The fixed income markets are undergoing significant change, as highlighted at the 10th annual Fixed Income Leaders’ Summit in Washington DC. Industry experts from LSEG Pricing Service and FTSE Russell’s Fixed Income Currencies & Commodities group emphasised the growing role of technology in transforming trading, operations and decision-making processes.
Three major themes are expected to dominate the second half of 2025: the rapid electronification of trading, the growing convergence between private and public debt markets, and the accelerating use of artificial intelligence across the trade lifecycle. Together, these forces are reshaping the fixed income landscape and driving demand for high-quality data to support innovation and efficiency.
LSEG Data & Analytics, recently delved into each of these trends and what firms need to know.Â
The electronification of fixed income markets continues to gather pace, particularly in the US, where corporates and municipal bonds are leading the charge. Europe and Asia are also seeing rapid adoption, with the European Stability Mechanism reporting electronic trading volumes climbing sharply between 2014 and 2024. Proponents argue that this shift not only boosts transparency and liquidity but also enables automation of workflows, reducing operational and compliance risks while enhancing trading outcomes.
At the same time, investor appetite for private credit markets is growing, with the sector now valued at over $3trn globally. Offering diversification, attractive returns and a low correlation to public markets, private credit is increasingly adopting features traditionally associated with public debt, such as secondary markets and ETFs.
Artificial intelligence is emerging as another transformative force. From portfolio management to risk modelling and trading execution, AI-powered analytics are enabling financial institutions to extract richer insights from vast datasets. Machine learning tools are already improving signal detection, enhancing traditional risk models, and optimising trade execution by identifying the most efficient venues.
Underlying all these trends is the need for reliable, high-quality data. LSEG Data & Feeds and LSEG Pricing Services provide critical infrastructure, supporting over 10 million fixed income securities globally and delivering real-time and evaluated pricing for more than three million instruments, including one million municipal bonds. This data foundation will be essential as the industry embraces electronification, private market growth, and AI-driven innovation in the months ahead.
For more about fixed income trade lifecycle trends, read the full story here.
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