Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Chapter 2 Financial Institutions, Financial Intermediaries and Asset Management Firms

6,848 views

Published on

Chapter 2 Financial Institutions, Financial Intermediaries and Asset Management Firms
Foundations of Financial Markets and Institutions 4th edition 2009
Frank J. Fabozzi
Franco Modigliani
Frank J. Jones

Published in: Business, Economy & Finance
  • Visit Here to Read This eBook === http://freedaduada.qpoe.com/2216113107-institutions-juridictionnelles.html
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THIS BOOKS INTO AVAILABLE FORMAT (2019 Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download Full EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download Full doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book THIS can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer THIS is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBooks .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story THIS Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money THIS the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths THIS Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THIS BOOKS INTO AVAILABLE FORMAT (2019 Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download Full EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download Full doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book THIS can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer THIS is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBooks .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story THIS Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money THIS the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths THIS Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Get HERE to Download PDF eBook === http://hellowbookeas.cf/b01n9vl4bz-asset-management-2-dutch-edition.html
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THIS BOOKS INTO AVAILABLE FORMAT (2019 Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download Full EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download Full doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book THIS can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer THIS is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBooks .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story THIS Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money THIS the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths THIS Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Chapter 2 Financial Institutions, Financial Intermediaries and Asset Management Firms

  1. 1. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1 Financial Institutions, Financial Intermediaries and Asset Management Firms Chapter 2
  2. 2. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H2 Services of Financial Institutions Transforming Financial Assets Exchanging Financial Assets on Behalf of Customers Exchanging Financial Assets for Own Account Assisting in the Creation of Financial Assets Providing Investment Advice Managing Portfolios
  3. 3. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H3 Role of Financial Intermediaries Transfer of funds from savers to investors Types of Investments Direct Investment For example, purchasing a portfolio of stocks and bonds Indirect Investment For example, purchasing an equity claim issued by an investment company
  4. 4. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H4 Role of Financial Intermediaries Providing Maturity Intermediation Reducing Risk Through Diversification Reducing Costs of Contracting and Information Processing Providing a Payments Mechanism
  5. 5. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H5 Role of Financial Intermediaries Providing Maturity Intermediation Reducing Risk via Diversification Reducing Costs of Contracting and Information Processing Providing a Payments Mechanism
  6. 6. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H6 Asset/Liability Management Spread and Non-Spread Businesses Nature of Liabilities Amount of cash outlay Timing of cash outlay Liquidity Concerns Regulations and Taxation
  7. 7. 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 7 Nature of Liabilities of Financial Institutions Liability Type Amount of Cash Outlay Timing of Cash Outlay Type I Known Known Type II Known Uncertain Type III Uncertain Known Type IV Uncertain Uncertain
  8. 8. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H8 Concerns of Regulators Credit Risk Settlement Risk Counterparty Risk Liquidity Risk Market Liquidity Risk Funding Liquidity Risk Market Risk Operational Risk
  9. 9. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H9 Asset Management Firms Ranked by assets under management
  10. 10. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H10 Fees and Compensation Fee structure Fee based on assets under management Performance-based fee
  11. 11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H11 Types of Funds Managed Regulated investment companies Insurance company funds Separately managed accounts Pension funds Hedge funds
  12. 12. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H12 Hedge Funds No single definition of hedge fund George Soros President’s Working Group on Financial Markets U.K. Financial Services Autority
  13. 13. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H13 Hedge Fund Characteristics “Hedge” is misleading Wide range of trading strategies Leverage, short selling, arbitrage, risk control Operate in all financial markets Focus on absolute returns Lastly, funds cater to sophisticated investors
  14. 14. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H14 Types of Hedge Fund Market directional hedge fund Corporate restructuring hedge fund Convergence trading hedge fund Opportunistic hedge fund
  15. 15. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H15 Concerns with Hedge Fund Hedge funds provide market benefits Liquidity Market pricing efficiency However, there are concerns System risk Long-Term Capital Management Bear Stearns Market meltdown of 2008
  16. 16. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice H16 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

×