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

2. 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

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
-98.00
  Brookshire Intl
291.63
1.34
NaN
11/21
December 8, 2009
Financial Institutions & Markets, Day 3

4. 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
-98.00
  Brookshire Intl
291.63
1.34
NaN
11/21
December 8, 2009
Financial Institutions & Markets, Day 3

5. 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)
-8.63
     GASOLINE RBOB FUT (USd/gal.)
90.120
-6.830
-7.04
     HEATING OIL FUTR (USd/gal.)
-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

6. Commodities Futures cont.
Agriculture
PRICE
CHANGE
%CHANGE
TIME
     COCOA FUTURE - LI (GBP/MT)
-6.78
12/05
     COCOA FUTURE (USD/MT)
-4.76
     COFFEE 'C' FUTURE (USd/lb.)
-2.950
-2.78
     CORN FUTURE (USd/bu.)
-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.)
-3.39
     SOYBEAN MEAL FUTR (USD/T.)
-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.)
-2.16
     WHEAT FUTURE(KCB) (USd/bu.)
-9.750
-1.90
December 8, 2009
Financial Institutions & Markets, Day 3

7. Commodities Futures cont.
ALUMINUM FUTURE (USd/lb.)
69.100
-3.500
-4.82
12/05
COPPER FUTURE (USd/lb.)
-9.600
-6.53
     GOLD 100 OZ FUTR (USD/t oz.)
-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

8. Commodities Futures - Oil
Crude Oil – 1 year NYMEX or New York Mercantile Exchange, Sept. 8, 2009
December 8, 2009
Financial Institutions & Markets, Day 3

9. Commodities Futures - Oil
Crude Oil – 1 year NYMEX or New York Mercantile Exchange, Dec. 4, 2009
December 8, 2009
Financial Institutions & Markets, Day 3

10. 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
December 8, 2009
Financial Institutions & Markets, Day 3

11. Financial Institutions & Markets, Day 3
Discount Yields pp
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
December 8, 2009
Financial Institutions & Markets, Day 3

12. 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:
December 8, 2009
Financial Institutions & Markets, Day 3

13. 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.  
December 8, 2009
Financial Institutions & Markets, Day 3