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AI is reshaping how trading decisions are made across the fragmented fixed income markets, being integrated into pricing, liquidity discovery and execution workflows. Julien Alexandre, Global Head of Research at MarketAxess, outlines the key developments and explores where AI in fixed income might go next.
During April 2025’s tariff-driven turbulence, credit markets saw notable but orderly volatility, unlike the severe disruptions of the COVID-19 crisis. The April 2 tariff announcement triggered uneven global market swings, highlighting credit markets’ growing resilience through increased dealer algos and steady PT performance, which are strengthening market structure.
In our Portfolio Trading vs RFQ List White Paper, we found that PT provides superior execution outcomes for illiquid bonds, particularly when these lower-liquidity instruments are included in well-balanced baskets compared to traditional RFQ list methods. In this AxessPoint, research confirms that PT serves as an effective price discovery mechanism for US IG and HY bonds, with traders leveraging the protocol to access bonds they would otherwise have little opportunity to trade.
While conventional AI chatbots can't tell you when to portfolio trade, We can. Our platform combines real-time market data with AI-driven tools like CP+™ pricing and Tradability metrics to guide your execution decisions. From pre-trade cost estimates to post-trade analysis, discover how our comprehensive data suite helps you choose the optimal trading protocol and achieve better outcomes for every bond transaction.
Portfolio Trading has significantly evolved in the fixed income landscape, driven by the expansion of fixed income ETFs, increased indexation, and technological advancements. The growth in 'jumbo' PTs and average line-item sizes reflects the market's comfort with portfolio-based execution approaches. Despite technological advancements, dealers face challenges with residual positions, necessitating more effective risk transfer mechanisms. The introduction of "Axed PT" aims to improve risk redistribution and liquidity for all participants.
Technology is reshaping execution strategies in EM Hard Currency. MarketAxess’s recent client panel in London highlighted the growing importance of electronic solutions like TRFQ and Open Trading® when trading larger sizes.
Highlights and objectives We aim to investigate any key drivers of Portfolio Trading (PT) Trading Cost Analysis (TCA) outcomes, as measured by PT price outcomes versus CP+™ side. An analysis of PT features found no meaningful driver of TCA outcomes for PTs across ETF overlap and L...
Highlights and objectives We aim to examine the price impact of client-initiated inquiries on the market, during a period of extreme volatility, to examine what drives information leakage. When trading large EUR IG blocks on MarketAxess in March 2023 , traders managed to minimize market...
This is the first in a short series of AxessPoints that will explore the benefits of trading larger block sizes electronically, and how our tools and protocols are being developed to help optimize execution regardless of size, side, and timing. Tradability: An AI-powered liquidity gauge Underst...
Portfolio Trading: The next big thing for Asian bond markets? Maybe. The answer is a little more nuanced. Asia has seen an acceleration in adoption of electronic trading in the bond market in recent years, but in a dynamic region with volatility and uncertainty often higher than developed marke...