Wednesday, June 23, 2010
An Introduction to International Capital Markets
The bolded terms and its description along with pragmatic everyday examples are a crucial portion of the text as a whole. In context, the key types of financial systems are introduced: environment, instruments, institutions, and markets.
Risk(s) that come along with making financial decisions, stocks, and bonds are analyzed in the first two chapters. In addition from analysis of risk, management and distribution through public bond markets are highlighted.
The emergence of Eurodollars prompted the so-called euromarket (international capital markets) which started around 1950-1960. From there, Eurobonds (international bonds) surfaced yet the US dollar still remains the most popular of currency. The chapter also branches out and looks into treasury bills (aka T-Bills), the European Central Bank (ECB), features of repos and reverses, and much more.
You can come to a conclusion that this choice of text is quite intense especially if you have had absolutely no prior background in Economics. Nevertheless, this is an interesting and thought provoking read. I catch myself thinking…and re-thinking about a certain vocabulary word before I completely understand just one term. Two chapters down, 18 more to go!