.Advance Praise for PrimeTime Women:
“Marti Barletta—the First Lady of marketing to women—is back, and she’s done it again. Marti calls marketing to ‘PrimeTime Women’ a ‘radical opportunity’—and proves it. I not only agree, but also I would call anyone who does not make this extraordinary book the centerpiece of their marketing/strategic plans very, very foolish.
A mortgage is a form of debt that finances investment in property
The debt is secured by the property.
The mortgage is the difference between the down payment and the
value to be paid for the property.
Financial institutions such as savings institutions and mortgage
companies originate mortgages.
They accept mortgage applications and assess the creditworthiness
of the applicants.
The mortgage contract specifies the mortgage rate, the maturity, and
the collateral that is backing the loan.
The originator charges an origination fee.
The money market is traditionally defined as the market for financial
assets that have original maturities of one year or less. In essence, it is
the market for short-term debt instruments. Financial assets traded in
this market include such instruments as U.S. Treasury bills, commercial
paper, some medium-term notes, bankers acceptances, federal agency
discount paper, most certificates of deposit, repurchase agreements,
floating-rate agreements, and federal funds.
Chapter 19 - Types of risks incurred by financial institutions. This chapter provided an overview of the major risks that modern FIs face. FIs face interest rate risk when the maturities of their assets and liabilities are mismatched. They incur market risk for their trading portfolios of assets and liabilities if adverse movements in the prices of these assets or liabilities occur.
Chapter 3 - Interest rates and security valuation. This chapter applied the time value of money formulas presented in chapter 2 to the valuation of financial securities such as equities and bonds. With respect to bonds, we included a detailed examination of how changes in interest rates, coupon rates, and time to maturity affect their price and price sensitivity. We also presented a measure of bond price sensitivity to interest rate changes, called duration.
Chapter 5 - Money markets. In this chapter, we reviewed money markets, which are markets that trade debt securities with original maturities of one year or less. The need for money markets arises because cash receipts do not always coincide with cash expenditures for individuals, corporations, and government units. Because holding cash involves an opportunity cost, holders of excess cash invest these funds in money market securities.
The operational procedures of the Bank of Greece underwent major changes during the 1990s. These shifts in operational strategy made interest rates the main tool of monetary policy for the first time in Greece. This paper examines the effects of changes in the bank’s operational interest rates on market interest rates at eight maturities and for different operational regimes. A major feature of our study is the application of the event study methodology used in finance, which has not been employed in any previous study on this subject.
Chapter 7 - The risk and term structure of interest rates. The purpose of this chapter is: To examine how the issuer and time to maturity affect the price of a bond, and to use our knowledge to interpret fluctuations in a broad variety of bond prices.
The markets for debt, both public and private far exceed the entire stock market in value and importance. The term structure, which is the plot of yield-to-maturity against time-to-maturity indicates the value of time for points in the future.
In an earlier chapter you learned about accounting for “trading securities.” Recall that trading
securities are investments that were made with the intent of reselling them in the very near future,
hopefully at a profit. Such investments are considered highly liquid and are classified on the balance
sheet as current assets. They are carried at fair market value, and the changes in value are measured
and included in the operating income of each period.
Over half of the students who enrol on economics degree courses have not studied mathematics
beyond GCSE or an equivalent level. These include many mature students whose last
encounter with algebra, or any other mathematics beyond basic arithmetic, is now a dim and
distant memory. It is mainly for these students that this book is intended. It aims to develop
their mathematical ability up to the level required for a general economics degree course (i.e.
one not specializing in mathematical economics) or for a modular degree course in economics
and related subjects, such as business studies.
Like its sister book, Managing Financial Risk (which deals with market
risk), this book evolved from a set of lecture notes. (My colleagues at
Rutter Associates and I have been teaching classes on credit portfolio management
to bankers and regulators for almost four years now.) When lecture
notes get mature enough that they start curling up on the edges, the
instructor is faced with a choice—either throw them out or turn them into
a book. I chose the latter.
In general, the intrinsic value of an asset = the present value of the stream of expected cash flows discounted at an appropriate required rate of return.
it’s like common stock - no fixed maturity.
technically, it’s part of equity capital.
it’s like debt - preferred dividends are fixed.
missing a preferred dividend does not constitute default, but preferred dividends are cumulative.
Corning Incorporated, responsible for at least three life-changing product innovations—the light bulb envelope, TV tube, and optical waveguides— celebrated its 150th anniversary in 2001. Known for shedding old, mature businesses while establishing its leadership in innovative new product lines and process technologies, the company was awarded the National Medal of Technology for innovation in 1993. The drive to remain innovative and reinvent itself is at the crux of Corning’s identity and has been since Amory Houghton, Sr.
Bonds pay fixed coupon (interest) payments at fixed intervals (usually every 6 months) and pay the par value at maturity.
Debentures - unsecured bonds.
Subordinated debentures - unsecured “junior” debt.
Mortgage bonds - secured bonds.
Zeros - bonds that pay only par value at maturity; no coupons.
Junk bonds - speculative or below-investment grade bonds; rated BB and below. High-yield bonds.
Eurobonds - bonds denominated in one currency and sold in another country. (Borrowing overseas).
example - suppose Disney decides to sell $1,000 bonds in France. These are U.S.
The PHP ecosystem has changed dramatically in the past six years. Prior to PHP 5’s advent,
we PHP developers were primarily creating our projects on an ad-hoc basis, each project
differing from its predecessor; if we paid attention, each project improved on the previous—
but there was no guarantee. While tools and practices existed for managing code quality and
standards, they were still maturing, and not in widespread use.
The Asian financial crisis of 1997-1998
has triggered intense efforts to promote
regional monetary and financial
cooperation to prevent recurrence of
future crises. Recently, developing
regional bond markets in East Asia has
emerged as one of the key agenda for
regional financial cooperation. There is
no assurance, however, that the proposed
regional bond markets will ever leave the
drawing board. Even if they do, they may
never reach the maturity to be competitive
vis-à-vis global bond markets in North
America and Europe. A few critical...
Live online learning is no longer just a “hot trend”—it is a training delivery
method that is here to stay. The ability to interact with people all over the world
in real time has become a critical success factor for training and education. While
the technology has reached an early stage of maturation, best practices on how
to utilize the technology have not been established.