[经济学]金融技术分析Lecture_Module2.ppt

CHAPTER 1 The Investment Environment What is an Investment “An Investment is the current commitment of money or other resources in the expectation of reaping future benefits” Real Assets Versus Financial Assets Real Assets Assets used to produce goods and services (land, buildings, machine, knowledge or patents etc.) Financial Assets Claims on real assets (Stocks, Bonds etc.) The success and failure of financial assets we choose to purchase ultimately depend on the performance of the underlying real assets Types Financial Assets Allocation vs. Selection Asset allocation Choice among broad asset classes Choice of sector within a particular asset class Security selection Choice of which securities to hold within asset class Active vs. Passive Management Active Management Finding mispriced securities Timing the market Passive Management No attempt to find undervalued securities No attempt to time the market Holding a highly diversified portfolio Risk and Return Trade-off Primary vs. Secondary Market New issues of securities are offered to the public in the primary market. IPOs – Initial Public Offerings Previously issued securities are then traded in the secondary market Market Trends American Depository Receipts (ADRs) Foreign securities offered in dollars Mutual funds that invest internationally Instruments and vehicles continue to develop (WEBs) Exchange Traded Funds (ETFs) Recent Trends—Securitization Mortgage pass-through securities Other pass-through arrangements Car, student, home equity, credit card loans Offers opportunities for investors and originators Recent Trends—Financial Engineering Use of mathematical models and computer-based trading technology to synthesize new financial products Bundling and unbundling of cash flows Recent Trends—Computer Networks Online information dissemination Information is made cheaply and widely available to the public Automated trade crossing Direct trading among investors TED Spread The Financial Crisis