green light Flashcards
close out
transmittal
When a close-out is re transmitted to a selling dealer who owes the securities the date the close-out may be executed is extended by one business day. Subsequent close-outs transmittals do not extend the period any additional days.
Must be completed in 10 business days
buyer may grant a 10 business day extension
can not exceed 20 business days total
what is a repruchase agreement
buying securities with seller agreeing to repurchase
How does the fed adding money to the system affect interest rates
they trend lower
The term foreign exchange rate can BEST be defined as the:
Price the currency of one nation trades in relation to the currency of another country
moodys rating in decreasing
the more number of letters following the higher
Aaa is higher than aa which is higher than a1
aa1 is higher then a1
IF the fed fund rate is increasing
the fed is tightening money
Actions if fed is tightening money
sell securities so money supply declines
IF an issue has a call and is prerefunded what will happen
it will be called on the first call date.
spread of govt vs corporate bonds
Narrowing yield
as yields on govt securities increase that means there price is decreasing.
As yields on corporate bonds decreases as prices increase
this narrows the yield between the two
paid first under a gross revenue pledge?
Debt service expenses
capital risk
same coupon
which bonds to buy
risk investment is lost
bonds trading at a premium
Interest rates
Long term bonds
price
Interest rates
short term bons
yield
The Federal Reserve is considering pursuing a tight money policy.
raises interest rates
Bond prices and the stock market will fall
the dollar value will rise
selling group
gets total take down minus syndicate amount
they get the selling concession
Undivided account
Redistribution of unsold shares
The original % of the original allocation is applied to the unsold shares.
I.e. If I was allocated 25% and then I am allocated to the new pool of unsold shares it will be 25% again.
markup clients
On a confirmation statement, dealers are required to disclose any markup or markdown it acts in a principal capacity with a non-institutional customer. The calculation should be based on the prevailing market price as defined under MSRB Rule G-30. The markup or markdown should be expressed as a total dollar amount and as a percentage of the prevailing market price.
Not required for institutional clients.
A dealer-to-dealer transaction on a when, as and if issued transaction
confirmation
The next business day
