Broadridge Financial Solutions has unveiled a potentially game-changing addition to its LTX platform –  BondGPT. Artificial intelligence technology aims to transform the complex bond selection and portfolio construction processes, offering enhanced liquidity and price discovery in the notoriously opaque $10.3 trillion US corporate bond market. 

BondGPT utilizes OpenAI GPT-4 technology to provide a conversational interface that helps traders identify corporate bonds based on specific criteria. 

“Emerging technologies such as generative AI hold immense potential to drive electronification and transparency in the corporate bond market,” said Jim Kwiatkowski, CEO of LTX. 

The LTX platform has established a substantial liquidity pool, with over 30 dealers and more than 80 asset managers. It has generated significant market activity, with over $7 billion in firm orders initiated and an average daily volume surpassing $25 billion in the Liquidity Cloud during the first quarter of 2023. 

Recent developments in generative AI, like OpenAI’s GPT-4, have sparked fierce rivalry among tech firms to produce AI-powered products for use in a variety of industries, including finance. The corporate bond market, on the other hand, has lagged in upgrading its trading process, making deal execution more difficult for portfolio managers. 

According to Coalition Greenwich, a data analytics firm, AI and machine learning are most common in the mortgage-backed security and collateralized loan obligation sectors. More than half of investors in those asset classes reported using modern technologies in their workflow to some extent. 

Save the date: Don’t miss the Connect Money: Alternative Assets Conference on June 14 in Chicago at the W City Center. Connect with industry leaders like Daniel Sobelman, Co-Founder & Managing Partner CRE Bridge Capital.