What is ‘Inactive Bond Crowd’
A group of exchange members who buys and sells bonds, that are infrequently traded. Limit orders placed by the inactive bond crowd, may take a longer period of time to fill, due to the absence of frequent trading.
The opposite of inactive bond crowd is the active bond crowd.
Explaining ‘Inactive Bond Crowd’
Before electronic trading, orders placed by those in the inactive bond crowd were stored in cabinets off to the side of the general trading floor. This gave rise to the nickname “cabinet crowd.”
Further Reading
- The microstructure of the bond market in the 20th century – www.sciencedirect.com [PDF]
- The financial/economic dichotomy in social behavioral dynamics: the socionomic perspective – www.tandfonline.com [PDF]
- Essays in Financial Economics: Announcement Effects in Fixed Income Markets – scholarworks.umass.edu [PDF]
- Developing corporate bond markets in Asia – papers.ssrn.com [PDF]
- Determinants of local currency bonds and foreign holdings: Implications for bond market development in the People's Republic of China – www.adb.org [PDF]
- Is the growth of small firms constrained by internal finance? – www.mitpressjournals.org [PDF]
