(direction finance直接融资)Financial Markets
Definition
financial market is a market where people trade financial securities
(= financial assets = financial products = financial instruments)
security is a claim on future income or assets
直接融资Direct finance: borrowers borrow funds directly from lenders in
financial markets by selling them securities
3 types三种分类方法
按东西分
债务Bond markets :markets where bonds (= debt instruments) are traded
Bonds: fixed amounts of payments at regular intervals, until maturity
Key features: principal = face value, yield利息, maturity
Maturity: short-term, intermediate-term, long-term
股权Equity markets: where equities (=stocks) are traded
Equities: claims to share in the net income and the assets of a business, in the form of periodic dividends
No maturity date 到期日
按次数分
一级市场Primary Markets
Investment banks underwrite承销 securities in
This is where firms get financed
二级市场Secondary Markets
Brokers 经纪人and dealers交易商 work in
This is where stocks are traded and stock prices determined
Exchange 交易所and over-the-counter (OTC) markets场外市场
按时间分
货币市场 Money markets
short-term debt instruments (less then a year)
Liquid, safe, but low returns
Held by firms and commercial banks
两个市场的 金融市场工具Securities traded in financial markets
Money market instruments
1. Treasury bills 国库券(maturity: 1, 3, 6 month)
2. Repurchase agreements 回购协议(Repo)
3. Negotiable bank certificates of deposit可转让存单 (CDs)
4. Commercial paper商业票据
5. Federal funds联邦基金 (i.e., interbank lending): Federal funds rate, Libor, Shibor, etc.
Capital market instruments
Stocks
Mortgages抵押贷款
Corporate bonds企业债券
Consumer and bank commercial loans
Government bonds and municipal 市政bonds
U.S. government agency securities
资本市场Capital markets
longer-term debt and equity instruments
Less liquid, more risky (prices fluctuate more), higher returns
Held by insurance companies and pension funds
(indirect finance间接)Financial Intermediaries
Functions
borrow funds from lenders and then
using these funds to make loans to borrowers
types
1.Depository institutions:存款机构
Accept deposits from individuals and institutions and make loans
2. Contractual savings institutions契约型储蓄机构
Acquire funds at periodic intervals on a contractual basis
3. Investment intermediaries投资中介