Explanation : Pension funds are typically investors in, not issuers of, bonds. A and C are
incorrect because major issuers of bonds include sovereign (national)
governments, non-sovereign (local) governments, quasi-government
agencies, supranational organizations, and financial and non-financial
Explanation : Non-sovereign (local) government bond issuers include provinces, regions,
states, and cities. Analyst 1 is incorrect because quasi-government bonds
are issued by agencies that are either owned or sponsored by
governments. Analyst 2 is incorrect because supranational bonds are
issued by international organizations.
Explanation : Money market securities are issued with a maturity at issuance (original
maturity) ranging from overnight to one year. A is incorrect because
securitization does not relate to a bond’s maturity, but to the process that
transforms private transactions between borrowers and lenders into
securities traded in public markets. C is incorrect because capital market
securities are issued with an original maturity longer than one year.