Just as some doctors prefer bowties to ties since ties tend to get tangled up while performing their tasks, so did bond traders as a practicality in the days of yore. Before the calculator, they had to perform calculations manually. The tedious operations involved--discounting coupon payments one by one--demanded more vigorous busywork than leaving it to the Bloomberg machine. Hence, bonds guys preferred bowties to ties for bowties were rather less likely to get tangled up. In this day and age, there's no comfort advantage for a bowtie wearer. But, as a tradition, the bonds guy with a bowtie lives on. The search for yield leads us to strange places.
Posted by Emmanuel |