On December 11th 2024, Jeff Watkinson was quoted
in Forbes Magazine in an article written by Barnet Sherman.
https://www.forbes.com/sites/investor/2024/12/11/ai-and-the-municipal-bond-market-the-netflixafication-cometh/
This is the fifth article in the series, AI
and the Municipal Bond Market. Prior articles covered AI’s influence
on pricing, economic
drivers, data (and more
data), and credit.
The final article will be on algorithmic trading’s application of AI in the
Municipal Bond Market.
Barnet Sherman has
over 30 years of institutional investor experience growing and managing
multibillion dollar portfolios at Morgan Stanley and TIAA. He also founded
Braintree Capital, a hedge fund and Registered Investment Advisor. He takes
pride in having analyzed, negotiated, and financed businesses and projects
benefitting dozens of communities nationwide.
Academia
Now a Professor at Boston University, he draws on these
experiences for his Multinational Finance & Trade
and Corporate Finance and Accounting classes
to give graduate students practical, real-world insights on these complex
topics.
Jeff's perspective:
From what began as a conversation on LinkedIn about AI
and the Municipal Bond Market led to multiple conversations about new technology,
AI and alternative trading systems (ATS) available in the MuniBond marketplace.
Barnet was intrigued by how Watkinson Capital utilizes BondNav owned by
InspereX, to quickly and efficient bid on attractive MuniBonds trading in the secondary
market.
1)
Email is the current and some-what recent
avenue of brokers/dealers to send their inventory of MuniBonds in the secondary
market to the buy-side. As a result, we recieve hundreds of email a day which
lists of MuniBonds with different coupon structures, ratings, states, purpose, and
maturities. A laborious activity to find attractive offerings to say the least.
2)
BondNav serves as a aggregator platform
which allows us to build curated lists of MuniBonds we want to buy for our
clients. We control pop-up notifications when MuniBonds are “out for the bid.”
3)
Bill, Mark and Jeff can quickly pause
their task, respond to the “bid wanted” notification, obtain the EVAL price,
see recent trade history, and then quickly bid at the wholesale pricing level for the MuniBond. Our goal is the right bond at the right price.
4)
Then we quickly go back to work. The software
is intuitive and easy to use. For example, Jeff has bid on MuniBonds while waiting
in the doctor’s office.
5)
This is a huge leverage point for a RIA
like us which laboriously bids on MuniBonds at a wholesale level. We miss on
approximately 90 out of 100 bids on BondNav Insperex and cherish the BondNav
platform to build custom portfolios.
6)
Our process is predicated upon “Buy
Wholesale” or buying bonds at the wholesale pricing level compared to the retail
pricing level seen on the offer side.
https://www.watkinsoncap.com/watkinson-capital-advisors/capital-investment-advisors/process.aspx
Please reach out to jeff@watkinsoncap.com if you want MuniBonds at wholesale pricing.
Welcome to the Professional Side of the Municipal Bond Business.
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#GetRealStayRich #BarnetSherman #Forbes
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