Exch Rate Systems New York University Stern School 汇率制度纽约大学斯特恩商学院.pptVIP

InternationalFinancial Relations Prof. Ian GIDDY Stern School of Business New York University Schedule:Monday: Currency Systems MarketsTuesday: Bank Financing, Bonds Project FinancingWednesday: Equity Financing ValuationThursday: Structured Financing LBOFriday: Financial Restructuring, MA Monday:Exchange-Rate Systems Markets Global Financial Architecture Cap des Biches:Choices for GTI-Dakar Foreign Exchange Quotations Ecobank Cost of GBP: 3 19/32 = 3.5938% Cost of EUR, hedged into GBP: [1.4282(1+2 17/32/400)/1.4224-1]4 = 4.1641 Tuesday:International Bank and Bond Financing Pricing a Loan to BHP Pricing a Loan to BHP Case Study: Westpac Bond Financing Why would Westpac issue a US dollar Eurobond? Why has the bank issued other kinds of bonds? How would you explain the Eurobond issuance process and costs to an issuer? What would be involved in getting a rating for the company? Westpac Bond Financing Goals Diversification ???- Currency ???- Retail and wholesale markets ???- Debt product types and maturity term ???- Debt investor types and location Flexibility Reduce cost and volatility Global debt presence and performance Westpac Ratings For senior unsecured debt obligations Westpac has been assigned the following credit ratings: Wednesday:Equity Financing Techniques Underwriting Sequence Engagement: Mandate signed by issuer engaging lead manager Due Diligence: Conducted by Lead manager Documentation: Loan agreement, Prospectus Signing: Underwriting agreement signed and issue priced Closing: Settlement of the offering Distribution Pricing Debt Instruments Bonds priced according to yield over benchmark (spread) Yield too low – issue does not sell Yield too high – too much given away Generally syndicate holds price for a day; in a successful issue yields gradually tighten Equity Mature issue: based on current market price and market conditions, small premium for dilution; comparables IPO: comparables and discounted cash flow analysis Valuing