02 Debt - Govt Flashcards by Brandy S | Brainscape

Q

T-Notes & Ginnie Mae

bond pricing

fraction
98.24 = ?

A

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Q

Treasury Receipt

Int
Mkt
1. Backing

A

zero
BD buy grp & sell seperate

against principal & coupons

not backe by FFCG

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Q

Treasury Recript

vs

STRIPS

A

both split principal & int to sell seperatly

Treasury - zeros, BD buy & and sell, not FFC

STRIPS -seperate trading of registered interest & principals of securities is FFC

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Q

TIPS

A

Treasury Inflation Protection

Fixed INT

Principal adjusted

(Principal Swings)

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Q

Treasury Settle Times

Bills

Notes

A

TH that week

TH next week

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Q

T-bills / Notes

sold where

and buy whom?

A

auction at Fed Reserve

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Q

T-bills / Notes

Competitive Bid

vs

Non-Competitive Bid

A

Must bid designated by Fed Reserve

Public, not required to bid

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Q

T-bills / Notes

stop out price

A

lowest accepted competitive bid

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Q

Dutch Auction

A

all pay stop out price

highest bid is lowest yield

non-competitive always filled

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Q

Money Market

A

Safe < 1 year to maturity

liquid

Govt T-bills & Muni Notes

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Q

Govt Can issue Debt for

which two agencies?

A

Ginnie

Farm Credit Admin.

FFC only

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Q

Govt Agency Issues

yeild in reation to other debts

where do they trade?

A

highter than govt

lower than corp

2nd market

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Q

Govt Agency Issue

types

Ginnie

Freddie

Fannie

Sallie

A

all mortgage except

Sallie - student loan

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Q

Govt Agency Issue

int pmts

Ginnie

Freddie

Fannie

Sallie

A

Ginnie - Monthly

All others semi -annually

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Q

Gov Agency Issue - Tax

Ginnie

Freddie

Fannie

Sallie

A

mortgage backed - all levels

Ginnie, Freddie & Fannie

Sallie - loans - Fed Only

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Q

Govt. National Mortgage Assoc - Ginnie Mae

Def
Tax
Risk
Payment

A

private loans pooled into securitites

(pass thru certificates)

taxed at all levels
high reivest risk

principal decreases as mortage paid down

pay principal & interestmonthly

Q

Farm Credit System

A

interest exempt state & local

Q

Freddie Mac

A

FHLMC

public corp

secondary mortgage mkt

pass thru

Q

Fannie Mae

A

purchases mortgages from agencies

NYSC listed

Q

Trace

what inv is excluded

A

Muni

Q

TIPS

benefits

A

semi ann adj to

prin based on CPI