Deck 5 – Gov Issuer Markets

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Question

How does the text classify issuer types within fixed-income markets relevant to government issuers?

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Answer

Sovereign, non-sovereign, quasi-government, and supranational.

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Question

If a national government issues debt in its own currency, what key credit-support feature does it have?

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Answer

It may be able to print money to meet obligations.

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Question

For a revenue bond, what does the coverage ratio measure?

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Answer

Project revenue relative to debt service.

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Question

Why are sovereign bonds usually the lowest credit-risk bonds within a country?

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Answer

Sovereigns can tax and, in their own currency, print money.

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