ECON 3430 Lecture Notes - Lecture 5: Eurodollar, Corporate Bond

• School: York University
• Department: Economics
• Course: ECON 3430
• Professor: Ahmet Akyol

Document Summary

Chapter 2 an overview of the financial system. Money market instruments: government of canada treasury bills, certificates of deposit, commercial paper, repurchase agreements, overnight funds. Stocks: mortgages and mortgage-backed securities, corporate bonds, government of canada bonds, canada savings bonds, provincial and municipal government bonds, government agency securities, consumer and bank commercial loans. Sold in foreign country, denominated in that country"s currency. Sold in foreign country, denominated in another currency. For example, canadian company selling bond in the united kingdom denominated in. Widely used: over 80% of new issues are eurobonds. Foreign currencies deposited in banks outside home country. Eurodollars: u. s. dollars deposited in foreign banks outside the u. s. or in foreign branches of u. s. banks: world stock markets. Nyse, nikkei, ftse, 100-share index, and many more. Primary route to move funds from lenders to borrowers. Four main roles of financial intermediates: lowers transaction costs.