Chapter 4: Government and Agency Debt

In this section

• Sovereign (National) Debt Instruments
  Sovereign (National) Debt Instruments (CFA Level 1): Why Governments Issue Sovereign Debt, Key Characteristics and Market Role, and Credit Quality and Risk Factors. Key definitions, formulas, and exam tips.
• Non-Sovereign and Quasi-Government Bonds
  Non-Sovereign and Quasi-Government Bonds (CFA Level 1): Key Attributes of Non-Sovereign Bonds, Quasi-Government Bonds and Their Distinctive Features, and Structural Variations. Key definitions, formulas, and exam tips.
• Supranational and Agency Debt
  Supranational and Agency Debt (CFA Level 1): Understanding Supranational Institutions, Key Characteristics of Supranational Debt, and Practical Benefits and Risks of Supranational Bonds. Key definitions, formulas, and exam tips.
• Risk Considerations for Government Issuers
  Risk Considerations for Government Issuers (CFA Level 1): Key Government Risks, Credit Risk, and Interest Rate Risk. Key definitions, formulas, and exam tips.
• Inflation-Linked Bonds (TIPS and Linkers)
  Inflation-Linked Bonds (TIPS and Linkers) (CFA Level 1): Defining Inflation-Linked Bonds and How TIPS Work (U.S. Treasury Inflation-Protected Securities). Key definitions, formulas, and exam tips.
• Central Bank Operations and Influence on Government Debt Markets
  Central Bank Operations and Influence on Government Debt Markets (CFA Level 1): Central Bank Policy Tools, Coordinating Government Debt Issuance, and Influence of Monetary Policy on Sovereign Yields. Key definitions, formulas, and exam tips.
• Debt Buybacks and Liability Management
  Debt Buybacks and Liability Management (CFA Level 1): Reasons for Debt Buybacks, Liability Management Strategies Beyond Buybacks, and Switch (Exchange) Offers. Key definitions, formulas, and exam tips.
• Budget Decisions and the Sovereign Debt Cycle
  Budget Decisions and the Sovereign Debt Cycle (CFA Level 1): Deficits and Surpluses, Understanding the Sovereign Debt Cycle, and Debt Issuance. Key definitions, formulas, and exam tips.
• Sovereign Debt Crises and Restructuring
  Sovereign Debt Crises and Restructuring (CFA Level 1): Major Causes of Sovereign Debt Crises, Early Signs and Market Indicators, and Restructuring Tools and Mechanics. Key definitions, formulas, and exam tips.
• Infrastructure Debt Financing Through Government-Sponsored Entities
  Infrastructure Debt Financing Through Government-Sponsored Entities (CFA Level 1): Role of GSEs in Infrastructure Financing and Key Features of GSE-Sponsored Infrastructure Debt. Key definitions, formulas, and exam tips.
• Government Contingent Liabilities and Off-Balance-Sheet Obligations
  Government Contingent Liabilities and Off-Balance-Sheet Obligations (CFA Level 1): Understanding Government Contingent Liabilities, Idea of a Fiscal Risk Statement, and Off-Balance-Sheet Obligations. Key definitions, formulas, and exam tips.
• Policy Coordination During Macroeconomic Stress Events
  Policy Coordination During Macroeconomic Stress Events (CFA Level 1): Key Players in the Coordination Process, Coordinated Strategies During Crises, and Why Policy Coordination Matters for Bond Markets. Key definitions, formulas, and exam tips.
• Inflation Targeting and Constraints on Government Debt Issuance
  Inflation Targeting and Constraints on Government Debt Issuance (CFA Level 1): Understanding the Policy Goals of Inflation Targeting, Monetary-Fiscal Coordination, and Why Coordination Matters. Key definitions, formulas, and exam tips.
• Green Gilt Issuance and Climate-Focused Government Debt
  Green Gilt Issuance and Climate-Focused Government Debt (CFA Level 1): Key Concepts and Definitions, Role of Green Gilts in Government Debt, and Issuance Process and Structural Features. Key definitions, formulas, and exam tips.
• Debt Sustainability Analysis and IMF/World Bank Lending Frameworks
  Debt Sustainability Analysis and IMF/World Bank Lending Frameworks (CFA Level 1): Why DSAs Matter, Key Concepts in Debt Sustainability Analysis, and Defining Debt Sustainability. Key definitions, formulas, and exam tips.
• Central Bank Digital Currencies and Government Debt Markets
  Central Bank Digital Currencies and Government Debt Markets (CFA Level 1): Potential Impact on Government Debt Issuance, Market Liquidity and Payment Settlement, and Implementation Considerations. Key definitions, formulas, and exam tips.