From the CEO’s Desk: How Technology Will Define Fixed Income in 2026

The year 2025 ended with fixed income customization at the center of client conversations, following a period of “higher-for-longer” rates, more attractive bond yields, and increased demand for truly bespoke, tax-aware solutions.

It’s a backdrop that sets new expectations for managers in 2026: match this renewed opportunity with a modern, technology-driven operating model that supports greater automation, thoughtful use of AI, and more flexible fixed income product delivery.​

At IMTC, we expect several key industry themes to continue to emerge 2026:

1. Automation becomes a primary driver of fixed income success, streamlining key workflows, reducing manual risk, and creating a more scalable foundation for growth.
2. AI shifts from flashy demos to embedded, audited infrastructure that can stand up to scrutiny from regulators and seasoned professionals alike.
3. Managers deliver a broader menu of SMAs, mutual funds, and ETFs to satisfy diverse end-client needs, rather than relying on a single flagship vehicle or wrapper.​

First, a central question, in our view, is: “Which parts of my workflow can be confidently automated without sacrificing control or accountability?”

Low-touch, maintenance-type activities like raising or investing cash and handling flows across thousands of smaller accounts are rapidly moving toward “self-driving,” with humans supervising instead of manually inputting every step. Perhaps most telling is that even complex, client-specific activities such as tax-aware trading are beginning to migrate toward automated, supervisor-led models.

Protocols like portfolio trading show what automation at scale can look like, especially as that logic migrates into day-to-day portfolio operations and downstream workflows. This frees PMs to focus on higher rate of return activities – e.g., risk positioning, credit considerations, and client-specific customization – while improving both investment outcomes and organizational efficiency.​

Second, in parallel, AI is evolving from a fragmented tool to an orchestrator of workflows. Firms that emerge as winners will be those that embed AI inside robust compliance frameworks with full audit trails, clear explanations, and behavior that holds up under stress.

In the near term, we believe best-in-class tech stacks require well-designed rules, and strong user permissions, with AI layered on top, not the other way around. That foundation allows managers to automate confidently instead of building upon outdated spreadsheet-driven processes, and it ensures AI is fully auditable rather than a black box. Sure,  speed is critical, but transparency and explainability are what ultimately win over users, clients, and regulators.​

Finally, wrapper choice is also becoming more important, particularly in light of the SEC’s recent decision to allow certain open-end mutual funds to add ETF share classes alongside existing mutual fund share classes in a single portfolio.

In this environment, asset managers increasingly need to support a broader product suite so they can deliver the right mix of SMAs, mutual funds, and ETFs for each client’s tax profile, objectives, and preferences, rather than taking a “one size fits all” approach. 

The real challenge for asset managers will be supporting the breadth of product offerings with systems that can handle complexity, maintain compliance, and still deliver personalized outcomes at scale.​

This is precisely where IMTC creates value, providing infrastructure around what clients actually need: clean data foundations, compliance that isn’t an unnecessary bottleneck, and interoperability that plays well with other best-in-class systems.

The result: teams can automate workflows, integrate AI responsibly, and manage the breadth of products that now determine – and define – competitive advantage in fixed income.

Ultimately, for all the focus on rate paths and credit spreads, 2026 may best be remembered as the year fixed income caught up with what investors want: truly personalized service that is tax-aware and powered by technology that quietly does the heavy lifting behind the scenes.

The IMTC team is excited to be at the heart of this transition, helping managers modernize fixed income operations without sacrificing the all-important control, governance, and high level of personalization that clients rightfully expect.

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.