Business of Bond Trading Turned on Its Head

The video discusses the shift in the bond market from sell side dominance to buy side influence. Central banks' bond buying programs have reduced market liquidity, while regulations have limited investment banks' roles. Buy side firms now manage larger asset pools and exert more control over market trading and pricing, becoming price makers rather than price takers.

How has the inventory of bonds held by banks changed over recent years?

What does it mean for investment firms to be considered 'price makers' in the bond market?