Sandbox gains share

Banks that for decades were tasked with brokering corporate bond trades - and paid Boiler Room-type spreads for the privilege - are now being pushed aside. As Bloomberg reports, upstart bond marketplaces like MarketAxess, Tradeweb and Liquidnet are all indicating that many bond trades occurring on their platforms are now happening between investors directly, without traditional bank-side brokering. This, needless to say, would have a deleterious effect on bank top lines as brokering institutional order flow for the $9.2 trillion market has historically been one of the main key source of revenue.

Pay the ratings fees, fraud is easily detected, corporate debt is ripe for auto-pricing. Set a congestion fee target, then execute balanced matching between loans and deposits. Just like Coinbase, except the agents need flexible trading bots. This is the lending model we will see again and again, a risk equalized pool of depositors and borrowers.