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Most bond market makers have some sort of algo that does some or even most of the boring market-making for some or all of their bonds, which computers can do better than human traders. The two main motivations I can immediately think of are: sometimes bond market makers are compelled (by a trading venue or by regulators) to publish a bid an ask for many ...


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Think of it this way. This has to do with using empirical data or artificial data under the pretense that whichever approach you choose must comply with a pre-specified DGP, installed merely to make the model parametric, for example. There are two possibilities: Accept the real empirical data for what it is and estimate the probability that the empirical ...


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