4 Overview of Derivative Financial Products

2015 ◽  
Author(s):  
Grove Rick
Keyword(s):  
Financial Markets ◽  
Exchange Rates ◽  
Interest Rates ◽  
Foreign Exchange ◽  
Commodity Prices ◽  
Investment Banks ◽  
Foreign Exchange Rates ◽  
Financial Products ◽  
Market Risks

This chapter begins with a description of the volatility of financial markets. It then turns to ‘swaps’, a tool developed by banks and investment banks to deal with the increasing volatility in foreign exchange rates, interest rates, and commodity prices in the 1970s. This is followed by a discussions on the founding of the International Swaps and Derivatives Association (ISDA) in 1984 and how companies' use derivatives to manage and hedge their market risks.

Foreign Interest Rates in American Financial Markets: A Revised Series of Dollar-Sterling Exchange Rates, 1833–1900

1978 ◽  
Vol 38 (2) ◽  
pp. 392-417 ◽  
Author(s):  
Edwin J. Perkins
Keyword(s):  
Nineteenth Century ◽  
Exchange Rate ◽  
Financial Markets ◽  
Exchange Rates ◽  
Interest Rates ◽  
Foreign Exchange ◽  
Foreign Exchange Rates ◽  
Anglo American

This paper offers a revised series of nineteenth-century Anglo-American foreign exchange rates. The new series is based partly on the reinterpretation of data presented earlier by other scholars and partly on a recently rediscovered source of continuous information on sterling-dollar rates after 1869. The pioneering work in this area was done by Lance Davis and Jonathan Hughes. They published in 1960 a quarterly dollar-sterling exchange rate series (1835 to 1895) based on the actual prices paid for approximately 3,000 sterling bills by Nathan Trotter's Philadelphia-based metals importing firm.

scholarly journals Analisis Pengaruh Variabel-Variabel Makro Ekonomi Terhadap Jakarta Islamic Indeks (JII) Periode 2007-2015

2017 ◽  
Vol 4 (6) ◽  
pp. 449
Author(s):  
Nining Khoirun Nisa ◽  
Raditya Sukmana
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Foreign Exchange ◽  
Stock Price ◽  
Price Index ◽  
Sampling Technique ◽  
Foreign Exchange Rates ◽  
Production Index ◽  
Macroeconomic Indicators ◽  
Stock Price Index

Based on this, researchers are interested to know and analyze the effect of macroeconomic indicators consisting of Inflation, Interest Rate, Foreign Exchange and Production Index on Stock Price Index of the Jakarta Islamic Index (JII). This study uses a quantitative approach. The sampling technique used is the technique of sampling nonprobabilitas. The type of data in this study of time series data.The results of this study indicate that inflation and interest rates significantly affect the stock price index Jakarta Islamic Index (JII). Foreign exchange rates and the production index did not significantly affect the stock price index Jakarta Islamic Index (JII).

scholarly journals External and Internal Factors Influence to the Return on Equity and Risk Investment in Jakarta Islamic Index (JII)

2017 ◽  
Vol 2 (3) ◽  
pp. 128-135
Author(s):  
Diana Dwi Astuti
Keyword(s):  
Capital Structure ◽  
Exchange Rates ◽  
Interest Rates ◽  
Foreign Exchange ◽  
Jel Classification ◽  
Investment Risk ◽  
Foreign Exchange Rates ◽  
Internal Factors ◽  
Return On Equity ◽  
Risk Investment

Objective - This study aims to analyze the direct influence of external factors (inflation, foreign exchange rates, interest rate of Bank Indonesia) and internal (capital structure, liquidity) on Return On Equity (ROE) in companies that went public in Jakarta Islamic Index, analyze the indirect influence of external and internal factors on the risk of investing in companies that go public in Jakarta Islamic Index, analyze the effect of ROE on the risk investment in companies that go public in Jakarta Islamic Index. Methodology/Technique - The sample used 10 companies using purposive sampling. Analysis tools using path analysis. Findings – Results showed inflation and exchange rates (foreign exchange rates / USD) no significant effect on ROE and Investment Risk. BI rate has no effect on ROE but significant effect on the risk of investment. Capital structure and liquidity significantly influence the ROE but had no effect on the risk of investment. ROE has no effect on the risk of investment. Novelty - Results of research it pays advisable for investors and prospective investors pay attention to internal factors (capital structure, liquidity and other fundamental factors) companies due to internal factors will affect the profitability of Integration. Type of Paper - Empirical Keywords: Inflation; Exchange Rates; Interest Rates; Capital Structure; Liquidity; ROE; Investment Risk. s JEL Classification: L16, M21, M41.

The Impact of a Central Bank's Bond Market Intervention on Foreign Exchange Rates

2015 ◽  
Vol 05 (02) ◽  
pp. 1550009 ◽  
Author(s):  
Robert Jarrow ◽  
Hao Li
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Foreign Exchange ◽  
Large Scale ◽  
Bond Market ◽  
Foreign Exchange Rates ◽  
Market Intervention ◽  
Exchange Markets ◽  
Asset Purchases ◽  
The Impact

This paper provides a framework to analyze the effect of a central bank's bond market intervention on foreign exchange rates. Using this framework, we quantify the impact of the Federal Reserve's 2008–2011 quantitative easing (QE) program on the USD/JPY exchange rate. We find that the Fed's QE accounts for a significant portion of the dollar's depreciation during this period. A central monetary authority can affect exchange rates in two ways, either directly by intervening in foreign exchange markets or indirectly by affecting interest rates. Our analysis emphasizes the importance of the indirect channel when a central bank undertakes large scale asset purchases.

scholarly journals The Exchange Rate Volatility in Indonesia and Policy Response

2014 ◽  
Author(s):  
Ferry Syarifuddin
Keyword(s):  
Exchange Rate ◽  
Central Bank ◽  
Exchange Rates ◽  
Interest Rates ◽  
Foreign Exchange ◽  
Exchange Rate Volatility ◽  
Commodity Prices ◽  
Policy Response ◽  
Long Run ◽  
The Exchange Rate

High fluctuation of exchange rate in short horizon is obviously making economic activity more risky as uncertainty rises. Moreover, volatile exchange rates also make commodity prices, interest rates and a host of other variables more volatile as well. Although changes in long-run exchange rates tend to undergo relatively gradual shifts, in the shorter horizon, the exchange rate might be very volatile. Then there should be a systematic and measured policy to mitigate the foreign exchange fluctuations and to minimize the fluctuations as well as to drive it to its fundamental value. In this part, USD/IDR volatility is investigated using GARCH approach. The results reveal that, USD/IDR volatility in Indonesia is persistent. On the other hand, the following studies also present the outcomes of effectiveness of policy response by the Central Bank. Foreign-exchange sale interventions by the Central Bank lead conditional volatility of the USD/IDR to decrease slightly.

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