• Blog
  • 5 Min Read

The Evolution of Fixed Income: Key Takeaways from the Fixed Income Leaders Summit

This year’s Fixed Income Leaders Summit (FILS) brought together a varied mix of traders and portfolio managers, with a noticeable increase in participation from hedge funds and smaller asset managers and asset owners. This subtle but significant development highlights the growing adoption of innovation across fixed income leaders in the broader marketplace.  

Automation and AI: Steering the Transformation 

As our team walked through the dozens of tables and booths, they frequently heard the keywords “automation” and “AI,” often referencing both as potentially mutual solutions. Automation and the growth of electronic trading enable low-touch/no-touch trading. Automating previously manual processes is now table stakes, and investment managers are leveraging new technology for richer insights. Firms now boost efficiency with AI, using it to improve data aggregation, liquidity management, and trading strategies. 

Organizational Redesign through Technology 

Technology is prompting trading firms to reevaluate their internal structures. There are two primary integration approaches. 

Horizontal integration – traders  of different asset classes on the same desk  

Vertical integration – promoting the concept of tighter collaboration between portfolio managers and traders  

In either model, managers focus on consolidating diverse data sources to enable informed decision-making and improved collaboration. 

Ascent of Portfolio Trading and Evolving Liquidity Models 

A surprising development has been the rapid adoption of portfolio trading. This model, once limited to a select few participants, is now integral for many asset managers. According to Greenwich Associates, it now accounts for nearly 20% of some markets.

Discussing liquidity, there’s a developing trend of not only accessing it but there were also conversations about methods of controlling information leaks during trades. New trading protocols like All to All and Streaming appear to be generating the most interest currently, thus sparking curiosity about innovations that may emerge in 2026.

FILS highlighted the transformative role of innovation and technology from a strategic as well as structural standpoint. Automation and AI drive changes in trading efficiency and decision-making. As electronic trading continues to mature, the industry is set to continue embracing new approaches that will only continue to evolve. We look forward to next year’s summit.