A group of fintech and fixed income startup veterans launched YieldX, a digital end-to-end fixed income investing platform that the new firm of the same name said Tuesday was designed to allow RIAs, broker-dealers, banks and fintech firms to quickly construct custom fixed income portfolios for their clients.
The platform is powered by artificial intelligence and analytics, and was built on an open application programming interface that the startup said is flexible and scalable.
“Very early on” in the platform’s development, the YieldX team “partnered with some of the types of firms that we ultimately want to target” as clients and they served an “integral role in designing the actual functionality of the platform,” Adam Green, YieldX CEO and the co-founder of MoneyLion, told ThinkAdvisor on Monday.
The firm’s president and chief innovation officer is Steve Gross, who founded the money manager AlphaParity, which was sold to Franklin Templeton in 2017.
The YieldX Hub is a suite of apps for financial professionals featuring an interface that allows users to quickly search, sort, filter and analyze over 1 million assets, including municipal bonds, corporate bonds, exchange-traded funds and closed-end funds, the startup said.
The Hub launched with three applications Tuesday: InPaas, a portfolio construction workflow that optimizes fixed income ETFs and closed-end funds for a desired income or yield target with the lowest risk and expense ratio; BestFit, a portfolio construction workflow that curates a customized corporate and municipal bond portfolio tailored to best fit the user’s investment goals and preferences; and AssetExplorer, an analytics tool to search, filter, sort and identify fixed income assets to add to a portfolio or watch list.
The YieldX platform was in development since April 2019 and was in beta testing since June, Green said, also telling ThinkAdvisor the company already had commitments from some RIAs, BDs, fintech firms and banks, whose names will be made public in the weeks to come.
The startup has raised $10 million in funding so far, including a recent $5 million round that is allowing it to scale up the team to “execute on a pretty robust product pipeline, which is going to lead to new apps on the platform,” he said. “We have a lot of functionality that’s coming out over the next year that’s really going to set us apart,” he said.
“Fixed income capabilities like this were previously only accessible to large institutions with teams of analysts and traders,” according to Green, who said the company is using a software-as-a-service subscription model that will cost most firms $10,000 a year, although customized versions of the platform will be made available to large firms at varying price points.