FinancialMarketsChap16

- VOCAB CH 16 Federally Related Institutions Entities that are arms of the federal government Government Brokers(or dealers Brokers used by

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VOCAB CH 16 Federally Related Institutions – Entities that are arms of the federal government Government Brokers (or dealers) – Brokers used by primary dealers trading Treasury securities with each other Government Sponsored Enterprises – Privately owned, publicly chartered entities that are created by Congress to reduce the cost of capital for certain borrowing sectors of the economy deemed to be important enough to warrant assistance Hot Issue – Refers to a security (collateral) that is in short supply for a repurchase agreement Overnight Repo – A repurchase agreement with maturity of one day Primary Dealers – (also Recognized Dealers); Securities firms and commercial banks that the Fed will deal with in implementing its open market operations Reconstitution – The process of purchasing stripped Treasury securities to create synthetic Treasury coupon securities Reopened Issue – An outstanding issue that is increased at an auction instead of a new issue auctioned Stop Yield - In a Treasury security auction, the highest yield accepted by the Treasury [that is, the lowest price they are willing to sell the bond for] Stripped Treasury Security – a zero coupon instrument created by stripping a Treasury Security [That is, selling claims to each payment of the Treasury separately] STRIPS – A zero-coupon instrument created from stripping a Treasury security and created as part of the Treasury’s Stripped Trading of Registered Interest and Principal
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This note was uploaded on 01/27/2010 for the course ECON 252 taught by Professor Robertshiller during the Spring '08 term at Yale.

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- VOCAB CH 16 Federally Related Institutions Entities that are arms of the federal government Government Brokers(or dealers Brokers used by

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