Ex-Citadel Quants are Gunning for the $3.8 Trillion Muni Market
03/18/2019
The quants are coming for the $3.8 trillion municipal market. Headlands Tech Global Markets LLC... is using complex mathematical formulas and powerful computers to buy and sell state and local government securities, seizing on the sometimes divergent prices in a market where the vast majority of bonds only rarely change hands... "This idea that every bond is a unique snowflake and a story -- they say 'balderdash', " Paul Daley, a managing director at BondWave LLC, a financial technology company, said of Headlands' approach. open website
The Cost of Uncertainty
03/14/2019
Traders are asked to price financial assets all day, every day. While sometimes this is easy and mechanical – information about the asset is well understood and embedded in past prices, which are very recent and very plentiful – other times the task is incredibly difficult, as there are numerous unknowns. open website
The Cost of Uncertainty
03/12/2019
Traders are asked to price financial assets all day every day. Sometimes this is easy and mechanical... Other times the task is incredibly difficult. There is significant new information about the asset, but the implications of that information are not yet well understood or well agreed upon by the market. The event is unprecedented, and the asset has almost no history of trades. open website
