Strategies of Banks and Other Financial Institutions (2024)

Abstract

Capital markets consist of money market, bond market, mortgage markets, stock market, spot or cash markets, derivatives markets, foreign exchange and interbank markets. Money market instruments consist of Treasury bills, federal agency notes, certificates of deposit (CD), commercial papers, bankers’ acceptances, repurchase agreements (repos), among others. The securities market consists of primary and secondary markets. The primary market works with new issues whereas the secondary market is meant for trading of existing issues. Capital market instruments include Treasury notes, Treasury bonds, municipal bonds, corporate bonds. Corporate bonds consist of zero coupon bonds, floating ...