Financial Bond Similarity Search Using Representation Learning
Abstract
Finding similar bonds remains challenging in fixed-income analytics, as numerical financial attributes often overshadow categorical non-financial ones such as issuer sector and domicile. This paper shows that these categorical attributes dominate the predictability of spread curves and proposes embedding models to capture their semantic similarities, outperforming one-hot and many other baselines. Evaluated via sparse-issuer augmentation, the approach improves risk modeling and curve construction.
Fields of Study & Subjects
Credit Risk and Financial Regulations
Financial Distress and Bankruptcy Prediction
Stock Market Forecasting Methods
Publication details
- Journal / source
- arXiv (Cornell University)
- Publication date
- 2 February 2026
- Language
- EN
- Document type
- Preprint