In the first wave of technological development at RPIA, the primary focus was on replacing the mechanical tasks with tools that could help perform tasks faster and with greater breadth and depth. This allowed people to forego laborious and mundane tasks in favor of more creative ones. The next wave is an exciting one! Now, we are going to use technology to enhance those creative tasks. The system will suggest strategies, trades, and risk mitigation options that can be screened for viability. I believe this will further increase RPIA’s edge in the marketplace. - Graham Chubb, Financial Engineer
How SANTA Works
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Selecting a corporate bond issuer that illustrates the theme
Given the analysis outlined above, the Portfolio Structuring Team increased the target weight for European banks in a number of our portfolios.
Without SANTA, this would be a largely manual process that cannot cover the breadth of the bond market. Empowering our experienced portfolio management and research teams with sophisticated, multi-faceted tools allows us to unlock value more effectively than what was previously possible. We aggregated trading liquidity information for this security and, using customized alerts setup in SANTA, mapped out and tracked trading opportunities in the security. This ensures that we minimize transaction costs in the acquisition. 3 Using the defined subset of banks selected by the Research Team, our Execution Team utilized SANTA to identify Barclays as an issuer that is attractively valued relative to credit fundamentals. By analyzing every security in Barclays’ credit curve, we identified a specific Barclays bond that was particularly attractive. This security was issued in the USD market, as shown in the diagram on the next page. 2 Selecting the right bond from the issuer Pursuing the best execution for the selected bond
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