medium · Debt Capital Markets pricing-yields-curve
A 30-year bond is issued by a sovereign. A 'liability-driven' investor (LDI), such as a pension fund, is the most likely buyer. Why?
- They need long-dated assets to match the long-term nature of their future payment obligations.
- They prefer instruments with the shortest possible duration to minimize price volatility.
- They are seeking high-yield speculative returns to maximize short-term fund growth.
- They are required by regulation to hold only zero-coupon instruments in their portfolios.
Sign up free to see the explanation and track your rank →
More Debt Capital Markets pricing-yields-curve practice
- For a bond trading at a discount (below par), which yield measure is typically the same as
- If a bond's Yield to Worst is equal to its Yield to Maturity, what can we likely conclude
- If an issuer decides *not* to call a bond on the first call date even though it is economi
- If a bond's YTW is significantly lower than its YTM, the bond is likely trading at a:
- For a bond with several call dates at different prices, the Yield to Worst is:
- The concept of 'Pull to Par' describes the price convergence… — Which yield measure inhere
- If an investor buys a bond with a 5% coupon at a price of 102, how does the Yield to Matur
- A bond's yield to maturity (YTM) is 7%, but its current yiel… — What does this suggest abo