RE: Zillow, if your market making business has holding times measured in months, you better be sure you're hedging out housing market delta! if your backtests assume high turnover and you can't move inventory, then guess what? The alpha you thought you had just left the building
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If you were gonna MM houses wouldn't it make a lot more sense to just...mm the mortgage backed securities banks sell? (I could be wrong, not familiar with the product) Lot more liquid when you realize your mistake, too Sounds more like they fomo'd the top like a fucken noob
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No equity upside with MBS
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