文档介绍：Chapter Ten The Investment Function in Banking and Financial Services Management
Chapter Ten
The Investment Function in Banking and Financial Services Management
Functions of a Bank’s Security Portfolio
Stabilize the Bank’s e
Offset Credit Risk Exposure
Provide Geographic Diversification
Provide Backup Source of Liquidity
Reduce Tax Exposure
Serve as Collateral
Hedge Against Interest Rate Risk
Provide Flexibility
Dress Up a Bank’s Balance Sheet
Written Investment Policy:
Regulator Guidelines
The Quality or Degree of Default Risk Exposure the Institution is Willing to Accept
The Desired Maturity Range and Degree of Marketability Sought for All Securities
The Goals Sought for its Investment Portfolio
The Degree of Portfolio Diversification the Institution Wishes to Achieve with its Investment Portfolio
Money Market Instruments Used by a Bank
Treasury Bills
Short-Term Treasury Notes and Bonds
Federal Agency Securities
Certificates of Deposit
Eurocurrency Deposits
Banker’s Acceptances
Commercial Paper
Short-Term Municipal Obligations
Capital Market Instruments Used by a Bank
Treasury Notes and Bonds Over One Year to Maturity
Municipal Notes and Bonds
Corporate Notes and Bonds
Asset Backed Securities
Other More Recent Investment Instruments
Structured Notes
Securitized Assets
Stripped Securities
Dominant Investments Held By Banks in 2004
Obligat