The TRADE 77 - Q3 2023 | Page 32

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Artificial Intelligence in fixed income :

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In the ever-evolving landscape of financial markets , where precision and speed have a huge impact on results , advancements in technology continue to reshape the way trading strategies are approached . Among the endless improvements in technology , artificial intelligence ( AI ) continues to present its case as something that can help inform investment strategies , not only in the pre-trade cycle , but increasingly in execution .

AI has become a part of our daily lives , with platforms such as ChatGPT being increasingly used by anyone with access to a computer . Looking through the lens of fixed income , a potential new era of precision , efficiency and insight is set to dawn as traditional workflows become
With ongoing advances in technology , WESLEY BRAY explores the use of AI in fixed income , how it can help target liquidity and the shifting role of the trader as it adapts to work in tandem with new technologies .
paired with the boundless capabilities of AI . Already , the technology has begun to redefine how the industry approaches trading strategies , risk assessment and portfolio management .
A paradigm shift “ AI ' s integration into fixed income trading is not just a mere addition ; it ' s a paradigm shift ,” says Eric Heleine , head of buy-side trading desk at Groupama Asset Management . “ By emphasising data integration , real-time analysis , predictive modelling , and advanced computational techniques , AI is setting the stage for a more informed , efficient , and profitable trading future .”
The use of AI can help traders move away from
32 // TheTRADE // Q3 2023