同济大学：《货币金融学》课程电子教案（课件讲稿）Chapter 8 Financial Markets

9 同济大学 经济与管理学院 TONGJI UNIVERSITY SCHOOL OF ECONOMICS MANAGEMENT Chapter 8 Financial Markets

Chapter 8 Financial Markets

The Economics of Money and Banking Chapter 8 Financial Markets 》Agenda Introduction of Financial Markets ● Money Market ● Capital Market Innovation of Financial Markets ●垂●●●●●0 2 GUO YING SEM TONGJI UNIVERSITY

The Economics of Money and Banking 2 GUO YING SEM TONGJI UNIVERSITY  Introduction of Financial Markets  Money Market  Capital Market  Innovation of Financial Markets Chapter 8 Financial Markets Agenda

The Economics of Money and Banking Chapter 8 Financial Markets 》》 Definition of Financial Markets 1 ▣ Financial markets exist as a whole of the places and activities of the financing and transactions of financial instruments.Among them are Introduction of Financial Markets the transactions of various currencies and securities. In terms of the exact locations of financial markets,there are both visible and invisible financial markets. 3 GUO YING SEM TONGJI UNIVERSITY

The Economics of Money and Banking 3 GUO YING SEM TONGJI UNIVERSITY 1  Financial markets exist as a whole of the places and activities of the financing and transactions of financial instruments. Among them are the transactions of various currencies and securities.  In terms of the exact locations of financial markets, there are both visible and invisible financial markets. Definition of Financial Markets Chapter 8 Financial Markets Introduction of Financial Markets

The Economics of Money and Banking Chapter 8 Financial Markets >Classification of Financial Markets 1 Money markets and capital markets Introduction of Financial Markets Primary securities market and secondary securities Spot market and forward market Future market,option market and swap market 4 GUO YING SEM TONGJI UNIVERSITY

The Economics of Money and Banking 4 GUO YING SEM TONGJI UNIVERSITY 1 Classification of Financial Markets Money markets and capital markets Chapter 8 Financial Markets Introduction of Financial Markets Primary securities market and secondary securities Spot market and forward market Future market ,option market and swap market

The Economics of Money and Banking Chapter 8 Financial Markets >>Conditions for the Effective Financial Markets 1 The developed market economies Developed a sound financial system,banking system and the Introduction of Financial Markets considerable size of specialized personnel A considerable number and variety of financial instruments Comprehensive economic,financial regulations and regulatory system is efficient Fully developed transportation and communication facilities Favorable market conditions 5 GUO YING SEM TONGJI UNIVERSITY

The Economics of Money and Banking 5 GUO YING SEM TONGJI UNIVERSITY 1 Conditions for the Effective Financial Markets Chapter 8 Financial Markets Introduction of Financial Markets  The developed market economies Developed a sound financial system, banking system and the considerable size of specialized personnel A considerable number and variety of financial instruments Comprehensive economic, financial regulations and regulatory system is efficient Fully developed transportation and communication facilities Favorable market conditions

The Economics of Money and Banking Chapter 8 Financial Markets >>>Features of Money Market 2 Short maturity Money Market Meeting temporary demands for funds High liquidity Low risk Wholesale markets 6 GUO YING SEM TONGJI UNIVERSITY

The Economics of Money and Banking 6 GUO YING SEM TONGJI UNIVERSITY 2 Features of Money Market Chapter 8 Financial Markets Money Market Short maturity Meeting temporary demands for funds High liquidity Low risk Wholesale markets

The Economics of Money and Banking Chapter 8 Financial Markets 》Types of money market 2 A:Inter-bank market Money Inter-bank market is the market where the provisional financing with the maturity of one year of less in conducted between banks and other Market financial institutions. B:Discount market Discount market is a market where bills are transferred,ie.,discounted, on discounted and re-discounted.What are usually discounted in this market are notes such as treasury bills,commercial bills,certificates of deposits and outer short-term financial instruments 7 GUO YING SEM TONGJI UNIVERSITY

The Economics of Money and Banking 7 GUO YING SEM TONGJI UNIVERSITY 2 A: Inter-bank market Types of money market Chapter 8 Financial Markets Money Market Inter-bank market is the market where the provisional financing with the maturity of one year of less in conducted between banks and other financial institutions. B: Discount market Discount market is a market where bills are transferred, ie., discounted, on discounted and re-discounted. What are usually discounted in this market are notes such as treasury bills, commercial bills ,certificates of deposits and outer short-term financial instruments

The Economics of Money and Banking Chapter 8 Financial Markets 》Types of Money Market 2 C:Market of negotiable certificate of deposits The market of negotiable CDs is the one in which the negotiable CDs Money Market are issued and traded or transferred.CDs are one of the financial innovations originated in the US for the purpose of evading financial regulations in early 1960. 8 GUO YING SEM TONGJI UNIVERSITY

The Economics of Money and Banking 8 GUO YING SEM TONGJI UNIVERSITY 2 Types of Money Market C: Market of negotiable certificate of deposits The market of negotiable CDs is the one in which the negotiable CDs are issued and traded or transferred. CDs are one of the financial innovations originated in the US for the purpose of evading financial regulations in early 1960. Chapter 8 Financial Markets Money Market

The Economics of Money and Banking Chapter 8 Financial Markets 》Types of Money Market 2 D:Market for repurchase agreements or RPs RPs is the sale of securities together with an agreement for the seller Money Market to buy back the securities at a later date. The dealers participate in the market in order to manage their liquidity requirement and to take advantage of the anticipated changes in interest rates 9 GUO YING SEM TONGJI UNIVERSITY

The Economics of Money and Banking 9 GUO YING SEM TONGJI UNIVERSITY 2 Types of Money Market D: Market for repurchase agreements or RPs RPs is the sale of securities together with an agreement for the seller to buy back the securities at a later date. The dealers participate in the market in order to manage their liquidity requirement and to take advantage of the anticipated changes in interest rates Chapter 8 Financial Markets Money Market

The Economics of Money and Banking Chapter 8 Financial Markets >>Features of Capital Market 3 Long maturity Capital Market Fulfilling the gap between supply of and demand for long-term funds Involving huge amounts of funds Two"high "and one"low":higher yields,higher risks and lower liquidity 10 GUO YING SEM TONGJI UNIVERSITY

The Economics of Money and Banking 10 GUO YING SEM TONGJI UNIVERSITY 3 Chapter 8 Financial Markets Capital Market Features of Capital Market Long maturity Fulfilling the gap between supply of and demand for long-term funds Involving huge amounts of funds Two “ high “ and one “low” : higher yields, higher risks and lower liquidity