FINC314 Lecture Notes - Lecture 2: Pimco, United States Treasury Security, Interest Rate Risk

• School: University of Delaware
• Department: Finance
• Course: FINC314
• Professor: Danby Peter

Document Summary

Last week, i presented a very basic overview of the fundamentals of financial markets (purpose, definitions, benefits, etc. ), the basics of financial institutions (purpose, definitions, benefits, etc. ), the importance of markets when it comes to the critical issue of resource allocation, and the impact which secondary market transactions can and do have on the real economy. A seemingly infinite number of taxonomies are possible when it comes to asset classes; however, for the purposes of intuition, i have modified the general framework of pacific investment management. Company (pimco), the world"s largest institutional bond investment firm, for your consideration (n. b. this list is absolutely by no means exhaustive and deviates quite a bit from bodie, kane, and marcus): Pimco is a bond firm but also offers other things. Very large asset manager co. used for the framework of the discussion. Original maturities of less than a yr. low risk.