Access to more relevant trade ideas

Product update

June 18, 2020

Katana has the computational power to process millions of bonds every day. Katana identifies as “top ideas” those that have

  • high similarity scores based on reference and price data (the pairs are relevant) 
  • pass a minimum threshold on the reversion (to reflect transaction costs), 
  • and high z-score (the pairs are highly dislocated).

We now provide the opportunity to search all relevant pairs efficiently in Katana, in order to facilitate identification of trade ideas with a lower z-score or reversion that are still interesting for the user. This can be because some industries have inherently lower z-scores, or the objective of the user is to replace a bond in order to decrease risk rather than seek for relative value opportunities. 

On the “Discover” page you can now choose to see “Top ideas only” [on] or all (relevant) ideas [off]. All filters and sorting features are available. Top ideas will be in white and all other ideas will be greyed out so you can easily distinguish between the two. 

In summary, the following improvements are made :

  • Search by the issuer on the search bar will present all pairs with bonds from that issuer
  • Search results provide a single table with both “top ideas” and other ideas with the ability to apply all the available filters
  • Monitor results also provide a single table with pairs with the ability to all the available filters
  • The country filter is expanded with an  option to choose a whole region (for example “Europe”, “Asia-Pacific” etc)