Tài chính doanh nghiệp - Money and banking (lecture 21)The most straightforward economic function of a financial intermediary is to pool the resources of many small savers • To succeed in this endeavor the intermediary must attract substantial numbers of savers • This is the essence of indirect finance, and it means convincing potential depositors of the soundness of the institution • Banks rel...
15 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 790 | Lượt tải: 0
Tài chính doanh nghiệp - Money and banking (lecture 20)Shifts in investor psychology may distort prices; both euphoria and depression are contagious • When investors become unjustifiably exuberant about the market’s future prospects, prices rise regardless of the fundamentals, and such mass enthusiasm creates bubbles
32 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 906 | Lượt tải: 0
Tài chính doanh nghiệp - Money and banking (lecture 19)Stockholders receive profits only after the firm has paid everyone else, including bondholders • It is as if the stockholders bought the firm by putting up some of their own wealth and borrowing the rest • This borrowing creates leverage, and leverage creates risk
23 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 789 | Lượt tải: 0
Tài chính doanh nghiệp - Money and banking (lecture 18)Stocks, also known as common stock or equity, are shares in a firm’s ownership • From their early days, stocks had two important characteristics that today are taken for granted: • the shares are issued in small denominations and • the shares are transferable • Until recently, stockowners received a certificate from the issuing company, but ...
25 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 1029 | Lượt tải: 0
Tài chính doanh nghiệp - Money and banking (lecture 17)However, expectations theory can not explain why long-term rates are usually above short term rates • In order to explain why the yield curve normally slopes upward, we need to extend the hypothesis to include risk
18 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 910 | Lượt tải: 0
Tài chính doanh nghiệp - Money and banking (lecture 16)Increased Risk reduces Bond Demand. • The resulting shift to the left causes a decline in equilibrium price and an increase in the bond yield. • A bond yield can be thought of as the sum of two parts: • the yield on the Treasury bond (called “benchmark bonds” because they are close to being risk-free) and • a risk spread or default risk pr...
27 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 874 | Lượt tải: 0
Tài chính doanh nghiệp - Money and banking (lecture 15)A business-cycle downturn shifts the bond supply to the left and the bond demand to the left. • In this case the bond price can rise or fall, depending on which shift is greater. • But interest rates tend to fall in recessions, so bond prices are likely to increase
21 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 918 | Lượt tải: 0
Money and banking (lecture 14)Bond Demand • The bond demand curve is the relationship between the price and quantity of bonds that investors demand, all other things being equal. • As the price falls, the reward for holding the bond rises, so the demand goes up
41 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 810 | Lượt tải: 0
Tài chính doanh nghiệp - Money and banking (lecture 13)A consol offers only periodic interest payments; the borrower never repays the principal • There are no privately issued consols because only governments can credibly promise to make payments forever • The price of a consol is the present value of all the future interest payments, which is a bit complicated because there are an infinite nu...
24 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 827 | Lượt tải: 0
Tài chính doanh nghiệp - Money and banking (lecture 12)Spreading Risk • Investments don’t always move predictably in opposite directions, so you can’t always reduce risk through hedging • You can lower risk by simply spreading it around and finding investments whose payoffs are completely unrelated • The more independent sources of risk you hold the lower your overall risk
20 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 877 | Lượt tải: 0
