Bond Issuers in South Africa

Play an AI-generated podcast conversation about this lesson

What is the primary reason for the central government to issue long-term debt obligations?

To reduce the government debt

To increase the Gross Domestic Product (GDP)

To finance (partly) the budget deficit (correct)

To finance the budget surplus

Which of the following is NOT a level of government sector bonds in South Africa?

Local authorities

National government

Provincial governments

Municipal government (correct)

What is the term used to describe bonds issued by state-owned enterprises?

Special purpose vehicle bonds

Parastatal bonds (correct)

Corporate bonds

Government sector bonds

What is the term used to describe the consolidation of national, provincial, and local governments?

Consolidated general government Signup and view all the answers

What is the driving factor behind government debt?

Budget deficit Signup and view all the answers

What is the largest single issuer of bonds?

Central government Signup and view all the answers

What is another term used to describe parastatal bonds?

State owned enterprise bonds Signup and view all the answers

Which of the following is NOT a type of financial intermediary?

Household sector Signup and view all the answers

What is the term used to describe bonds issued by public enterprises?

Parastatal bonds Signup and view all the answers

Which of the following is an example of a non-deposit intermediary?

Contractual intermediaries Signup and view all the answers

What is the category of bonds issued by central government?

Government bonds Signup and view all the answers

Which of the following is a type of quasi-financial intermediary?

Development finance institutions Signup and view all the answers

What is the primary motivation for the issue of long-term debt obligations by non-financial public issuers?

To create long-term real assets Signup and view all the answers

Which of the following financial public enterprises issues bonds to fund long-term agricultural projects?

Land and Agricultural Bank Signup and view all the answers

What is the primary source of benchmark rates for the pricing of corporate bonds?

The government bond yield curve Signup and view all the answers

What is the total amount of locally issued marketable parastatal bonds outstanding as at December 2016?

R300 billion Signup and view all the answers

Which of the following is NOT a non-financial public issuer of bonds?

Development Bank of Southern Africa (DBSA) Signup and view all the answers

What are bonds issued by the corporate sector in South Africa called?

Corporate bonds Signup and view all the answers