Case Study: Institutional Investors achieve higher yield and better constraint management with Clearwater Analytics

Institutional Investors boost portfolio yield 65bps with Clearwater Analytics

The customer, a U.S. state government, needed to optimize its portfolio of public funds to maximize yield while adhering to strict constraints, including liability matching, credit guidelines, and a prohibition on selling existing assets. They partnered with Clearwater Analytics and utilized its portfolio optimizer service to replace a manual, spreadsheet-based process with a systematic, automated solution.

Clearwater Analytics implemented its portfolio optimization tool, which automated data intake, applied the government's specific constraints, and ran scenario analyses to identify the highest-yielding securities that met all requirements. The solution successfully increased the portfolio's cash flow yield from 3.91% to 4.56%, a gain of 65 basis points, while ensuring all liabilities were covered and investment policies were followed.