AI Will Transform Fixed Income. Trust Will Determine How Far It Goes.

By Russell Feldman, CEO, IMTC

Forty years ago, fellow New Yorker Billy Joel released “A Matter of Trust” and it quickly became a top 10 hit. I don’t think Billy was considering AI’s impact on the bond market, but the sentiment still rings true: trust is not a nice-to-have in investment management. It’s the foundation on which the business is built, earned one client relationship at a time.

Here’s how we see it at IMTC:

• Trust is the prerequisite for AI adoption, not an afterthought. Before incorporating AI into portfolio decisions, investment managers need confidence in where their data comes from, clarity about who can access it, transparency into how outputs are produced, and clear accountability.
• AI should be carefully and thoughtfully embedded and work alongside existing controls to inform human action. AI can interpret, summarize, and surface relevant information, while deterministic analytical engines handle calculations, optimization, and compliance rules. But, as fiduciaries, investment professionals need to own the sign-off along with the guardrails that inform the decision making.
• IMTC is ready for the AI transformation because it builds on what we’ve done since our founding: leveraging technology to automate investment workflows without sacrificing control, transparency, or accountability.
• Firm- and industry-specific context is what makes AI useful and differentiates IMTC’s customized approach. Connecting portfolio data, client mandates, restrictions, and documented investment decisions (including rationale) makes our AI a more relevant foundation for clients compared to a generic or disconnected tool.

Of course, it’s no secret that AI is poised to transform investment management at every level, from how firms access and analyze information to how they operate: constructing portfolios, managing risk, monitoring compliance, and servicing clients. There’s already plenty of proof that this technology creates efficiencies, surfaces new insights, and helps teams operate at greater scale.

But while everyone has access to AI and most are inclined to use it, there is a painful truth: it’s moving way faster than many investment managers can comfortably absorb it. In particular, we’ve heard clients raise consistent concerns around operational readiness and that leads to questions.

Can they trust the data, get comfortable with governance, integrate AI into existing workflows, and, most importantly, feel confident in the outputs?

Thankfully, most investment managers know that bolting on an AI tool is where the work starts, not where it ends. They want the technology to work within real-world strategies, client mandates, compliance frameworks, and approval processes, making each more effective without creating parallel processes the firm can’t adequately supervise or control. But it is difficult for firms to do all of these things on their own.

Fortunately, at IMTC, we’re ready for the AI transformation because we’ve seen this movie before. In fact, it dovetails with what we’ve been doing since we first opened our doors nearly a decade ago: embracing and advancing technology to help clients automate business processes.

As we move the ball forward for our customers and the industry, our focus is straightforward: bringing AI into fixed income workflows in a way that expands what investment teams can do without sacrificing control, transparency, or accountability.

And, like almost everything else in life, it begins with where this blog began: trust.

That trust has to be earned in the workflow. Investment managers need to know where the data comes from, who can access it, and what actions an AI system is authorized to take. They also need a clear record of the information and checks supporting a portfolio decision, and who is accountable for it.

The division of responsibilities should be equally clear. AI can interpret, summarize, and surface relevant information, while established analytical engines handle calculations, optimization, and compliance checks. But investment professionals remain responsible for the decisions, with guardrails and human approval governing implementation.

Context makes AI useful

Trust aside, AI is only as useful as the information and operating framework around it. Context matters, and it compounds: every rule captured, every override documented, and every decision recorded makes the next answer sharper than the last.

After all, a portfolio isn’t just a collection of securities. It reflects investment objectives and judgment, duration and credit targets, tax considerations, cash needs, account restrictions, risk parameters, and client-specific rules. And it depends on the data flowing in from other platforms and sources, because those inputs are what power the automation and visibility required to truly streamline workflows.

IMTC centralizes this context in a connected operating environment that captures all elements of the investment process. The system also records decisions made when users override output or depart from a target position, including the rationale behind those actions.

Because IMTC brings rules, constraints, exceptions, and documented professional judgment into the same operating database, it equips our AI with richer, client-specific context than a generic model or disconnected tool can offer. That context becomes the foundation for surfacing relevant information, identifying exceptions, and helping investment managers focus on the outliers and decisions that require attention.

Critically, it also makes fixed income intelligence more accessible across the organization. A portfolio manager, trader, advisor, relationship manager, operations professional, compliance officer, or other authorized user should be able to get timely answers without depending on a small group of specialists to navigate systems and assemble information.

For IMTC clients, that can mean:

• Faster access to relevant portfolio and strategy information
• Proactive identification of drift, exceptions, and potential opportunities
• Less time spent navigating systems, collecting data, and managing repetitive tasks
• More time for analysis, judgment, and client engagement

Build for adoption

The promise of AI is not simply that it can do more. It’s that it can help investment teams do better.

That matters because, more than ever, firms are under pressure to improve efficiency, control costs, and operate at greater scale. That means the most valuable outcome is a more capable investment organization that can quickly turn complex data into timely insight, apply expertise where it matters most, and serve clients more effectively.

Yes, firms will adopt AI at different speeds. They have different systems, governance models, and risk tolerances, and that’s as it should be. IMTC’s job is to make sure that whenever a client is ready, the technology, the context, and the controls are already there waiting.

But make no mistake: we’re not waiting. We’re continuing to build AI into fixed income workflows with a focus on practical innovation, delivering outcomes that clients can implement in real time with the flexibility to support all of their investing needs.

In the end, the firms that benefit most from AI won’t necessarily be the first movers. They’ll be the smartest movers: the ones combining innovation with strong data, proven workflows, clear governance, and experienced professionals.

AI is changing investment management and, at IMTC, we’re building to make that change worthy of our clients’ trust.

This paper is intended for information and discussion purposes only. The information contained in this publication is derived from data obtained from sources believed by IMTC to be reliable and is given in good faith, but no guarantees are made by IMTC with regard to the accuracy, completeness, or suitability of the information presented. Nothing within this paper should be relied upon as investment advice, and nothing within shall confer rights or remedies upon, you or any of your employees, creditors, holders of securities or other equity holders or any other person. Any opinions expressed reflect the current judgment of the authors of this paper and do not necessarily represent the opinion of IMTC. IMTC expressly disclaims all representations and warranties, express, implied, statutory or otherwise, whatsoever, including, but not limited to: (i) warranties of merchantability, fitness for a particular purpose, suitability, usage, title, or noninfringement; (ii) that the contents of this white paper are free from error; and (iii) that such contents will not infringe third-party rights. The information contained within this paper is the intellectual property of IMTC and any further dissemination of this paper should attribute rights to IMTC and include this disclaimer.