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🏦 JAIIB IE-IFS Fixed Income Markets – Debt and Bond Markets
🏦 JAIIB IE-IFS Fixed Income Markets – Debt and Bond Markets 20 cards
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IE-IFS Capsule Cards PRO Fixed Income Markets – De…
If you hold a 5-year bond and a 20-year bond, which one's price will be affected more drastically if the RBI suddenly hikes interest rates?
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Bond Theorem 3: Maturity & Sensitivity
Fixed Income Markets – Debt and Bond Markets 67
WA 67
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
Who are the major institutional players registered with the RBI specifically to purchase and sell government securities directly from RBI and resell them?
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Primary Dealers (PDs)
Fixed Income Markets – Debt and Bond Markets 45
WA 45
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
The fixed income market revolves around government and corporate debt. What is a Government Security (G-Sec) and what risk profile does it carry?
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Government Securities (G-Secs)
Fixed Income Markets – Debt and Bond Markets 43
WA 43
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
The RBI permits trading in Central Government securities before they are actually issued. What is this specific market called?
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'When Issued' Market
Fixed Income Markets – Debt and Bond Markets 39
WA 39
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
Bond valuation is heavily dependent on the movement of market interest rates. What is the relationship between the price of a bond and its yield (interest rate)?
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Bond Theorem 1: Price vs Yield
Fixed Income Markets – Debt and Bond Markets 39
WA 39
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IE-IFS Capsule Cards PRO Fixed Income Markets – De…
While the Central Government issues both short-term T-bills and long-term dated securities, what are the debt instruments issued by State Governments called?
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State Development Loans (SDLs)
Fixed Income Markets – Debt and Bond Markets 38
WA 38
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
Dated Government securities have a long tenure compared to money market instruments. What is the maximum maturity period for which dated G-Secs are typically issued?
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Maturity of Dated G-Secs
Fixed Income Markets – Debt and Bond Markets 38
WA 38
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
When interest rates fluctuate, the price of a bond changes. Is the magnitude of a price increase the same as a price decrease for an identical percentage change in yield?
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Bond Theorem 2: Price Volatility Symmetry
Fixed Income Markets – Debt and Bond Markets 37
WA 37
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
Assume two bonds have the exact same 10-year maturity, but Bond A pays a 4% coupon and Bond B pays an 8% coupon. Which is more sensitive to rate changes?
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Bond Theorem 4: Coupon & Sensitivity
Fixed Income Markets – Debt and Bond Markets 34
WA 34
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
RBI conducts auctions for G-Secs. In a 'Uniform Price' auction, what price do all successful bidders pay?
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G-Sec Auctions: Uniform vs Multiple Price
Fixed Income Markets – Debt and Bond Markets 34
WA 34
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IE-IFS Capsule Cards PRO Fixed Income Markets – De…
What is the name of the Self-Regulatory Organisation (SRO) associated with the fixed income, money, and derivative markets in India?
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FIMMDA
Fixed Income Markets – Debt and Bond Markets 31
WA 31
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
Launched in Nov 2021, what specific facility does the RBI Retail Direct Scheme (RDS) provide to individual retail investors?
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RBI Retail Direct Scheme (RDS)
Fixed Income Markets – Debt and Bond Markets 31
WA 31
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
Secondary market trades in G-Secs occur on the RBI's electronic platform NDS-OM. Which entity guarantees the settlement of all these trades?
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NDS-OM and CCIL Settlement
Fixed Income Markets – Debt and Bond Markets 30
WA 30
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
A G-Sec issued by the central government has a specific naming convention. What does '7.85 GOI 2028' indicate?
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G-Sec Nomenclature Example
Fixed Income Markets – Debt and Bond Markets 30
WA 30
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
Corporate bonds are not sovereign-guaranteed and carry default risk. What rating specifies the highest safety, and what rating implies default?
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Corporate Bond Credit Ratings
Fixed Income Markets – Debt and Bond Markets 29
WA 29
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Corporates with surplus funds often lend to other corporates in need of short-term funds. What is this instrument called, and is it secured?
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Inter-Corporate Deposits (ICDs)
Fixed Income Markets – Debt and Bond Markets 27
WA 27
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
In a G-Sec auction, how is the price determined for retail investors participating through the non-competitive bidding facility?
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Non-Competitive Bidding Allocation
Fixed Income Markets – Debt and Bond Markets 27
WA 27
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
Primary Dealers are the only financial entities permitted to borrow in the Inter-Corporate Deposit (ICD) market. What are the regulatory limits on this?
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PD limits on ICDs
Fixed Income Markets – Debt and Bond Markets 25
WA 25
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
Unlike the old days of paper certificates, how are all corporate bonds legally required to be issued and held in India today?
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Dematerialisation of Corporate Bonds
Fixed Income Markets – Debt and Bond Markets 25
WA 25
IE-IFS Capsule Cards PRO Fixed Income Markets – De…
Under the Retail Direct Scheme, investors can transfer securities for purposes like gifting without exchanging money. What is this called?
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Value Free Transactions (VFT)
Fixed Income Markets – Debt and Bond Markets 25
WA 25
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Fixed Income Markets – Debt and Bond Markets — JAIIB IE-IFS Capsules

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Bond Theorem 3: Maturity & Sensitivity If you hold a 5-year bond and a 20-year bond, which one's price will be affected more drastically if the… Primary Dealers (PDs) Who are the major institutional players registered with the RBI specifically to purchase and sell govern… Government Securities (G-Secs) The fixed income market revolves around government and corporate debt. What is a Government Security (G-… 'When Issued' Market The RBI permits trading in Central Government securities before they are actually issued. What is this s… Bond Theorem 1: Price vs Yield Bond valuation is heavily dependent on the movement of market interest rates. What is the relationship b… State Development Loans (SDLs) While the Central Government issues both short-term T-bills and long-term dated securities, what are the… Maturity of Dated G-Secs Dated Government securities have a long tenure compared to money market instruments. What is the maximum… Bond Theorem 2: Price Volatility Symmetry When interest rates fluctuate, the price of a bond changes. Is the magnitude of a price increase the sam… Bond Theorem 4: Coupon & Sensitivity Assume two bonds have the exact same 10-year maturity, but Bond A pays a 4% coupon and Bond B pays an 8%… G-Sec Auctions: Uniform vs Multiple Price RBI conducts auctions for G-Secs. In a 'Uniform Price' auction, what price do all successful bidders pay? FIMMDA What is the name of the Self-Regulatory Organisation (SRO) associated with the fixed income, money, and… RBI Retail Direct Scheme (RDS) Launched in Nov 2021, what specific facility does the RBI Retail Direct Scheme (RDS) provide to individu… NDS-OM and CCIL Settlement Secondary market trades in G-Secs occur on the RBI's electronic platform NDS-OM. Which entity guarantees… G-Sec Nomenclature Example A G-Sec issued by the central government has a specific naming convention. What does '7.85 GOI 2028' ind… Corporate Bond Credit Ratings Corporate bonds are not sovereign-guaranteed and carry default risk. What rating specifies the highest s… Inter-Corporate Deposits (ICDs) Corporates with surplus funds often lend to other corporates in need of short-term funds. What is this i… Non-Competitive Bidding Allocation In a G-Sec auction, how is the price determined for retail investors participating through the non-compe… PD limits on ICDs Primary Dealers are the only financial entities permitted to borrow in the Inter-Corporate Deposit (ICD)… Dematerialisation of Corporate Bonds Unlike the old days of paper certificates, how are all corporate bonds legally required to be issued and… Value Free Transactions (VFT) Under the Retail Direct Scheme, investors can transfer securities for purposes like gifting without exch…
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