compliance with Constraints – Proactive elimination of possible breaches while maintaining investment strategy integrity.
By integrating PM Co-Pilot, Asset Manager streamlined portfolio construction, enhanced efficiency, and improved performance, giving PMs the agility to grow AUM and strengthen client relationships.
Want to see how AI can automate your workflow or enhance your investment strategy?
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