(NEW YORK)–AI VentureTech, Inc. announces plans to develop an A.I. enabled trading algorithm geared specifically towards potential distress in corporate High Yield debt market.
The Company announced plans to develop its own trading algorithm to utilizes A.I. and Machine Learning techniques that will execute buy and sell trade orders, according to number of factors, and statistical trading data points in high yield corporate ETF’s and companies.
Trade Existing Instruments
The bond market has historically been a vast but old-fashioned corner of the financial system, with little transparency and trading often conducted by phone. But there are a number of select publicly traded vehicles on which to trade any stress in the underlying corporate high yield market on which we can fashion an algorithm around.
Some of the vehicles on which they plan to trade the market include the iShares iBoxx $ High Yid Corp Bond (NYSE:HYG) or SPDR Barclays Capital High Yield Bond ETF (NYSE:JNK), which both track the high yield corporate bond sector. In addition, the trading algorithm may also target select companies with heavy debt that may be pushed into ‘junk’ status due to economic or interest rate pressures.
Corporate Debt Bubble
Baa 3-grade corporate debt outstanding reached an “unprecedented” 56.8% of speculative-grade, or “junk,” high-yield corporate bonds outstanding. By comparison, the ratio of outstanding Baa 3-rated bonds to high-yield bonds was 32.5% before the 2008-2009 financial crisis, 36.9% before the 2001 recession and 22.2% before the 1990-1991 downturn.
Thomas Bustamante, the Founder and CEO of AI VentureTech, Inc. commented, “The continued rise in US interest rates, along with prospects of slower economic activity in 2019, could set the stage for possible liquidity strain in certain corporate high-yield debt markets. We feel this product could be a great way to demonstrate the Fintech uses of AI in financial markets, while also providing us a possible hedge to any economic slowdown, or potential crisis in the corporate high yield market.”
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About AI VentureTech, Inc.
Located in New York City, AI VentureTech, Inc. is an early stage data science research firm focused on utilizing artificial intelligence in the areas of biomedical research, robotics, and 5G cloud development. Our team of data scientists and engineers can customize AI-powered software and technical solutions for both companies and institutions looking to leverage data and machine learning algorithms for greater business value. The Company seeks growth through both collaboration and acquisition of dynamic new start-ups in the areas of business analytics, machine learning, natural language processing (NLP), visualization tools, predictive modeling, and cloud advanced analysis. www.aiventuretech.com