Financial Institutions and Markets FIN 304 Dr. Andrew L. H. Parkes Day 3 “How do financial markets work?” 卜安吉

Other Financial Markets I want to introduce the Commodity Markets briefly here. Just what is traded in these markets and What are some of the indexes. Also I want you to know the Yield Curve! December 8, 2009 Financial Institutions & Markets, Day 3

Commodities Futures Mkt INDEX NAME VALUE CHANGE OPEN HIGH LOW TIME   UBS BLOOMBERG CMCI 807.70 -37.37 830.07 830.16 805.92 12/05   S&P GSCI 318.00 -16.18 333.20 336.30 317.13   RJ/CRB Commodity 208.60 -9.39 217.79 217.99 208.58   Rogers Intl 2334.34 -98.00 2427.76 2433.43 2317.71   Brookshire Intl 291.63 1.34 NaN 11/21 December 8, 2009 Financial Institutions & Markets, Day 3

Commodities Futures Mkt INDEX NAME VALUE CHANGE OPEN HIGH LOW TIME   UBS BLOOMBERG CMCI 807.70 -37.37 830.07 830.16 805.92 12/05   S&P GSCI 318.00 -16.18 333.20 336.30 317.13   RJ/CRB Commodity 208.60 -9.39 217.79 217.99 208.58   Rogers Intl 2334.34 -98.00 2427.76 2433.43 2317.71   Brookshire Intl 291.63 1.34 NaN 11/21 December 8, 2009 Financial Institutions & Markets, Day 3

Commodities Futures cont. Energy PRICE CHANGE %CHANGE TIME      BRENT CRUDE FUTR (USD/bbl.) 39.740 -2.540 -6.01 12/05      GAS OIL FUT (ICE) (USD/MT) 447.500 -42.250 -8.63      GASOLINE RBOB FUT (USd/gal.) 90.120 -6.830 -7.04      HEATING OIL FUTR (USd/gal.) 142.650 -8.260 -5.47      NATURAL GAS FUTR (USD/MMBtu) 5.742 -0.275 -4.57      WTI CRUDE FUTURE (USD/bbl.) 40.810 -2.860 -6.55 December 8, 2009 Financial Institutions & Markets, Day 3

Commodities Futures cont. Agriculture PRICE CHANGE %CHANGE TIME      COCOA FUTURE - LI (GBP/MT) 1635.000 -119.000 -6.78 12/05      COCOA FUTURE (USD/MT) 2141.000 -107.000 -4.76      COFFEE 'C' FUTURE (USd/lb.) 103.200 -2.950 -2.78      CORN FUTURE (USd/bu.) 309.250 -24.750 -7.41      COTTON NO.2 FUTR (USd/lb.) 41.370 -2.230 -5.11      FCOJ-A FUTURE (USd/lb.) 74.950 -1.250 -1.64      SOYBEAN FUTURE (USd/bu.) 783.500 -27.500 -3.39      SOYBEAN MEAL FUTR (USD/T.) 238.300 -7.200 -2.93      SOYBEAN OIL FUTR (USd/lb.) 28.550 -0.950 -3.22      SUGAR #11 (WORLD) (USd/lb.) 10.570 -0.230 -2.13      WHEAT FUTURE(CBT) (USd/bu.) 475.500 -10.500 -2.16      WHEAT FUTURE(KCB) (USd/bu.) 503.250 -9.750 -1.90 http://www.bloomberg.com/markets/commodities/cfutures.html December 8, 2009 Financial Institutions & Markets, Day 3

Commodities Futures cont. ALUMINUM FUTURE (USd/lb.) 69.100 -3.500 -4.82 12/05 COPPER FUTURE (USd/lb.) 137.350 -9.600 -6.53      GOLD 100 OZ FUTR (USD/t oz.) 752.200 -13.300 -1.74 12/05      SILVER FUTURE (USD/t oz.) 9.430 -0.090 -0.95     CATTLE FEEDER FUT (USd/lb.) 86.650 -1.450 -1.65 12/05      LEAN HOGS FUTURE (USd/lb.) 64.200 0.550 0.86      LIVE CATTLE FUTR (USd/lb.) 81.450 -1.625 -1.96 December 8, 2009 Financial Institutions & Markets, Day 3

Commodities Futures - Oil Crude Oil – 1 year NYMEX or New York Mercantile Exchange, Sept. 8, 2009 http://online.wsj.com/mdc/public/page/mdc_commodities.html?mod=mdc_topnav_2_3000 http://online.wsj.com/mdc/public/page/mdc_commodities.html?mod=mdc_topnav_2_3000 December 8, 2009 Financial Institutions & Markets, Day 3

Commodities Futures - Oil Crude Oil – 1 year NYMEX or New York Mercantile Exchange, Dec. 4, 2009 http://online.wsj.com/mdc/public/page/mdc_commodities.html?mod=mdc_topnav_2_3000 December 8, 2009 Financial Institutions & Markets, Day 3

Understanding Interest Rates Ch. 3 Ch. 3 – Notice Calculations Discount Bond Friday’s yield curve => 1 yr ago What does this tell you? Below today U. S. Treasury Yield Curve http://www.bloomberg.com/markets/rates/index.html December 8, 2009 Financial Institutions & Markets, Day 3

Financial Institutions & Markets, Day 3 Discount Yields pp. 52 - 58 Yield on a discount basis - Notice the Calculations Bond Quotes – p. 55 (Wall St J.) Treasury Bills – p. 57 Corporate Bonds – p. 58 Real Interest Rate pp. 58 - 61 December 8, 2009 Financial Institutions & Markets, Day 3

Financial Institutions & Markets, Day 3 From Shanghai Daily New yuan bonds set to debut in Hong Kong CHINA will soon issue its first yuan-backed sovereign bonds in the Hong Kong Special Administrative Region to build a market for the currency in the global financial hub. The Ministry of Finance will offer 6 billion yuan (US$878 million) of the bonds on September 28 to retail and institutional investors, the ministry said yesterday. Created: 2009-9-9 December 8, 2009 Financial Institutions & Markets, Day 3

Financial Institutions & Markets, Day 3 From Shanghai Daily New yuan bonds set to debut in Hong Kong Peng Wensheng, head of China research at Barclays Capital, said that while the amount is not large, it is a significant development in the internationalization of the yuan and for the development of the Hong Kong bond market. "The issue broke new ground in an effort to promote the domestic currency as an international currency," Peng said yesterday.  http://www.shanghaidaily.com/sp/article/2009/200909/20090909/article_413253.htm December 8, 2009 Financial Institutions & Markets, Day 3