投资学课件1

投资学课件1
Chapter 1The Investment Environment The Investment Environment
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Real Assets Versus Financial Assets ?Real Assets
Real Assets
–Determine the productive capacity and net income of the economy
t i f th
–Examples: Land, buildings, machines, knowledge used to produce goods and services
Financial Assets
–Claims on real assets INVESTMENTS|BODIE, KANE, MARCUS Financial Assets
Three types:
1.Fixed income or debt
1Fixed income or debt
mon stock or equity
3.Derivative securities
INVESTMENTS|BODIE, KANE, MARCUS Fixed Income
Payments fixed or determined by a
P t fi d d t i d b
formula
Money market debt: short term, highly ?Money market debt:short term highly marketable, usually low credit risk Capital market debt: long term bonds, can be safe or risky INVESTMENTS|BODIE, KANE, MARCUS
Common Stock and Derivatives ?Common Stock is equity or ownership
Common Stock is equity or ownership
in a corporation.
–Payments to stockholders are not fixed,
P t t t kh ld t fi d
but depend on the success of the firm ?Derivatives
–Value derives from prices of other
securities, such as stocks and bonds
–Used to transfer risk
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Financial Markets and the Economy ?Information Role:
Capital flows to
companies with best prospects
companies with best prospects
Consumption Timing: Use securities
to store wealth and transfer
to store wealth and transfer
consumption to the future
INVESTMENTS|BODIE, KANE, MARCUS Financial Markets and the
Economy (Ctd.)
Allocation of Risk: Investors can select securities consistent with their tastes
for risk
for risk
Separation of Ownership and
g y Management: With stability comes agency problems
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Financial Markets and the
Economy (Ctd.)
Corporate Governance and Corporate Ethics
g
–Accounting Scandals
Examples –Enron, Rite Aid, HealthSouth –Auditors –watchdogs of the firms
Auditors–watchdogs of the firms
–Analyst Scandals
Arthur Andersen
–Sarbanes-Oxley Act
Tighten the rules of corporate governance
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The Investment Process
Asset allocation
Choice among broad asset classes
–Choice among broad asset classes ?Security selection
–Choice of which securities to hold within
asset class
–Security analysis to value securities and
determine investment attractiveness
determine investment attractiveness
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Risk-Return Trade-Off
Efficient Markets
–Active Management
Finding mispriced securities
Finding mispriced securities
Timing the market
INVESTMENTS|BODIE, KANE, MARCUS Markets are Competitive (Ctd.)
(Ctd)
–Passive Management
No attempt to find undervalued
No attempt to find undervalued
securities
N tt t t ti th k t
No attempt to time the market
o d g a g y d e s ed po t o o ?Holding a highly diversified portfolio
INVESTMENTS|BODIE, KANE, MARCUS The Players
Business Firms–net borrowers ?Households –net savers
Governments can be both borrowers ?Governments–can be both borrowers
and savers
INVESTMENTS|BODIE, KANE, MARCUS (Ctd)
The Players (Ctd.)
Financial Intermediaries: Pool and invest funds –Investment Companies
–Banks
–Insurance companies
–Credit unions
INVESTMENTS|BODIE, KANE, MARCUS Universal Bank Activities
Investment Banking Commercial Banking g ?Underwrite new stock
and bond issues g ?Take deposits and ?Sell newly issued securities to public in p make loans
p
the primary market
Investors trade previously issued securities among
themselves in the
secondary markets INVESTMENTS |BODIE, KANE, MARCUS Financial Crisis of 2008
Antecedents of the Crisis:
–“The Great Moderation”: a time in which the
U.S. had a stable economy with low interest
rates and a tame business cycle with only
y y mild recessions
–Historic boom in housing market
INVESTMENTS|BODIE, KANE, MARCUS Figure 1.3 The Case‐Shiller Index of U.S.
Housing Prices
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Changes in Housing Finance Old Way New Way y
Local thrift institution made mortgage loans to y ?Securitization: Fannie Mae and Freddie Mac made mortgage loans to
homeowners
Thrift’s major asset:a Mae and Freddie Mac bought mortgage loans and bundled them into Thrift s major asset: a portfolio of long-term
mortgage loans large pools ?Mortgage-backed g g
Thrift’s main liability:
deposits
securities are tradable claims against the underlying mortgage pool ?“Originate to hold”underlying mortgage pool “Originate to distribute”
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Figure 1.4 Cash Flows in a Mortgage
Pass‐Through Security
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(Ctd.)
At first, Fannie Mae and Freddie Mac
At fi t F i M d F ddi M securitized conforming mortgages, which were lower risk and properly documented.?Later, private firms began securitizing
,p g g nonconforming “subprime”loans with
g e de au t s
higher default risk.
–Little due diligence
Placed higher default risk on investors
–Placed higher default risk on investors
–Greater use of ARMs and “piggyback” loans
INVESTMENTS|BODIE, KANE, MARCUS。