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Since he runs a bond shop, he needs an inventory of bonds.
By such thinking, a Wall Street firm is little more than a huge inventory of bonds, stocks and other assets.
If a firm wants to place a bet on falling interest rates, for example, it can simply have its market-making unit build up its inventory of bonds.
When a bank acts as a marketmaker, it needs to keep an inventory of bonds and stocks so that it can deal with clients' demands to buy and sell.
Instead, if you have a brokerage account, check the inventory of bonds offered for sale online.
Its Honeycomb bond-trading information system helps buyers see which banks hold inventory of bonds they want to buy--information that, surprisingly, isn't now readily available.
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Post-crisis regulations make it more costly for banks to hold inventories of bonds; opacity is under attack from governments and clients alike.
Wall Street says companies and securities markets rely on banks to hold large inventories of bonds so that investors can buy and sell them easily.
Mr. Stein notes with approval that Wall Street firms are using less short-term borrowing to finance their vast inventories of bonds.
This has resulted in banks shrinking the inventories of bonds they used to have on hand in case a customer wanted, say, a million dollars' worth of 10-year General Motors bonds.
Other new rules, requiring strong capital buffers, have made it more expensive for banks to hold the large inventories of bonds that allow them to serve as the middleman for buyers and sellers.
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