《国际金融课件》unit 5 financial market

1、Financial MarketYOUR COMPANY NAME or YOUR SITE ADDRESSFinancial Market 金融市场See P58, LYOUR COMPANY NAME or YOUR SITE ADDRESSFinancial Market 金融市场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 货币市场Money market is a financial market in which only short-term debt（短期债务）instrument (normally maturity of one year or less) are traded.YOUR COMPANY NAME or YOUR SITE ADDRESSInter-bank Market （银行）同业拆借市场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 同业拆借率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 伦敦同业拆借率（伦敦的第一流银行之间短期资金借贷的利率）SIBOR 新加坡同业拆借率（新加坡市场上，银行与银行之间一年期以下的短期资金借贷利率）HIBOR 香港同业拆借率SHIBOR 上海同业拆借率EURIBO 欧元银行同业拆借率YOUR COMPANY NAME or YOUR SITE ADDRESSDiscount Market 贴现市

6、场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 贴现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 转贴现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 再贴现See P61，Para2Re-discount refers to the action in which a discount house（贴现公司） 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 再贴现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，最后贷款者； 最后的补救办法）. 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 欧洲美元市场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 国库卷市场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 信用风险）. 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 回购市场Repo-short for repurchase agreement（回购协议）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 反向回购 buy government securities and then sells them back Term repo 定期回购 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（信用风险/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 资本市场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 一级、二级市场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 一级、二级市场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一级市场是证券、票据、股票、存款凭证等金融工具第一次发行的市场。通过银行、企业等发行主体将这些金融工具投向社会。二级市场是金融工具流通转让的市场。金融工具一旦发行，就会在投资者之间转让。YOUR COMPANY NAME or YOUR SITE ADDRESSPublic offering and Private Placement 公开发行、私募发行Public offering: securities are offered to the public in a public offer through underwriting（通过背书公开发行）.Private placement: securities are offered privately to a limited number of qualified persons.YOUR COMPANY NAME or