Wednesday, June 23, 2010

An Introduction to International Capital Markets

Professor Li has covered the first two chapters of our textbook, An Introduction to International Capital Markets: Products, Strategies, Participants. This book presents a sufficient introduction to those who are entering the capital markets business or those who wish to improve their knowledge. Andrew M. Chisholm’s immense text can genuinely expand one’s learning; however some may choose to look deeper into each topic. 

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!


  1. Stephanie,

    I recall an old TV show (Lou Grant) where he inherited some money and one of his employees gave him some good financial advice: don't put it in a regular checking account--put it in an interest bearing checking account.

    Do they have a chapter on something like that? If they do, maybe I can read that chapter and learn something.

    Way too many people's understanding of economics, finance and investing is that simple.

    It's way too easy for Americans to remain provincial and ignore the fact that we now have a world economy. Most major businesses are global and what happens in Europe or Asia can have a major affect on what happens here. When our own stock market tanks we often forget that when they ring the bell on the NYSE the story's not over. The European and Asian stock markets are still trading many of those same stocks while we sleep.

    Being well founded in international markets and strategies can be a major step up when trying to get your foot on the door not only with sources of employment but even to get yourself into the programs of your choice while in college.

  2. eToro is the ultimate forex trading platform for rookie and professional traders.