chapter7moneymarkets(已修改)
2025-01-06 08:34 本頁面
【正文】 CHAPTER 7 Money Markets Chapter Objectives n Provide a background on money market securities n Explain how institutional investors use money markets n Explain the globalization of money markets Money Market Securities n Maturity of a year or less n Debt securities issued by corporations and governments that need shortterm funds n Large primary market focus n Purchased by corporations and financial institutions n Secondary market for securities Money Market Securities n Treasury Bills n Commercial paper n Negotiable certificates of deposits n Repurchase agreements n Federal funds n Banker’s acceptances Money Market Securities n Treasury bills l Issued to meet the shortterm needs of the . government l Attractive to investors u Minimal default risk—backed by Federal Government u Excellent liquidity for investors n Shortterm maturity n Very good secondary market Money Market Securities n Treasury bill auction (fill bids in amount determined by Treasury borrowing needs) l Bid process used to sell Tbills l Bids submitted to Federal Reserve banks by the deadline l Bid process u Accepts highest bids u Accepts bids until Treasury needs generated Competitive Bidding Money Market Securities n Treasury bill auction—nonpetitive bids ($1 million limit) l May be used to make sure bid is accepted l Price is the weighted average of the accepted petitive bids l Investors do not know the price in advance so they submit check for full par value l After the auction, investor receives check from the Treasury covering the difference between par and the actual price Nonpetitive Bidding Money Market Securities n Estimating Tbill yield l No coupon payments l Par or face value received at maturity l Yield at issue is the difference bet
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