Fixed-Income Markets: Issuance, Trading, and Funding

Question 1

The four major bond market sectors are the _________.

Answer 1

household, non-financial corporate, government, and financial institution sectors.

Question 2

___________ are where securities with original maturities ranging from
overnight to one year are issued and traded, whereas __________ are where securities with original maturities longer than one year are issued and traded

Answer 2

Money markets, capital markets

Question 3

In a _________, the investment bank serves only as a broker and sells the bond issue only if it is able to do so.

Answer 3

best-efforts offering

Question 4

The underwriting process typically includes six phases:

Answer 4

the determination of the funding needs, the selection of the underwriter, the structuring and announcement of the bond offering, pricing, issuance, and closing.

Question 5

A _______________ is similar to a collateralized loan. It involves the sale
of a security (the collateral) with a simultaneous agreement by the seller (the
borrower) to buy the same security back from the purchaser (the lender) at an
agreed- on price in the future.

Answer 5

repurchase agreement