Buy-Side Algo Credit Trading Case Study

Buy-side asset managers are rapidly embracing artificial intelligence applications to price fixed income securities algorithmically in live trading execution environment or for purposes of end of day reconciliation and portfolio construction. The current fixed income capital market data flows are inefficient in many respects to enable robust coverage and precision for AI bond pricing. Markets remain heavily reliant on segregated and manual data operations between counterparties creating disparate data sets. These disparate data sets cause the market to suffer from information asymmetry and decentralization. As a result, insight from available data is fragmented and disseminated through manual exchanges between counterparties, which furthers the creation of disparate data sets.