WAII stands for

• A. When, As, and If Issued
• B. What Is Issued
• C. When And Immediately Issued
• D. Withheld And Issued Initially

Answer: (A)

WAII stands for When, As, and If Issued. This term describes a conditional settlement arrangement used in municipal securities trading for new issues, allowing buyers and sellers to lock in terms before actual issuance. The “When” indicates the time the security will be delivered, the “As” refers to delivery on the terms as they are issued, and the “If Issued” means the trade depends on the issuer actually issuing the bonds. Because execution hinges on the issue occurring, prices and delivery are set in advance but carry the risk that issuance might not occur or terms could change. The other options do not reflect the standard market term used for this practice.