BlackRock tests ‘quantum cognition’ AI for high-yield bond picks
The proof of concept uses the Qognitive machine learning model to find liquid substitutes for hard-to-trade securities.
BlackRock has teamed up with an artificial intelligence firm established by a US hedge fund to test a new way to classify corporate bonds using AI.
The asset manager worked with Qognitive to use the firm’s quantum cognition machine learning model to pick the most similar liquid replacements for hard-to-trade high-yield bonds, a common class of problem in investing.
In tests, QCML seemed to do a better job of identifying similar bonds than random forest models, a more conventional form of machine
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