Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Inactive Bond Crowd
Traders on the New York Stock Exchange who deal with infrequently traded bonds. Because they deal in inactive bonds, the inactive bond crowd is responsible for only a small portion of the bond trading volume. Prices are usually lower than actively traded bonds because inactive bonds have a wider bid-ask spread. The inactive bond crowed is commonly called the cabinet crowd because they normally issue limit orders that are kept on steel racks called cabinets until the orders are needed. See also: Active Bond Crowd.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
New York Stock Exchange members who trade inactive bonds. Also called inactive bond crowd. Compare active bond crowd.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.