MMs aren't doing deep analysis like a hedge fund, but they do have insight into the buy/sell interest across the market.
And how do you think one makes a market if they don't have an idea what something is worth? Prices aren't necessarily values, MMs value instruments and then trade accordingly at prices quoted. They don't search for misvalued items like a l/s fund, but they always have a theoretical value and make a market around that internal number when asked.
MMs aren't doing deep analysis like a hedge fund, but they do have insight into the buy/sell interest across the market.
And how do you think one makes a market if they don't have an idea what something is worth? Prices aren't necessarily values, MMs value instruments and then trade accordingly at prices quoted. They don't search for misvalued items like a l/s fund, but they always have a theoretical value and make a market around that internal number when asked.