BROWSE

Inactive Bond Crowd

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]
… A bond man can thus learn the market for any inactive bond which he may desire to purchase or to sell, by asking the ledger clerk … not explained by changes in the supply of bonds … Could bond trading have dropped on the exchange in the 1940s because bond listings declined …

The financial/economic dichotomy in social behavioral dynamics: the socionomic perspectiveThe financial/economic dichotomy in social behavioral dynamics: the socionomic perspective
www.tandfonline.com [PDF]
… A bond man can thus learn the market for any inactive bond which he may desire to purchase or to sell, by asking the ledger clerk … not explained by changes in the supply of bonds … Could bond trading have dropped on the exchange in the 1940s because bond listings declined …

Essays in Financial Economics: Announcement Effects in Fixed Income MarketsEssays in Financial Economics: Announcement Effects in Fixed Income Markets
scholarworks.umass.edu [PDF]
… A bond man can thus learn the market for any inactive bond which he may desire to purchase or to sell, by asking the ledger clerk … not explained by changes in the supply of bonds … Could bond trading have dropped on the exchange in the 1940s because bond listings declined …

Developing corporate bond markets in AsiaDeveloping corporate bond markets in Asia
papers.ssrn.com [PDF]
… A bond man can thus learn the market for any inactive bond which he may desire to purchase or to sell, by asking the ledger clerk … not explained by changes in the supply of bonds … Could bond trading have dropped on the exchange in the 1940s because bond listings declined …

Determinants of local currency bonds and foreign holdings: Implications for bond market development in the People's Republic of ChinaDeterminants of local currency bonds and foreign holdings: Implications for bond market development in the People's Republic of China
www.adb.org [PDF]
… A bond man can thus learn the market for any inactive bond which he may desire to purchase or to sell, by asking the ledger clerk … not explained by changes in the supply of bonds … Could bond trading have dropped on the exchange in the 1940s because bond listings declined …

Is the growth of small firms constrained by internal finance?Is the growth of small firms constrained by internal finance?
www.mitpressjournals.org [PDF]
… A bond man can thus learn the market for any inactive bond which he may desire to purchase or to sell, by asking the ledger clerk … not explained by changes in the supply of bonds … Could bond trading have dropped on the exchange in the 1940s because bond listings declined …



Q&A About Inactive Bond Crowd


Where are orders placed by the inactive bond crowd stored?

Orders placed by those in the inactive bond crowd are stored in cabinets off to the side of the general trading floor.

How did this lead to a nickname?

This led to a nickname called "cabinet crowd."

What is the opposite of an inactive bond crowd?

An active bond crowd.

Why was there no frequent trading before electronic trading?

Before electronic trading, there was no frequent trading because it was done manually.

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