dimanche 29 mars 2015
How DIY Bond Traders Displaced Wall Street’s Hot Shot Bond Dealers
Posted on 20:22 by nice news
Time was, Sherman McCoy could stride into Pierce & Pierce to bray for money on the bond markets with other Masters of the Universe.
That was 1987. McCoy, the hotshot bond dealer at the center of the “Bonfire of the Vanities,” would be 66 by now, and he’d scarcely recognize the Treasury market.
The bond dealers who defined Wall Street success in the ’80s -- and who were immortalized by Tom Wolfe in his best-selling novel -- seem to be losing power by the day.
In their place are money managers like Mark Macqueen, who are assuming a larger role in the market for U.S. government debt as traditional dealers pull back.
The development is not only shifting the balance of power in the world’s largest government bond market, but also making trading Treasuries more difficult for everyone. Macqueen used to be able to trade $40 million of Treasuries by calling one dealer. Now, he must spread out orders in small chunks across an array of electronic platforms and wait for a dealer to bite.
“The liquidity is provided by the clients, not the dealers,” said Macqueen, a 34-year bond-market veteran who oversees $11 billion at Sage Advisory Services Ltd. in Austin, Texas. “Bigger firms are finding it increasingly difficult.”
The problems investors face in Treasuries are small next to those in other smaller markets, such as the one for
That was 1987. McCoy, the hotshot bond dealer at the center of the “Bonfire of the Vanities,” would be 66 by now, and he’d scarcely recognize the Treasury market.
The bond dealers who defined Wall Street success in the ’80s -- and who were immortalized by Tom Wolfe in his best-selling novel -- seem to be losing power by the day.
In their place are money managers like Mark Macqueen, who are assuming a larger role in the market for U.S. government debt as traditional dealers pull back.
The development is not only shifting the balance of power in the world’s largest government bond market, but also making trading Treasuries more difficult for everyone. Macqueen used to be able to trade $40 million of Treasuries by calling one dealer. Now, he must spread out orders in small chunks across an array of electronic platforms and wait for a dealer to bite.
“The liquidity is provided by the clients, not the dealers,” said Macqueen, a 34-year bond-market veteran who oversees $11 billion at Sage Advisory Services Ltd. in Austin, Texas. “Bigger firms are finding it increasingly difficult.”
The problems investors face in Treasuries are small next to those in other smaller markets, such as the one for
How DIY Bond Traders Displaced Wall Street’s Hot Shot Bond Dealers
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