investments chapter 1 powerpoint slide

11
1999 INVESTMENTS INVESTMENTS Kane Bodie Marcus Fourth Edition

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Investments powerpoint slide

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Page 1: investments chapter 1 powerpoint slide

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1999

INVESTMENTSFourth Edition

Bodie Kane Marcus

INVESTMENTS

KaneBodie Marcus

Fourth Edition

Page 2: investments chapter 1 powerpoint slide

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1999

INVESTMENTSFourth Edition

Bodie Kane Marcus

The Investment The Investment EnvironmentEnvironment

Chapter 1Chapter 1

1-11-1

Page 3: investments chapter 1 powerpoint slide

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1999

INVESTMENTSFourth Edition

Bodie Kane Marcus

Essential nature of investment- Reduced current consumption

- Planned later consumption Real Assets

- Assets used to produce goods and services

Financial Assets- Claims on real assets

Investments & Financial AssetsInvestments & Financial Assets

1-21-2

Page 4: investments chapter 1 powerpoint slide

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1999

INVESTMENTSFourth Edition

Bodie Kane Marcus

Role of Financial Assets and Role of Financial Assets and Markets in the EconomyMarkets in the Economy

Consumption Timing Allocation of Risk Separation of Ownership

1-31-3

Page 5: investments chapter 1 powerpoint slide

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1999

INVESTMENTSFourth Edition

Bodie Kane Marcus

Financial System Clients Financial System Clients and Their Needsand Their Needs

Household Sector- Primary Need: Invest Funds

Business Sector- Primary Need: Raise Funds

Government Sector- Primary Need: Raise Funds

1-41-4

Page 6: investments chapter 1 powerpoint slide

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1999

INVESTMENTSFourth Edition

Bodie Kane Marcus

How the Financial System Meets How the Financial System Meets the Needs of Participantsthe Needs of Participants

Financial Intermediation Investment Banking Financial Innovation & Derivatives Responding to Regulation & Taxes

1-51-5

Page 7: investments chapter 1 powerpoint slide

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1999

INVESTMENTSFourth Edition

Bodie Kane Marcus

Technology and Delivery of Service Computer advancements More complete and timely informationGlobalization Domestic firms compete in global markets Performance in regions depends on other regions Causes additional elements of risk

Investments and InnovationInvestments and Innovation

1-61-6

Page 8: investments chapter 1 powerpoint slide

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1999

INVESTMENTSFourth Edition

Bodie Kane Marcus

International and Global Markets Continue Developing Managing foreign exchange Diversification to improve

performance Instruments and vehicles continue to develop Information and analysis improves

Key Trends - GlobalizationKey Trends - Globalization

1-71-7

Page 9: investments chapter 1 powerpoint slide

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1999

INVESTMENTSFourth Edition

Bodie Kane Marcus

Securitization & Credit Enhancement Offers opportunities for investors and

originators Changes in financial institutions and

regulation Improvement in information

capabilities Credit enhancement and its role

Key Trends - SecuritizationKey Trends - Securitization

1-81-8

Page 10: investments chapter 1 powerpoint slide

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1999

INVESTMENTSFourth Edition

Bodie Kane Marcus

Repackaging Services of Financial Intermediaries

Bundling and unbundling of cash flowsSlicing and dicing of cash flowsExamples: strips, CMOs, dual

purpose funds, principal/interest splits

Key Trends - Key Trends - Financial EngineeringFinancial Engineering

1-91-9

Page 11: investments chapter 1 powerpoint slide

Irwin/McGraw-Hill

The McGraw-Hill Companies, Inc., 1999

INVESTMENTSFourth Edition

Bodie Kane Marcus

Globalization continues and offers more opportunities

Securitization continues to develop Continued development of derivatives

and exotics Strong fundamental foundation is

critical Integration of investments &

corporate finance

The FutureThe Future

1-101-10