Auburn-based financial technology company Riskalyze Inc. is providing information on 800,000 more bonds by the end of this year, adding to 600,000 bonds it began covering in the last year.
Wealth advisers, broker-dealers, retirement planners and asset managers use the Riskalyze platform to match investment risk with clients’ risk tolerance.
“Clients have been asking for this,” said Allie Zendrian, spokeswoman for Riskalyze.
The platform allows investment professionals to evaluate each of the individual covered bonds for a variety of risk analytics, she said. “There has been an increasing demand for it, for all different kinds of bonds.”
Bonds have been less exciting investments over the past 11 years as interest rates were at historic lows. But as stock market volatility is increasing and, at the same time, interest rates are expected to increase, bonds are becoming more intriguing.
The timing is coincidence, said Riskalyze CEO Aaron Klein.
“We are just constantly looking to widen our lead over every other analytics platform in terms of the securities we analyze and the methodology we leverage to analyze them,” Klein said, via email.
Riskalyze, which started in 2011, is the industry leader with the greatest market share in risk management software focused on independent private wealth managers, according to RIA Intel, an industry newsletter. It now has at least 10 major competitors, with 98 companies in a similar space, according to Chicago-based software review site G2.com Inc.
Riskalyze has developed a series of products for the financial services industry. It launched with a proprietary risk assessment product that measures individual investors' risk tolerance, and the company has gone on to develop other analytics tools and a compliance product for financial advisers.
Separately, Klein has posted on social media that he is building a dream home, albeit a second home, in Boise, Idaho.
Via email, he said the company has no plans to open an office in Idaho. He added that Riskalyze has five employees in the state, but these days the company has about that many employees in every state, working remotely. In addition to its Auburn headquarters, Riskalyze has a formal office in Atlanta.
In August last year, London-based private equity firm Hg bought a controlling interest in Riskalyze.
Hg’s $300 million investment bought out early investors in the company as well as the position of San Francisco-based FTV Capital, which invested $20 million in Riskalyze in 2016.
