Chapter 3: Issuance, Trading, and Funding

In this section

• Primary Markets, Underwriting, and Offerings
  Primary Markets, Underwriting, and Offerings (CFA Level 1): Underwriting Process, Firm Commitment vs. Best Efforts, and Role of the Syndicate. Key definitions, formulas, and exam tips.
• Secondary Market Structures and Pricing Conventions
  Secondary Market Structures and Pricing Conventions (CFA Level 1): Over-the-Counter (OTC) Bond Trading, OTC Market Characteristics, and Exchange-Traded Bond Markets. Key definitions, formulas, and exam tips.
• Short-Term Funding (Commercial Paper, Repos)
  Short-Term Funding (Commercial Paper, Repos) (CFA Level 1): Commercial Paper: Key Concepts, Definition and Purpose, and Issuance and Mechanics. Key definitions, formulas, and exam tips.
• Global Bond Market Segmentation
  Global Bond Market Segmentation (CFA Level 1): What Does “Global Bond Market Segmentation” Actually Mean?, Key Segments: Domestic, Foreign, and Eurobond, and Domestic Market. Key definitions, formulas, and exam tips.
• Innovations in Bond Issuance (Digital, Tokenized)
  Innovations in Bond Issuance (Digital, Tokenized) (CFA Level 1): Digital Bond Issuance, How Digital Bond Issuance Works, and Tokenized Bonds. Key definitions, formulas, and exam tips.
• Auction Mechanisms and Syndication in Bond Issuance
  Auction Mechanisms and Syndication in Bond Issuance (CFA Level 1): Auction Mechanisms in Bond Issuance, Dutch Auction (Single-Price Auction), and Multiple-Price Auction. Key definitions, formulas, and exam tips.
• Market Microstructure and Transaction Costs
  Market Microstructure and Transaction Costs (CFA Level 1): Understanding Market Microstructure in Fixed Income, Key Components of Fixed-Income Market Microstructure, and Dealers and Brokered Markets. Key definitions, formulas, and exam tips.
• Cross-Border Listing and Localization of Funding
  Cross-Border Listing and Localization of Funding (CFA Level 1): Why Cross-Border Listing?, Localization of Funding: The Next Step, and Key Regulatory and Disclosure Requirements. Key definitions, formulas, and exam tips.
• Private Placements and Rule 144A Market
  Private Placements and Rule 144A Market (CFA Level 1): Nature of Private Placements, Key Terms, and Why Companies Choose Private Placements. Key definitions, formulas, and exam tips.
• Crowd-Based Bond Issuance and Direct Market Access
  Crowd-Based Bond Issuance and Direct Market Access (CFA Level 1): Defining Crowd-Based Bond Issuance, How It Works, and Rationale and Value Proposition. Key definitions, formulas, and exam tips.
• Tri-Party Repos and Collateral Management
  Tri-Party Repos and Collateral Management (CFA Level 1): Essence of Tri-Party Repos, Key Roles, and Why Use Tri-Party Repos?. Key definitions, formulas, and exam tips.
• Developments in Short-Term Instrument Financing Alternatives
  Developments in Short-Term Instrument Financing Alternatives (CFA Level 1): Traditional Short-Term Instruments: A Quick Recap, Asset-Backed Commercial Paper (ABCP), and Rationale for ABCP. Key definitions, formulas, and exam tips.
• Electronic Platforms and AI-Driven Bond Issuance
  Electronic Platforms and AI-Driven Bond Issuance (CFA Level 1): Evolution of Electronic Bond Platforms, How Electronic Bond Platforms Work, and AI-Driven Bond Issuance: The Next Frontier. Key definitions, formulas, and exam tips.
• Developments in High-Frequency Bond Trading
  Developments in High-Frequency Bond Trading (CFA Level 1): Understanding HFT in Bond Markets, Technology Infrastructure and Co-location, and Liquidity Fragmentation Across Bond Markets. Key definitions, formulas, and exam tips.
• Intraday Liquidity and Netting in Bond Settlement Systems
  Intraday Liquidity and Netting in Bond Settlement Systems (CFA Level 1): Why Intraday Liquidity Matters, Settlement Risk: A Quick Refresher, and Netting and its Impact on Liquidity. Key definitions, formulas, and exam tips.
• Short Selling and Repo Market Implications in Fixed Income
  Short Selling and Repo Market Implications in Fixed Income (CFA Level 1): Mechanics of Short Selling in Fixed Income, Step-by-Step Mechanics, and Motivations for Short Selling Bonds. Key definitions, formulas, and exam tips.