Fixed-Income Issuance and Trading EC

Consider the following:
I. An issuer sells a new bond to raise capital
II. Existing bonds are traded among investors
III. A national treasury sells sovereign debt through a public auction
How many of the above describe primary fixed-income market activity?

Consider the following:
I. On-the-run developed market sovereign bonds usually have bid-offer spreads equal to a fraction of a basis point
II. Recently issued higher-credit-quality corporate bonds from frequent issuers usually have tighter bid-offer spreads than more seasoned bonds
III. Less frequent corporate issuers or seasoned bonds of frequent issuers may have bid-offer spreads of at least 10-20 basis points or more for small sizes
How many of the above liquidity statements are consistent with the module?

Consider the following:
I. Probability of default
II. Expected loss under a default scenario
III. Issuer common stock dividend history
How many of the above are part of the credit rating assessment described in the module?

Consider the following:
I. Minimum MSCI ESG rating of BBB or higher
II. Exclusion of issuers with a Red MSCI Controversies score
III. Inclusion of fixed-rate perpetual bonds
How many of the above are eligibility features of the Bloomberg Barclays MSCI Euro Corporate Sustainable SRI Index?

Consider the following:
I. BBB-
II. BB+
III. B
How many of the above S&P credit ratings are considered investment grade by market participants?

Consider the following:
I. Near-term obligations and liquid cash alternatives are often met with money market securities
II. Pension funds and insurance companies may favor maturity profiles that match long-term liabilities
III. Investors may take credit risk at any point on the maturity spectrum to augment returns
How many of the above statements are consistent with fixed-income investor positions in the module?

Consider the following:
I. A single issuer may have many individual fixed-income securities outstanding
II. Fixed-income indexes have less constituent turnover than equity indexes
III. Fixed-income index constituents are usually equally weighted
How many of the above are differences between fixed-income and equity indexes described in the module?

Consider the following:
I. The index uses only US dollar-denominated bonds
II. Bonds with coupon or redemption payments linked to an exchange rate are not eligible
III. Rebalancing occurs on the final US business day of each month
How many of the above are features of the J.P. Morgan EMBI+ Index described in the module?

Consider the following:
I. New issuers for which investors are more likely to require collateral because operating cash flows are less stable
II. Formerly investment-grade issuers whose credit quality has deteriorated since issuance
III. Developed market sovereign issuers that investors often treat as default risk free
How many of the above are described as high-yield issuers or part of the high-yield category?

Consider the following:
I. New corporate legal entities formed after a merger, acquisition, or divestiture that refinance existing debt
II. Companies with more predictable cash flows that begin issuing debt at a mature life-cycle stage
III. Sovereign governments raising external foreign currency debt for the first time
How many of the above are examples of debut bond issuers described in the module?

Consider the following:
I. High-yield debt instruments
II. Investment-grade fixed-coupon capital market securities that meet the minimum issuance size
III. Senior and subordinated issues that otherwise meet the index criteria
How many of the above are excluded from the Bloomberg Barclays Global Aggregate Index as described in the module?

Consider the following:
I. Treasury bills
II. Leveraged loans
III. Mortgage-backed securities
How many of the above appear in the module's long-term default-risk-free issuer category?

Consider the following:
I. A bond falls below a minimum maturity
II. A new issue meets eligibility requirements and pricing information is available
III. A bond's issuer changes its common stock voting policy
How many of the above are reasons for fixed-income index constituent changes described in the module?

Consider the following:
I. The intermediary guarantees the sale of the bond issue at an offering price negotiated with the issuer
II. The intermediary tries to sell the issue on a commission basis only if it can do so
III. The intermediary removes the bond from trading when the issuer's equity is delisted
How many of the above describe an underwritten bond offering?