100% de satisfacción garantizada Inmediatamente disponible después del pago Tanto en línea como en PDF No estas atado a nada
logo-home
College aantekeningen / samenvatting Financial Markets And Institutions (E_FIN_FMI) 10,49 €   Añadir al carrito

Notas de lectura

College aantekeningen / samenvatting Financial Markets And Institutions (E_FIN_FMI)

1 revisar
 42 vistas  4 veces vendidas
  • Grado
  • Institución

Summary of all the slides and the notations of the lecture. Added all important extra information which was said in the lecture.

Vista previa 4 fuera de 46  páginas

  • 23 de diciembre de 2021
  • 46
  • 2021/2022
  • Notas de lectura
  • Dr. alexey ivashchenko
  • Todas las clases

1  revisar

review-writer-avatar

Por: tymenbakker • 1 año hace

avatar-seller
Financial Market and Institutions Lecture
Nijsje Venrooy


Period 2-2021




1

,Introduction week 1: Financial Market and Institutions
Flow of funds through the financial system




Why financial intermediaries?
1. Transaction costs
Intermediaries take advantage of economies of scale. They also reduce search costs.
2. Risk sharing
Intermediaries facilitate hedging against ‘bad’ states. Thus, they make markets ‘more
complete’.
3. Information asymmetries: adverse selection and moral hazard
Information inefficiencies may lead to market breakdown. Financial intermediaries, through
pre-contractual research and post-contractual monitoring, reduce adverse selection and
moral hazard risks.

Primary and secondary markets
• Primary markets: where debt or equity is raised (funds are borrowed).
o Investment banks charge fees for organizing the issuance of securities. The
desks in charge are usually called ECM (equity capital markets) and DCM
(debt capital markets). It doesn’t need to be a public market. Markets for
loans and private equity financing are also primary markets with this regard.
• Secondary markets: where the value of existing (previously-issued) debt and equity
securities is determined by virtue of trading.
o This is a huge ecosystem: investors, brokers and dealers, exchanges, trading
platforms, clearing houses, rating agencies etc.




2

,Securities markets by type:
• Money markets
o Instruments with maturity < 1 year. Mainly fixed income and FX
• Capital markets
o Instruments with maturity > 1 year. Mainly equity and fixed income

Exchanges and over-the-counter (OTC) markets
• OTC markets: fragmented marketplace
• Exchange markets: centralized marketplace




3

, Week 1: Interest rates and Fixed Income markets

Lecture 1: Yield curve and fixed income instruments

Types of instruments
Bonds
• Government and corporate, fixed and floating coupon
• Nonconvertible preferred stock

Derivative Instruments
• Exchange-traded: interest-rate futures and options
• OTC: interest-rate forwards, swaps, options, swaptions

Securitized Products
• Mortgage-backed securities (MBS, CMBS, TBA)
• Asset-backed securities (car loans, student loans, etc.)

Formula
Assume there is NO RISK associated with the cash flows of an instrument/project. Then:




For notation in this course:
Small t or 0 is time RIGHT NOW.
Big T is some time in the future.




4

Los beneficios de comprar resúmenes en Stuvia estan en línea:

Garantiza la calidad de los comentarios

Garantiza la calidad de los comentarios

Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!

Compra fácil y rápido

Compra fácil y rápido

Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.

Enfócate en lo más importante

Enfócate en lo más importante

Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable. Así llegas a la conclusión rapidamente!

Preguntas frecuentes

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

100% de satisfacción garantizada: ¿Cómo funciona?

Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller nijsjevenrooy. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for 10,49 €. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

45,681 summaries were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Empieza a vender

Vistos recientemente


10,49 €  4x  vendido
  • (1)
  Añadir