Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Secondary Market
The major participants in secondary market are banks, brokerage firms and bond houses. They buy and sell T-bills on behalf of customers and themselves. The customers include depository institutions, insurance companies, pension funds, non-financial firms, and state and local governments.
Government dealers help to maintain an orderly market mechanism through trades of T-bills for their own accounts. They are the market makers for these instruments by providing Bid-Ask quotes. The US Treasury Bill market attracts both domestic and international investors because of the perceived strength of the US$ apart from the liquidity, maturity profile and the risk-free nature which are true for most of the sovereign securities.
The Fed (Federal Reserve Bank) usually holds more than $100 billion worth of T-Bills at any given point of time and buys large quantities of bills from the dealers in the secondary market when it wants to inject more money in the economy.
In UK, Gilts are traded in a very active market centered on a group of firms known as ‘Gilt-Edged Market Makers' (GEMM). The GEMMs deal continuously with major professional investors life pension funds and insurance companies, across the entire list of gilts. GEMMs, along with institutional investors and custodians who may hold stock on behalf of private investors, hold gilts in computerized form using the CREST settlement system (The CREST system is a computerized system to settle the registration and transfer of dematerialized securities including UK and Irish corporate securities, UK government securities and international securities). Some of the GEMMs make special provision for deals in small amounts.
Market mechanism: Market mechanism is a term from economics denoting to the use of money exchanged by sellers and buyers with an open and understood system of time and value t
Which is lower for a given company: the cost of debt or the cost of equity? Explain: Ignore taxes in your answer . The cost of debt is all the time less as compared to the cost
Q. Reasons for Time Preference of Money? 1) Future Uncertainties: One of the reasons for preference for current money is that there is a certainty about it whereas the future
SCL Ltd., a highly profitable company, is engaged in the manufacture of power intensive products. As part of its diversification plans, the company proposes to put up a windmill to
What is the common pattern of cash flows for a share of preferred stock? How does the market define the value of a share of preferred stock, specified these promised cash flows?
Wha is Asset turnover- performance ratios Asset turnover = Turnover/ Total assets or capital employed This demonstrates how much sales are generated for every £1 of capit
A company enters into a five-year interest rate swap along with a swap bank where it agrees to pay the swap bank a fixed-rate of 9.75 percent yearly on a notional amount of DM15,0
explain the significance of operating leverage and financial with the help of example?
Assume that ABC is considering opening an ice cream shop in Amsterdam. The shop will cost 1.8 million Euros, and the present value of the expected cash flows from the store is 1.4
Interference of Central bank in Markets: Some dilemmas exist in the issue of central bank intervention in the market to correct the volatilities in the prices. In some countrie
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd