Which of the following about a P-note issue program is incorrect?
A) A P-note issue program is a rollover facility whereby as P-notes mature, new notes are issued and discounted.
B) A P-note program generally will have a lead manager.
C) When members of the dealer panel bid for the paper, bids are generally quoted to a margin over a specified benchmark.
D) The typical P-note issue program is a revolving facility with the dealer having the right to cancel, subject to providing the issuer with the required notice.

Question

Quizplus · Accepted Answer

The statement that the typical P-note issue program is a revolving facility with the dealer having the right to cancel, subject to providing the issuer with the required notice is incorrect. P-note programs typically provide for a fixed-term issuance, and the dealer does not have the right to cancel.

Which of the Following About a P-Note Issue Program Is