AI-Powered Trading Alerts, AI and Data Analytics, Credit Trading
AI-Powered Trading Alerts, AI and Data Analytics, Credit Trading

AI-Powered Trading Alerts

I recently had an enlightening conversation with a “market savvy” member of our software development team while we were building-out our new alerting functionality. He posed an interesting question, quite reasonable for anyone familiar with other tradeable asset classes: “Why don’t the trading alerts disappear when the level is hit?” Indeed, it seems logical to expect that a trade would automatically execute when a set level is reached, or at the very least, provide an option to execute. If you decide against it, does that mean you’re no longer interested in the trade?

Understanding the Complexities of Credit Trading

Note: This section can be skipped by credit professionals who are already aware of the unique nature of this asset class.

Corporate bonds come with their own set of challenges:

  1. Lack of Visible Markets: Generally, markets for corporate bonds are not displayed “on screen,” especially not for significant amounts. This lack of visibility is why we value Deep MM’s bid/dealer/offer prices and percentiles so highly.
  2. No Direct Market Access: Without “on screen” markets or an exchange, it’s challenging to execute transactions precisely when you want to. The desire to execute and the ability to execute are distinctly separate.
  3. Technical Complexities: The technicalities of who owns a bond and in which fund can outweigh considerations of relative value or other economic factors.

Practically, this means purchasing or selling a specific bond involves traditional methods. You must identify the right institutional counterparty and persuade them to engage in the transaction. This involves the traditional, albeit outdated, methods of phone outreach, negotiation, and sales—processes that other markets have largely abandoned and digitized. These inefficiencies and the significant role of personal relationships, personality(need to be a little aggressive) and persistence directly affect the economics of transactions.

In summary, the credit markets are often illiquid, opaque, and cumbersome to navigate. For those accustomed to more liquid markets, credit trading might seem reminiscent of the trading world two or three decades ago.

Introducing Deep MM’s Alerting System

Credit professionals, please pay attention now.

Deep MM is excited to introduce an alerting system that will transform your trading day and potentially increase your profits, no matter your position.

This new system is a step towards our goal of an interactive “AI Credit Analyst,” the future of credit trading. You can set real-time alerts for price targets or volatility thresholds, and soon, we will also introduce relationship-based alerting, such as bond-to-bond or bond-to-index connections.

These alerts are specifically designed for the credit markets; you define a probability threshold for transaction completion, and our AI analyst will inform you once that level is reached. There’s no longer a need to wait for TRACE updates; set your levels and let the “Analyst” notify you when it’s time to trade.

  • Range Traders: You can set levels for both the bid and offered sides to know when you’re hitting the edge of a price channel, helping you decide when to adjust your positions.
  • Sell-Side Traders/Salespeople: Forget about manually tracking every order or client preference. Simply set up the alerts and let your AI Analyst monitor the market for you.
  • Market Experts: Volatility-based alerting will help you focus on the market or specific sectors with customized thresholds to notify you in real-time when credit structures begin to shift or break. This allows you to integrate all this data into your comprehensive market analysis.

Imagine having a tool that watches every potential trade 24/7. With Deep MM alerting, your analyst doesn’t need breaks. It’s like having the perfect investment banking analyst at a fraction of the cost and without the ethical concerns. Use our alerting system to maximize every opportunity the credit markets offer.

If you would like to learn more about AI in corporate credit, please email us at and we can set up a time to talk.

Book Demo