Section B Developments in the Domestic Government Bond Market and in Global Bond Markets in 2005
|
|
- Cornelia Morton
- 7 years ago
- Views:
Transcription
1 Section B Developments in the Domestic Government Bond Market and in Global Bond Markets in 2005
2 Section B Developments in the Domestic Government Bond Market and in Global Bond Markets in Macro-Economic Developments and Developments in the Domestic Capital Market in 2005 The growth trend in the Israeli economy continued in Gross domestic product (GDP) grew at an average annual rate of 5.2%, versus 4.8% growth in Per-capita GDP increased at a strong rate of 3.4%, versus a 3% increase in the previous year was also marked by inflation within the target range; the Consumer Price Index rose by 2.4%, versus 1.2% in The shekel depreciated against the dollar by 6.8% during the year and appreciated against the euro by 7.3%. Government tax revenues increased in 2005, concurrent with underperformance in ministries' expenditures. As a result, the deficit decreased, to NIS 11.0 billion (deficit excluding net credit granted), or approximately 1.89% of the GDP. In 2004 the deficit stood at NIS 20.1 billion, comprising 3.66% of the GDP. The trend of expanding economic activity resulted from several factors; the key factors are: 1. Continued implementation of a reliable fiscal policy, while effecting structural changes in the economy, streamlining and restraining public spending and reducing the tax burden on individuals and companies. 2. The continued global economic growth trend and the increased volume of international trade, which led to increased demand for Israeli export products. 3. The relative stability in the security situation. In 2005, the Bank of Israel's interest rate rose from 3.7% in January to 4.5% in December, following a decrease in interest rates in 2004, from 4.8% to 3.9%. The interest rate was lowered by 0.2% at the beginning of 2005 and remained at a steady rate of 3.5% for the next eight months; a series of increases occurred in the fourth quarter, reaching a cumulative 1%. The interest rate remained steady over most of the year, due to the attainment of the government's price stability target (an annual rate of 1%-3%), a strict fiscal policy implemented by the government and relatively stable exchange rates. The increases in the interest rate in the fourth quarter resulted from an increase in inflationary expectations, high economic growth rates, depreciation in the shekel-dollar exchange rate, political uncertainty and the rise in the interest rate in the United States. 35
3 Diagram B-1: Developments in interest rates, exchange rates and inflation expectations in 2005 Source: Bank of Israel Against the background of expanding economic activity, the domestic capital market in general and the stock market in particular enjoyed price increases: the General Share Index rose by 30% during 2005, completing an increase of approximately 150% from its low point in February 2003; the TA-25 Index rose by 28%; the TA-75 Index rose by 16%; and the Yeter Index, reflecting the performance of relatively small-cap shares, rose by 25%. Noteworthy among the sectoral indices were shares of commercial banks, which achieved an average return of 45%, and the Tel-Tech Index, which fell by 7% (following an increase of over 150% during the preceding two years). The average daily turnover in shares reached a historical record of approximately one billion NIS, an increase of some 50% compared to the average in Note that trading in the 25 largest shares comprised 64% of total shares traded was marked by a sharp increase in demand for equities from foreign investors, who increased purchase volumes four-fold to a total of $2 billion. At the end of the year, foreign investors held approximately 11% of the equity market versus 10% in the previous year. Bond prices rose at a real rate of approximately 4%, similar to the rate of increase in Daily turnovers in bonds (government and non-government) increased by 40% to a peak of NIS 1.3 billion. Turnovers in corporate bonds rose sharply and were three times higher in 2005 than in the previous year, at NIS 220 million per day on average. The volume 36
4 of funding in corporate bonds also grew impressively, reaching NIS 45 billion, versus NIS 21 billion and just NIS 12 billion in 2004 and 2003, respectively. 2. Main Developments in the Domestic Government Bond Market This year, government bonds again drew the most significant share in volume of trading activity on the TASE, reaching approximately 39% of total trading (excluding the derivatives). Government bond trading volumes continued to expand this year, their daily turnover (on and off the stock exchange) recorded a 26% increase to NIS 1,124 million. A particularly notable increase of 41% occurred in trading volumes of CPI-linked fixed-coupon bonds. Turnovers in unlinked bonds, both fixed-coupon bonds and FRNs (floating-rate notes), increased at a more moderate rate of approximately 25%. Trading in foreign currency-linked bonds stopped almost entirely, as only one small NIS 300 million series remained in circulation. Trading in unlinked fixed-coupon and FRN government bonds comprised 67% of total trading in government bonds on the TASE in Diagram B-2: Turnovers of government bonds on the Tel Aviv Stock Exchange, by linkage type Source: Bank of Israel (A) Unlinked Instruments Fixed Coupon The yield to maturity of Shahar type bonds, which are unlinked and carry a fixed interest rate, decreased during the year. The yield of the 10-Year Shahar 37
5 bond (series 2682) decreased in 2005 from 6.8% to 6.2% and the yield of the 5-Year Shahar bond (series 2680) decreased from 6.4% to 5.9%. Average daily turnovers in unlinked fixed-coupon bonds on the TASE increased by 25% in 2005, reaching NIS 559 million. Diagram B-3: Development of yields of unlinked fixed-coupon government bonds in 2005 Diagram B-4: Yield curves of unlinked fixed-coupon government bonds in
6 Diagram B-4 presents yields of unlinked fixed-coupon bonds at different terms to maturity (hereafter: "yield curves"). A yield curve rising from left to right is the "normal" curve, representing the risk premium investors demand for a long-term investment over a short-term investment. Conversely, a flat curve represents the premium offset against expectations of a decrease in the interest rate. When the market expects the interest rate to rise, long-term bond yields increase relative to short-term bond yields and the slope of the curve steepens. Floating Rate The yield to maturity of Gilon and New Gilon type bonds, which are unlinked and carry a floating interest rate, increased during the year from an average yield of 4.4% in January to an average yield of 5.3% in December. Average daily turnovers in FRNs on the TASE grew by 25% in 2005 to NIS 166 million. The interest on Gilon and New Gilon bonds changes periodically (every six months for the Gilon and every quarter for the New Gilon) based on the weighted average yields of Makams at three months to one year to maturity. This yield is essentially the underlying asset of these bonds; the yield spread at which the bonds are trading is measured relative to the yield of the underlying asset. The difference between the bond yield and the yield of its underlying asset is the "spread." The spread is positive when the bond yield is higher than that of its underlying asset and negative when the bond yield is lower than that of its underlying asset. Note that the Government Debt Management Unit in the Accountant General Division has not issued FRNs since mid Details of the rationale for this policy appear in Section A. (B) CPI-Linked Fixed-Coupon Instruments The real yield to maturity of Galil type bonds, which are linked to the Consumer Price Index and carry a fixed interest rate, increased moderately during the year, from an average annual yield of 3.5% in January to an average annual yield of 3.6% in December. The average daily turnover in CPI-linked bonds on the TASE grew by 41% in 2005 to NIS million. 39
7 Diagram B-5: Development of yields of CPI-linked government bonds in 2005 Diagram B-6: Yield curves of CPI-linked government bonds in
8 3. Developments in the Global Bond Market (A) Interest Rate Environment Medium and long-term interest rates remained quite low in U.S. and European bond markets during 2005, as in Yields of U.S. government 10-year bonds ranged from 3.88% at their low point in early June to 4.66% in early November. In Europe, the yield of 10-year German government bonds (the most liquid government bond, which serves as a benchmark for bonds in the euro bloc) decreased from 3.78% in mid-march to 3.024% in late September. Diagram B-7: Developments in yields of U.S. government bonds at 5 and 10 years to maturity, In the United States, the Federal Reserve continued to raise the basic interest rate steadily in 2005, from 2.25% at the beginning of the year to 4.25% by December. The increase in the basic interest rate did not cause the expected significant increase in medium and long-term interest rates; as a result, the U.S. interest rate curve flattened. The short-term dollar LIBOR interest rate also rose significantly, from 2.78% at the beginning of the year to 4.7% at its end, while the U.S. swap curve flattened, inter alia due to expectations of a future slowdown in growth in the U.S. 41
9 Diagram B-8: Developments in the three and six month LIBOR interest rate in (B) Foreign Currency Market In the foreign currency market, the dollar resumed gaining strength against the euro, with the exchange rate falling from the peak level of $1.36 per euro at the beginning of the year to $1.185 per euro by the end of the year. The strengthening resulted from the continued strong growth in the United States as compared to Europe, among other factors. The yen weakened considerably against the dollar during the year, from 102 per dollar at the beginning of 2005 to approximately 120 per dollar at the end of the year. 42
10 Diagram B-9: Developments in dollar exchange rates against the Japanese yen, the euro and the GBP in (C) Sovereign Bond Issues In 2005, the global bond market was marked by issues with exceptionally long terms to maturity due to three main factors: (A) The interest rate environment which remained quite low in historical terms; (B) The flattening of the yield curve; (C) Rising demand for long-term bonds from pension funds which were required to adjust the terms to maturity of their assets in order to match their liabilities. Issuers, on their part, focused on long-term debt out of a desire to establish low long-term interest rates and take advantage of the brisk demand for long-term instruments in order to reduce refinancing risk. In line with these trends, exceptionally long-term debt was issued by the French government (50 years, denominated in euro) and by the UK government (two 50-year issues, denominated in GBP, one CPI-linked and the other at a fixed interest rate) in Long-term debt at a term to maturity of 30 years was also issued in 2005, by Spain, Greece, Italy and Holland, as well as the U.S. government, which resumed issues at this term to maturity after a five-year hiatus. Countries with a lower credit rating also issued bonds this year at longer terms to maturity than usual in those countries. Thus, for example, Brazil issued a 30-year dollar-denominated bond, Turkey issued a 20-year dollardenominated bond and a 12-year euro-denominated bond and Israel also issued its longest-term euro-denominated bond at a 10-year term to maturity. 43
Part F. Reforms in Pensions and in the Taxation of the Capital Market. 1. The Pension Reform
Part F 1. The Pension Reform Reforms in Pensions and in the Taxation of the Capital Market In May 2003, the Knesset approved a comprehensive reform in pension funds, under which their investment terms
More informationPart A. Debt Management Unit, Debt Management Policy Goals, and Tools for Implementation. 1. Debt Management Unit Structure and Functions
Part A Debt Management Unit, Debt Management Policy Goals, and Tools for Implementation 1. Debt Management Unit Structure and Functions The Government Debt Management Unit is responsible for the management
More information1. The Debt Management Unit Structure and Functions
Part B 1. The Debt Management Unit Structure and Functions The Government Debt Management Unit is responsible for management of the domestic and external debts and for developing an overall model of debt
More informationBANK OF ISRAEL Office of the Spokesperson and Economic Information. Report to the public on the Bank of Israel s discussions prior to deciding on the
BANK OF ISRAEL Office of the Spokesperson and Economic Information September 7, 2015 Report to the public on the Bank of Israel s discussions prior to deciding on the General interest rate for September
More informationReport to the public of the discussions in the Bank of Israel prior to the setting of the interest rate for June 2006
Bank of Israel Report to the public of the discussions in the Bank of Israel prior to the setting of the interest rate for June 2006 The broad-forum discussion took place in the Bank of Israel on 24 May
More informationIntroductory remarks by Jean-Pierre Danthine
abcdefg News conference Berne, 15 December 2011 Introductory remarks by Jean-Pierre Danthine I would like to address three main issues today. These are the acute market volatility experienced this summer,
More informationReport to the public on the Bank of Israel s discussions prior to deciding on. the interest rate for January 2015
BANK OF ISRAEL Office of the Spokesperson and Economic Information January 12, 2015 Report to the public on the Bank of Israel s discussions prior to deciding on General the interest rate for January 2015
More informationAppendix. Debt Position and Debt Management
Appendix Debt Position and Debt Management BUDGET '97 BUILDING ALBERTA TOGETHER Table of Contents Debt Position and Debt Management... 349 The Consolidated Balance Sheet and Net Debt... 350 Liabilities...
More informationCurrent account deficit -10. Private sector Other public* Official reserve assets
Australian Capital Flows and the financial Crisis Introduction For many years, Australia s high level of investment relative to savings has been supported by net foreign capital inflow. This net capital
More informationThe Macroeconomic Situation and Monetary Policy in Russia. Ladies and Gentlemen,
The Money and Banking Conference Monetary Policy under Uncertainty Dr. Sergey Ignatiev Chairman of the Bank of Russia (The 4 th of June 2007, Central Bank of Argentina, Buenos Aires) The Macroeconomic
More informationBUDGET 1999. Debt Management Strategy. Building today for a better tomorrow 1999-2000. February 1999. Department of Finance Canada
BUDGET 1999 Building today for a better tomorrow Debt Management Strategy 1999-2000 February 1999 Department of Finance Canada Ministère des Finances Canada Her Majesty the Queen in Right of Canada (1999)
More informationGovt. Debt, Deficit and Related Issues. Senior Financial Consultant & Lecturer GARP Israel Chapter May, 26, 2013
Govt. Debt, Deficit and Related Issues Adi Rivlin Senior Financial Consultant & Lecturer GARP Israel Chapter May, 26, 2013 TOPICS Govt. Debt 15 year perspective The reform of the debt major accomplishments
More informationResearch. What Impact Will Ballooning Government Debt Levels Have on Government Bond Yields?
Research What Impact Will Ballooning Government Debt Levels Have on Government Bond Yields? The global economy appears to be on the road to recovery and the risk of a double dip recession is receding.
More informationGUIDELINES FOR CENTRAL GOVERNMENT DEBT MANAGEMENT 2015
GUIDELINES FOR CENTRAL GOVERNMENT DEBT MANAGEMENT 2015 Decision taken at the Cabinet meeting November 13 2014 2015 LONG-TERM PERSPECTIVES COST MINIMISATION FLEXIBILITY Guidelines for the mana g ement of
More informationYield Curve September 2004
Yield Curve Basics The yield curve, a graph that depicts the relationship between bond yields and maturities, is an important tool in fixed-income investing. Investors use the yield curve as a reference
More informationTHE IMPACT OF THE CAPITAL MARKET
THE IMPACT OF THE CAPITAL MARKET TURBULENCE ON Banks funding costs Introduction This article examines the main funding sources used by banks in Australia and provides some estimates of how the financial
More information2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013
2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013 U.S. stock market performance in 2012 * +12.59% total return +6.35%
More informationWhy Treasury Yields Are Projected to Remain Low in 2015 March 2015
Why Treasury Yields Are Projected to Remain Low in 5 March 5 PERSPECTIVES Key Insights Monica Defend Head of Global Asset Allocation Research Gabriele Oriolo Analyst Global Asset Allocation Research While
More informationPERSONAL RETIREMENT SAVINGS ACCOUNT INVESTMENT REPORT
PENSIONS INVESTMENTS LIFE INSURANCE PERSONAL RETIREMENT SAVINGS ACCOUNT INVESTMENT REPORT FOR PERSONAL RETIREMENT SAVINGS ACCOUNT () PRODUCTS WITH AN ANNUAL FUND MANAGEMENT CHARGE OF 1% - JULY 201 Thank
More informationHigh interest rates have contributed to a stronger currency
Financial markets and Central Bank measures: 1 High interest rates have contributed to a stronger currency The króna has appreciated after the extension of the exchange rate band and the Central Bank s
More informationForecasts of Macroeconomic Developments, State Revenues from Taxes and Revenue from Other Sources, 2013-2014
Ministry of Finance Chief Economist - Research, State Revenue and International Affairs June 2013 Forecasts of Macroeconomic Developments, State Revenues from Taxes and Revenue from Other Sources, 2013-2014
More informationThe EMU and the debt crisis
The EMU and the debt crisis MONETARY POLICY REPORT FEBRUARY 212 43 The debt crisis in Europe is not only of concern to the individual debt-ridden countries; it has also developed into a crisis for the
More informationThe Bank of Canada s Management of Foreign Currency Reserves
The Bank of Canada s Management of Foreign Currency Reserves Jacobo De León, Financial Markets Department The Government of Canada s official international reserves are held primarily in the Exchange Fund
More informationForeign Currency Exposure and Hedging in Australia
Foreign Currency Exposure and Hedging in Australia Anthony Rush, Dena Sadeghian and Michelle Wright* The 213 Australian Bureau of Statistics (ABS) Foreign Currency Exposure survey confirms that Australian
More informationManaging Risk/Reward in Fixed Income
INSIGHTS Managing Risk/Reward in Fixed Income Using Global Currency-Hedged Indices as Benchmarks In the pursuit of alpha, is it better to use a global hedged or unhedged index as a benchmark for measuring
More informationMonthly Update. January 2014
Monthly Update Politics On the 29 th of January, the President of the Republic of Serbia Mr. Tomislav Nikolic called for earlier Parliamentary elections for the 16 th of March 2014, in order to speed up
More informationUnderstanding Currency
Understanding Currency Overlay July 2010 PREPARED BY Gregory J. Leonberger, FSA Director of Research Abstract As portfolios have expanded to include international investments, investors must be aware of
More informationX. INTERNATIONAL ECONOMIC DEVELOPMENT 1/
1/ X. INTERNATIONAL ECONOMIC DEVELOPMENT 1/ 10.1 Overview of World Economy Latest indicators are increasingly suggesting that the significant contraction in economic activity has come to an end, notably
More informationProject LINK Meeting New York, 20-22 October 2010. Country Report: Australia
Project LINK Meeting New York, - October 1 Country Report: Australia Prepared by Peter Brain: National Institute of Economic and Industry Research, and Duncan Ironmonger: Department of Economics, University
More informationFinancing government s borrowing requirement
7 Financing government s borrowing requirement In brief Government s net borrowing requirement is expected to be R173.1 billion in 2015/16, decreasing to R155.5 billion in 2017/18. South Africa s deep
More informationPROVIDENT FUNDS PROVIDENT FUNDS
PROVIDENT FUNDS 1 2 Table of contents 1. Introduction and general review...3 A) Composition of membership in benefit and severance pay provident funds...6 B) High Centralization in banks...6 2. Summary
More informationMERCER PORTFOLIO SERVICE MONTHLY REPORT
MERCER PORTFOLIO SERVICE MONTHLY REPORT MAY 206 Mercer Superannuation (Australia) Limited ABN 79 004 77 533 Australian Financial Services Licence # 235906 is the trustee of the Mercer Portfolio Service
More informationMonetary policy, fiscal policy and public debt management
Monetary policy, fiscal policy and public debt management People s Bank of China Abstract This paper touches on the interaction between monetary policy, fiscal policy and public debt management. The first
More informationEconomics 152 Solution to Sample Midterm 2
Economics 152 Solution to Sample Midterm 2 N. Das PART 1 (84 POINTS): Answer the following 28 multiple choice questions on the scan sheet. Each question is worth 3 points. 1. If Congress passes legislation
More informationThe case for high yield
The case for high yield Jennifer Ponce de Leon, Vice President, Senior Sector Leader Wendy Price, Director, Institutional Product Management We believe high yield is a compelling relative investment opportunity
More information4 Further details of the responses received are presented below.
REPORT ON BOND EXCHANGES AND DEBT BUY-BACKS A SURVEY OF PRACTICE BY EC DEBT MANAGERS In June 2001 a questionnaire covering the practices followed by debt managers implementing bond exchange or buy-back
More informationCAPITAL MARKETS REVIEW Q4 2011
CAPITAL MARKETS REVIEW Q4 2011 Reviewing the quarter ended September 30, 2011 J. Matthew Hager // David S. Dennerll, CFP // Benjamin R. Stacy 255 East Fifth St. Suite 2210 // Cincinnati, OH 45202 513-287-6778
More informationGrandVision reports Revenue growth of 13.8% and EPS growth of 31.7%
GrandVision reports Revenue of 13.8% and EPS of 31.7% Schiphol, the Netherlands 16 March 2015. GrandVision NV (EURONEXT: GVNV) publishes Full Year and Fourth Quarter 2015 results. 2015 Highlights Revenue
More informationMoney market portfolio
1 Money market portfolio April 11 Management of Norges Bank s money market portfolio Report for the fourth quarter 1 Contents 1 Key figures Market value and return 3 3 Market risk and management guidelines
More informationJarle Bergo: Monetary policy and the outlook for the Norwegian economy
Jarle Bergo: Monetary policy and the outlook for the Norwegian economy Speech by Mr Jarle Bergo, Deputy Governor of Norges Bank, at the Capital markets seminar, hosted by Terra-Gruppen AS, Gardermoen,
More informationPublic debt management and open market operations in Brazil
Public debt management and open market operations in Brazil Luiz Fernando Figueiredo, Pedro Fachada and Sérgio Goldenstein 1 1. Public debt management An inflation targeting regime was introduced in Brazil
More informationIntroduction to Fixed Income (IFI) Course Syllabus
Introduction to Fixed Income (IFI) Course Syllabus 1. Fixed income markets 1.1 Understand the function of fixed income markets 1.2 Know the main fixed income market products: Loans Bonds Money market instruments
More informationStatement by. Janet L. Yellen. Chair. Board of Governors of the Federal Reserve System. before the. Committee on Financial Services
For release at 8:30 a.m. EST February 10, 2016 Statement by Janet L. Yellen Chair Board of Governors of the Federal Reserve System before the Committee on Financial Services U.S. House of Representatives
More informationDEBT MANAGEMENT OFFICE NIGERIA
DEBT MANAGEMENT OFFICE NIGERIA MANAGING NIGERIA S DEBT STOCK Presentation at the Investor/Issuer Education Outreach Programme Organised by Securities and Exchange Commission on July 27, 2011 By Patience
More informationAnnual Borrowing Plan
20154 Bosnia and Herzegovina Federation of Bosnia and Herzegovina Federal Ministry of Finance Annual Borrowing Plan 2016 January 2016 www.fmf.gov.ba INTRODUCTION In order to increase transparency, fiscal
More informationExtended Strategy Descriptions for The Boeing Company Voluntary Investment Plan (VIP)
Extended Strategy Descriptions for The Boeing Company Voluntary Investment Plan (VIP) Strategy descriptions are effective December 12, 2014, unless otherwise noted. U.S. Large Companies Fund The fund invests
More informationMonetary and Economic Department OTC derivatives market activity in the second half of 2007
Monetary and Economic Department OTC derivatives market activity in the second half of 27 May 28 Queries concerning this release should be addressed to the authors listed below: Section I: Naohiko Baba
More informationAntonio Fazio: The outlook for the global economy and Italy
Antonio Fazio: The outlook for the global economy and Italy Address by Mr Antonio Fazio, Governor of the Bank of Italy, at the AIAF - ASSIOM - ATIC FOREX, Modena, 12 February 2005. * * * 1. The international
More informationChapter Outline. Chapter 13. Exchange Rates. Exchange Rates
Chapter 13, Business Cycles, and Macroeconomic Policy in the Open Economy Chapter Outline How Are Determined: A Supply-and-Demand Analysis The IS-LM Model for an Open Economy Macroeconomic Policy in an
More information5. Budget Financing and Debt Management
5. Budget Financing and Debt Management 5.1 To accomplish the objectives of the NSAPR, Bangladesh has been pursuing its debt management activities with various short, medium and long term reform measures.
More informationNo.21 17 NOVEMBER 2015
No.21 17 NOVEMBER 2015 RECOVERY IN CROSS-BORDER MERGERS AND ACQUISITIONS HIGHLIGHTS Cross-border merger and acquisition (M&A) activity increased significantly in the first half of 2015, but may be slowing
More informationURUGUAY. 1. General trends
Economic Survey of Latin America and the Caribbean 2014 1 URUGUAY 1. General trends In 2013, Uruguay s level of economic activity increased by 4.4% compared with 2012, according to the country s physical
More informationHighlights of international banking and financial market activity 1
Naohiko Baba +41 61 28 8819 naohiko.baba@bis.org Patrick McGuire +41 61 28 8921 patrick.mcguire@bis.org Goetz von Peter +41 61 28 8326 goetz.von.peter@bis.org Highlights of international banking and financial
More informationAdjusting to a Changing Economic World. Good afternoon, ladies and gentlemen. It s a pleasure to be with you here in Montréal today.
Remarks by David Dodge Governor of the Bank of Canada to the Board of Trade of Metropolitan Montreal Montréal, Quebec 11 February 2004 Adjusting to a Changing Economic World Good afternoon, ladies and
More informationGeneral government deficit and debt 2015
Government Finance 206 General deficit and debt 205 General deficit 2.7 per cent and debt 63. per cent relative to GDP in 205 According to the preliminary data reported by Statistics Finland to Eurostat,
More informationNo. 03/11 BATH ECONOMICS RESEARCH PAPERS
Sovereign Credit Default Swaps and the Macroeconomy Yang Liu and Bruce Morley No. 03/11 BATH ECONOMICS RESEARCH PAPERS Department of Economics 1 Sovereign Credit Default Swaps and the Macroeconomy Yang
More informationA PLAN FOR A DEBT-FREE ALBERTA
A PLAN FOR A DEBT-FREE ALBERTA Table of Contents Step 1 - Eliminating the Annual Deficit... 139 Step 2 - Eliminating the Net Debt... 139 Step 3 - Creating a Debt-Free Alberta... 142 Repaying Accumulated
More informationTHE PAYMENT AND SETTLEMENT SYSTEMS 2007
THE PAYMENT AND SETTLEMENT SYSTEMS 2007 1. INTRODUCTION The payment and settlement system was upgraded in 2007 with the introduction of a Real Time Gross Settlement (RTGS) system known in Israel as Zahav,
More informationTREASURY AND FEDERAL RESERVE FOREIGN EXCHANGE OPERATIONS
EMBARGOED: FOR RELEASE AT 4:00 P.M. EST, THURSDAY, FEBRUARY 10, 2011 TREASURY AND FEDERAL RESERVE FOREIGN EXCHANGE OPERATIONS October December 2010 During the fourth quarter of 2010, the U.S. dollar s
More informationAUSTRALIAN BANKS GLOBAL BOND FUNDING 1
AUSTRALIAN BANKS GLOBAL BOND FUNDING 1 Introduction Over the past decade, Australian banks have sourced a sizeable share of their funding in offshore markets. This article examines various aspects of these
More informationGlobal Financials Update April 13, 2012
Global Financials Update April 13, 2012 Global Market Update After posting a fairly strong and consistent rally over much of the last six months, the global equity markets have changed course over the
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
ECON 4110: Sample Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Economists define risk as A) the difference between the return on common
More information2. UK Government debt and borrowing
2. UK Government debt and borrowing How well do you understand the current UK debt position and the options open to Government to reduce the deficit? This leaflet gives you a general background to the
More informationNivesh Daily Currency
Nivesh Daily Currency February 10, 2016 Currency Pivot Levels Currency % OI % Prev OI Close Pair Change Change %Change R * Pivot S* USDINR 68.13-0.08-5.44-6.96 68.3367 68.2183 67.9942 EURINR 76.35 0.62
More informationMr Duisenberg discusses the role of capital markets and financing in the euro area Speech by Willem F Duisenberg, President of the European Central
Mr Duisenberg discusses the role of capital markets and financing in the euro area Speech by Willem F Duisenberg, President of the European Central Bank, at the Waarborgfonds Sociale Woningbouw in Utrecht,
More informationNEWS FROM DANMARKS NATIONALBANK
1ST QUARTER 2015 N0 1 NEWS FROM DANMARKS NATIONALBANK PROSPECT OF HIGHER GROWTH IN DENMARK Danmarks Nationalbank adjusts its forecast of growth in the Danish economy this year and next year upwards. GDP
More informationA comparison of long bond yields in the United Kingdom, the United States, and Germany
A comparison of long bond yields in the, the United States, and By Martin Brooke of the Bank s Gilt-edged and Money Markets Division, and Andrew Clare and Ilias Lekkos of the Bank s Monetary Instruments
More informationMain Points 8 5. About the Audit 8 25
Main Points 8 5 Introduction 8 7 Focus of the audit 8 7 Observations and Recommendations 8 8 Objectives of Debt Management 8 8 General Approach to Debt Management 8 8 Debt maturity structure 8 9 Indicators
More informationGazit-Globe Reports Year-End and Fourth Quarter 2015 Financial Results
Gazit-Globe Ltd. For additional information: 1 HaShalom Rd. Adi Jemini Tel Aviv, Israel 67892 CFO, Gazit-Globe +972 3 694 8000 FOR IMMEDIATE RELEASE: Gazit-Globe Reports Year-End and Fourth Quarter 2015
More informationSouth African Trade-Offs among Depreciation, Inflation, and Unemployment. Alex Diamond Stephanie Manning Jose Vasquez Erin Whitaker
South African Trade-Offs among Depreciation, Inflation, and Unemployment Alex Diamond Stephanie Manning Jose Vasquez Erin Whitaker April 16, 2003 Introduction South Africa has one of the most unique histories
More informationD) surplus; negative. 9. The law of one price is enforced by: A) governments. B) producers. C) consumers. D) arbitrageurs.
1. An open economy is one in which: A) the level of output is fixed. B) government spending exceeds revenues. C) the national interest rate equals the world interest rate. D) there is trade in goods and
More informationMonthly Report PERFORMANCE OF THE ECONOMY. April 2016 MACROECONOMIC POLICY DEPARTMENT MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT
Monthly Report PERFORMANCE OF THE ECONOMY April 2016 MACROECONOMIC POLICY DEPARTMENT MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT www.finance.go.ug Contents ACRONYMS... 2 HIGHLIGHTS... 3 REAL
More informationDevelopments in the Danish Bond Market since 1970
35 Developments in the Danish Bond Market since 97 Ulrik Knudsen and Michael Sand, Market Operations INTRODUCTION AND SUMMARY The Danish bond market has changed radically since 97. At that time it almost
More informationFINANCIAL REPORT - MARCH 2015
FINANCIAL REPORT - MARCH 2015 SUMMARY OF THE MACROECONOMIC INFORMATION The macroeconomic scenario Deflation in Europe, the USA well. The passage of years is very positive for the United States: the positive
More informationGUIDELINES FOR CENTRAL GOVERNMENT DEBT MANAGEMENT 2016
GUIDELINES FOR CENTRAL GOVERNMENT DEBT MANAGEMENT 2016 Decision taken at the Cabinet meeting November 12 2015 2016 LONG-TERM PERSPECTIVES COST MINIMISATION FLEXIBILITY Guidelines for the management of
More informationThe current economic situation in Germany. Deutsche Bundesbank Monthly Report February 2015 5
The current economic situation in Germany Deutsche Bundesbank 5 6 Overview Global economy German economy emerging from sluggish phase faster than expected The global economy looks to have expanded in the
More informationSAVING PLANS SAVING PLANS
SAVING PLANS 1 Table of contents 1. General... 3 2. Accumulation in savings plans...5 Table G-1: Accumulation in all savings plans in the years 1997-...5 Table G-2: Accumulation in all savings plans classified
More informationLEBANON'S DEBT MANAGEMENT FRAMEWORK
LEBANON'S DEBT MANAGEMENT FRAMEWORK FOR 2010-2015 MARCH 2010 For further information, please contact: 1 DEBT MANAGEMENT FRAMEWORK FOR 2010-2015 CONTENTS I. Purpose of the report... 5 II. Regulatory framework...
More informationFinancial Overview INCOME STATEMENT ANALYSIS
In the first half of 2006, China s economy experienced steady and swift growth as evidenced by a 10.9% surge in GDP. In order to prevent the economy from getting overheated and to curb excess credit extension,
More informationGuidelines for public debt management
2016 Guidelines for public debt management 2016 Public Debt Management Guidelines Contents FOREWORD... 3 2016 ISSUANCE PROGRAMME AND DEBT MANAGEMENT... 4 Preliminary considerations... 4 ISSUANCE PROGRAMME
More informationInvestment insight. Fixed income the what, when, where, why and how TABLE 1: DIFFERENT TYPES OF FIXED INCOME SECURITIES. What is fixed income?
Fixed income investments make up a large proportion of the investment universe and can form a significant part of a diversified portfolio but investors are often much less familiar with how fixed income
More informationShort-Term Energy Outlook Market Prices and Uncertainty Report
February 2016 Short-Term Energy Outlook Market Prices and Uncertainty Report Crude Oil Prices: The North Sea Brent front month futures price settled at $34.46/b on February 4 $2.76 per barrel (b) below
More informationReducing public debt: Turkey
Reducing public debt: Turkey Abstract Turkey halved the ratio of public debt to GDP from almost 80 percent in 2001 to less than 40 percent before the global crisis of 2009. Several factors helped. First,
More informationChapter 14 Foreign Exchange Markets and Exchange Rates
Chapter 14 Foreign Exchange Markets and Exchange Rates International transactions have one common element that distinguishes them from domestic transactions: one of the participants must deal in a foreign
More informationBanco Santander s profit rose 90% to EUR 4.370 billion in 2013
Press Release Banco Santander s profit rose 90% to EUR 4.370 billion in 2013 BUSINESS. Deposits were stable at EUR 607,836 million, while mutual funds grew by 14% to EUR 93,304 million. Loans decreased
More informationPRUDENT RISK MANAGEMENT IN TIMES OF UNCERTAINTY. Torsten Jeworrek
PRUDENT RISK MANAGEMENT IN TIMES OF UNCERTAINTY Torsten Jeworrek Monte Carlo, 9 September 2012 Macroeconomic Outlook Global economy slowing down, outlook sees only modest improvements highly uncertain
More informationStatement by Dean Baker, Co-Director of the Center for Economic and Policy Research (www.cepr.net)
Statement by Dean Baker, Co-Director of the Center for Economic and Policy Research (www.cepr.net) Before the U.S.-China Economic and Security Review Commission, hearing on China and the Future of Globalization.
More informationThe Public Finance Sector DEBT MANAGEMENT STRATEGY. In the years 2006-2008
The Public Finance Sector DEBT MANAGEMENT STRATEGY In the years 2006-2008 Ministry of Finance Warsaw, September 2005 The Public Finance Sector DEBT MANAGEMENT STRATEGY in the years 2006-08 I. INTRODUCTION
More informationChapter 12. Page 1. Bonds: Analysis and Strategy. Learning Objectives. INVESTMENTS: Analysis and Management Second Canadian Edition
INVESTMENTS: Analysis and Management Second Canadian Edition W. Sean Cleary Charles P. Jones Chapter 12 Bonds: Analysis and Strategy Learning Objectives Explain why investors buy bonds. Discuss major considerations
More informationEuro Zone s Economic Outlook and What it Means for the United States
WELCOME TO THE WEBINAR WEBINAR LINK: HTTP://FRBATL.ADOBECONNECT.COM/ECONOMY/ DIAL-IN NUMBER (MUST USE FOR AUDIO): 855-377-2663 ACCESS CODE: 71032685 Euro Zone s Economic Outlook and What it Means for the
More informationHighlights of international banking and financial market activity 1
Blaise Gadanecz Jacob Gyntelberg Patrick McGuire blaise.gadanecz@bis.org jacob.gyntelberg@bis.org patrick.mcguire@bis.org Highlights of international banking and financial market activity 1 The BIS, in
More informationConsolidated Settlement of Accounts for the First 3 Quarters Ended December 31, 2011 [Japanese Standards]
The figures for these Financial Statements are prepared in accordance with the accounting principles based on Japanese law. Accordingly, they do not necessarily match the figures in the Annual Report issued
More informationFinancial Analysis Project. Apple Inc.
MBA 606, Managerial Finance Spring 2008 Pfeiffer/Triangle Financial Analysis Project Apple Inc. Prepared by: Radoslav Petrov Course Instructor: Dr. Rosemary E. Minyard Submission Date: 5 May 2008 Petrov,
More informationPredicting the US Real GDP Growth Using Yield Spread of Corporate Bonds
International Department Working Paper Series 00-E-3 Predicting the US Real GDP Growth Using Yield Spread of Corporate Bonds Yoshihito SAITO yoshihito.saitou@boj.or.jp Yoko TAKEDA youko.takeda@boj.or.jp
More informationPension Funds Supervision Department VOLUNTARY PENSION FUNDS SECTOR IN SERBIA. First Quarter Report 2012
Pension Funds Supervision Department VOLUNTARY PENSION FUNDS SECTOR IN SERBIA First Quarter Report June 1 National Bank of Serbia Content: 1. Introduction... 3 2. VPF operations... 7 2.1. Market participants...
More informationFixed Income Review. Second Quarter 2015
Second Quarter 2015 As of June 30, 2015 Total Return Performance Calendar Year Performance Index MTD QTD YTD 2014 2013 2012 Barclays US Aggregate -1.1% -1.7% -0.1% 6.0% -2.0% 4.2% BAML US Agency Index
More informationTaxable Fixed Income Outlook: Waiting for Those Rising Rates
Taxable Fixed Income Outlook: Waiting for Those Rising Rates Market Commentary Fourth quarter 2014 MOST INVESTORS UNDERSTAND THAT INTEREST RATES ARE UNPREDICTABLE. But we suspect few believed rates could
More informationThailand Update. Yield Movements. Size and Composition
Thailand Update Yield Movements Thai government bond yields fell for most maturities between end-december 2009 and end-october 2010 (Figure 1). Yields for 1- and 2-year maturities rose 46 and 25 basis
More informationPrinciples and Trade-Offs when Making Issuance Choices in the UK
Please cite this paper as: OECD (2011), Principles and Trade-Offs when Making Issuance Choices in the UK, OECD Working Papers on Sovereign Borrowing and Public Debt Management, No. 2, OECD Publishing.
More informationThe history of the Bank of Russia s exchange rate policy
The history of the Bank of Russia s exchange rate policy Central Bank of the Russian Federation Abstract During the post-soviet period of 1992 98, the monetary policy of the Bank of Russia was essentially
More information