Bond facts & stats

Question 1

In what year did the Republic of Venice issue what's considered one of the first government bonds?

Accepted Answer

1172. These 'prestiti' paid 5% annual interest and could be resold, much like modern bonds.

Question 2

In what year did England's King William III's need to finance war lead to the creation of the Bank of England?

Accepted Answer

1694. This early government borrowing helped establish modern public debt markets.

Question 3

About what share of US Treasury debt is held by domestic, US-based holders?

Accepted Answer

about 75%. Contrary to popular belief, most US government debt is owned by Americans, not foreign countries.

Question 4

About what share of the global credit-rating business do the 'Big Three' agencies, Moody's, S&P, and Fitch, control?

Accepted Answer

about 95%. These three companies' bond ratings can move markets and affect a country's borrowing costs.

Question 5

How many primary letter-grade rating categories does Standard & Poor's use, from AAA down to default?

Accepted Answer

10 categories. These range from AAA, the safest, down to D for a bond already in default.

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