TAILIEUCHUNG - Lecture Principles of money, banking, and financial markets (12th edition): Chapter 8 - Ritter, Silber, Udell

Chapter 8 - Money and capital markets. In this chapter you will learn to visualize the structure of the government bond market; explain the interaction of Eurodollars, CDs, and Repurchase agreements and their connection to short-term government debt; understand the market structure of the corporate and municipal debt markets; describe the structure of equity markets and the fundamentals that help determine their price. | Chapter 8 Money and Capital Markets Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Learning Objectives • Visualize the structure of the government bond market • Explain the interaction of Eurodollars, CDs, and Repurchase agreements and their connection to shortterm government debt • Understand the market structure of the corporate and municipal debt markets • Describe the structure of equity markets and they fundamentals that help determine their price Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 8-2 Introduction • Market for . government securities is the center of the money and capital markets • . Treasury has to sell many hundred billion dollars worth of securities each year to pay off maturing issues and finance current government operations • Provides reference point for money market (debt less than one year) and capital markets (long-term debt/equities) Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 8-3 1 The Government Bond Market • When . government runs a deficit, the Treasury Department borrows money by selling government bonds • Sell to anyone willing to lend money to . government • Treasury issues a wide variety of maturities and types of government securities Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 8-4 The Government Bond Market (Cont.) • . securities are basically two types – Marketable [50%]--bought/sold in financial markets – Nonmarketable [50%]--sell back to Treasury • Types of Securities and Investors – Treasury Bills (T-bills) • Short-term—maturity of 3, 6 months or 1 year • Zero-coupon—sold at discount below face value Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 8-5 The Government Bond Market (Cont.) • Types of Securities and Investors (Cont.) – Treasury Notes • Maturity between one and ten years • Coupon instruments—interest usually paid semiannually – Treasury Bonds • Maturity longer than 10 year, up a maximum of 30 year • .

• Ngân hàng - Tín dụng
• Financial markets
• Financial institutions
• Monetary policy
• International finance
• Monetary theory
• Capital markets
• Lecture Financial markets
• Thị trường tài chính
• Financial futures markets
• Valuation of financial futures
• Interest rate futures
• Lecture Financial markets and institutions
• Financial institutions markets
• Money markets
• Derivative securities markets
• Futures markets
• Option markets
• Swap markets
• Foreign exchange derivative markets
• Bank management
• Types of Financial Markets
• Securities traded
• Valuation of securities
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Commercial banks
• Financial statements
• Risks at financial institutions
• Market risk
• Exchange rates
• Economics 252
• Efficient markets
• Excess volatility
• Efficient Markets Hypothesis
• Interest rate derivative markets
• Interest rate swaps
• Mortgage backed securities
• Globalization of mortgage markets
• Financial markets and institutions
• The financial system
• Interest rates change
• Financial markets efficient
• Term structure affect interest rates
• The stock market
• The mortgage markets
• The international financial system
• Financial regulation
• Interest rate fundamentals
• Interest rates
• Security valuation