Fixed-Income Markets: Issuance, Trading, and Funding

Overview of Global Fixed Income Markets

Place each of these government / government-related bonds in their correct categories. (Drag and drop)

Overview of Global Fixed Income Markets

SuperAssured is an insurance company which is prohibited from investing in non-investment grade bonds. Which of the following is the company prohibited from investing in?

Overview of Global Fixed Income Markets

Moonbucks (a Canadian Company) would like to place a 100 million Euros bond issue. It considering issuing in the Eurobond market. Which of the following is least likely a valid reason for issuing in the Eurobond market?

Overview of Global Fixed Income Markets

Which of the following is not a money market security?

Primary and Secondary Bond Markets

Secondary bond market transactions are least likely to take place in:

Primary and Secondary Bond Markets

Which of the following methods for a public bond offering least likely involves an investment bank?

Primary and Secondary Bond Markets

QTT corp needs to fully raise $100 million to fund an important and urgent project. Which of the following methods for public offering should it go for?

Primary and Secondary Bond Markets

Which of the following is not a benefit of investing through a private bond placement?

Primary and Secondary Bond Markets

Which of the following ways does a dealer earn in a bond OTC market?

Bonds from Government and Government-related Sectors

The Swiss government issues US-dollar denominated bonds. Which of the following is most likely the reason for doing this?

Bonds from Government and Government-related Sectors

Sovereign bonds are labeled “on-the-run” when they:

Corporate Debt

A $1 million 90-day US Commercial Paper was issued at 4% interest. What is the holding period yield for this security?

Corporate Debt

Dominic bought a 12-year bond. In the bond indenture, it is stated that this bond will be redeemed on the first day of the 9th year. What kind of bond is this?

Structured Financial Instruments

A financial instrument is structured such that the coupon rate increases if the Hang Seng Index increases, and vice versa. This is an example of:

Structured Financial Instruments

A leveraged instrument is structured such that the reference is the 90-day LIBOR, and the leverage factor is -0.2.

What is this kind of leveraged instrument known as?

Short-Term Funding For Banks

Shakey Bank’s reserve balance has fallen below the minimum required level. Which of these is not an option for the bank to top up the shortfall?

Short-Term Funding For Banks

A borrower posted a a $1 million collateral for a $950,000 repo. The collateral will be repurchased in 180 days for $970,000. What is the repo rate for this arrangement?