Overview

BondWave’s methodology incorporates a concept called “Bond Types” that combines one or more bond attributes (such as rating, maturity, duration and more) to describe or identify “similar” sets of municipal bonds. Bond Types provide a flexible and powerful tool for portfolio modeling and yield curve analysis. When Bond Types are used in conjunction with trade data from the Municipal Securities Rulemaking Board (MSRB), the resulting “Bond Type Curves” provide a quantifiable and transparent approach to municipal bond price discovery.

Intermediate Grade Revenue Curve

Bond Type Curves are based on a transparent, objective, fact-based methodology. Market participants are given full access to information on how the curves are designed, what inputs are analyzed, and how the inputs are defined. Consequently, participants now have an effective means to analyze the MSRB trade data.

With the introduction of Bond Type Curves, BondWave Advisors seeks to fundamentally change the way municipal market participants understand and utilize yield curve information. For the first time, participants can use an empirically-derived, transparently-constructed yield curve with defined inputs and a consistent methodology. The concept of “relative value” has at last been translated into a quantifiable product.

We strongly believe that transparency - in its objective nature - is inherently superior to opinion. We adhere completely to the view that contemporaneous trade data represents the truest measure of prices and yields in the municipal market. When combined with BondWave Advisors’ proprietary tools in the construction of Bond Type Curves, the result is vibrant, meaningful information which enables price and yield discovery.