What is the meaning of “fallen angels” in terms credit quality in fixed-income securities?
Which of the following sentences better explains the concept of a “fallen angel” in terms of creditworthiness of bonds, according to the CFA Institute? a) Fallen angels are high-yield (speculative grade) bond issuers whose credit quality has deteriorated in the last 12 months. b) Fallen angels are formerly investment-grade issuers whose credit quality has deteriorated
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What are the main principal repayment structures in fixed-income securities?
When dealing with the main repayment structures of fixed-income securities, we can find different methods for amortization. Mark the correct sentence regarding repayment structures of bonds. a) Bullet bonds are based on the French Amortization Method, and in this type of repayment structure, annuities are made up of interest only. b) Fully amortized bonds are
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What is the difference between money markets and capital markets?
When dealing with fixed-income securities, we can classify them as money market or capital market securities. Mark the correct sentence regarding this classification. a) Treasury bills, commercial paper, consols, and certificates of deposits are classified as money market instruments. b) The difference between money markets and capital markets depends on maturity as of today. c)
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