Foundations of Financial Markets and Institutions 金融市场与机构基础

《Foundations of Financial Markets and Institutions 金融市场与机构基础》由会员上传分享，免费在线阅读，更多相关内容在教育资源-天天文库。

Lecture1Introduction Thesortofthingwewanttounderstandbetter:http://www.bbc.co.uk/news/uk-16558551 TypesofAssetsTangibleAssetsValueisbasedonphysicalpropertiesExamplesincludebuildings,land,machineryIntangibleAssetsClaimtofutureincomegenerated(ultimately)bytangibleasset(s)Examplesincludefinancialassets TypesofFinancialAssetsBankloansGovernmentbondsCorporatebondsMunicipalbondsForeignbondCommonstockPreferredstockForeignstock Debtvs.EquityDebtInstrumentsFixeddollarpayments(‘fixedincome’)Examplesincludeloans,bondsEquityClaimsDollarpaymentisbasedonearningsResidual(varying)claimsExamplesincludecommonstock,partnershipshare(e.g.DragonsDen) PriceofFinancialAssetandRiskThepriceorvalueofafinancialassetisequaltothepresentvalueofallexpectedfuturecashflows.ExpectedrateofreturnRiskofexpectedcashflow SomeInvestmentRisksPurchasingpowerrisk=inflationriskDefaultrisk=creditriskExchangeraterisk=currencyrisk RoleofFinancialAssetsTransferfundsfromthosewithmoremoneythanprojectstothosewithmoreprojectsthanmoney.Shareunavoidableriskassociatedwithcashflows.EquityholdersbearinflationriskDebtholdersbeardefaultriskBothmaybearexchangeraterisk Roleof(Financial)MarketsProvideliquidity:buyersandsellersallinone‘place’.pricediscoveryefficientresourceallocationReducetransactionscosts:searchcostsinformationcosts(marketefficiency) FinancialMarketParticipantsHouseholdsBusinessunitsFederal,state,andlocalgovernmentsGovernmentagenciesInternationalorganizations(e.g.Worldbank)Regulators(broaderdefinition) GlobalizationofFinancialMarketsIngeneral,easierforinvestorstomovecapitalinternationallyCauses:Deregulation(liberalization)offinancialmarkets(e.g.currencycontrols)TechnologicaladvancesIncreasedroleofinstitutionalinvestors(economiesofscale) ClassificationofFinancialMarketsNatureofasset:debtvs.equitymarketsMaturity:money(short)vs.capital(long)marketsSeasoning:primaryvs.secondarymarketsStructure:auctionvs.over-the-counter(OTC). ClassificationofGlobalFinancialMarketsInternalMarket(=nationalmarket)ExternalMarket(=international,offshoreorEuromarket):securitiesofferedoutsidesinglejurisdictiontoinvestorsinmultiplecountriesDomesticMarket:issuersdomiciledinthecountryForeignMarket:issuersdomiciledabroad MotivationforUsingForeignMarketsandEuromarketsLimitedfundavailabilityininternalmarket(esp.inpoorercountries)ReducedcostoffundsDiversifyingfundingsources(portfolioreducesrisk)-reducerelianceondomesticinvestors DerivativesMarketDerivatives’valuedependsonunderlying(financial)assetFutures/forwardcontracts:partiesagreetobuy/sellatanagreedpriceanddate.Optionscontracts:rights(notobligations)tobuy(call)orsell(put)atanagreedpriceon/byanagreeddate. RoleofDerivativeInstrumentsBuy/sellrisk(e.g.purchasingpowerrisk,interestraterisk,exchangeraterisk)Otheradvantages:MaybelowertransactionscostsCanbefastertotransactthancashmarketGreaterliquidityAllowsgreatscopeforfinancialinnovation…