FI issuance and trading Flashcards
1
Q
FI categories
A
issuer type, credit quality, time to maturity
2
Q
issuer type
A
goverment, corporate, special purpose entities
3
Q
credit quality
A
meassured by credit rating (grade of the ability to meet debt obligations)
4
Q
PD (propability of deffault)
A
prawdopodobieństwo def
5
Q
LGD (loss given deffault)
A
strata jesli def
6
Q
investment grad rating
A
BBB- or higher
issuance typicaly very quick
7
Q
high yield (speculative,junk)
A
BB+ or lower
8
Q
fallen angel
A
form investment grade to high yield
9
Q
rating
A
each bond have a rating and each company have a rating
10
Q
primry FI market
A
issuer to the investor
may be public or private (small size or less known)
11
Q
secondary FI market
A
investor to invesotr
12
Q
distressed debt
A
bonds from issuers close to bancruptcy (trades low below a par) rating CCC
13
Q
A
