August 2008
Intermediate to advanced
321 pages
8h 5m
English
Content preview from Bonds and Bond Derivatives, Second EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
3
FINANCIAL INTERMEDIARIES
Many financial intermediaries play an important role in the debt markets. Investment banking firms market debt securities on behalf of issuers. Dealers make markets in the resale (secondary) market. Brokers act as agents for buyers and sellers in the resale markets. Mutual funds, insurance companies, pension funds, commercial banks, and thrifts are large lenders in the debt markets. The purpose of this chapter is to describe the major functions of these intermediaries in the debt markets.
A vast literature discusses the reasons for the existence of these financial intermediaries. Financial intermediaries exist because they expedite the flow of funds from economic sectors with surpluses to sectors with deficits. Financial intermediaries provide a number of advantages including the following: (1) pooling of small savings, (2) diversification of risks, (3) economies of scale in monitoring information and evaluating investment risks, and (4) lower transactions costs.
Initial Sale of Securities (Primary Market)
When securities are issued, they may be sold directly to buyers, as in the case of the US Treasury, which sells securities directly to the public and to bond dealers. Alternatively, security issues are sold to investment banking firms, which market the securities.
Original issues of securities are classified as public or private offerings. The exact meaning of the term public is a technical legal question. In practical terms, a public offering has a ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.