posted on 06-06-2019

Active Bond Crowd

Updated August 7, 2020

What is Active Bond Crowd?

Active bond crowd refers to the group of bond traders of the New York Stock Exchange (NYSE) that trades the highest volume of active bonds.

How Does Active Bond Crowd Work?

Members of the NYSE's active bond crowd include those traders whose trading volumes in active bonds are disproportionately larger than those of other traders in the bond market called the cabinet crowd. For instance a trader whose average trading volume is $100,000 in a given day, while that of most other traders is only around $50,000, would be considered to be part of the active bond crowd.

Why Does Active Bond Crowd Matter?

Members of the active bond crowd are influential in what they do and, consequently, have access to more advantageous bond prices as well as a narrower bid-ask spread.