Moody's takes rating actions on 19 Turkish financial institutions 07 Jun Rating actions reflect deteriorating operating environment London, 07 June -- Moody's Investors Service has downgraded and placed on review for further downgrade the ratings of 17 banks and placed on review for downgrade the ratings of two finance companies.
Money and Banking — Part 19 A: Mutual Funds and Others Portfolio management companies provide a wide variety of placement opportunities to economic units with spare funds who do not want to, or cannot, directly buy securities or other assets. There are three broad types of portfolio management companies: One of the main differences between them is the characteristics of the shares they issue in terms of marketability and redeemability.
Mutual fund shares are nonmarketable and redeemable on demand, closed-end fund shares are marketable and irredeemable, and UIT shares are Financial institutions 19 22 and redeemable on demand. Closed-end funds and UITs do not continuously offer their shares for sale.
Rather, they sell a fixed number of shares in an initial public offering, after which the shares typically trade on a secondary market such as the New York Stock Exchange or through the sponsor for UIT.
The price of closed-end funds is determined by the market and may differ greatly from the net asset value per share see below. Another main different is the type of asset they are allowed to acquire, with closed-end funds allowed to buy more illiquid assets than mutual funds.
Within each of these three broad categories, there is a wide variety of funds in terms of the assets they purchase, the placement strategies, and the means of issuance and redemption of shares cash redemption or security redemption.
This wide variety of funds accommodates the financial preferences of most shareholders. For example, some like risks and others do not; some like stocks others prefer bonds; some want stable fund share prices others want to be able to make capital gains while risking to make a loss.
They also have different level of Financial institutions 19 22 financial contribution to cater to different wealth groups.
The following focuses on mutual funds, which are the most common type of portfolio management companies. Mutual funds became popular in the U. They issues shares to whomever wants to join, and use the proceeds to buy earning assets for the benefits of the members.
As shown in Post 1880 percent of mutual funds shares are held directly or indirectly via pension funds by households. Mutual funds are open-end companies, that is, the outstanding number of shares is allowed to change on a daily basis.
The shares of mutual funds are not tradable and are redeemable on demand, which is quite different from corporate shares that are tradable and irredeemable.
Economic units who want to place some funds in a mutual fund must purchase shares from the mutual fund itself, not from other bearers. When economic units wish to retrieve their funds, they can redeem them—that is, sale them back to the mutual fund—for a fee.
The price that an economic unit pays for mutual fund shares is approximately the net asset value NAV per share. The NAV is the net worth of the funds assets net of liabilities. The NAV is calculated on a daily basis by recording how the value of assets and liabilities at the end of each day.
The price at which a share can be bought and redeemed is the NAV per share, and this price varies on a daily basis because of daily changes in the NAV and in the outstanding number of shares.
They purchase mostly short-term, safe securities. Given these financial characteristics and the fact that MMMF share are redeemable on demand, financial market participants consider MMMF shares to be close substitutes to savings accounts offered by private depository institutions.
Most assets of mutual funds are composed of corporate shares except for the decade during which Treasuries, agency securities, and municipals grew to represent 40 percent of the financial assets of mutual funds. Their liabilities is composed mostly of their shares, but also of individual retirement accounts IRAs that have grown to represent 20 percent of liabilities Figure The assets of MMMFs are composed mostly of safe to safer assets that are of short-to-medium term maturity, such as commercial papers, T-bills, agency securities, Treasuries, time and savings accounts, and repurchase agreements Figure Prior to the crisis, MMMFs bought a lot of asset-backed commercial papers because they looked safe but, as explained in the post on securitization, were not so.
Structure percent and level trillions of dollars of the assets of mutual funds Source: No information is shown about currency and checkable deposits because the Financial Accounts assumes all monetary instruments received is immediately put to work.
How the funds are used that is which financial assets goes if more funds are received is based on econometric analysis or discretionary decisions of Federal Reserve analysts. Structure of liabilities of mutual funds Source: Structure percent and outstanding dollar amount trillions of dollars of the assets of money market mutual funds Source: Structure of liabilities of money market mutual funds Source: Hedge Funds Hedge funds emerged in the s.
Like mutual funds, hedge funds pool funds to buy return-earning assets but, unlike mutual funds, they frequently use riskier balance-sheet strategies, such as leverage see Post 7 and short selling, to achieve the rate of return they promise to their clients.
Hedge funds are also more lightly regulated and may not have to file full financial statements with regulatory agencies, although the Dodd-Frank Act increased the regulatory filing requirement. Finally, they cater to wealthy individuals.
Expectations of hedge fund Alpha about the price direction of two stocks The hedge funds does two things to profit from this expectation:Financial Institutions § on Westlaw FindLaw Codes are provided courtesy of Thomson Reuters Westlaw, the industry-leading online legal research system. For more detailed codes research information, including annotations and citations, please visit Westlaw.
(1) "Financial institutions" means "financial institutions" as defined in Section (10). (2) "Financial record" means an original of, a copy of, or information known to have been derived from, any record held by a financial institution pertaining to a customer's relationship with the financial institution.
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The Carbon Pricing Leadership Coalition, in partnership with the Government of Switzerland, and with the support of CDP and PRI will organize a high-level interactive session on “Financial Institutions, Businesses and Climate Change: Addressing Risks and Opportunities in a Changing World”.
Pursuant to the Franchise Investment Protection Act of Washington, RCW , the Securities Division of the Department of Financial Institutions (the “Securities .
Geocoding refers to the Metropolitan Statistical Area/Metropolitan Division (MSA/MD), State, County, Census Tract combination (address information) that must be provided for each reported loan application and the System allows institutions to enter a street address to determine the corresponding geocode.