Definition of 'Cabinet Crowd'
Members of the NYSE who typically trade in inactive bonds. The cabinet crowd is made up of a relatively small group of traders and investors who deal in inactive fixed-income securities. These bonds are inactive due to the fact that they are not actively traded and, thus, are deemed more illiquid, causing bid-ask spreads to be much wider than active or more liquid bonds.
Also known as the "inactive bond crowd" or "book crowd."
Investopedia explains 'Cabinet Crowd'
The name cabinet crowd arises from the fact that historically these members would typically enter limit orders for transacting these bonds, which were kept in "cabinets" adjacent to the bond trading floor until the limit prices were attained. Once these limit prices were reached, the orders would then be removed from said cabinets and executed.