Municipal Securities Market
Treasury Securities Market
Federal Agency Securities Market
Corporate
Bond Market
Mortgage Securities Market
100
Debt securities issued by a state, country of county to finance their projects.
What are municipal bonds?
100
Debt Obligations of the U.S. government.
What is Treasury Securities?
100
Federal Agency Securities
What is a debt instrument issued by federal credit agency?
100
A bond is a debt obligation like an IOU
What is a cooperate bond market
100
a type of asset-backed security that is secured by a mortgage or collection of mortgages.
What are mortgage securities?
200
State and local governments
Who issues municipal bonds?
200
3 types of treasury securities
How many types of treasury securities are there?
200
Government Sponsored Enterprise
What is a GSE?
200
Maturity and coupon rate
What affects sensitivity to changes in the market interest rate?
200
when these loans are packaged, or “pooled,” by issuers or servicers for sale to investors.
How are mortgage securities created?
300
Use the money to finance public work projects
How do governments typically make use of the money generated by municipal bond issues?
300
Opportunity cost, rising prices, and interest rate fluctuations
What are the risk for treasury securities?
300
1- 3 years Month- 15 years
What is the maturity date?
300
Indenture
What is a corporate bond contract called?
300
an agency of the U.S. Government, the Government National Mortgage Association (Ginnie Mae), or by government-sponsored enterprises such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).
Mortgage securities are issued/ guaranteed by
400
Municipal bonds are one of the safest long term investments
What is one attractive investment characteristic of municipal bonds?
400
"Full faith and credit"
What are the debt obligations backed by?
400
Shares of a cooperation
What is Equity Securities?
400
Interest rate fall
What is a reason that a company will buy back bonds?
400
Payment risk
What are the Risk?
500
38 years
What is the maximum term until maturity for both general obligation and revenue bonds?
500
10 years
How long does bonds take to mature?
500
3
How types of secruities are there?
500
Commercial paper
Most corporate debt that matures in less than one year is called a(n)
500
Minimum investment can be fairly high, upwards of $25,000. Outside of a retirement account, there are virtually no tax advantages to owning an MBS. The income from an MBS is taxed as regular income.
What are the advantages?
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