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CHAPTER 1: THE INVESTMENT ENVIRONMENT
PROBLEM SETS 1. Ultimately, it is true that real assets determine the material well being of an
economy. Nevertheless, individuals can benefit when financial engineering creates new products that allow them to manage their portfolios of financial assets more efficiently. Because bundling and unbundling creates financial products with new properties and sensitivities to various sources of risk, it allows investors to hedge particular sources of risk more efficiently.
2. Securitization requires access to a large number of potential investors. To attract
these investors, the capital market needs:
1. a safe system of business laws and low probability of confiscatory taxation/regulation;
2. a well-developed investment banking industry;
3. a well-developed system of brokerage and financial transactions, and; 4. well-developed media, particularly financial reporting.
These characteristics are found in (indeed make for) a well-developed financial market.
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发表于 2016-10-16 23:11:04
发表于 2020-6-2 15:18:36