货币银行 Chapter 8 英文原版教材课件.pptVIP

Chapter 8 Money and Capital Markets Learning Objectives Visualize the structure of the government bond market Explain the interaction of Eurodollars, CDs, and Repurchase agreements and their connection to short-term government debt Understand the market structure of the corporate and municipal debt markets Describe the structure of equity markets and they fundamentals that help determine their price Introduction Market for U.S. government securities is the center of the money and capital markets U.S. Treasury has to sell many hundred billion dollars worth of securities each year to pay off maturing issues and finance current government operations Provides reference point for money market (debt less than one year) and capital markets (long-term debt/equities) The Government Bond Market When U.S. government runs a deficit, the Treasury Department borrows money by selling government bonds Sell to anyone willing to lend money to U.S. government Treasury issues a wide variety of maturities and types of government securities The Government Bond Market (Cont.) U.S. securities are basically two types Marketable [50%]--bought/sold in financial markets Nonmarketable [50%]--sell back to Treasury Types of Securities and Investors Treasury Bills (T-bills) Short-term—maturity of 3, 6 months or 1 year Zero-coupon—sold at discount below face value The Government Bond Market (Cont.) Types of Securities and Investors (Cont.) Treasury Notes Maturity between one and ten years Coupon instruments—interest usually paid semiannually Treasury Bonds Maturity longer than 10 year, up a maximum of 30 year Coupon instruments Coupons can be “stripped” and sold as separate instruments The Government Bond Market (Cont.) Types of Securities and Investors (Cont.) Treasury Inflation Protected Securities (TIPS) Most complicated security issued by the Treasury Issued in three maturities—5, 10, and 20 years Interest is paid semi-annually The principal of the TIPS grows at the same rate as inflation Int