国际金融英文版CH7

Chapter7InternationalFinancialMarketsFinancialMarketsFinancialmarketsarefortransactionsoffinancialassetsorliabilities.Theyprovidefinancingandinvestingforindividuals,firmsandgovernments.Liquidityisthemostimportantfeatureofthefinancialmarket.Liquidityistheeasewithwhichinvestorscancaptureanasset’scashvalue.InternationalMoneyMarketMoneymarketisthemarketforfinancialassetsandliabilitiesofshortmaturity(lessthanoneyear).Thefeaturesofmoneymarketarehighdegreeofliquidity,lowreturnandlowdegreeofrisk.Short-termcreditmarketisaninterbankmarket.Itprovidesshort-termloanswithmaturitiesoflessthan1year.Newspaperspublishtheinterestrateofthismarketonadailybasis.Short-termsecuritiesmarketincludesthefollowingsecurities:Treasurybill:ashort-termU.S.governmentsecurity.Itbearsnoformalinterestandisissuedatadiscountonitsredemptionprice.T-billsareusually3,6monthsandoneyear.TheparvalueoftheT-billsare$1,000andinmultiplesof$1,000.T-billsareregardedasahighlyliquidfinancialassetbybanksandotherfinancialinstitutions.Internationalmoneymarketinterestratequotations:July29,2011Short-term7-daysnoticeOnemonthThreemonthSixmonthOneyearEuro1.00-0.901.08-0.981.54-1.341.72-1.52-2.02-1.672.00-1.70DKrone1.50-1.301.40-1.201.51-1.251.72-1.221.85-1.352.15-1.96Sterling0.57-0.470.64-0.540.84-0.641.02-0.821.30-1.101.76-1.56SwissFranc0.18-0.030.33-0.060.30-0.170.28-0.180.47-0.350.81-0.69CDollar1.15-0.851.15-0.871.17-0.901.33-1.181.88-1.352.05-1.70U.S.Dollar0.29-0.140.41-0.110.40-0.200.60-0.400.92-0.821.30-1.20JYen0.10-0.050.11-0.060.05-0.040.35-0.250.46-0.260.79-0.67Sdollar0.02-0.010.31-0.060.28-0.030.33-0.100.40-0.190.66-0.37Commercialpaper:anunsecured,short-termdebtissuedbyafirm.Theminimumdenominationisusually$100,000or$1million.Maturitiesarebetween20to45days.Mostinvestorsholdthecommercialpaperuntilmaturity.Negotiablecertificateofdeposit(NCD):Itisissuedbycommercialbankswithaminimumfacevalueof$100,000.Itcanbesoldinthesecondarymarket.Repurchaseagreementorrepo:TheholderofT-billssellstheT-billstoalenderandagreestorepurchasethematanagreedfutureprice.T-billsareusedascollateral.ThelenderhasclaimtotheT-billsiftheborrowerdefaultsontheloan.Soreposhavenodefaultrisk.Reverserepoisthecompleteoppositeofarepo.ThedealerofT-billsbuysT-billsfromacustomerandsellshimlateratahigherprice.Termrepoisexactlythesameasarepoexceptthetermoftheloanismorethan30days.Banker’sacceptanceisashort-termdraftdrawnbyanon-financialfirm(importer)andguaranteedbyabank.Abankusuallystamps“ACCEPTED”onthedraft.Theholdercansellitatdiscountinthesecondarymarket.Discountmarkettradesdifferentdrafts.InEngland,themarketconsistsofbanks,discounthousesandbillbrokers.EurocurrencyMarketsEurocurrencymarketisfortransactionsoffinancialassetsandliabilitiesdenominatedinEurocurrencies.Eurocurrencyisacurrencyheldinacountryotherthanthecountrythecurrencyisissued.Forexample,adollardepositinaLondonbankoraParisbank.ThedollariscalledEurodollar.IfasterlingdepositheldinaJapanesebank,thesterlingiscalledEurosterling.Eurocurrencymarketisaninternationalmoneymarketbecausethematuritiesofvarioussecuritiesonthismarketarelessthanoneyear.Theparticipantsinthismarketarefinancialinstitutions,MNCs,governmentsandinternationalinstitutions.ThefirstEurodollardepositswereinLondonandParisbanksduringthe1950s.FormerSovietUnionswereafraidofU.S.freezingtheirfundsintheU.S.banks.TheythereforetransferredthefundsfromU.S.bankstoU.K.andFrance.ThesedollardepositswerethefirstEurodollars.Whydoesthemarketgrowsorapidly?ThecausescontributetothedevelopmentofEurodollarmarketincludetheincreasedregulationonbankingindustryin1960sandoilcrisisin1970s.RegulationQimposeda5.25%ceilingontheinterestratethedomesticbankscouldpay.Interestequalizationtax(IET)requiredtaxesonU.S.residents’earningsonforeignsecurities.Voluntaryforeigncreditrestraintguidelineswererestrictionsplacedonnon-domesticusesofdomesticallygeneratedfunds.In1970’s,OPECcountriespouredhugeamountsofoilincomeintotheEurodollarmarkets.OilimportingcountriesneededfundstofinancetheirhugeBOPdeficits.RapidgrowthofinternationaltradeandinvestmentalsomadetheEurocurrencymarkettoprosper.CreditexpansionthroughtheEurocurrencymarketBankofAmericaHSBC(eurobank)AssetsLiabilitiesAssetsLiabilities(-)$1mdeposit(+)$1mdeposit(-)$1mdepositofU.S.companyatBankofAmericaofChinesefirm(+)$1mdepositofHSBCTheU.S.bankingsystemisnoteffected.OnemillioneurodollariscreatedinHongKong.BankofAmericaHSBC(eurobank)AssetsLiabilitiesAssetsLiabilities(-)$1mdeposit(-)$1mdepositofU.S.companyatBankofAmerica(+)$1mdeposit(+)$1mloantoofHSBClocalfirmBankofChinaAssetsLiabilities(+)$1mdeposit(-)$1mdepositofatBankofAmericalocalfirm2millioneurodollarsareinthesystem.CharacteristicsoftheEurocurrencymarketAbsenceofregulatoryinterference.LondonInterBankBidRateandOfferRatearecommonlyquotedrates.Thematuritiesofdepositsandloansareshort-termandthereisaclosematchingofdepositsandloans.LIBORformajorcurrenciesJuly29,2011Overnight1month3month6month1yearU.S.$0.131250.191100.255500.430250.76025Euro0.945001.378751.556881.801382.16938Sterling0.571250.631880.832811.1