CFA Level I · CFA Level I Exam · Fixed-Income Markets for Government Issuers
Which of the following is the most likely issuer of supranational bonds?
The World Bank is the most likely issuer. Supranationals are multilateral institutions created by multiple member countries, such as the World Bank and regional development banks. State governments and municipal utilities are non-sovereign entities within a single country, not supranational organizations.
- AA state government in a federal country
- BThe World BankCorrect
- CA city water utility owned by a municipality
Explanation
Supranational agencies are multilateral organizations formed by several countries, such as the World Bank, IMF or regional development banks. State governments and municipal utilities are non-sovereign issuers within a single country.
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