Yield Curves

A team of finance and technology professionals at Lumesis have harnessed artificial intelligence tools to begin solving practical problems that arise when developing deal-specific yield curves (or scales) during the new municipal bond issuance pricing process.

Lumesis has launched two enhancements to its Secondary Market Pricing Platform with the addition of a yield and spread calculation of taxable term bonds and the inclusion of real-time taxable spreads. For taxable term bond transactions, Lumesis now calculates an average life yield, or cash-flow yield, which considers all cash flows of a term bond as opposed to simply the bond’s yield to maturity.

In this webinar, we highlight the integration of the ICE Municipal AAA Yield Curve into Lumesis’ New Issue and Secondary Market Pricing services and unveil enhancements and real use cases of the Pricing services. We will also discuss the ICE Municipal AAA Yield Curve, its construction and what distinguishes it from other muni benchmarks.

Financial technology company Lumesis has brought on ICE Data Services’ yield curve data sets to bring another layer of information for its municipal bond clients, the firm announced on Monday.

Lumesis, home of the DIVER platform, and ICE Data Services, which is part of Intercontinental Exchange, Inc. (NYSE: ICE), announced that the tax-exempt ICE Municipal Yield Curve and spreads for all underlying trades will be available to all Lumesis customers using the DIVER New Issue and Secondary Pricing services.

Listen to this informative Bond Buyer podcast featuring our COO, Tim Stevens, on how Lumesis is using AI to fill the data gaps.

Lumesis has incorporated artificial intelligence to its municipal pricing and scales software in an effort to address limitations of the interpolation and extrapolation methodologies in predicting curve structures that are currently widely used in the market, the firm said.