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Opportunism and Restraint on Wall Street – Mitchel Abolafia (1989)

Ace-Up-Your-SleeveOpportunism among bond traders takes the form of culturally scripted strategies. The first and simplest form of opportunism is “laying off” bonds. It involves offering incomplete information and taking advantage of a transaction partner’s ignorance.  Download Paper

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  • Merlin
    MerlinOctober 23, 2015"Now you know what happened to liquidity. People tried and continue to try to turn the art into a science. I am not suggesting the markets need to revert to policies and protocols from the 80's. The 90's and early 2000's are goo enough where there was much better balance between buy and sell side accounts. What I find fascinating about today is the reluctance of people to share information feeling that this information will be used against them. Without information, ma…"

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Now you know what happened to liquidity. People tried and continue to try to turn the art into a science. I am not suggesting the markets need to revert to policies and protocols from the 80’s. The 90’s and early 2000’s are goo enough where there was much better balance between buy and sell side accounts. What I find fascinating about today is the reluctance of people to share information feeling that this information will be used against them. Without information, market makers are not going to be able to be as aggressive or consistent at providing liquidity (on top… Read more »
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