82.4k views
1 vote
Which of the following types of securities are NOT lendable?

a. U.S. Treasury Bonds
b. Sovereign Bonds
c. Municipal Bonds
d. Corporate Bonds

1 Answer

4 votes

Final answer:

All the types of securities listed—U.S. Treasury Bonds, Sovereign Bonds, Municipal Bonds, and Corporate Bonds—are generally considered lendable as they are bonds, which are financial instruments representing debt obligations that provide a stream of future payments to the holder.

Step-by-step explanation:

The question pertains to the lendability of various types of securities, specifically U.S. Treasury Bonds, Sovereign Bonds, Municipal Bonds, and Corporate Bonds. All of these are types of bonds, which represent a source of financial capital and are financial contracts where a borrower agrees to repay the borrowed amount plus interest over time. Typically, bonds are lendable assets due to their nature as financial instruments that represent debt obligations.

This includes Treasury Bonds, which are issued by the federal government; Sovereign Bonds, which are issued by various national governments; Municipal Bonds, which are issued by city or local governments; and Corporate Bonds, which are issued by private firms. All of these bonds are commonly traded and can be lent because they are seen as assets that provide a stream of future payments to the holder.

However, in specific circumstances, certain bonds may not be lendable, depending on market conditions, regulatory restrictions, or issuer specifications. Yet, such cases are exceptions rather than the rule for the mentioned types of securities. In general, U.S. Treasury Bonds, Sovereign Bonds, Municipal Bonds, and Corporate Bonds are considered lendable securities.

User Michaelangelo
by
7.8k points