jueves, 12 de mayo de 2016

EXAM - ATTENDENCE / CONTENT.

Hello, everyone.

As you know, we have an exam on Thursday the 19th, and as you also know, CUNEF requires a minimum 60% attendance in order to sit the exam.

With regard to the content, material already covered in the progress test will not be included in this exam, so you need only review what we have studied since the progress test.

Best regards.

Tom Doyle.

jueves, 5 de mayo de 2016

Class update 5/5/16 SHADOW BANKING

Speaking	Some shadow banking terms: what do the following terms mean, and what are they used for? Work with a partner. 1. The repo market 2. Securities lending 3. Securitization page 69 - G Discuss about these questions. 1. Which well - known banks have gone bankruptcy? 3. How much money would you need to feel happy and prosperous?
Listening	SHADOW BANKING “BBC BUSINESS DAILY”
Reading	MONEY MARKET : REPOS http://www.investopedia.com/university/moneymarket/moneymarket7.asp
Writing

Grammar
Vocabulary	Free-wheeling= ignoring rules or regulation. To tighten the screws = to increase pressure on someone. A side effect: a consequence (often of medicines) Tarp = troubled assets relief program.
Other
Homework

SHADOW BANKING TERMS EXPLAINED.

Hello, everyone.
Just in case you need to refresh your memories on the meaning of terms used in the shadow banking sector, I've uploaded a few links that should help clarify any doubts.
Regards.
Tom.

Money Market: Repos

http://www.investopedia.com/university/moneymarket/moneymarket7.asp

ByInvestopedia Staff

Repo is short for repurchase agreement. Those who deal in government securities use repos as a form of overnight borrowing. A dealer or other holder of government securities (usually T-bills) sells the securities to a lender and agrees to repurchase them at an agreed future date at an agreed price. They are usually very short-term, from overnight to 30 days or more. This short-term maturity and government backing means repos provide lenders with extremely low risk.
Repos are popular because they can virtually eliminate credit problems. Unfortunately, a number of significant losses over the years from fraudulent dealers suggest that lenders in this market have not always checked their collateralization closely enough.
There are also variations on standard repos:

Reverse Repo - The reverse repo is the complete opposite of a repo. In this case, a dealer buys government securities from an investor and then sells them back at a later date for a higher price
Term Repo - exactly the same as a repo except the term of the loan is greater than 30 days.

14. What is the difference between repo and securities lending?

http://www.icmagroup.org/Regulatory-Policy-and-Market-Practice/short-term-markets/Repo-Markets/frequently-asked-questions-on-repo/14-what-is-the-difference-between-repo-and-securities-lending/

What is 'Securitization'

http://www.investopedia.com/terms/s/securitization.asp