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Unformatted text preview: and Net Worth Liabilities Deposits Debt and other borrowed funds Federal funds and repurchase agreements Other Total liabilities 1,066.3 2,406.1 6,279.1 1,153.9 10,905.4 3.1% 5.9% 9.0% 12,157.3 100.0% 8,674.6 1,291.8 499.1 308.4 71.4% 10.6% 4.1% 2.5% 10,773.9 88.6% 1,383.4 11.4% 12,157.3 100.0% 8.8% 19.8% 51.6% 9.5% 89.7% 373.9 721.0 1,094.9 $ Billion % Total Net worth Note: Column sums may differ from total because of rounding error. SOURCE: Federal Deposit Insurance Corporation, www.fdic.gov, July 2011. 1-28 Table 1.4 Balance Sheet of Table Nonfinancial U.S. Business, 2011 Assets $ Billion % Total Real assets Liabilities and Net Worth $ Billion % Total Liabilities Equipment and software Real estate Inventories Total real assets 4,109 7,676 1,876 13,661 14.6% 27.2% 6.7% 48.5% Financial assets Deposits and cash Marketable securities Trade and consumer credit Other Total financial assets TOTAL 1,009 899 2,388 10,239 14,535 28,196 3.6% 3.2% 8.5% 36.3% 51.5% 100.0% Bonds and mortgages Bank loans Other loans Trade debt Other Total liabilities 5,321 538 1,227 1,863 4,559 13,509 18.9% 1.9% 4.4% 6.6% 16.2% 47.9% Net worth 14,687 28,196 52.1% 100.0% Note: Column sums may differ from total because of rounding error. SOURCE: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, June 2011. 1-29 Key Trends - Globalization International and Global Markets Continue Developing Developing Managing foreign exchange Diversification to improve performance Instruments and vehicles continue to Instruments develop (WEBs) develop Information and analysis improves 1-30 Key Trends - Securitization • Loans of a given type such as mortgages are placed into a ‘pool’ and new securities are issued that use the loan payments as collateral. that • The securities are marketable and are purchased The by many institutions. by “Shadow banking system” • End result is more investment opportunities for End purchasers, and spreading loan credit risk among more institutions more 1-31 Securitization – Cont. Securitization has grown rapidly due to Securitization • Changes in financial institutions and regulation Changes permitting its growth, p...
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This document was uploaded on 02/27/2014 for the course FIN Derivative at San Diego State.

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