MBS Source is becoming a must-have tool for sellers such as major global banks and regional tier two / tier three dealers, and buyers like hedge funds, pension funds, insurance, and asset management companies.
MBS Source’s platform is an all-to-all electronic institutional marketplace that automates pre-and post-trading processes and streamlines traders’ workflows. The platform alleviates the need for traders to constantly go back and forth between emails and phone calls for sourcing and negotiating trades. The platform aggregates bonds for sale and collects inventories right from the traders’ emails by using either complex parsing technology, including machine learning, or via a proprietary Excel Add-in, APIs, or FIX protocols.
“Our platform affords any network participant the ability to take liquidity, provide liquidity or a combination of both,” says Richard Makarick, Head of Sales, Trading, and Growth Strategies at MBS Source. Traders can upload their portfolios, bid lists or watchlists and create alerts based on granular filters that can be composed from 170+ criteria such as Average Life, collateral characteristics, KBRA ratings, OAS, etc. Thanks to the platform’s powerful matching system, buyers can receive real-time notifications on trade opportunities based on their filters or CUSIP matches with their portfolios. They can respond electronically to alerts by clicking on a link that enables them to negotiate and trade online. MBS Source also offers full support to clients through a proprietary chat system.
“Housing more than 95 percent of the existing mortgage and asset bonds that are for sale, we can seamlessly integrate market data and third party-analytics to generate insights that enable our clients to make informed trading decisions,” says Ajay Bhandaram, Senior Product Manager, MBS Source.
MBS Source is the only electronic marketplace fully dedicated to the $10 trillion space of structured products that includes Agency CMOs, Non-Agency CMOs, Specified Pools, ABS, CMBS, SBA Pools, CDO/CLOs, and Euro MBS
Such preeminent feature sets of MBS Source are a boon for sophisticated traders and portfolio managers from primary and regional dealers to major buy-side institutions. Mihai Szabo, Founder and CEO, recollects an instance where the MBS Source platform aided a team of experienced asset managers who needed a platform to help them scale their trading business when launching a new business strategy. The client focused on their investment strategy and outsourced the trading functionality to MBS Source. This allowed them to spend minutes on trading instead of allocating a lot of resources and time to that process. Ultimately, focusing on their investors and investment strategies allowed them to grow exponentially and ramp up their capital 20x in just a few months.
Imparting such immense value propositions, MBS Source now has more than 1,000 users on its platform. In the past year alone, the company has witnessed trading activity soar by 300 percent. The company’s buy-side trade count is up over 500 percent, and volume for the buy-side is up 1,700 percent. “The mortgage- and asset-backed securities industry is often slow to adopt new changes, but our platform is a digital heaven for traders and portfolio managers in this landscape,” concludes Mihai.