A shifting of the balance of power.
Time was, Sherman McCoy could stride into Pierce & Pierce to bray for money on the bond markets with other Masters of the Universe.
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 $40m 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.
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