I was reading a piece published by Bloomberg today, where it says the following:
“A systematic process lends itself to providing liquidity rather than taking it because our models have views on effectively every single security in the credit index thanks to the broad set of systematic signals that we use,” according to Gould.
I am familiar with liquidity providers wearing the market maker hat in capital markets. However, I think AQR is doing something more than market making. Can anybody explain how AQR's factor based systematic credit/fixed income strategy can be labeled as "liquidity providing"?
Also, how do you understand