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Big investors betting on bond market disruption

Analysts and prominent economists have been warning over bond market liquidity as traditional players such as investment banks withdraw from their traditional market making activity in wake for stricter financial rules such as Volcker and Dodd-Frank, which restricts banks from trading in their own account and pose tougher capital rules for holding inventory.

Latest report also point that investment banks have reduced inventory to record low.

This led to rise of new players such as TruMid, Electronife etc. who with their new bond trading platforms trying to unlock liquidity.

In the new reality of monetary expansion fund managers are the major liquidity holders and these platforms bring those players together providing liquidity.

This week TruMid received big ticket $27 million investments from Billionaire George Soros and Peter Thiel, one of the founders of PayPal and first outside investor to facebook.

TruMid is active in corporate bond segment, while companies like Tradeweb, MarketAxess and Bloomberg reign in government bond market.

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