文档介绍：CHAPTER 10
THE INVESTMENT FUNCTION IN BANKING AND FINANCIAL SERVICES MANAGEMENT
Goal of This Chapter: The purpose of this chapter is to discover the types of securities that financial institutions acquire for their investment portfolio and to explore the factors that a manager should consider in determining what securities a financial institution should buy or sell.
Key Topics in This Chapter
? Nature and Fun cti ons of Inv estme nts
? Inv estme nt Securities Available: Adva ntages and Disadva ntages
? Measuri ng Expected Retur ns
? Taxes, Credit, and In terest Rate Risks
? Liquidity, Prepayme nt, and Other Risks
? Inv estme nt Maturity Strategies
? Maturity Man ageme nt Tools
Chapter Outli ne
Introduction: The Roles Performed by Investment Securities in Bank Portfolios
In vestme nt In strume nts Available to Banks and Other Finan cial Firms
Popular Mon ey-Market In strume nts
Treasury Bills
Short-Term Treasury Notes and Bonds
Federal Age ncy Securities
Certificates of Deposit
Intern ati onal Eurocurre ncy Deposits
Ban kers' Accepta nces
Commercial Paper
Short-Term Mun icipal Obligati ons
Popular Capital Market In strume nts
Treasury Notes and Bonds
Muni cipal Notes and Bonds
Corporate Notes and Bonds
Other Inv estme nt In strume nts Developed More Rece ntly
Structured Notes
Securitized Assets
Stripped Securities
In vestme nt Securities Actually Held by Banks
Factors Affect ing the Choice of Inv estme nt Securities
Expected Rate of Retur n
Tax Exposure
The Tax Status of State and Local Gover nment Bonds
Bank Qualified Bonds
Tax Swapp ing Tool
The Portfolio Shifti ng Tool
In terest-Rate Risk
Credit or Default Risk
Busin ess Risk
Liquidity Risk
Call Risk
Prepayme nt Risk
In flation Risk
Pledg ing Requireme nts
In vestme nt Maturity Strategies
The Ladder or Spaced-Maturity Policy
The Fron t-E nd Load Maturity Policy
The Back-E nd Load Maturity Policy
The Barbell Strategy
The Rate Expectati ons Approach
Maturity Ma