The Fish at the Table

Poker wisdom says to look around the table at the start of a game; if you cannot determine who the fish is, then the fish is you, and you will be served for dinner.

The recent survey by ConvergEX suggests that US equity investors have now come to understand that they are the fish. In the aftermath of publicity surrounding High Frequency Trading, innocence is gone. More than 2/3rds of respondents now believe that the market is not fair as a structural matter.

Here at DealVector we wondered if a similar survey might be illuminating with respect to the bond market. Probably not. Bond investors have always known that the bond market is a poker game. They have also always suspected, more or less, that they are the fish.

Perhaps if we can change that perception, a lot more people will be willing to play a lot more hands.