BU473 Chapter Notes - Chapter 3: Neuropeptide Y, Money Market Fund, Preferred Stock
Document Summary
Chapter 3: selecting investments in a global market. The case for global investments: 3 reasons to invest abroad, more investment choices, rates of return are higher. Low positive correlations among returns indicate substantial opportunities for risk reduction. Low rates: certificate of deposit (cds, <1 year maturity and usually insured by cdic, guaranteed investment certificates (gics, >1 year maturity and usually insured by cdic, corporate bonds, preferred stock, hybrid security. Eurobonds: an international bond denominated by a currency other than the country where it"s issued, ex. Issued in usd, sold outside the u. s. to non-u. s. investors: maple bonds, a canadian dollar denominated bond sold in canada by a foreign corporation or government. Interest payments are made in cad: yankee bonds, sold in the u. s. and denominated in usd, but issued by foreign corporations or governments, eliminates exchange risk to u. s. investors. International domestic bonds: sold by issuer within its own country in that country"s currency, ex.