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What is a Bond Crowd?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 16 July 2018
  • Copyright Protected:
    2003-2018
    Conjecture Corporation
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The bond crowd is usually defined as a particular group of bond traders who are associated with a given stock exchange. These members of a stock exchange tend to gather in a section of the floor of the exchange that is removed from the immediate vicinity of stock traders. By segregating themselves from the other traders present at the exchange on any given day, the bond crowd can quickly and easily conduct the business of buying and selling bond orders, with little or no distraction.

Along with being defined as a collection of traders who are engaged in the purchase and sale of bonds, the bond crowd is also used as a term to refer to the actual space on the stock exchange floor where the traders gather to transact their business.

The advantages of bond crowds are readily apparent. Because all the persons present in the crowd are functioning as traders, it is much easier to present the case for bonds that the bond trader wishes to sell. At the same time, the bond crowd facilitates the process of traders who are in a buying mood to identify and engage sellers who have a bond that is of interest to the investor. The elimination of distractions helps to keep the activity focused.

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There is an elite level or designation of the bond crowd, referred to as an active bond crowd. Essentially, this is a bond crowd that demonstrates a high level of activity on a given day that leads to highly profitable trading of bonds on the exchange. Exchanges encourage this sort of activity, as it aids in the overall health of the marketplace, and can serve as an indicator of a strong economy, depending on the nature of the bonds that are traded.

The bond crowd is more than simply an efficient means of buying and selling bonds on the floor of a stock exchange. Over time, the bond crowd has become a tradition that is a cherished part of the experience of participating in the enthusiastic activity that is generated on the floor of all stock exchanges.

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