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Soros steps into the fintech arena
George Soros, the original posterboy of the swashbuckling global macro arena, isn’t exactly the first person who comes to mind when you think about fintech.
He just joined the space though, and as always, his bet looks like a winner.
According to Business Insider, Soros Fund Management has just backed TruMid, an electronic corporate bond marketplace which aims to provide superior liquidity for its users via “swarms.” What are swarms? Here’s what TruMid says about them on their website:
Trading occurs in “swarms” - well-publicized trading sessions that are focused on a specific set of related or topical securities. We will attract a critical mass of traders and investors to our swarms. This robust forum will generate superior liquidity and pricing efficiency for everyone.
And it plans to do this – and more – all under “a shield of anonymity with zero information leakage.”
Soros’ bet could not have come at a better time. Years upon years of zero interest rates have led asset managers to snap up all the corporate bonds they could get, and now that the Fed is about lift rates, people are having a lot of problems trying to move them.
Industry heavies such as Jamie Dimon, Steve Schwarzman, and Bill Gross meanwhile have all sounded the alarm on bond market liquidity. If they’re right, the man who broke the Bank of England just make another killing again.
Photo: International Monetary Fund