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Financial Institutions and Markets FIN 304. Dr. Andrew L. H. Parkes Day 2 “How do financial markets work?”. 卜安吉. Interest Rates and Bonds. Chapter 1 - Look at Figure 1 – what do you know? Today ’ s yield => curve, what does this tell you?. U. S. Treasury Yield Curve.
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Financial Institutions and MarketsFIN 304 Dr. Andrew L. H. Parkes Day 2 “How do financial markets work?” 卜安吉
Interest Rates and Bonds • Chapter 1 - Look at Figure 1 – what do you know? • Today’s yield => curve, what does this tell you? U. S. Treasury Yield Curve Financial Institutions and Markets, Ch. 2
Function of Financial Markets • Chapter 2: • Who are the largest Savers (Lenders)? • Who are the biggest Borrowers? • See Figure 1 on page 14. • Securities are assets for those buying them, but IOUs for sellers … what’s an IOU? Financial Institutions and Markets, Ch. 2
Structure of Financial Markets • Debt versus Equity • Primary vs. Secondary • Exchanges vs. OTC • Money vs. Capital • Internationalization Financial Institutions and Markets, Ch. 2
Structure of Financial Markets Financial Institutions and Markets, Ch. 2
Financial Intermediaries • Depository Institutions • CCB, Bank of China • Savings Institutions • China Post, for example • PICC, Ping An Insurance • Investment Intermediaries • Mutual Funds, MMMF Financial Institutions and Markets, Ch. 2
Regulation in the U.S. • SEC • CFTC • Office of the Comptroller of the Currency • The FED … p. 29 Financial Institutions and Markets, Ch. 2
KNOW WHO THE FED IS!?! • See my website if you need more info … • PPT from week 2 or 3 Intro • U.S. Macroeconomic Sites • People’s Bank of China • Website is available from mine • Know who they are and what they do! • These are the most important financial institutions in this class! Financial Institutions and Markets, Ch. 2