Bloombergl Marketl Conceptsl Examl

Bloombergl Marketl Conceptsl Examl (Latestl 2026/l 2027l Update)l Guide|l 100%l Verifiedl Questionsl &l Answersl |l Gradel A

Q:l currencyl inversel relationship

Answer:

weakerl currencyl =l thatl country'sl exportsl arel cheaperl =l exportsl arel attractivel tol foreignersl =l thatl country'sl companiesl getl higherl earnings

Q:l gold

Answer:

traditionallyl al safel havenl assetl thatl peoplel turnl tol inl timesl ofl chaosl l durablel perceptionl ofl valuel throughl history l notl ablel tol bel manipulatedl byl anyl govl (inflationl hedge) l non-yieldingl assetl bcl paysl nol dividendsl orl interest

Q:l fixedl income

Answer:

thel bondl marketl l settingl pricel ofl borrowing/lendingl tol govs,l businesses,l andl investorsl l bondl =l IOUl thatl promisesl tol makel regularl fixedl amountl paymentsl (coupons)l +l largel paymentl @l endl ofl loanl (principal)l +l interestl asl compensationl forl lendingl l biggestl marketl inl thel world,l biggerl thanl worldl GDPl andl worldl stockl markets

Q:l yield

Answer:

"equivalentl ofl interestl ratel onl al bankl account" 1 / 3

l difference:l thel ratesl onl offerl tol newl buyersl ofl thel bondl willl movel asl thel pricel ofl thel bondl movesl

yieldsl makel bondsl comparablel

inversel relationshipl betweenl pricel andl yieldl

elevatedl bondl yieldsl mayl forcel govsl tol enactl budgetl cutsl orl taxl hikes

Q:l perpetuall bond

Answer:

bondl inl whichl principall isl neverl repaid l pricel andl yieldl arel perfectl mirrorl image

Q:l bondl winnersl &l losers

Answer:

newl lendersl +l highl yieldsl =l + newl lendersl +l lowl yieldsl =l -

newl borrowersl +l highl yieldsl =l - (wouldl havel tol promisel tol payl backl relativelyl morel tol securel al loan) newl borrowersl +l lowl yieldsl =l +

Q:l servicingl debt

Answer:

payingl coupons

Q:l bondl valuationl drivers

Answer:

CREDITl RISK 2 / 3

1)l debtl /l GDP 2)l deficitl /l GDP 3)l repaymentl schedulel 4)l creditl ratings 5)l creditl defaultl swapsl

MACROECON

1)l short-terml interestl rates 2)l inflation

Q:l creditl risk

Answer:

"bondl pricesl reflectl beliefl inl paymentl likelihoodl tomorrow"l (solvencyl fears)

"asl investorsl doubtl thel creditworthinessl ofl al borrower,l theyl expectl tol bel paidl lessl inl thel future,l sol thel pricel ofl thel bondl decreases...l thel calculationl ofl yieldl assumesl alll plannedl cashl flowsl willl bel made,l sol thel yieldl froml al lowerl cashl outlayl willl bel higher"

Q:l debtl /l GDP

Answer:

"govl debtl asl al proportionl ofl GDP"

nol preordainedl debtl /l GDPl valuel @l whichl bondl marketl willl panicl

repayingl debtl doesn'tl countl asl partl ofl GDP l GDPl growthl froml goods&servicesl borrowedl moneyl wasl usedl tol procurel hasl alreadyl occurredl l govl borrowingl andl spendingl drivesl GDPl growth l debtl repaymentsl inhibitl GDPl growth

thel higherl al govsl debtl burdenl inl proportionl tol itsl GDP,l thel riskierl itsl bonds

Q:l deficitl /l GDP

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