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WorksheetsISSUES IN BOND MARKET
Total questions: 30
Worksheet time: 10mins
What is credit rating?
Credit facility that given by financial institution to their consumers.
A process of evaluate the securities or instruments to identify whether they comply with Shariah compliant.
An assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.
None of the above
Which of the following is the most popular credit rating company in Malaysia?
Standard and Poor's
Fitch
Moody's
None of the above
Credit rating is considered as one of the most important element in the bond market. This is because
they assess the credit risk of specific debt securities and the borrowing entity.
they provide the proper guidelines and conditions to companies to keep growth
All of the above
None of the above
Credit rating provides an independent evaluation of the creditworthiness of debt securities issued by governments and corporations. However, still, there are various controversy among the using of credit rating. Which of the following is the causes of issues in credit rating in bond market?
Issuers reluctant to wider their investment portfolio in the bond market.
There is a difficulties in obtaining the funds because of the strict procedures that have been set up by the credit facility institutions.
The methodology used by the credit rating companies is not universal.
All of the above.
One of the issues in credit rating is because of conflict of interest. What is conflict of interest in the rating part?
Issuers are reluctant to provide the credit rating companies of their information.
Both parties investor and issuer are having a conflict regarding the bond market transaction.
Credit rating companies were being paid by the issuers so that the issuers' securities will be rating highest.
All of the above.
What are the causes of the fluctuation of bond price ?
Discount Rate, Inflation
Interest Rate, Inflation
Coupon Rate, Recession
Interest Rate, Deflation
When interest rate rise, the price of bond will___?
increase
fall
rise
normal
Expected inflation will also lower the real interest rate on bonds thus lowering the real return on holding or ___ bonds.
issue
selling
supplying
purchasing
All bonds have a par value, an interest rate and a __?
period date
expired date
maturity date
issue date
When is the date of birth of Madam Aien?
22 January
06 January
03 January
10 January
What is the full name of our beloved and gorgeous ICM lecturer?
Nur Aien Binti Abd Aziz
Nurul Ain Binti Abd Aziz
Nurul Aien Binti Abd Aziz
Nur Aien Binti Abdul Aziz
Uwais Hanzalah is a handsome and cutest boy in the world. He is_____________?
Son of Madam Aien.
Bestfriend of Madam Aien.
All of the above.
None of the above.
Meaning of sophisticated investor?
Satisfaction of the market players will determine the development and the successful of any market.
A classification of investor indicating that someone who has sufficient capital, experience and net worth to engage in more advanced type of investment opportunities.
Investor that have a depth of experience and a market knowledge.
Investor eligible for certain benefits and opportunities.
A sophisticated investor can be seen as?
Investor that do not need to liquidated investment asset in long term.
An investor that can sustain a loss in their investment without damaging their net worth.
An investor that do not need to liquidated investment asset in short term and even they can even sustain a loss in their investment without damaging their net worth.
An investor that need to liquidated investment asset in short term and they cannot sustain a loss in their investment without damaging their net worth.
What Malaysian bond market need to introduce?
Future Market
Super Market
Competitive Market
Liquidated Market
From the Islamic point of view is Malaysian bond market have been develop and expand?
Yes
No
To improve the bond market breadth and depth the investor should?
Do nothing.
Invest less.
Have the courage to take the risk to develop more.
All of the above.
Are you following Madam Aien on Instagram?
Absolutely Yes.
No.
Yes, but she didn't accept my request.
I have no Instagram account.
What have you learned in Islamic Capital Market?
Sukuk is a certificate.
Islamic capital market is a short term investment.
Securities Commission (SC) has no role at all regarding transaction in Islamic capital market.
None of the above.
Transparency can be divided into two categories, which are :
Free-trade and Pay-trade transparency.
High-trade and Low-trade transparency.
Pre-trade and Post-trade transparency .
Price-trade and Cost-trade transparency.
The recommendation that may be considered by EMs in their corporate bond market development in order to improve transparency and governance is
Promoting trading and price transparency.
Enhance trading efficiency in the market.
Develop a sequenced strategy for corporate bond market development.
Standardise bond offering documentation.
Bond market is a place where
Public sector can raise funds by issuing private debt securities.
Private sector can raise funds by issuing government and private debt securities.
Private and public sectors can raise funds by issuing government debt securities.
Public and private sectors can raise funds by issuing government and private debt securities.
The causes to the lack of transparency in corporate bond market are
Lack of regulatory framework and high transaction costs.
Lack of regulatory framework and low transaction costs.
High transaction costs and high liquidity.
Low transaction costs and low liquidity.
Transparency of information and governance in corporate bond markets have an important roles
In developing a market making system for corporate bonds.
In boosting the confidence of investor and promoting efficiency.
In establishing corporate bond index.
In encouraging the development of risk management instruments.
What is the color of Madam Aien's car?
Orange
Red
Silver
Gold
Defined Sukuk
Securities of equal denomination representing individual ownership interests in a portfolio of eligible existing or future assets.
Sukuk is an Islamic financial certificate, similar to a bond in Western finance that complies with Sharia.
Sukuk is defined as Islamic bonds that are structured to generate returns to investors without contravene or violate Islamic law where riba or interest is prohibited.
All of the above.
______________ lead to increase in liquidity in the bonds market.
Low trading volume
Low trending volume
High trading volume
High trending volume
____________ of financial crisis changes that have caused the levels of liquidity in the bond market to be ___________.
Pre-effect …………… reduced
Post-effect …………… reduced
Before-effect …………… increased
After-effect ……………. Increased
If the selling of the asset takes shorter time but with a significant loss,
it is solid.
it is not illiquid.
it is liquid.
it is not liquid.
Two corporate bond markets that exist in Malaysia
Islamic instruments
Conventional instruments
C only
B and C
