The November 2019 Creditflux newsletter featured an article (requires Creditflux access) titled “The machines are here to help” that discusses the new generation of AI tools available to help CLO Managers optimize their portfolio selection and trading strategies.
Ongoing trading, whether to build par or reduce credit risk, is even more of a challenge as replacement names have to achieve the objectives of the trade whilst also complying with a myriad of tests and limits on factors such as spread, rating, diversity and so on
Sky Road is mentioned as a company making great strides in this area:
Tools like SkyRoad allow you to bring your own thoughts to bear and customise the metrics you screen with, instead of just relying on warf or weighted average spread or diversity
