金融学（第四版）课件：Financial Markets,Instruments,and Market Makers

FinancialMarkets,Instruments,andMarketMakers

2IntroducingFinancialMarketsFinancialmarketscanbeclassifiedinmanydifferentwaysindividualsubmarketsaccordingtothetypeoffinancialclaimthatistradedassignmenttoeitherthemoneymarketorthecapitalmarketbasedonthelengthofthetermoftheinstruments3IntroducingFinancialMarketsThemoneymarketincludesthosemarketswheresecuritieswithoriginalmaturitiesofoneyearorlessaretradedTreasurybillscommercialpapernegotiablecertificatesofdeposit(CDs)4IntroducingFinancialMarketsThecapitalmarketincludesthosemarketswheresecuritieswithoriginalmaturitiesofmorethanoneyeararetradedcorporatebondsstocksmortgagesU.S.Treasurynotesandbonds5IntroducingFinancialMarketsInthisclassificationscheme,wearegroupinginstrumentsbytheirtermtomaturitythelengthoftimefromwhentheinstrumentisinitiallyissueduntilitmatures6IntroducingFinancialMarketsAthirdwaytoclassifyfinancialmarketsistocategorizethemastheprimarymarketorthesecondarymarkettheprimarymarketisthemarketinwhichasecurityisinitiallysoldforthefirsttimethesecondarymarketisthemarketinwhichasecurityisfurthertraded7IntroducingFinancialMarketsInhigh-qualitysecondarymarkets,securitiesaretradedatrelativelylowcostandlittleinconvenienceThelackofasmoothlyfunctioningsecondarymarketwillinhibitthefinancingofplanneddeficitsintheprimarymarketwillhaveanadverseeffectoninvestmentandeconomicgrowthovertime8IntroducingFinancialMarketsAnotherwaytoclassifyfinancialmarketsisbywhetherthetransactionstheyarrangeoccurinstantlyorinthefutureaccordingtotermsdecidedtodayinspotmarkets,financialinstrumentstradeinstantaneouslythespotpriceisthepriceforimmediatedeliveryinfinancialfuturesorfinancialforwardmarkets,transactionsoccurtodayfordeliveryinthefuturealsocalledderivativemarkets9IntroducingFinancialMarketsFinancialfuturesagreementstradeU.S.governmentsecuritiesofseveralmaturities,severalstockmarketindexes,andforeigncurrenciesonfuturespecificdatesallquantitiesandfuturedatesarestandardized10IntroducingFinancialMarketsFinancialforwardagreementsaretransactionsthatareconsummatedtodayforthepurchaseorsaleoffinancialinstrumentsonadateinthefuturewherethequantitiesanddeliverydatesarenotstandardized11IntroducingFinancialMarketsFinancialfuturesandforwardmarketsfulfilltwobasicfunctionsmaybeusedtoreducetheriskassociatedwithfuturepricechangesby“lockingin”afutureorforwardpricetodaymaybeusedtospeculatespeculationinfinancialsecuritiesisthebuyingorsellingofsecuritiesinthehopesofprofitingfromfuturepricechanges12ThePrincipalMoneyMarketInstruments:AmountOutstanding,EndofYear(inBillionsofDollars)13TheMoneyMarket14U.S.TreasuryBillsU.S.Treasurybills(T-bills)areshort-termdebtinstrumentsoftheU.S.governmentwithtypicalmaturitiesof3to12monthstheypayasetamountatmaturityandhavenoexplicitinterestpaymentstheypayinterestbyinitiallysellingatadiscounttheyarethemostliquidandthesafestofallofthemoneymarketinstruments15NegotiableCertificatesofDeposit(CDs)Acertificateofdeposit(CD)isadebtinstrumentsoldbyadepositoryinstitutionthatpaysannualinterestpaymentsequaltoafixedpercentageoftheoriginalpurchasepriceatmaturity,theoriginalpriceisalsopaidbackmosthaveamaturityof1to12months16CommercialPaperCommercialpaperisashort-termdebtinstrumentissuedbycorporationsmostissupportedbyabackuplineofcredit17Bankers’AcceptancesBankers’acceptancesaremoneymarketinstrumentscreatedinthecourseoffinancinginternationaltradeabankdraftissuedbyafirmandpayableonsomefuturedateforafee,abankstampsthedraftas“accepted”therebyguaranteeingthatthedraftwillbepaidevenifthefirmdefaultsthebank’screditworthinessissubstitutedforthatofthefirm18Bankers’AcceptancesTransactionoccurswithabankers’acceptance;lessrisktotheexporterIMPORTEREXPORTERGoodsNowCashLaterDocumentsNowBANKEXPORTERIMPORTERINVESTORGoodsNowCashLaterCashLaterAcceptedTimeDraftNowAcceptedNowCashNowTransactionoccurswithoutabankers’acceptance19RepurchaseAgreementsRepurchaseagreementsareshort-termagreementsinwhichthesellersellsagovernmentsecuritytoabuyerandsimultaneouslyagreestobuyitbackonalaterdateatahigherpricethesellerhasborrowedfundsfortheshorttermandthebuyerhasmadeasecuredloanifthesellerfailstopaybacktheloan,thebuyerkeepsthegovernmentsecurity20Federal(Fed)FundsFederal(Fed)fundsaretypicallyovernightloansbetweendepositoryinstitutionsoftheirdepositsattheFedfinancialmarketparticipantswatchthefederalfundsratecloselytojudgethetightnessofcreditinthefinancialsystem21EurodollarsEurodollarsaredollar-denominateddepositsheldinbanksoutsidetheUnitedStatesnotsubjecttodomesticregulationsnotcoveredbydepositinsurance22ThePrincipalCapitalMarketInstruments:AmountOutstanding,EndofYear(inBillionsofDollars)23TheCapitalMarket24StocksStocksareequityclaimsrepresentingownershipofthenetincomeandassetsofacorporationtheincomethatstockholdersreceiveiscalleddividendspreferredstockpaysafixeddividendcommonstockpaysavariabledividenddependsontheprofitleftoverafterpreferredstockholdershavebeenpaidandretainedearningssetaside25StocksSeveralstockindexesmeasuretheoverallmovementofcommonstockpricesDowJonesIndustrialAverageStandard&Poor’s500StockIndex26MortgagesMortgagesareloanstopurchasesingle-ormultiple-familyresidentialhousing,land,orotherrealstructuresthestructureservesascollateralfortheloantherearetwogovernment-sponsoredenterprisesthatsellbondsandusetheproceedstopurchasemortgagesFederalNationalMortgageAssociation(FannieMae)FederalHomeLoanMortgageCorporation(FreddieMac)27CorporateBondsCorporatebondsarelong-termbondsissuedbycorporationsusuallywithexcellentcreditratingsmaturitiesrangefrom2to30yearstheownerreceivesaninterestpaymenttwiceayearandtheprincipalatmaturity28U.S.GovernmentSecuritiesU.S.governmentsecuritiesarelong-termdebtinstrumentswithmaturitiesof2toupto30yearsissuedbythe

U.S.Treasurytofinancethedeficitsofthefederalgovernmentnoteshaveanoriginalmaturityof2to10yearsbondshaveanoriginalmaturitybetween10and30years29U.S.GovernmentAgencySecuritiesU.S.governmentagencysecuritiesarelong-termbondsissuedbyvariousgovernmentagenciessomeareguaranteedbythefederalgovernmentandsomearenot30StateandLocalGovernmentBonds(Municipals)Stateandlocalgovernmentbonds(municipals)arelong-terminstrumentsissuedbystateandlocalgovernmentstofinanceexpendituresonschools,roads,collegedorms,etc.interestpaymentsareexemptfromfederalincometaxesandfromstatetaxesforinvestorslivingintheissuingstate31StateandLocalGovernmentBonds(Municipals)Paymentsaregenerallysecuredinoneoftwowaysrevenuebondsareusedtofinancespecificprojectsandtheproceedsofthoseprojectsareusedtopayoffthebondholdersgeneralobligationbondsarebackedbythefullfaithandcreditoftheissuertaxescanberaisedtopaytheinterestandprincipalongeneralobligationbonds32TheRoleofMarketMakersTheparticipantsinfinancialmarketsarethebuyers,sellers,andmarketmakersmarketmakersfunctionascoordinatorswholinkupbuyersandsellersoffinancialinstrumentsarrangeandexecutetradesbetweenbuyersandsellersmaymakemarketsinonetypeofsecurityorseveraldifferenttypesofsecurities33TheRoleofMarketMakersAbrokerarrangestradesbetweenbuyersandsellersAdealer(inadditiontoarrangingtrades)standsreadytobeaprincipalinatransactionstandsreadytopurchaseandholdsecuritiessoldbyinvestorscarriesaninventoryofsecuritiesandsellsthemtootherinvestors34TheRoleofMarketMakersAmarketmakerhelpstomaintainasmoothlyfunctioning,orderlyfinancialmarketifashort-termimbalanceoccursbetweenthequantityofasecuritydemandedandthequantitysupplied,themarketmakermayincreaseordecreasehisinventorytoensurethatthereisabuyerforeverysellerandasellerforeverybuyer35WhyMarketMakersMakeMarketsThewillingnessofamarketmakertomakeamarketforaparticularsecuritywillbeafunctionoftheexpectedprofitsandrisksassociatedwithbuying,selling,andholdingthattypeofsecurityGenerally,amarketmakerchargesabrokeragefeeofacommissionforeachtransaction36WhyMarketMakersMakeMarketsMarketmakersalsocollectafeeinsomemarketsbybuyingaparticularsecurityatoneprice–thebidprice–andsellingitatahigherprice–theaskedpricetherevenuereceivedbythemarketmakerisafunctionofthespreadbetweenthesetwopricesandthenumberoftransactionsinwhichthemarketmakerandthepublicengage37MarketMakersMARKETMAKERSAssistinraisingfundstofinancedeficitsbymarketingaborrower’snewsecuritiesintheprimarymarketAdvisepotentialbuyersandsellersofsecuritiesonthecourseofactionlikelytominimizecostsandmaximizereturnsStandreadytobuyorselloutstandingsecuritiesinthesecondarymarket38TheMarketingandSubsequentTradingofaCorporateBondAPEIwantstoissuebondstofinanceinvestmentSalomonsells“used”APEIbondstoanotherSSUSecondaryMarketActivitySalomonSmithBarneymakesamarketinAPEIbondsbybuyingbondsfromSSUsOneyearlaterSSUs(orfinancialintermediaries)decidetosellsomeoftheirAPEIbondsSSUsandfinancialintermediariesbuyAPEIbondsthatwillmaturein20yearsPrimaryMarketActivityMerrillLynchagrees(forafee)todesignabondofferingandtomarket(sell)thebonds39MarketMakingandLiquidityThequalityandcostofservicesprovidedbymarketmakersaffectthetransactionscostsassociatedwithbuyingorsellingvarioussecuritiesThecostsandconvenienceassociatedwithtradingparticularsecurities,inturn,affecttheliquidityofthesesecurities40SummaryofMajorPointsThemarketsforparticulartypesoffinancialclaimsareconnected,notseparateentitiestheconnectednessofthemarketsresultsfromthebuyingandselling(trading)ofsecuritiesbytheparticipantsinthemarketsthesubstitutionamongavailablealternativeinstruments41SummaryofMajorPointsThemoneymarketiswheresecuritieswithoriginalmaturitiesofoneyearorlessaretradedThecapitalmarketiswheresecuritieswithoriginalmaturitiesofmorethanoneyeararetraded42SummaryofMajorPointsPrimarymarketsarewherenewsecurities,issuedtofinancecurrentdeficits,areboughtandsoldSecondarymarketsarewhereoutstandingsecurities(issuedearlier)areboughtandsold43SummaryofMajorPointsSecondarymarketsareimportanttotheoperationofanefficientfinancialsystemwell-organized,smoothlyfunctioning,high-qualitysecondarymarketsfacilitatethetradingofoutstandingsecuritiesatarelativelylowcostandlittleinconveniencethis,inturn,facilitatesthefinancingofplanneddeficitsinprimarymarkets44SummaryofMajorPointsThespotmarketisthemarketforthepurchaseandsaleofsecuritiesforimmediatedelivery45SummaryofMajorPointsInthefuturesandforwardmarkets,contractsareenteredintotod