Which of the following about P-notes is incorrect?
A) Commercial paper issued in the euromarkets uses a 360-day convention.
B) The credit rating of a P-note issuer needs to be investment grade.
C) A dealer panel is chosen on their ability to distribute the paper to the market.
D) If the lead manager has arranged a tender panel, then the members of the panel do not have any obligation to buy.

Question

Quizplus · Accepted Answer

The credit rating of a P-note issuer does not necessarily need to be investment grade. However, a higher rating will typically result in lower borrowing costs for the issuer.

Which of the Following About P-Notes Is Incorrect