L06 Money and Bond Markets.pptx - FINA 1121 Financial Markets Products Course Leader Dr Nadia Benbouzid AOF/IIFE Lecturer Dr Thuong Nguyen Lecture Money

L06 Money and Bond Markets.pptx - FINA 1121 Financial...

This preview shows page 1 - 8 out of 49 pages.

1 FINA 1121: Financial Markets & Products Course Leader: Dr. Nadia Benbouzid AOF/IIFE Lecturer: Dr. Thuong Nguyen L e c t u r e 0 6 M o n e y a n d B o n d M a r k e t s ( F i x e d I n c o m e M a r k e t )
Image of page 1

Subscribe to view the full document.

Master of Science in Finance & Investment , Joint Program between University of Greenwich and Academy of Finance (Institute of International Finance Education), Hanoi Campus Outline Money market Bond market Bond pricing and risk 2
Image of page 2
Master of Science in Finance & Investment , Joint Program between University of Greenwich and Academy of Finance (Institute of International Finance Education), Hanoi Campus Financial Systems and financial instruments The formal mechanism for transferring excess funds from surplus units (lenders or savers) to deficit units who need funds (borrowers) indirectly by financial Institutions o Includes banks, investment banks and brokers, mutual funds, etc. directly by financial markets Financial securities Issuer or borrower: who needs money Holder or investor: who provides money 3
Image of page 3

Subscribe to view the full document.

Master of Science in Finance & Investment , Joint Program between University of Greenwich and Academy of Finance (Institute of International Finance Education), Hanoi Campus Financial Markets Fixed income market (spot): Money Market Securities o Treasury bills o Repurchase agreements o Commercial paper o Euronotes o Certificates of deposit o Eurodeposits o Bankers acceptances o Federal funds deposits 4 Bond Market Securities o Treasury notes o Treasury bonds o Municipal bonds o Corporate bonds o Mortgage-backed securities Money Market (maturity ≤ 1yr) Capital Market (maturity > 1yr) Bond Market Equity Market
Image of page 4
Master of Science in Finance & Investment , Joint Program between University of Greenwich and Academy of Finance (Institute of International Finance Education), Hanoi Campus Fixed Income Derivatives Forward rate agreement (FRA) Future on Eurodeposits Interest Rate Swap Bond Future Bond Option Cap Floor Swaption 5
Image of page 5

Subscribe to view the full document.

Master of Science in Finance & Investment , Joint Program between University of Greenwich and Academy of Finance (Institute of International Finance Education), Hanoi Campus Money Markets Treasury Bills Repurchase Agreement Commercial Paper Euronotes Certificate of Deposits Eurodeposits Bankers Acceptances Fed funds deposit 6
Image of page 6
Master of Science in Finance & Investment , Joint Program between University of Greenwich and Academy of Finance (Institute of International Finance Education), Hanoi Campus Money Market (MM) The securities in the money market are: short term o maturities of one year or less from their issue date highly liquid o The timing of cash inflows and outflows are not well synchronized.
Image of page 7

Subscribe to view the full document.

Image of page 8
  • Fall '19

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes