With millions of bonds being issued and traded worldwide, a very precise classification system has become the standard to correctly identify the financial instrument it represents with a CUSIP number. But, it has become very complex to gain access to these unique identifiers, since there are millions of them trading constantly.
The CUSIP system, owned by the American Bankers Association and managed by Standard & Poor’s, serves as the National Securities Identification Number (NSIN) for products issued from both USA and Canada. To avoid going into detail about the CUSIP numbers again, I would suggest you to read my previous blog post “The BPV tool as the new CUSIP source” to understand more about its basics. On this post, we are going to be more focused on why is it so difficult to have access to these unique identifiers and the one solution that is now giving you direct access to all of the CUSIP numbers.
Fiduciaries that have already gained some experience in the bond industry are well aware of the challenges of getting access to any CUSIP number. This is why investment decisions become so complicated. When you lack access to detailed information that will lead you to make a good decision, it is rare that you get it right without a couple of losses on the way. And maybe loose millions of dollars when you do not have a diverse bond portfolio and do not look at the right time to buy nor the right type of fixed income security to invest on.
Unfortunately, when it comes to the investment of public funds, it might affect not only the investor but his whole team and the whole group of constituents they report to, so why expose a bond portfolio with the risk of losing millions of dollars?
As a fiduciary and an investor, is imperative to acknowledge the significance of having access to accurate CUSIP data when looking into buying fixed income securities. But also to understand the data that comes with it, like those numbers to look after such as interest rate risk!
So don’t just hand over the job to the broker without informing yourself better. They could use some help when they call you and recommend something for you to buy, because if you have the information about that security, then you can easily make a confident decision on buying or waiting for something better.
This information we are talking about, has not been easy to access. Before PFITR, you would have to look for different sources in order to get a very specific piece of data from the bond market. Or pay thousands of dollars for a tool that gives you an overload of information and it is very complex to use, all of that, just to get this one piece of data.
Why? Cause it’s been monopolized, scattered around in diverse sources, and making it almost impossible for you to find if you are not part of a brokerage firm that would make it their job to access this information no matter the cost. The complexities of finding CUSIP numbers to consult on specific Munis, Mortgage bonds, Treasuries etc., might be overwhelming. But with today’s technology and the entrepreneurial spirit of a couple of people, we have a new solution that will become the source of all the Bond market data. And not just that, but a powerful solution that allows you to have clarity over the information you must look at before making an investment decision. Our fin-tech startup PFITR is making a significant impact in the bond market industry by providing transparent information from all the CUSIP numbers you may consider to purchase, all in one place: the Bond Price Validation (BPV) tool.
But why would you consider consulting a new source for this type of information? Because PFITR has made it its mission to empower fiduciaries with information so they can make investment decisions with responsibility and transparency. By giving them access to the exact bond price and all the available securities (the whole menu of bonds) they can choose from to find the most suitable financial instruments for their investment policies.
The founder of PFITR, Jim Koetting, who used to be a bond investor, bond agent and investment advisor, developed the online investment solution the Bond Price Validation (BPV) tool to help fiduciaries make the best-informed investment decisions according to each security’s analytics offered in the tool, which will answer, What to buy? When to buy it? and at What price? Which satisfies the three most common mandates of any policy: safety, liquidity and yield.
The major drawback of today’s most popular bond data sources is that they are too complex and come with an overload of information. And you need to be subscribed to a specific service to access the pricing data. PFITR’s BPV tool is a user-friendly solution that provides data on all the bonds available to purchase which helps you satisfy your policy’s mandates: safety, liquidity and yield. No extra information that confuses the users and at an affordable price.
Benefits of using PFITR’s BPV Tool.
PFITR’s BPV tool will show you the exact price of the bond as soon as you enter the CUSIP number. With the algorithms and pricing obtained by PFITR to facilitate this unbiased data, its users immediately become more knowledgeable when consulting different graphs and analytics provided for each security: YTM, Call date, Maturity date, Price Yield, Treasury Spreads and more.
PFITR’s vision, “To empower bond investors and agents to be better stewards of their portfolios through education and innovative tools that equip them to make better informed decisions”, translates into becoming the technology and guidance source for all institutional investors, to key information for better understanding of the world’s largest market: the bond market.
Experience this new technology and our personalized customer service: https://www.pfitr.com/bpv-tool/