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In the intricate landscape of our minds, psychological research reveals a fascinating limitation: our mental “central executive” can process only one thought at a time, at a modest rate of five or ten per second at most. This finding seems contrary to the belief that the human brain is the most parallel machine on Earth. Researchers at the University of Oregon have uncovered a built-in limit within our brains — most individuals can entertain only four discrete thoughts simultaneously. The teaching of Zen is unequivocal: it is simply impossible to think of two things at once; one thought must give way to the next due to the rapid pace at which thoughts arise.
At Deep Market Making, we are immersed in the dynamic realms of HY and IG corporate credit markets, where the credit “matrix” evolves incessantly throughout each trading day. Harnessing the power of Artificial Intelligence (AI) and Machine Learning (ML), we have unlocked the ability to train our neural networks to analyze vast datasets covering every US corporate bond in real time — a feat beyond the capacity of the human brain. Through the development of our sophisticated models and our steadfast belief that trading remains fundamentally human, we empower traders to tap into this expansive cloud of data when making critical decisions.
A myriad of variables can influence the real-time price of a corporate bond. These include recent trades in the bond, trades in other bonds of the same capital structure, transactions in bonds of comparable issuers, relative value compared to other company bonds or comparable issuers, notional size of the transaction, credit rating (quality), maturity, dollar price of the bond, liquidity, outstanding notional, yield, spread, seniority, leverage multiple, loan-to-value ratio (LTV), bond ownership, treasury market movements, credit market strength/weakness, equity market conditions, sector-specific news, and company-specific developments, to name a few.
Imagine having a co-pilot perched on your screen throughout the trading day, synthesizing this massive cloud of data to keep you on course. While our minds process one thought at a time, wouldn’t it be invaluable to have an AI assistant capable of comprehending the entire corporate bond credit “matrix” simultaneously?
At Deep Market Making, our mission is to liberate your time to focus on your expertise — credit analysis, market technicals, and relative value assessments. With access to empirical information at all times, we empower you to navigate the markets with precision, avoiding potential pitfalls that could impact your Profit and Loss (P&L) significantly.
Please feel free to reach out to the team here at Deep Market Making if you’re interested in exploring how our expertise can facilitate the efficient processing of vast amounts of data for your needs.