tailieunhanh - Lecture Financial institutions, instruments and markets (4/e): Chapter 12 - Christopher Viney

Chapter 12 - Government debt, monetary policy, the payments system and interest rates. After completing this chapter, students will be able to: Outline reasons why governments borrow; describe features of the main debt instruments and market participants; show how government securities are priced; discuss monetary policy, interest rates and the payments system. | Chapter 12 Government Debt, Monetary Policy, the Payments System and Interest rates Websites: Learning Objectives Outline reasons why governments borrow Describe features of the main debt instruments and market participants Show how government securities are priced Discuss monetary policy, interest rates and the payments system Chapter Organisation Introduction Commonwealth Govt Borrowing Types of Commonwealth Govt Securities State Govt Securities Monetary Policy The Payments System Summary Introduction Govts need to fund capital and recurrent expenditures This is achieved by issuing debt securities in the money and capital markets Fiscal policy relates to the annual incomes and expenditures of a govt Monetary policy affects the level of short-term interest rates by adjusting the level of financial system liquidity Chapter Organisation Introduction Commonwealth Govt Borrowing Types of Commonwealth Govt . | Chapter 12 Government Debt, Monetary Policy, the Payments System and Interest rates Websites: Learning Objectives Outline reasons why governments borrow Describe features of the main debt instruments and market participants Show how government securities are priced Discuss monetary policy, interest rates and the payments system Chapter Organisation Introduction Commonwealth Govt Borrowing Types of Commonwealth Govt Securities State Govt Securities Monetary Policy The Payments System Summary Introduction Govts need to fund capital and recurrent expenditures This is achieved by issuing debt securities in the money and capital markets Fiscal policy relates to the annual incomes and expenditures of a govt Monetary policy affects the level of short-term interest rates by adjusting the level of financial system liquidity Chapter Organisation Introduction Commonwealth Govt Borrowing Types of Commonwealth Govt Securities State Govt Securities Monetary Policy The Payments System Summary Commonwealth Govt Borrowing Full financial year Borrow to finance budget deficits Rollover existing bonds which mature Retire debt at/prior to maturity when budget is in surplus Within financial year Borrow to finance short-term mismatches between receipts and payments Rollover existing debt Chapter Organisation Introduction Commonwealth Govt Borrowing Types of Commonwealth Govt Securities State Govt Securities Monetary Policy The Payments System Summary Types of Cwlth Govt Securities Like the private sector, the Cwlth govt issues both coupon and discount securities Treasury bonds (or T-bonds) for full financial year financing Treasury notes (or T-notes) for within year financing T-bonds Coupon instrument (coupons paid each 6 months) Coupon payment = coupon rate x face value of bond Face value of bond redeemed at maturity date or may be sold in .

• Tài chính doanh nghiệp
• Financial institutions
• Financial Instruments
• Financial markets
• Financial system
• Government debt
• Monetary policy
• Lecture Financial markets and institutions
• Financial institutions markets
• Risks at financial institutions
• Market risk
• Savings institutions
• Credit unions
• Commercial banks
• Financial statements
• Financial markets and institutions
• Interest rates change
• Financial institutions exist
• Central banking
• Capital markets
• Money markets
• Interest rate fundamentals
• Interest rates
• Security valuation
• Federal reserve system
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Derivative securities markets
• Futures markets
• Commercial bank liabilities
• Regulation of commercial banks
• Deposit guarantee funds
• Insurance companies
• Life insurance companies
• Securities firms
• Investment banks
• Mutual funds
• Hedge funds
• Pension funds
• Private pension funds
• Managing credit risk
• Balance sheet
• Managing liquidity risk
• Managing interest rate risk
• Insolvency risk
• Managing risk
• Loan sales
• Managing risk off the balance sheet