A lecture for undergraduates on Bond Markets

1. Lecture 10
Domestic &
International Money
Markets
Tuesday, March 10, 2009

2. Last Time & Today
Descriptions of Market Processes
Tuesday, March 10, 2009

3. What I want you to learn
Domestic & International Money Markets
Matter, especially in illiquid times.
Tuesday, March 10, 2009

4. Turbulence needs
Liquidity to ride out
the storm
Tuesday, March 10, 2009

5. Problem: The Market can
stay ‘irrational’ longer
than you can stay
solvent.
Tuesday, March 10, 2009

6. Domestic
Tuesday, March 10, 2009

7. Loanable Funds
Demand, Supply per item, !
S(p)
D(p)
Price/Item, !
Tuesday, March 10, 2009

8. Simple Pictures
Tuesday, March 10, 2009

9. Tuesday, March 10, 2009

10. Tuesday, March 10, 2009

11. Tuesday, March 10, 2009

12. Public Issue
Tender Issue
T-Bills Auction Issue
Direct Placement
+ Tranches
Tuesday, March 10, 2009

13. Commercial Paper
Interbanks
Also: Acceptances, Repurchases
CDs
Tuesday, March 10, 2009

14. Cool Reading:
Carpenter and
Demiralp, 2006
Tuesday, March 10, 2009

15. International
Tuesday, March 10, 2009

16. Tuesday, March 10, 2009

17. Tuesday, March 10, 2009

18. Eurodollars/Euromarket
Tuesday, March 10, 2009

19. Tuesday, March 10, 2009

20. Next Time
Read Pilbeam, Cht 11 and 12,
Liebowitz, (2005), on site.
Bonds
Tuesday, March 10, 2009