Quant credit trading

[Cheng]

Imo this is exactly the point of providing liquidity (and in the end of being a market maker): you have to quote a price (we don't talk bid-offer here, just about existence of a price). Sure, there may be times when you are guaranteed to loose money but that's part of the game and should be part of the business model. I perfectly agree that it's no fun at all to be on the receiving end but if prices just vanish when poo hits the fan I think there will be less trading in the first place because people will switch to a buy and hope approach. Unfortunately the assumption that there is a price, always, is also deeply ingrained in the various accounting standards which adds another dimension that goes way beyond trading p&l.

[Cheng]

@Poly: in my world "liquid" means that you can trade some "size" without affecting the price. Unfortunately this "size" has gone down significantly over the last couple of years as Kitno kindly confirmed.



@ RRP: re prospectuses... it's all boilerplate anyway, no? Wink

[BidOnly]

Isn't AQR in this space?

[rowdyroddypiper]

@cheng : the prospectus, yes the prospectus supplement no...