AI China Bond Project aims to combine AI algorithms and data, both traditional and alternative, to gain significant improvements in three key areas of China bond markets: credit rating, valuation, and risk management. At this stage it focuses on China onshore markets and covers 8000+ Chinese bonds. From haircut estimations to early warning systems that are triggered by high default risks, this project provides a comprehensive investing toolkit for successful investing in the growing China bond market.
A Comprehensive Toolkit for China-Bond Investment
The AI China-Bond Rating Project aims to invest in Chinese bonds more successfully and accessibly by providing a basket of bond prediction solutions and asset analysis tools. This product uniquely combines traditional financial methods of bond rating with cutting-edge machine learning methods to provide the most holistic bond investment solutions possible.
One feature of the project is the development of an algorithmic tool that focuses on the credit risk assessment of bonds, where early warning signals are issued on bonds if they begin to develop foreseeable investment risks. By using AI and data tracking technologies over 8000+ bond issuers in the Chinese market, AIFT’s developed algorithm can issue accurate warning signals for bond investments that have become increasingly volatile or have been with surging risks.
Another feature of the product is the accurate valuation assessment of a bond, which includes return analysis and analysis of the bond yield and spread. By using machine learning techniques to capture important bond market features, any changes in such bond valuation features are promptly reported to the investors, giving them a greater opportunity to re-evaluate their investment strategies.
The final feature to highlight within this project is a model that provides different market risk assessments. The model allows for downside risk calculation, such as up to quarterly updates on estimated bond haircuts, as well as liquidity risk estimation along various metrics. With the above measures combined with market sentiment analysis using algorithmic and machine learning methods, the AI China-Bond Rating project can provide a holistic market risk assessment of specific C-bonds for investors.