1. J. K. Dietrich - FBE 524 - Fall, 2005 The Money Market and Money-Market Instruments (2) Week 11 – November 2, 2005

2. J. K. Dietrich - FBE 524 - Fall, 2005 Commercial Paper u Short-term (270 days or less) to avoid SEC registration u Directly placed commercial paper u Dealer-placed commercial paper u Role of banks –Commercial paper as substitute for loans –Market making and guarantees by banks

3. J. K. Dietrich - FBE 524 - Fall, 2005 Corporations in Money Market

4. J. K. Dietrich - FBE 524 - Fall, 2005 Evolution of Commercial Paper

5. J. K. Dietrich - FBE 524 - Fall, 2005 International Trade Transactions u Trade financing –Goods in transit –Documentation »Bills of lading, inspection certificates, insurance u Facilitates flow of goods between unknown trading partners u Role of banks and importance of letters of credit and correspondent banks

6. J. K. Dietrich - FBE 524 - Fall, 2005 Bankers’ Acceptances Market

7. J. K. Dietrich - FBE 524 - Fall, 2005 Eurocurrency u History of the market u Reasons for the market –Interest rate regulation –Deposit creation –Flexibility u Eurodollars and other currencies

8. J. K. Dietrich - FBE 524 - Fall, 2005 Next Classes – Nov. 9, 2005 u Prepare Chapters 13 and 14 u We will combine discussion of some fixed income markets so read ahead in Chapters 20 to 25 when you can –See me if you are having problems with group project