金融市场与机构Money Markets推荐.ppt

3. Globalization of Money Markets Money market rates vary by country Segmented markets Tax differences Estimated exchange rates Government barriers to capital flows Deregulation Improves Financial Integration Capital Flows To Highest Rate of Return 3.1 Globalization of Money Markets Eurodollar deposits Dollar deposits in banks outside the U.S. Increased because of international trade growth and U.S. trade deficits over time No reserve requirements at banks outside U.S. Eurodollar CDs and FRCDs Eurodollar Loans Channel funds to other multinationals that need short-term financing Eurocurrency market (Eurocredit market) 3.2 Globalization of Money Markets Euronotes are issued in bearer form (1.3.6 monthes) Euro-commercial paper Issued without the backing of a banking syndicate Maturity tailored to investors Dealers that place paper create a secondary market Rates range between 50 and 100 basis points above the LIBOR rate 3.3 Globalization of Money Markets Performance of international securities Effective yield for international securities has two components The yield earned on the investment denominated in the currency of the investment The exchange rate effect Globalization of Money Markets Performance of international securities Yield for an international investment Yf SPf – PPf PPf Yf = Foreign investment’s yield SPf = Investment’s foreign currency selling price PPf = Investment’s foreign currency purchase = Globalization of Money Markets The exchange rate effect (%ΔS) measures the percentage change in the spot during the investment period % ΔS measures the expected percent change in the currency Currency appreciated, % ΔS is positive and adds to net yield Currency depreciated, % ΔS is negative and reduces net yield Chapter Concepts Summary Surplus units channel investments to securities issued by deficit units Debt securities markets Money Market Capital Market Money market securities Short-term High quality Very good liquidity CHAPTER 6 Money Market