Nitrogen | Press Release: Nitrogen Substantially Increases Bond Coverage, Elevates its Methodology
Improvements on bonds follow a long line of securities coverage investments such as structured notes.
AUBURN, CALIFORNIA, March 30, 2022 — Nitrogen, the industry-leading risk-centric wealth management platform serving tens of thousands of financial advisors, today announced it will offer coverage of 800,000 more bonds by the end of 2022 and multiple enhancements to the firm’s bond review methodology, an effort led by Dr. Shari Hensrud, PhD — Nitrogen’s recently appointed Vice President of Risk and Analytics.
Nitrogen has already added 600,000 bonds to its analytics offering within the last year. The new improvements to its bond risk analytics includes customizing for different bond types (such as zero-coupon and perpetual securities in addition to the already incorporated coupon-bearing bonds) and increasing the precision and accuracy of analytics for all bonds.
Now all metrics tracked in an analysis – such as accumulated interest, dirty price, and maturity, among others — are calculated to eight decimal places for accuracy. Credit risk has also been incorporated into bond analysis, using an objective path, which calculates the implied probability of default based on the market price of each bond, to ensure that a high standard of measure of credit risk is reflected in the overall analysis of the bond and the client’s entire portfolio.
“By offering advanced capabilities when it comes to calculating and analyzing risk in individual bonds and other alternative investments, we are once again doubling down on our objective approach to getting risk right,” Dr. Hensrud said. “Our team is constantly working to develop new ways to improve our analysis across different asset classes and investment solutions through deep methodology. In line with our determination to provide the best, most efficient solutions, advisors can add these bonds to any client or model portfolio with just a few clicks.”
Not only is Nitrogen adding more bonds to its coverage and elevating its bond methodology, but the firm is also expanding its analytic capabilities via Nitrogen Stats to include 20,000 of the most popular separately managed accounts (SMAs). Nitrogen’s data team has also worked to expand its securities coverage to other alternative investments including over 4,000 new stocks, funds, and exchange-traded funds (ETFs); and more than 10,000 real estate investment trusts (REITs), unit investment trusts (UITs), structured notes, buffered ETFs, and SMAs.
“As the direct result of the recent build out of our Risk and Analytics team, led by Dr. Hensrud, we are now positioned to offer analysis and coverage for more investments than ever before,” said Aaron Klein, CEO at Nitrogen. “We are eager to continue the expansion of our securities coverage by the hundreds of thousands over the next twelve months. We can’t wait for advisors and their clients to reap the benefits of using the industry’s leading risk methodology, which has once again evolved to empower those clients to invest fearlessly.”
The new bond methodology is now live in all Nitrogen accounts and is offered as a free upgrade for customers on all service plans. For more information, click here.
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Nitrogen is the company that invented the Risk Number®, which powers the world’s first Risk Alignment Platform and was built on top of a Nobel Prize-winning academic framework. Advisors, broker-dealers, RIAs, and asset managers use the Nitrogen platform to create alignment between clients and portfolios, leverage sophisticated analytics to increase the quality of their advice, automate trading and client account management, and access world-class models and research in the Nitrogen Partner Store — all with the mission of empowering the world to invest fearlessly. To learn more, visit www.riskalyze.com.