New Issues - US Gov't and Agency Underwritings Flashcards Preview

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Flashcards in New Issues - US Gov't and Agency Underwritings Deck (17)
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1
Q

Treasuries are sold ______ by the Fed Reserve

A

at auction - termed “yield auctions”

2
Q

Weekly treasury auctions are held for the following notes:

A
  • 4 week
  • 13 week
  • 26 week
3
Q

Monthly auctions for t-bills are held for:

A
  • 52 week (monthly on Tuesday)
  • treasury notes
  • bonds
  • TIPS
4
Q

Two types of bids may be tendered at auction:

A
  • competitive bids

- non-competitive bids

5
Q

Competitive bidders are typically:

A

“primary” US gov’t securities dealers

6
Q

Bids are accepted to ____ decimal places

A

2 decimal places

7
Q

Non-competitive bids ____ specify an interest rate and are filled at the ______ rate

A

do not specify a rate, are filled at the average of the winning competitive bids (small, non-institutional investors)

8
Q

Monday auctions will issue bills on ______

A

thursday of the same week

9
Q

Payment for bills is made in ____,_____, or ______

A

cash, fed funds, or similar maturing t-bills

10
Q

If paid in t-bills, the amount needed is =

A

$100 face value - discount specified for that winning bid

11
Q

The min and max non-competitive bids are:

A

$100 and $5,000,000 per bidder

12
Q

Min and max competitive bids are:

A

$5,000,000 and no max (although limit per dealer is set at 35% of the total issue)

13
Q

The coupon rate for t-notes, bonds, and TIPS is set using the _______

A

average bid (set a little lower than the avg yield so that notes are issued at a slight discount to par)

14
Q

Notes are paid for on the date of _____, not the date of ______

A

issuance, not the date of auction

15
Q

Dates of issuance are the ______ for t-bills and the _____ of the month for notes, bonds, and TIPS

A

thursday, 15th of the month

16
Q

Agency securities sold through negotiated underwritings are:

A
  • Federal Nation Mortgage Asc
  • Government National Mortgage Asc
  • Federal Home Loan Banks
  • Federal Home Loan Mortgage Corp
  • Federal Farm Credit Banks
17
Q

Selling groups for agency securities are appointed by the ______

A

agency