PART 1: FINANCIAL MARKET

( THỊ TRƯỜNG TÀI CHÍNH)

Unit 2: FINANCIAL SYSTEM
Instructor: MsC. Nguyễn Tuấn Anh
How Much Is Your Phone, Laptop, Bike?
 How To Get The Best Deal?

• Size.  • Accident, Damage?

• Storage Space.  • Electric Function?
• Brand • The Engine Problem?
• Odo • Owner?
• Functâions  • Odo ?
Asymmetric information – Thông tin không cân xứng

Seller Asymmetric
information Buyer
How to x ?
 Agency Problems and Corporate
Governance

• Agency problem: managers may act in their own interests

and not on behalf of owners (stockholders)
• Corporate governance is the set of rules that control a
company’s behavior towards its directors, managers,
employees, shareholders, creditors, customers,
competitors, and community.
• Corporate governance can help control agency problems.
 What should be management’s
primary objective?

• The primary objective should be shareholder wealth

maximization, which translates to maximizing the
fundamental stock price.
• Should firms behave ethically? YES!
• Do firms have any responsibilities to society at large? YES!
Shareholders are also members of society.
 Is maximizing stock price good for
society, employees, and customers? (1)

• Employment growth is higher in firms that try to

maximize stock price. On average, employment goes up
in:
• firms that make managers into owners (such as LBO firms)
• firms that were owned by the government but that have been
sold to private investors
 Is maximizing stock price good for
society, employees, and customers? (2)

• Consumer welfare is higher in capitalist free market

economies than in communist or socialist economies.

• Fortune lists the most admired firms. In addition to high

stock returns, these firms have:
• high quality from customers’ view
• employees who like working there
 What three aspects of cash flows
affect an investment’s value?

• Amount of expected cash flows (bigger is better)

• Timing of the cash flow stream (sooner is better)
• Risk of the cash flows (less risk is better)
 Free Cash Flows (FCF)

• Free cash flows are the cash flows that are available (or
free) for distribution to all investors (stockholders and
creditors).

• FCF sales revenues operating costs operating taxes

required investments in operating capital.
 What is the weighted average cost
of capital (WACC)?

• WACC is the average rate of return required by all of the

company’s investors.
• WACC is affected by:
• Capital structure (the firm’s relative use of debt and equity as
sources of financing)
• Interest rates
• Risk of the firm
• Investors’ overall attitude toward risk
What determines a firm’s
fundamental, or intrinsic, value?

Intrinsic value is the sum of all the future expected free

cash flows when converted into today’s dollars:

See “big picture” diagram on next slide.

(More . .)
© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12
 Determinants of Intrinsic Value: The
Big Picture
Sales revenues

− Operating costs and taxes

− Required investments in operating capital

Free cash flow

(FCF) ¿

Weighted average
cost of capital (WACC)

Market interest rates Cost of debt Firm’s debt/equity mix

Market risk aversion Cost of equity Firm’s business risk

 Who are the providers (savers) and
users (borrowers) of capital?

• Households: Net savers

• Non-financial corporations: Net users (borrowers)
• Governments: U.S. governments are net borrowers, some
foreign governments are net savers

• Financial corporations: Slightly net borrowers, but almost

breakeven
 The Capital Allocation Process
1. Direct Transfer
Business’s Securities
Business Dollars Savers

2. Through Investment Bank

Business’s Securities Business’s Securities
Investment
Business Savers
Dollars Bank Dollars

3. Through Financial Intermediary

Intermediary’s
Business’s Securities Securities
Financial
Business Savers
Dollars Intermediary Dollars
 Transfer of Capital from Savers to
Borrowers
• Direct transfer
• Example: A corporation issues commercial paper to
an insurance company.
• Through an investment banking house
• Example: In an IPO, seasoned equity offering, or debt
placement, company sells security to investment
banking house, which then sells security to investor.
• Through a financial intermediary
• Example: An individual deposits money in bank and
gets certificate of deposit, bank makes commercial
loan to a company (bank gets note from company).
 Cost of Money

• What do we call the price, or cost, of debt capital?

• The interest rate

• What do we call the price, or cost, of equity capital?

• Cost of equity Required return dividend yield capital gain
What four factors affect the cost of
money?

• Production opportunities
• Time preferences for consumption
• Risk
• Expected inflation
 What economic conditions affect
the cost of money?

• Federal Reserve policies

• Budget deficits/surpluses
• Level of business activity (recession or boom)
• International trade deficits/surpluses
 Financial Securities
Debt Equity Derivatives
Money • T-Bills • Options
Market • CD’s • Futures
• Eurodollars • Forward
• Fed Funds contract
Capital • T-Bonds • Common • LEAPS
Market • Agency bonds • Swaps
• Municipals stock
• Preferred
• Corporate bonds
stock
 What are some financial
institutions?
• Commercial banks
• Investment banks
• Savings & Loans, mutual savings banks, and
credit unions
• Life insurance companies
• Mutual funds
• Exchanged Traded Funds (ETFs)
• Pension funds
• Hedge funds and private equity funds
 What are some types of markets?

• A market is a method of exchanging one asset (usually

cash) for another asset.

• Physical assets vs. financial assets

• Spot versus future markets
• Money versus capital markets
• Primary versus secondary markets
 Primary vs. Secondary
Security Sales

• Primary
• New issue (IPO or seasoned)
• Key factor: issuer receives the proceeds from the sale.

• Secondary
• Existing owner sells to another party.
• Issuing firm doesn’t receive proceeds and is not directly involved.
 Along what two dimensions can we
classify trading procedures??
• By “location”
• Physical location exchanges where trading is face-to-face
• Computer/telephone networks
• By the way that orders from buyers and sellers are
matched
• Open outcry auction with face-to-face trading
• Dealers (i.e., market makers) buy from and sell to clients from an
inventory of stocks. Orders are not always automatically
matched by computers.
• Automated trading platforms match orders and execute trades
automatically.
 Types of Orders

• Instructions on how a transaction is to be completed

• Market Order– Transact as quickly as possible at current price
• Limit Order– Transact only if specific situation occurs. For
example, buy if price drops to $50 or below during the next two
hours.
 Broker-Dealer Networks
• Registered with the SEC, but less regulated than alternative
trading systems (ATS) and registered stock exchanges.
• Broker-dealer purchases stock being offered for sale by a client
and then immediately sells it to another client who wished to buy
the stock.
• Broker-dealer is the counterparty to each of the clients. Called
internalization.
• Broker-dealer must report the transactions, but not any
information prior to the trade.
• Trades in broker-dealer networks are called “off exchange” or
over-the-counter (OTC).
• Trades can be with individuals (called retail trades) or with
institutions. Large trades (10,000 shares or more) are called block
trades and are sometimes called “upstairs” trades.
 Alternative Trading System (ATS)
• A broker-dealer than registers with the SEC as
an ATS.
• ATS usually has an automated trading
platform to match orders from clients.
• Owner of the ATS is not always the counterparty,
in contrast to a broker-dealer network.
• The ATS must report trades, but not any pre-
trade information.
• Therefore, an ATS is often called a dark pool
 Registered Stock Exchange

• Stocks can only be listed at a registered stock exchange

• May be traded elsewhere

• Must comply with more regulations than an ATS.

• Must report:
• Trades
• Pre-trade information regarding bids and quotes
 NYSE versus NASDAQ

• The NYSE is the oldest U.S. registered stock exchange.

• The NASDAQ Stock Market has the most listings because
it is willing to list smaller corporations than the NYSE.

• NYSE’s listings have a much bigger market value than

NASDAQ’s listed stocks.
 Stock Exchange Listings
Number of Market Value of
Exchange Listings Listings (Trillions)

NYSE 3,167 $25.1

NASDAQ 3,174 9.1
NYSE MKT 360 0.2
6,701 $34.4

• January, 2017
• Source: www.nasdaq.com/screening/company-list.aspx.
Owner of Trading Venue
Stock Trading
Trading Venue Percentage of Dollar Volume
BATS Global Markets BATS BYX 3.3%
BATS Global Markets BATS BZX 8.2%
BATS Global Markets EDGA 2.4%
BATS Global Markets EDGX 6.7%
Total BATS: 20.6%
NASDAQ OMX NASDAQ 18.1%
NASDAQ OMX NASDAQ BX 2.3%
NASDAQ OMX NASDAQ PSX 0.8%
Total NASDAQ OMX: 21.2%
Intercontinental Exchange NYSE 11.2%
Intercontinental Exchange NYSE Arca 12.8%
Intercontinental Exchange NYSE MKT 0.1%
Total Intercontinental Exchange: 24.1%
Chicago Stock Exchange CHX 0.9%
Others Ceased operations during 2014 0.2%
Total trading on all exchanges: 67.0%
Dark Pools (ATS) Over 40 active pools 12.9%
Broker-Dealer Networks Over 250
Broker-Dealer Networks Retail 7.8%
Broker-Dealer Networks Institutional 12.3%
Total Broker-Dealer: 20.1%
Total trading off-exchanges: 33.0%
• The raw data use to construct the percentages of dollar volumes traded at the exchanges are from BATS Global Markets at
<URL>www.batstrading.com/market_data/market_volume_history</URL>. The percentages for off-exchange trading are based on the proportions of off-
exchange trading for ATSs and non-ATS shown in an SEC report by Laura Tuttle, which can be found at
<URL>www.sec.gov/marketstructure/research/otc_trading_march_2014.pdf
 Home Mortgages Before S&Ls

• The problems if an individual investor tried to lend money to

an aspiring homeowner:
• Individual investor might not have enough money to fund an entire
home
• Individual investor might not be in a good position to evaluate the
risk of the potential homeowner
• Individual investor might have difficulty collecting mortgage
payments
 S&Ls Before Securitization

• Savings and loan associations (S&Ls) solved the problems

faced by individual investors
• S&Ls pooled deposits from many investors
• S&Ls developed expertise in evaluating the risk of borrowers
• S&Ls had legal resources to collect payments from borrowers
 Problems faced by S&Ls Before
Securitization
• S&Ls were limited in the amount of mortgages they
could fund by the amount of deposits they could
raise
• S&Ls were raising money through short-term
floating-rate deposits, but making loans in the form
of long-term fixed-rate mortgages
• When interest rates increased, S&Ls faced crisis
because they had to pay more to depositors than
they collected from mortgagees
 Taxpayers to the Rescue

• Many S&Ls went bankrupt when interest rates rose in the

1980s.

• Because deposits are insured, taxpayers ended up paying

hundreds of billions of dollars.
 Securitization in the Home
Mortgage Industry
• After crisis in 1980s, S&Ls now put their mortgages into
“pools” and sell the pools to other organizations, such as
Fannie Mae.

• After selling a pool, the S&Ls have funds to make new home
loans

• Risk is shifted to Fannie Mae

 Fannie Mae Shifts Risk to Its
Investors
• Risk hasn’t disappeared, it has been shifted to Fannie
Mae.
• But Fannie Mae doesn’t keep the mortgages:
• Puts mortgages in pools, sells shares of these pools to investors
• Risk is shifted to investors.
• But investors get a rate of return close to the mortgage rate,
which is higher than the rate S&Ls pay their depositor.
• Investors have more risk, but more return
• This is called securitization, since new securities have
been created based on original securities (mortgages in
this example)
 Collateralized Debt Obligations
(CDOs)
• Fannie Mae and others, such as investment banks, can
also split mortgage pools into “special” securities
• Some securities might pay investors only the mortgage interest,
others might pay only the mortgage principal.
• Some securities might mature quickly, others might mature later.
• Some securities are “senior” and get paid before other securities
from the pool get paid.
• Rating agencies give different
• Risk of basic mortgage is parceled out to those
investors who want that type of risk (and the potential
return that goes with it).
 Other Assets Can be Securitized

• Car loans
• Student loans
• Credit card balances
The Dark Side of Securitization (1)

Homeowners wanted better homes than they could

afford.
Mortgage brokers encouraged homeowners to take
mortgages even thought they would reset to payments
that the borrowers might not be able to pay because the
brokers got a commission for closing the deal.
Appraisers thought the real estate boom would continue
and over-appraised house values, getting paid at the time
of the appraisal.
Originating institutions (like Countrywide) quickly sold the
mortgages to investment banks and other institutions.
(More . .)
© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 40
 The Dark Side of Securitization (2)
• Investment banks created CDOs and got rating agencies
to help design and then rate the new CDOs, with rating
agencies making big profits despite conflicts of interest.
• Financial engineers used unrealistic inputs to generate
high values for the CDOs.
• Investment banks sold the CDOs to investors and made
big profits.
• Investors bought the CDOs but either didn’t understand
or care about the risk.
• Some investors bought “insurance” via credit default
swaps.
 The Collapse
• When mortgages reset and borrowers defaulted,
the values of CDOs plummeted.
• Many of the credit default swaps failed to provide
insurance because the counterparty failed.
• Many originators and securitizers still owned sub-
prime securities, which led to many bankruptcies,
government takeovers, and fire sales, including:
• New Century, Countrywide, IndyMac, Northern Rock,
Fannie Mae, Freddie Mac, Bear Stearns, Lehman
Brothers, and Merrill Lynch.
 Financial market problems

• Financial Fraud ( ID Theft, Tax, Banking Fraud)

• Excessive Risk Taking
• Abuse Of Power
• Speculators (Stocks, Houses, And Gold…)
• Bubbles, Crises And Recessions.

Regulations for Financial Market

 Who Regulates the Financial Industry?

• Banking (safety, soundness, adequate cap, insure

deposits, potential threats…)

• Financial Markets ( maintaining standard,

regulating the rule, reviewing the information,
supervising the market

• Consumers ( supervising, requiring information)

 Regulator?

• The Federal Deposit Insurance Corporation

• The National Credit Union Administration
• The Securities and Exchange Commission
• The Commodity Futures Trading Commission
• The Consumer Financial Protection Bureau
 Major Financial Regulations

• The Glass-steagall Act
• The Sarbanes-oxley Act Of 2002
 How ?

• Supervision of stock exchanges

• Supervision of listed companies
• Supervision of investment management
• Supervision of banks and financial services providers
 Goals of Financial regulation

• Market confidence – to maintain confidence in the

financial system
• Financial stability – contributing to the protection and
enhancement of stability of the financial system
• Consumer protection – securing the appropriate degree
of protection for consumer
 Newwords:

• Asymmetric information – Thông tin không cân xứng

• Adverse selection - Lựa chọn đối nghịch
• Debt market - Thị trường nợ
• Deposit Insurance - Bảo hiểm tiền gửi
• Disclosure – Công khai thông tin
• Dividend - Cổ tức
• Equity market - Thị trường vốn chủ sở hữu
• Moral hazard - Rủi ro đạo đức
• Crock : gian dối
• Fraud : gian lận
• Soundness: chắn chắn
• Charter : Quyền
• Upstanding : đảm bảo
• Impeccable: Ko có lỗi
• Inspection: Kiểm tra
• Insure : bảo đảm
• Unbridled: buông lỏng
 READING
Regulatory Control in the American Financial System

The financial system is among the most heavily

regulated sectors of the American economy. The
government regulates financial markets for two main
reasons: to increase the information available to
investors and to ensure the soundness of the financial
system. We will examine how these two reasons have led
to the present regulatory environment.
 READING
Regulatory Control in the American Financial System

• Increasing Information Available to Investors

Asymmetric information in financial markets means that investors
may be subject to adverse selection and moral hazard problems that
may hinder the efficient operation of financial markets. Risky firms or
outright crooks may be the most eager to sell securities to unwary
investors, and the resulting adverse selection problem may keep
investors out of financial markets. Furthermore, once an investor has
bought a security, thereby lending money to a firm, the borrower may
have incentives to engage in risky activities or to commit outright fraud.
The presence of this moral hazard problem may also keep investors
away from financial markets. Government regulation can reduce
adverse selection and moral hazard problems in financial markets and
increase their efficiency by increasing the amount of information
available to investors.
 READING
Regulatory Control in the American Financial System

• Ensuring the Soundness of Financial Intermediaries

Asymmetric information can also lead to widespread collapse
of financial intermediaries, referred to as a financial panic. Because
providers of funds to financial intermediaries may not be able to
assess whether the institutions holding their funds are sound, if they
have doubts about the overall health of financial intermediaries, they
may want to pull their funds out of both sound and unsound
institutions. The possible outcome is a financial panic that produces
large losses for the public and causes serious damage to the economy.
To protect the public and the economy from financial panics, the
government has implemented six types of regulations.
 READING

• Restrictions on Entry. State banking and insurance commissions have

created very tight regulations governing who is allowed to set up a
financial intermediary. Individuals or groups that want to establish a
financial intermediary, such as a bank or an insurance company, must
obtain a charter from the state or the federal government. Only if they
are upstanding citizens with impeccable credentials and a large amount
of initial funds will they be given a charter.
• Disclosure. There are stringent reporting requirements for financial
intermediaries. Their bookkeeping must follow certain strict principles,
their books are subject to periodic inspection, and they must make
certain information available to the public.
• Restrictions on Assets and Activities. There are restrictions on what
financial intermediaries are allowed to do and what assets they can
hold. Before you put your funds into a bank or some other such
institution, you would want to know that your funds are safe and that
the bank or other financial intermediary will be able to meet its
obligations to you.
 READING

• Deposit Insurance. The government can insure people’s deposits so

that they do not suffer any financial loss if the financial intermediary
that holds these deposits should fail.
• Limits on Competition. Politicians have often declared that unbridled
competition among financial intermediaries promotes failures that
will harm the public. Although the evidence that competition does
this is extremely weak, it has not stopped the state and federal
governments from imposing many restrictive regulations. First are
the restrictions on the opening of additional locations (branches).
• Restrictions on Interest Rates. Competition has also been inhibited
by regulations that impose restrictions on interest rates that can be
paid on deposits. These regulations were instituted because of the
widespread belief that unrestricted interest-rate competition helped
encourage bank failures during the Great Depression.
• (Source: Federic S. Mishkin (2006), The Economics of Money,
Banking and Financial Markets, Seventh Edition Update, Addison-
Wesley, Longman).
 Question

1. Why does the government regulate financial

markets?

2. What problems does asymmetric information bring

about?
 Question

3. What are adverse selection and moral hazard problems?

4. What methods does the government use to prevent financial

panics?
 Question

5. How do restrictions on entry work?

6. What tool did the American government apply to

deal with the Great Depression?
 Choose the best answer

1.Which of the following is not a goal of financial regulation?

• a) Ensuring the soundness of the financial system
• b) Reducing moral hazard
• c) Reducing adverse selection
• d) Ensuring that investors never suffer losses
Answer:
2.Increasing the amount of information available to investors helps
to reduce the problems of ________ and ________ in the financial
markets.
• a) adverse selection; moral hazard
• b) adverse selection; risk sharing
• c) moral hazard; transactions costs
• d) adverse selection; economies of scale
Answer:
 Choose the best answer
3. Government regulations to reduce the possibility of financial panic include all
of the following except
• a) transactions costs.
• b) restrictions on assets and activities.
• c) disclosure.
• d) deposit insurance.
Answer:
4. In order to reduce risk and increase the safety of financial institutions,
commercial banks and other depository institutions are prohibited from
• a) owning municipal bonds.
• b) making real estate loans.
• c) making personal loans.
• d) owning common stock.
Answer:
 Choose the best answer
5. The primary purpose of deposit insurance is to
• a) improve the flow of information to investors.
• b) prevent banking panics.
• c) protect bank shareholders against losses.
• d) protect bank employees from unemployment.
Answer:

6. Asymmetric information is a universal problem. This would

suggest that financial regulations
• a) in industrial countries are an unqualified failure.
• b) differ significantly around the world.
• c) in industrialized nations are similar.
• d) are unnecessary.
Answer:
 insurance maximum restrictions assets
increase disclosure soundness intermediaries

• The government regulates financial markets and

financial (1) ………………. for two main reasons: to (2)
……………… the information available to investors and to
ensure the (3) ……………… of the financial system.
Regulations include requiring (4) ……………… of
information to the public, (5) ……………… on who can set
up a financial intermediary, restrictions on what (6)
……………… financial intermediaries can hold, the
provision of deposit (7) ………………, reserve
requirements, and the setting of (8) ………………interest
rates that can be paid on checking accounts and savings
deposits.
 Matching
1. compliance a. according to law or regulation
2. mandate b. authorization given to an organization to
carry out specific responsibilities
3. supervision c. following rules and regulations
4. counterparties d. working with companies and institutions,
and not personal or retail customers

5. statutory e. other institutions in an agreement,

contract or transaction
6. wholesale f. watching over people or an organization
to make sure they are behaving correctly

1 2 3 4 5 6
 Put these words in order to make
sentences about the economy

1. An important trend/ years/ financial markets/

growing/ in/ recent/ internationalization/is/of/the.

2. The yield/climbed/10-year Treasury note/2.39

percent/on/to/the.
 Put these words in order to make
sentences about the economy

3. Citigroup/a/capacity/in/has/180 percent/forecasted/by
2020/increase.

4.   gives/ a better opportunity/make a profit/ the

purchase or sale/Asymmetric information/ either the
buyer or seller /to /from 
5. Trump/a/45 percent/has/on/tariff/suggested/from
China/goods/slapping.

6. Financial shares/three of/reported results/American

lenders/climbed/after/the largest.
 Work in pair. One is for and the other is against
the following statements – explain why. Then the
whole class put their answers in the blackboard
and check who are more convincing.
1. The current bank regulation in Vietnam is very good.
2. Commercial banks in Vietnam need to be regulated more strictly.
3. Securities market in Vietnam has not been well-regulated.
4. Deposit insurance in Vietnam covers for all depositors.
5. State Bank of Vietnam’s Circulars are more concrete than Prime
Minister’s Decisions on similar topic.
6. The global financial crisis 2008 is rooted from the de-regulation
environment to financial system.
7. Optional…..(as students may think of more topics)
 Tranlate in to Vietnamese
The Creation Of The International Money Market

In most countries, local corporations commonly need

to borrow short-term funds to support their operations.
Country governments may also need to borrow short-term
funds to finance their budget deficits. Individuals or local
institutional investors in those countries provide funds
through short-term deposits at commercial banks. In
addition, corporations and governments may issue short-
term securities that are purchased by local investors. Thus,
a domestic money market in each country serves to transfer
short-term funds denominated in the local currency from
local surplus units (savers) to local deficit units (borrowers).
 Sự Tạo Lập Của Thị Trường Tiền Tệ Quốc Tế

Ở hầu hết các quốc gia, các doanh nghiệp nội địa thường cần
vay mượn các nguồn vốn ngắn hạn để trợ giúp cho hoạt động của mình.
Chính phủ các nước cũng cần vay các nguồn vốn ngắn hạn để điều chỉnh
tình trạng thâm hụt ngân sách. Các cá nhân, tổ chức đầu tư nội địa ở các
quốc gia đó cung cấp nguồn vốn thông qua các hợp đồng tiền gửi ngắn
hạn tại các ngân hàng thương mại. Thêm vào đó. Các doanh nghiệp và
chính phủ có thế phát hành các chứng khoán ngắn hạn được mua bán
bởi các nhà đầu tư nội địa. Do đó, một thị trường tiền tệ trong nước ở
mỗi quốc gia giữ vai trò chuyển dịch các nguồn vốn ngắn hạn có mệnh
giá bằng đồng nội tệ từ những đối tượng dư thừa nguồn vốn (người tiết
kiệm) tới những đối tượng thiếu hụt nguồn vốn (người vay mượn).
 The creation of the International
Money business
• The growth in international Market
has caused
corporations or governments in a particular country to
need short-term funds denominated in a currency that is
different from their home currency. First, they may need
to borrow funds to pay for imports denominated in a
foreign currency. Second, even if they need funds to
support local operations, they may consider borrowing in
a currency in which the interest rate is lower. This strategy
is especially desirable if the firms will have receivables
denominated in that currency in the future. Third, they
may consider borrowing in a currency that will depreciate
against their home currency, as they would be able to
repay the loan at a more favorable exchange rate over
time. Thus, the actual cost of borrowing would be less
than the interest rate of that currency.
• Sự phát triển của kinh doanh quốc tế đã dẫn đến việc các
tổ chức và chính phủ ở một số quốc gia cần đến nguồn
vốn ngắn hạn mang mệnh giá bằng một loại tiền khác với
đồng tiền của quốc gia họ. Đầu tiên, họ có thể cần vay
vốn để trả cho hàng hóa nhập khẩu được định giá bằng
một loại ngoại tệ. Thứ hai, kể cả khi họ cần vốn để tài trợ
cho các hoạt động trong nước, họ có thể xem xét tới việc
vay mượn loại tiền tệ mà lãi suất vay của nó thấp hơn.
Chiến lược này là đặc biệt cần thiết nếu doanh nghiệp
chuẩn bị có nguồn thu bằng loại ngoại tệ này trong tương
lai. Thứ ba, họ có thể cân nhắc việc vay mượn loại tiền tệ
mà nó sẽ giảm giá so với đồng tiền của quốc gia họ, bởi
họ có thể trả khoản nợ ở một mức tỷ giá có lợi hơn trong
tương lai. Do đó, chi phí thật sự của việc vay mượn có thể
thấp hơn lãi suất của đồng tiền đó.
• Meanwhile, there are some corporations and institutional
investors that have motives to invest in a foreign currency
rather than their home currency. First, the interest rate
that they would receive from investing in their home
currency may be lower than what they could earn on
short-term investments denominated in some other
currencies. Second, they may consider investing in a
currency that will appreciate against their home currency
because they would be able to convert that currency into
their home currency at a more favorable exchange rate at
the end of the investment period. Thus, the actual return
on their investment would be higher than the quoted
interest rate on that foreign currency.
• (Source: Jeff Madura (2008), International Financial
Management, Ninth Edition, Thomson South – Western).
• Cùng lúc đó, có một số doanh nghiệp và tổ chức đầu tư có
động lực để đầu tư vào đồng ngoại tệ hơn là dồng nội tệ.
Thứ nhất, lãi suất mà học có thể nhận được nếu đầu tư
vào đồng nội tệ có thể thấp hơn những gì họ có thể nhận
được nếu đầu tư ngắn hạn vào một số đồng ngoại tệ
khác. Thứ hai, họ có thể cân nhắc đầu tư vào đồng tiền
nào mà đồng tiền đó sẽ tăng giá so với đồng nội tệ của họ
vởi vì họ có thể đổi số ngoại tệ đó thành đồng nội tệ ở
một mức tỷ giá hối đoái tốt hơn vào cuối của giai đoạn
đầu tư. Do đó, lợi nhuận thu được từ khoản đầu tư của họ
có thể cao hơn lãi suất được công bố của đồng ngoại tệ.
• Sự ưa thích của các doanh nghiệp và chính phủ trong việc
đi vay bằng đồng ngoại tệ và của các nhà đầu tư trong
việc tạo ra các khoản đầu tư ngắn hạn vào đồng ngoại tệ
đã dẫn đến sự thành lập của thị trường tiền tệ quốc tế.