Fixed Income Markets for Government Issuers Flashcards
What is a “Restricted Domestic Currency”?
A currency with limited convertibility into other currencies due to illiquidity.
What is “External Debt”?
Sovereign debt owed to foreign creditors.
What is “Government Debt Management”?
Government policies that relate to the issuance of debt securities, typically handled by a treasurer or finance ministry.
What is a “Single-Price Auction”?
A debt securities auction in which all bidders pay the same price.
What is a “Multiple-Price Auction”?
A debt securities auction in which bidders receive distinct prices based on their bids.
What is a “Primary Dealer”?
A financial institution that is authorized to deal in new issues of sovereign bonds and that serves primarily as a trading counterparty of the office responsible for issuing sovereign bonds.
What are “On-the-run Securities”?
The most recently-issued and liquid sovereign debt securities.
What are “Off-the-run” Securities?
Sovereign debt that is not “on-the-run” and are therefore less liquid that on-the-run securities.
What is a “Reserve Currency”?
A currency held by global central banks in significant quantities and widely use to conduct international trade.
What are “General Obligation Bonds”?
Also known as “GO” bonds.
Bonds issued by non-sovereign governments for general purposes and repaid from tax cash flows.
What are “Revenue Bonds”?
Bonds issued by non-sovereign governments related to a government-sponsored project expected to generate future cash flow as a primary source of repayment.
