新编金融英语教程Chapter15FinancialInnovationandDevelopment课件

1、Financial Innovation and DevelopmentChapter 15Lead-inLanguage NotesKey PointsFollow-up Tasks15.115.315.215.4CONTENTS15.5Extended Tasks15.1Lead-inThis chapter will first of all introduce the foundations of financial innovation. Then it will explain why the financial innovation has developed at a fast

2、 pace ever since the mid-1960s. Finally, it will take a look at the various financial derivatives.On the cost side, the malleability of financial claims and the application of emerging computer and telecommunications technology reduced the transactions costs associated with managing, moving and moni

3、toring funds. On the benefits side, three factors came into play:Firstly, the rise in interest rates increased the benefits in terms of higher profits associated with avoiding various regulations. Secondly, increased domestic and global competition from other financial institutions increased the ben

4、efits of financial innovation to meet and beat this competition. Finally, the benefits and costs of financial innovations are often interdependent. 15.2 Key Points15.2.1 Foundations of Financial Innovation15.2 Key Points15.2.2 Development of Financial InnovationTwo other laws eliminated barriers to

5、interstate branching and allowed banks, securities firms, and insurance companies to merge. in the 1990sAdvances in computer and information technologies have made the increased competition possible and have transformed the financial system into a global system.many innovations were centered on evad

6、ing regulations. In the 1970sthe banking system was deregulated.Beginning in 1980in a globalized financial environment15.2 Key Points15.2.3 Financial Derivativesreduce interest rate and exchange rate risksused by banks and other lenders to unbundle credit riskAn interest rate swap is a financial inn

7、ovation that can be used to reduce the risk of future interest rate changes.Securitization is the process whereby relatively illiquid financial assets are packaged together and sold off to individual investors. Securitization Credit derivativesSwap agreementsForwards, futures, and option agreementsb

8、arrier bri(r) 障碍ceiling si:l 上限deregulate di:regjulet 放松监管disintermediation dsntmi:den 非居间化，不干预payoff pe:f 收益fungible fndbl 代替的hedge hed 避免malleability mlblt 延展性，可塑性merge m:d 兼并mortgage m:gd 抵押proceeds prsi:dz 收入，收益securitization skjrtzen 证券化unbundle nbndl 解绑，分散volatile vltal 易变的，不稳定的15.3 Language N

9、otesI. Wordscollateralized mortgage obligationscredit derivative credit transaction D regulations derivative contracts financial claim financial innovation hedge risks interest-bearing checkable deposit 15.3 Language NotesII. Phrases interest rate ceiling mortgage-backed security option agreements p

10、rofit margins Q regulations reduce losses swap agreements rules and regulations tax planningthe U.S. Treasury 美国财政部unit of account计量单位1. The fact that financial claims are fungible makes the trading of them highly receptive to computer advances. 2. Forwards, futures and option agreements are financi

11、al innovations used by financial institutions and others to reduce interest rate and exchange rate risks.3. Securitization is the process whereby relatively illiquid financial assets are packaged together and sold off to individual investors. In essence, securitization turns these relatively illiqui

12、d instruments into quite liquid investments called asset-backed securities.4. Securitization became popular because it provides a way of protecting against interest rate risk in an environment of increased interest rate volatility.5.Collateralized mortgages redirect the cash ows (principal and inter

13、est) of mortgage-related products to various classes of bondholders, thus creating financial instruments with varying prepayment risks and varying returns.15.3 Language NotesIII. Sentences 15.4 Follow-up TasksI. Matching( )1.currency swap A. 降低风险( )2. bondholder B. 金融机构( )3. Cash flowC. 保险公司( )4. de

14、rivative contract D. 证券公司 ( )5. hedge risk E. 货币互换( )6. insurance companyF. 债券持有人( )7. financial derivative G. 分散风险( )8. financial institution H. 衍生品合约 ( )9. securities firmI. 现金流( )10. unbundle risks J. 金融衍生产品Directions: Match the English words and phrases in the left column with the proper Chinese

15、 equivalents in the right column. 15.4 Follow-up TasksII. JudgmentsDirections: Decide whether each of the following statements is true (T) or false (F). 1. Many of the recent financial innovations can be attributed to the progress in information and computer technologies. ( )2. Since 1980, the contr

16、ol of the banking system is becoming tighter and tighter. ( )3. Innovations have made the financial sector more and more competitive in the various markets of the world.4. Although the derivative security market had existed for centuries, it didnt undergo a fast development until the mid of the 20th

17、 Century. ( )5. The derivative security market is the newest type of the financial security markets. ( )15.4 Follow-up TasksIII. Short Answer Questions Directions: Answer each of the following questions briefly.1. Which two factors have played a key role in the financial innovation starting in the 1

18、960s?2. How do the computer and telecommunications technologies affect the operation of the financial market?3. What do Regulation D and Regulation Q mean respectively?4. Can you list three examples of how the banking system was deregulated in the 1980s and 1990s?5. Can you understand derivatives in

19、 terms of financial innovation?15.4 Follow-up TasksIV. Translation Directions: Translate the following Chinese paragraph into English.金融创新，始于20世纪50年代末60年代初，是指通过变更现有的金融体制和增加新的金融工具，以获取现有的金融体制和金融工具所无法取得的潜在的利润。可以把金融创新粗略地分为金融技术创新、金融产品创新和金融制度创新三大类。需要指出的是，金融创新需要金融监管的跟进。只有在合理有效的监管下，金融创新才能沿着正确的轨道健康发展。The ear

20、ly bird catches the worm.English proverbI did not want to miss a strategic opportunity on account of a tactical error. George SorosIm fascinated by chaos. Thats really how I make my money: understanding the revolutionary process in financial markets.George SorosThe heart and soul of the company is creativity and innovation. Bob IgerIn the business world, the rearview mirror is always clearer than the windshield. Warren Buffett15.5 Extended TasksI. Proverbs and Quotes15.5 Extended TasksII. Interview ExcerptRobert Merton (above left) is an American economist