We discuss the transformative developments in the fixed income market with Blake Lynch from IMTC.
Advancements in cloud computing and automation are streamlining the traditionally manual processes associated with fixed income investments, allowing for customized portfolios at scale. This has made SMA wrappers (Separately Managed Accounts) a lot more accessible, enabling greater transparency, direct ownership, and potential tax efficiency for the bond portfolios of an increasingly large number of investors.
An “Aha moment” for George Aliferis (host):
I’ve been involved in ETFs since the launch of Deutsche Bank’s X-Trackers in 2007, and I’ve always believed they were an ideal wrapper for equity markets. Today they dominate. While the earlier ETFs were equity, there have been considerable developments in fixed income ETFs as well (now totalling $2 trillion in assets), but it’s not straightforward. Indexing fixed income is problematic. And there’s the fact that you can own a fund of AAA bonds, but still lose your capital due to the mark-to-market. This conversation has made me realize the adequacy of the SMA wrapper for bonds and its huge potential.
About Blake Lynch, CETF®:Head Of Sales at IMTCMy mission is to address the industry’s failure to innovate and enhance technology in the fixed income space, which has resulted in fixed income professionals being neglected and subjected to inadequate and inefficient tools. I am passionate about simplifying and optimizing bond portfolio management with innovative and user-friendly software that enables meaningful automation and optimization, or as we like to call it, decision support. This allows fixed income professionals to focus on key business activities and client goals, rather than wasting time on manual and error-prone tasks. I have a proven track record of expanding the market share and reach of IMTC’s SaaS technology, leveraging my skills in new business development, sales enablement, strategic beta, and over 10 years of experience in the financial services space.
Connect with Blake Lynch, CETF®:
* LinkedIn: https://www.linkedin.com/in/blakejlynch/
* Website: https://imtc.com/
About the Show:Investology is a podcast hosted by George Aliferis, CAIA, dedicated to rethinking investment management and uncovering new ways to deliver better outcomes for investors.Listen on every podcast platform, or on YouTube.
Resources Mentioned:
Episode with Russell Feldman (CEO of IMTC)
Episode with MJ Lytle (then-CEO of Tabula)
Timestamps & Topics:00:00 Introducing a pivotal moment in fixed income
02:27 Understanding Separately Managed Accounts (SMAs)
04:48 The technological revolution in bond portfolio management
07:56 Benefits of SMAs
10:07 How IMTC works
28:33 The outlook for fixed income technology
My Investing & Investment Management channels
* Investorama - Separating Investment Facts from Financial Fiction (YouTube)
* Investology - Re-Think Investment Management (YouTube)
* Investology in Audio version
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