TruMid, the New York-based company is building an electronic trading marketplace for corporate bonds designed to increase liquidity in the credit markets. Peter Thiel and George Soros are leading a $25m venture round. Valuation whispers are north of $100m.
...Is among a dozen firms competing to transform the U.S. corporate-debt market as worries mount over the difficulty of trading the $8.1 trillion of securities in existence. The investment, which was joined by Jeff Bahl, the former head of U.S. high-yield credit trading at Goldman Sachs Group Inc. and other individual investors, would value TruMid at more than $100 million, according to people familiar with the deal, who asked not to be named because the matter is private. Corporate bond trades have historically been struck over the phone between dealer banks and their clients. New capital requirements and restrictions on the risks banks can take with their own money -- regulatory responses to the financial crisis of 2008 -- have raised concerns that even as low interest rates have spurred a boom in the market, trading bonds has become harder.