Selecting Investments in a Global Market ch03.pptxFamiFamz1
Questions to be answered:
What distinguishes a derivative security such as a forward, futures, or option contract, from more fundamental securities, such as stocks and bonds?
What are the important characteristics of forward, futures, and option contracts, and in what sense can the be interpreted as insurance policies?
Finanacial Institutions Management and Administrationetebarkhmichale
1. Introduction
Gender equality is crucial for economic development, yet women still contribute only 37% of the global GDP, a persistent issue requiring ongoing efforts.
Africa's female entrepreneurs face a $42 billion financing gap, hindering their economic contribution due to limited resources, legal frameworks, and socio-cultural environments.
The Commercial Bank of Ethiopia is introducing a customer-centric business model, proposing a collateral-free loan product for women-owned small businesses, to address the financing gap and promote financial inclusion in Ethiopia's 49.8% female population.
2. Objectives of the proposal
2.1. General Objectives
The general objective of this proposal is to ensure sustainably growing profit and equitable resource allocation by offering collateral-free loans to support selected growth-oriented women-owned enterprises.
2.2. Specific Objectives
• To play a proactive role in supporting and promoting women-owned enterprises by availing of useful and affordable loan products;
• To pilot collateral-free financing and improve the credit risk appetite of the bank;
• To realize enhanced customer experience through adapting and scaling up the collateral-free financing scheme;
• To realize the bank’s digital financing initiatives;
• To mobilize resources through aligning with different development partners who are working on promoting women's economic empowerment and access to finance;
• To diversify the product portfolio of the bank;
• To implement the provisions regarding micro- and small-enterprises lending aspects of the credit policy and procedures of the bank;
• To support the realization of the financial inclusion strategy of the country;
• To optimize the profitability of the bank by entering untapped and new market niches;
• To optimize the competition capability of the bank;
• To ensure customer satisfaction and retention by availing of tailor-made products with simple and accessible outreach options.
3. Target groups
4. Work flow
For this pilot, women entrepreneurs owning and operating an active business will be selected through a coalition with government organs and/or other parties that work with the entrepreneurs, train them, and involve them in skill development. When a selected applicant submits the loan request along with all the required documents to the bank, the credit department of the district (for this program, the central region district) will appraise and review the credit request either manually for conventional borrowers or using a credit scoring solution for digital borrowers. Based on the credit appraisal result and credit scoring solution determination, the applicant can get the approved amount of an unsecured micro loan. Indeed, the work flow can be described as follows:
• The selected women-owned microbusinesses lodged their requests at a branch or using their phones digitally.
• Legal documents like a TIN, trade registration and license, financial statements, sales contract
this is the presentation of graduation paper. since we had given only 10 minutes to speech I was obliged to pass shortly over economic/financial crisis and more focus on financial markets instruments, and suggestions for the future of investment markets. for those who need material I can send my paper work. shahlar.bayramov@gmail.com
Selecting Investments in a Global Market ch03.pptxFamiFamz1
Questions to be answered:
What distinguishes a derivative security such as a forward, futures, or option contract, from more fundamental securities, such as stocks and bonds?
What are the important characteristics of forward, futures, and option contracts, and in what sense can the be interpreted as insurance policies?
Finanacial Institutions Management and Administrationetebarkhmichale
1. Introduction
Gender equality is crucial for economic development, yet women still contribute only 37% of the global GDP, a persistent issue requiring ongoing efforts.
Africa's female entrepreneurs face a $42 billion financing gap, hindering their economic contribution due to limited resources, legal frameworks, and socio-cultural environments.
The Commercial Bank of Ethiopia is introducing a customer-centric business model, proposing a collateral-free loan product for women-owned small businesses, to address the financing gap and promote financial inclusion in Ethiopia's 49.8% female population.
2. Objectives of the proposal
2.1. General Objectives
The general objective of this proposal is to ensure sustainably growing profit and equitable resource allocation by offering collateral-free loans to support selected growth-oriented women-owned enterprises.
2.2. Specific Objectives
• To play a proactive role in supporting and promoting women-owned enterprises by availing of useful and affordable loan products;
• To pilot collateral-free financing and improve the credit risk appetite of the bank;
• To realize enhanced customer experience through adapting and scaling up the collateral-free financing scheme;
• To realize the bank’s digital financing initiatives;
• To mobilize resources through aligning with different development partners who are working on promoting women's economic empowerment and access to finance;
• To diversify the product portfolio of the bank;
• To implement the provisions regarding micro- and small-enterprises lending aspects of the credit policy and procedures of the bank;
• To support the realization of the financial inclusion strategy of the country;
• To optimize the profitability of the bank by entering untapped and new market niches;
• To optimize the competition capability of the bank;
• To ensure customer satisfaction and retention by availing of tailor-made products with simple and accessible outreach options.
3. Target groups
4. Work flow
For this pilot, women entrepreneurs owning and operating an active business will be selected through a coalition with government organs and/or other parties that work with the entrepreneurs, train them, and involve them in skill development. When a selected applicant submits the loan request along with all the required documents to the bank, the credit department of the district (for this program, the central region district) will appraise and review the credit request either manually for conventional borrowers or using a credit scoring solution for digital borrowers. Based on the credit appraisal result and credit scoring solution determination, the applicant can get the approved amount of an unsecured micro loan. Indeed, the work flow can be described as follows:
• The selected women-owned microbusinesses lodged their requests at a branch or using their phones digitally.
• Legal documents like a TIN, trade registration and license, financial statements, sales contract
this is the presentation of graduation paper. since we had given only 10 minutes to speech I was obliged to pass shortly over economic/financial crisis and more focus on financial markets instruments, and suggestions for the future of investment markets. for those who need material I can send my paper work. shahlar.bayramov@gmail.com
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
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Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
2. Classification of fixed income market
• Issuer
• Credit quality
• Maturity
• Currency denomination
• Type of coupon
• Fixed rate v/s floating rate
• Reference rate
• Geography
3. Exam focus
• Bonds issue by city is classified as ?????
• Bonds issued United States by British company denominated in US
Dollars is classified as?????
• IBOR???
• FRN coupon payment will increase with rise in????
4. Fixed income indices
• Multi-purpose tool used by investors and investment managers to
describe a bond market or sector as well to evaluate performance of
investment managers and investments
• E.g. aggregate bond index
5. Investors in fixed income securities
• Central banks
• Institutional investors
• Retail investors
6. Primary bond market
• Underwritten offering
• Best effort offering
• Shelf registration
• Auction
• Private placement
7. Bonds issuance mechanism
1. Determination of funding needs
2. Selection of underwriter
3. Structuring and announcement
4. Pricing
5. Issuance
9. Exam focus
• Treasury bills are sold through????
• What if T-Bills buyer quotes above the rate that is determined at
auction?
10. Sovereign bonds
• Characteristics of sovereign bonds
• Credit quality of sovereign bonds
• Types of sovereign bonds
• Fixed rate bonds
• Floating rate bonds
• Inflation linked bonds
12. Exam focus
• Sovereign and non-sovereign bonds with similar characteristics are
more likely to trade at a higher yield???
• Bonds issued by a government agencies are repaid from which
cashflows?
13. Corporate debt
• Bank loans and syndicated paper
• Commercial paper
• Commercial notes and bonds
15. Commercial bonds
• Short term unsecured
• Working capital and seasonal demand for cash
• Bridge financing
• Backup lines of credit
• Rolling over the paper
• USCP v/s ECP
16. Corporate bonds and notes
• Short term, medium term and long term
• Medium term Note (MTN)
• Coupon payment structures
• Principal repayment structure
• Serial maturity
• Term maturity
• Asset or collateral backing
• Contingency provisions
• Issuance, trading and settlement (T+3)
17. Exam focus
• Loan issue bank group of banks???
• Commercial paper is issue for???
• Stated number of bonds that are paid off each year?
19. Exam focus
• If an investor holds a credit-linked not and the credit event does not
occur the investor will receive???
20. Short term alternatives available to banks
• Retail deposits
• Short term wholesale
• Central bank funds (reserve funds)
• Interbank funds
• Certificates of deposits
21. Repurchase and reverse repurchase
agreements
• Repo an agreement to sale a security by issuer with simultaneous
agreement to buy back the from purchaser at an agreed-on price and
future date
• Reverse repo an agreement to buy a security with simultaneous
agreement to sell it back to the seller at an agreed-on price and
future date
22. Characteristics of repos and revers repos
• Risk associated with collateral
• Term of repurchase agreement
• Delivery requirement
• Supply and demand
• Interest rates of alternat financing
