Institutional investors typically account for about
A) 90 to 95 percent of bond market trading.
B) 40 to 50 percent of bond market trading.
C) 10 to 15 percent of bond market trading.
D) less than 5 percent of bond market trading.
E) less than 1 percent of bond market trading.

Question

Quizplus · Accepted Answer

Institutional investors, such as pension funds, insurance companies, and mutual funds, are major participants in the bond market. They have the capital and the need to invest in large volumes, which leads them to account for a significant majority of bond market trading, typically around 90 to 95 percent. This high percentage reflects their dominant role in the market, driven by their investment strategies and obligations to their stakeholders.

Institutional Investors Typically Account for About