《國際金融課件》unit 5 financial market

1、Financial MarketYOUR COMPANY NAME or YOUR SITE ADDRESSFinancial Market 金融市場See P58, LYOUR COMPANY NAME or YOUR SITE ADDRESSFinancial Market 金融市場1. Money Market1. Money Market1. Money Market2. Capital MarketIn terms of the maturity of the securities traded in the market, financial markets can be clas

2、sified into money market and capital market. Money Market 貨幣市場Money market is a financial market in which only short-term debt（短期債務）instrument (normally maturity of one year or less) are traded.YOUR COMPANY NAME or YOUR SITE ADDRESSInter-bank Market （銀行）同業(yè)拆借市場See P60, Para1Inter-bank markets are mon

3、ey markets in which short-term funds transferred (lent or borrowed) between financial institutions, usually for a period of one day, that is, they are usually overnight investment. YOUR COMPANY NAME or YOUR SITE ADDRESSInter-bank interest rate 同業(yè)拆借率Inter-bank interest rate is the rate at which funds

4、 are lent or borrowed between financial institutions. It is close to, but always slightly higher than, the rate that is borrowed from central banks. YOUR COMPANY NAME or YOUR SITE ADDRESSFunctions of inter-bank interest rateSee P60, Para2a key and representative interest ratereflect the demand for a

5、nd supply of fundsthe wind vane of the market ratesYOUR COMPANY NAME or YOUR SITE ADDRESSTypical inter-bank interest ratesLIBOR 倫敦同業(yè)拆借率（倫敦的第一流銀行之間短期資金借貸的利率）SIBOR 新加坡同業(yè)拆借率（新加坡市場上，銀行與銀行之間一年期以下的短期資金借貸利率）HIBOR 香港同業(yè)拆借率SHIBOR 上海同業(yè)拆借率EURIBO 歐元銀行同業(yè)拆借率YOUR COMPANY NAME or YOUR SITE ADDRESSDiscount Market 貼現(xiàn)市

6、場See P61, Para1Discount market is a market where bill are transferred, i.e., discounted, on-discounted and re-discounted. YOUR COMPANY NAME or YOUR SITE ADDRESSTranslate the underlined parts in the following sentences.YOUR COMPANY NAME or YOUR SITE ADDRESSDiscounted 貼現(xiàn)See P61，Para2Discount refers to

7、 the business in which the holders of bills transfer them before the maturity to banks and get cash immediately after the deduction（扣除）of discount interest.YOUR COMPANY NAME or YOUR SITE ADDRESSOn-discounted 轉貼現(xiàn)See P61，Para2On-discount refers to the action in which a discount house or bank transfers

8、 or discounts at another bank that has been discounted and yet is not due.It is financing between banks and is widely accepted and welcomed by banks.YOUR COMPANY NAME or YOUR SITE ADDRESSRe-discounted 再貼現(xiàn)See P61，Para2Re-discount refers to the action in which a discount house（貼現(xiàn)公司） or bank transfers

9、or discounts at the central bank a bill that has been discounted and is not due when in need of funds. YOUR COMPANY NAME or YOUR SITE ADDRESSRe-discounted 再貼現(xiàn)It is one of the ways in which a central bank provides banks with short-term funds as the lender of the last resort（最后依靠，最后貸款者； 最后的補救辦法）. Also

10、, it is an important instrument for a central bank to implement credit regulation and reach monetary policy targets.YOUR COMPANY NAME or YOUR SITE ADDRESSQuestion: What are the similarities and difference among discounting, on-discounting and re-discounting?YOUR COMPANY NAME or YOUR SITE ADDRESSSimi

11、larity: they all involve the action of transferring the bills before the maturity to another party in order to get cash immediately.Difference: they take different parties as the holder and the receiver of the bills to be discounted.YOUR COMPANY NAME or YOUR SITE ADDRESS Holder receiverDiscount indi

12、vidual bankOn-discount bank bankRe-discount bank central bankYOUR COMPANY NAME or YOUR SITE ADDRESSEurodollar Market 歐洲美元市場Translate the underlined parts:Eurodollars are US dollar-denominated deposits at banks out side of the United States. Eurodollars can be held anywhere outside the united States.

13、YOUR COMPANY NAME or YOUR SITE ADDRESSFeatures of Eurodollar depositsSee P61, Para2Free of the regulation given by the U.S. governmentLarge deposit par valueMaturity of less than 6 monthsYOUR COMPANY NAME or YOUR SITE ADDRESSMarket for Treasury Bills 國庫卷市場See P62, Para1Translate the underlined parts

14、:The popularity of T-bills is mainly due to their simplicity and they are basically a way for the government to raise money from the pubic. T-bills are short-term securities that mature in one year or less from their issue date. They are issued with 3-month, 6-month, and 1-year maturities. YOUR COMP

15、ANY NAME or YOUR SITE ADDRESSHow does a T-bill workYou buy T-bills for a price less than their par(face) value, and when they mature, the government pays you their par value. YOUR COMPANY NAME or YOUR SITE ADDRESSWhy are T-bills so popularSee P62, Para2Treasury bills are attractive to investors beca

16、use they are backed by the government and therefore are virtually free of default risk（credit risk 信用風險）. The risk of unexpected changes in inflation is also low because of the short term to maturity. YOUR COMPANY NAME or YOUR SITE ADDRESSThe markets for treasury bills in most developed countries ar

17、e deep and liquid. A deep market is one with many different buyers and sellers. A liquid market is one in which securities can be sold quickly and with low transaction costs. YOUR COMPANY NAME or YOUR SITE ADDRESSMarket for Repos 回購市場Repo-short for repurchase agreement（回購協(xié)議）means a dealer or other h

18、older of government securities(usually T-bills) sells the securities to a lender and agrees to repurchase them at an agreed future date at an agreed price. YOUR COMPANY NAME or YOUR SITE ADDRESSWhy are Repos so popularSee P64, Para2Eliminating credit problems in case you check the credit level of th

19、e lender.YOUR COMPANY NAME or YOUR SITE ADDRESSTwo variations on standard reposSee P64, Para3Reverse repo 反向回購 buy government securities and then sells them back Term repo 定期回購 exactly the same as a repo except the term of the loan is greater than 30 daysYOUR COMPANY NAME or YOUR SITE ADDRESSQuestio

20、n:What are the similarities among the markets mentioned before?YOUR COMPANY NAME or YOUR SITE ADDRESSCharacteristics of Money marketSee P64, Para6Large denominationsLow default risk（信用風險/a failure to pay financial debts ） Maturity of one year orYOUR COMPANY NAME or YOUR SITE ADDRESSThey are all shor

21、t-term debt instrument, that is, they all have a maturity of one year or less. YOUR COMPANY NAME or YOUR SITE ADDRESSCapital Market 資本市場See P65， L1Capital markets deal in long-term debts with a maturity longer than one year.YOUR COMPANY NAME or YOUR SITE ADDRESSLong and medium-term bank loansSecurit

22、ies markets Primary and Secondary Market 一級、二級市場See P65, Para1The primary market is that part of the capital market that deals with issue of new securities. YOUR COMPANY NAME or YOUR SITE ADDRESSPrimary and Secondary Market 一級、二級市場See P66, Para2, L3The secondary market is a financial market in which

23、 securities that have been preciously issued(and thus secondhand) can be resold. YOUR COMPANY NAME or YOUR SITE ADDRESS一級市場是證券、票據(jù)、股票、存款憑證等金融工具第一次發(fā)行的市場。通過銀行、企業(yè)等發(fā)行主體將這些金融工具投向社會。二級市場是金融工具流通轉讓的市場。金融工具一旦發(fā)行，就會在投資者之間轉讓。YOUR COMPANY NAME or YOUR SITE ADDRESSPublic offering and Private Placement 公開發(fā)行、私募發(fā)行Public offering: securities are offered to the public in a public offer through underwriting（通過背書公開發(fā)行）.Private placement: securities are offered privately to a limited number of qualified persons.YOUR COMPANY NAME or