Re: T-bond holding period

[Doug Henwood <dhenwood@xxxxxxxxx>]

William F. Hummel wrote:

>The point I am suggesting is that the average may not be a good
>reflection of what is going on.  Some institutions like insurance
>companies, foundations, endowments, foreign central banks, etc.
>are long term holders of bonds, not traders.  The traders may be
>rapidly turning over a small fraction of any particular issue
>giving the appearance of a short holding period on average.  I
>think one has to look behind the figure quoted by the Benzie in
>the BIS before deciding what it really means.

But the ones who trade actively have a disproportionate influence in
setting the price, no?

Doug