AFM121 Lecture Notes - Lecture 4: Canada Deposit Insurance Corporation, Credit Union, Vehicle Insurance

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM121
• Professor: Garvin Blair

Document Summary

Video: (cid:522)trump: our drug industry has been disastrous(cid:523) cnbc) Comment about drug prices which got a market reaction. Algorithm to sell stocks if (cid:522)pharma(cid:523) is said in presidential speech. Some pharmaceutical companies have been exponentially raising prices. Mylan - epipen - price hiked up recently in the us - 500% The consumers aren"t willing to pay for it. The drugs are subsidized by the government. Taxpayers get mad and feel ripped off. Politicians could put a cap on life-saving drug prices. The cds is the company that clears all buy/sell trades (cid:522)clearing(cid:523) or (cid:522)settling(cid:523) through the cds. Ex. borrow short (2 years), lend (20 years) Interest rates increase over time so you earn money on the interest. Generally earnings will decrease in a low interest rate environment. We have had a low interest rate environment for the past few years. With low interest rates, you"re lending out at low rates. They are more likely to lend out more.