Introduction to Financial Markets - Forecasting interest rates - Essay Example

Only on StudentShare

Extract of sample
Introduction to Financial Markets - Forecasting interest rates

Interest rates, according to the Financial Times , have fallen back to the historic lows, permitting companies, individuals, and some countries to borrow loans at a price lower than before. Contrary to this, households and the extensive economy still fight back in the wake of credit stagnation. The relationship between these two forces, that is the stimulating impact on economic operations of low borrowing prices and the damping impact of a liability squeeze has adverse repercussions for investors globally, from those individuals who save on their own to the world’s largest insurance companies (Aline, Mackenzie, & Milne, 2010). For the past couple of years, following the 2008 collapse in equity markets as well as in a hysterical serach for “secure” investments, more cash has been poured into bonds as compared to earlier times. Bonds from the U.S Treasury debt to upcoming market corporate bonds have been performing amazingly well, being ranked among the possessions around the world that have generated the largest returns in 2009 and 2010. ...Show more

Summary

Introduction to Financial Markets - Forecasting interest rates Name Institution Introduction to Financial Markets - Forecasting interest rates The "credit markets" section in a recent issue of The Financial Times Credit markets: Paper weight By Aline van Duyn, Michael Mackenzie and Richard Milne Topic: Some buyers fear a bond bubble may be building In this article, a Gary Lieb, a broker at Manhattan’s Apple Mortgage wonders why and how there are such cheap borrowing rates on mortgage loans…
Author : dorianrosenbaum
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Introduction to Financial Markets - Forecasting interest rates"
with a personal 20% discount.
Grab the best paper

Related Essays

Interest Rates Swa[s Require Markets to be Inefficient
Foreign exchange market comprises of an important integral component; interest rates. Interest rates help in determining the value of one currency in terms of another. Different currencies carry different values relative to the base currency, thereby allowing for cross border transactions internationally.
4 pages (1000 words) Essay
International Financial Markets: Exchange Rates and Inflation
Levene (2009, 6) asserts that information is extremely crucial because it enable foreign investors to make solid decisions without buying information about the stocks and financial markets. Many companies have unified their accounting standards and financial data for the potential investors to access such information.
7 pages (1750 words) Coursework
Financial Forecasting
Financial Forecasting.Introduction This report is about forecasts of the financial performance of a soft drink company, which will start its operations from January 2013. The forecast relates to the company’s income statement, break even, balance sheet and a monthly cash flow statement for the year ending December 2013.
3 pages (750 words) Essay
Financial Markets and Institutions
Among the different product traded are equities, fixed income securities, derivatives and foreign exchange. This paper will focus on the foreign exchange market in the U.S. and the types of foreign exchange transactions. It will also focus on the factors affecting the interest rates, ease or difficulty of forecasting the interest rate changes, role of Federal Reserve towards the U.S.
5 pages (1250 words) Essay
International Bond and Currency Markets
Exchange rate forecasting is necessary to evaluate the foreign denominated cash flows involved in international transactions. It is also important to analyse the risks attached to the international business environments and the investors correspondingly. Moreover, the accuracy of forecasted results, being a determinant in investment decisions of the international bond and the currency markets, are deemed to assist in maintaining stability of the exchange rate, further complying with economic growth requirements.
8 pages (2000 words) Essay
Banking - Interest rates
Interest rate in Japan has been low over the past decade with indication that it will remain low. This paper reports on the effects of the low interest on the Japanese banking sector through discussing advantages and disadvantages of the low rates on banks.
3 pages (750 words) Essay
Making Management Decisions
As an engineer, William is interested in the technical aspects of manufacturing involved by the firm. He approaches business as a conservative risk-averse individual who is unwilling to take any chances thereby being
6 pages (1500 words) Essay
Accounting systems and structure of China
The evolution process of accounting system in China occurred as a result of many theories and writings in accounting and finance (Ball et al., 2003). From the historical perspective, this paper considers different information on the claim that Chinese
12 pages (3000 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT