scholarly journals Ten Years On: What Have We Learned? What Have We Done? What Must We Do?

2019 ◽  
Author(s):  
Robert C. Hockett
Keyword(s):  
Wealth Distribution ◽  
Central Banking ◽  
Secondary Market ◽  
System Structure ◽  
Labor Rights ◽  
Secondary Markets ◽  
Market Makers ◽  
Capital Ownership ◽  
Home Mortgage ◽  
National Investment

Ten years after the financial dramas of Autumn 2008, I take stock of what we have learned, what we have done, and what we have yet to do if we would avoid a repeat performance. The primary lessons I draw are that income and wealth distribution, the endogeneity of credit-money, and finance system structure all matter profoundly not only where justice, but also where systemic stability is concerned. The longer-term tasks still before us include a much broader and financially engineered diffusion of capital ownership over our population, citizen central banking, a permanent national investment authority, continuous public open labor market operations, debt-free or low-debt education and health insurance, and an updated form of segregating capital-raising primary from asset-trading secondary markets in the financial sector. Shorter-term tasks include debt-forgiveness, a restoration of labor rights and countercyclical progressive taxation, and restored citizen-ownership of our secondary market makers in home mortgage and higher education debt. These measures will restore the nation to its erstwhile status as a productive middle class ‘yeoman republic,’ and in so doing will restore both justice and efficiency to our social and economic arrangements.

scholarly journals Republican Home-Owning

2019 ◽  
Author(s):  
Robert C. Hockett
Keyword(s):  
Middle Class ◽  
Federal Government ◽  
Student Loan ◽  
Secondary Market ◽  
Mortgage Loans ◽  
Market Makers ◽  
Class Standing ◽  
Fannie Mae ◽  
Home Mortgage ◽  
Freddie Mac

Ten years after failing and being rescued by our federal government, our nation’s principal secondary market makers in home mortgage loans – Fannie Mae and Freddie Mac – remain in federal receivership. The proximate reason for this is that neither Republicans nor Democrats in Congress have been able to find consensus – interparty or intraparty consensus – on what should be done with our home mortgage GSEs post-crisis. The deeper reason is that public – that is to say, citizen – ownership of secondary market makers in home loans is in a certain sense ‘natural’ in any republic, such as our own, where both middle class standing and that standing’s primary indicator – home-owning – are deeply ingrained in the citizenry’s self-ascribed national identity. This truth is yet more compelling when home prices, as they are bound to do anywhere homes are the primary middle class asset, become what I call 'systemically significant' - that is, when they become pervasive determinants both of other prices and of broader macroeconomic wellbeing. I conclude that the only sustainable future for Fannie and Freddie, not to say for the American middle class and our other GSEs (including our student loan GSEs), is to be found in their past. Fannie and Freddie should be forthrightly made citizen-owned once again as Fannie was through our home markets’ healthiest decades.

The Pricing of Exchange Traded Funds and the Roles of Primary and Secondary Market Participants

2020 ◽  
Vol 10 (03) ◽  
pp. 2050013
Author(s):  
Gordon J. Alexander ◽  
Mark A. Peterson
Keyword(s):  
Market Efficiency ◽  
Secondary Market ◽  
Exchange Traded Funds ◽  
Direct Relation ◽  
Secondary Markets ◽  
Market Makers ◽  
Market Participants ◽  
Asset Value ◽  
Net Asset Value ◽  
Arbitrage Trading

We study the pricing of exchange traded funds (ETFs) and the associated arbitrage trading of them in the primary and secondary markets. We find a direct relation between primary and secondary market trading that is consistent with market-makers using the primary market to hedge their inventory risk in the secondary market, as well as to facilitate arbitrage. Such trading in both markets keeps ETF prices in line with their net asset value. We conclude that the existence of the primary market enhances secondary market efficiency.

scholarly journals Review of short-run performance of initial public offerings in Australia

2021 ◽  
Vol 18 (2) ◽  
pp. 188-200
Author(s):  
Lutfa Tilat Ferdous ◽  
Niroshani Parahara Withanalage ◽  
Abyan Amirah Qamaruz Zaman
Keyword(s):  
Regression Analysis ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Secondary Market ◽  
Publicly Traded ◽  
Ipo Underpricing ◽  
Secondary Markets ◽  
Public Offerings ◽  
Short Run ◽  
Total Market

This study investigates the short-run performance of initial public offerings in Australia. Based on sources from the Morningstar DatAnalysis database, we analyzed 211 Australian publicly traded initial public offerings (IPO) listed on the Australian stock exchange between January 2011 and December 2015 using multiple regression analysis with dummies to represent industry and listing year. According to our analysis, total market return indicates an IPO underpricing phenomenon whereas secondary market shows an overpricing scenario. Moreover, this analysis supports the contention that short-run performance fluctuations were based on the listing year and industry settings. This study contributes to the literature by analysing the short-run performance of both the primary and secondary markets

scholarly journals Interest-Free Treasury Bonds (IFTB): Islamic Finance and Legal Clarifications

2019 ◽  
Vol 3 (1) ◽  
pp. 21-29
Author(s):  
Bijan Bidabad
Keyword(s):  
Practical Implication ◽  
Central Banking ◽  
Secondary Market ◽  
Islamic Banking ◽  
Similar Amount ◽  
Fiscal Policies ◽  
Treasury Bonds ◽  
Treasury Bills ◽  
Competitive Price ◽  
Treasury Bond

Purpose: Although the treasury bill is the essential monetary instrument in central banking operations, its application in Islamic banking is not legitimate because it involves usury. This implies that the system cannot apply monetary and fiscal policies. To remove this obstacle “Interest-Free Treasury Bond” (IFTB) is introduced as a substitute for conventional treasury bills. Design: IFTB is a valuable paper which is issued by government treasury through a barter contract and is sold to central or commercial banks. The issuer is a debtor to the holder, and has to pay back the nominal value at maturity to the holder; in addition, the issuer is committed to lending a similar amount of money to the paper holder for an equal period. The Shariah and legal background of IFTB is explained through new contract types of “time-barter contract” and “time-loan contract”. Finding: IFTB is a zero-coupon, asset-backed note with no interest and is designed upon “debt equal to future loan”, or “loan equal to future debt” with “time-withdrawal right”. The paper holder can supply and transact her bond in the secondary market at a competitive price. Practical Implication: It can be used as a substitute for conventional treasury bills. All traditional and non-usury systems can implement IFTB. JEL: E43, E44, E52, E58, E62, E63

Interest-Free Treasury Bonds (IFTB)

2019 ◽  
Vol 2 (2) ◽  
pp. 13-21
Author(s):  
Bijan Bidabad
Keyword(s):  
Practical Implication ◽  
Central Banking ◽  
Secondary Market ◽  
Similar Amount ◽  
Treasury Bonds ◽  
Treasury Bills ◽  
Liquidity Trap ◽  
Competitive Price ◽  
Treasury Bond ◽  
The Business Cycle

Purpose: Although the treasury bill is the most important monetary instrument in central banking, its application in different phases of the business cycle, especially in a liquidity trap, is not working well. To remove this obstacle “Interest-Free Treasury Bond” (IFTB) is introduced as a substitute for conventional treasury bills. Design: IFTB is a valuable paper which is issued by government treasury through a barter contract and is sold to central or commercial banks. The issuer is a debtor to the holder and has to pay back the nominal value at maturity; in addition, the issuer is committed to lending a similar amount of money to the paper holder for an equal period. Zero interest rate is nominated for lending and borrowing. Finding: IFTB is a zero-coupon, asset-backed note with no interest and is designed upon “debt equal to future loan”, or “loan equal to future debt” with “time-withdrawal right”. The paper holder can supply and transact her bond in the secondary market at a competitive price. Practical implication: It can be used as a substitute for conventional treasury bills. All conventional and non-usury systems can implement IFTB. JEL: E43, E44, E52, E58, E62, E63

scholarly journals The Simplified Mortgage and Recorded Title ('SMART') Act of 2019

2019 ◽  
Author(s):  
Robert C. Hockett
Keyword(s):  
Public Sector ◽  
Secondary Market ◽  
Mortgage Loans ◽  
Digital Home ◽  
Registry System ◽  
New Public ◽  
Clearing And Settlement ◽  
Trust Company ◽  
Home Mortgage

We design a digital home mortgage and title registry system, overseen by a new public sector entity, to provide clearing and settlement efficiencies in mortgage-related instruments comparable to those enabled by the Depository Trust Company (‘DTC’) in other investment securities. We believe such a system to be a prerequisite to the return of a safe, transparent, and liquid ‘private’ secondary market in mortgage loans.

scholarly journals When Do Secondary Markets Harm Firms?

2013 ◽  
Vol 103 (7) ◽  
pp. 2911-2934 ◽  
Author(s):  
Jiawei Chen ◽  
Susanna Esteban ◽  
Matthew Shum
Keyword(s):  
Transaction Costs ◽  
Automobile Industry ◽  
Durable Goods ◽  
Secondary Market ◽  
Model Parameters ◽  
Secondary Markets ◽  
Future Production ◽  
The Us ◽  
Using Data ◽  
Number Of Firms

To investigate whether secondary markets aid or harm durable goods manufacturers, we build a dynamic model of durable goods oligopoly with transaction costs in the secondary market. Calibrating model parameters using data from the US automobile industry, we find the net effect of opening the secondary market is to decrease new car manufacturers' profits by 35 percent. Counterfactual scenarios in which the size of the used good stock decreases, such as when products become less durable, when the number of firms decreases, or when firms can commit to future production levels, increase the profitability of opening the secondary market. (JEL L13, L25, L62, L81)

Study on Indian Stock Market Performance Based on Commodities

2021 ◽  
pp. 415-431
Author(s):  
Deepika N. ◽  
Nirupama Bhat Mundukur ◽  
Victer Paul
Keyword(s):  
Stock Market ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Market Performance ◽  
Listed Companies ◽  
Secondary Market ◽  
Secondary Markets ◽  
Stock Indices ◽  
Stock Market Performance ◽  
Indian Stock Market

A stock exchange facilitates trading shares of pubicly listed companies. The trading process is operated through two non-separable and mutually supporting segments called as primary and secondary markets, governed by the Security and Exchange Board of India abbreviated as SEBI. The platform which forms and sale the new securities is known as primary market and the platform in which dealings of these previously issued securities is known as secondary market. Stock market or equity market is the area that facilitates the trading of the publicly listed security shares in the secondary market, and as of now, more than 1300 securities are available in the exchange for trading. The trading process is analyzed using trading ring in earlier days. The authors focus on analyzing the effect of dollar sell, dollar purchase, and commodities price under the oil and gas group crude oil on Indian stock indices.

scholarly journals Completing a Financial Revolution: The Finance of the Dutch East India Trade and the Rise of the Amsterdam Capital Market, 1595–1612

2004 ◽  
Vol 64 (3) ◽  
pp. 641-672 ◽  
Author(s):  
OSCAR GELDERBLOM ◽  
JOOST JONKER
Keyword(s):  
Public Finance ◽  
Capital Market ◽  
Public Debt ◽  
Secondary Market ◽  
Dutch Republic ◽  
Secondary Markets ◽  
Private Finance ◽  
New Public ◽  
Wide Range ◽  
Overseas Expansion

The article analyzes the evolution of the Amsterdam capital market as a consequence of Dutch overseas expansion and the introduction of transferable VOC shares. Offering investors prospects of speculative gains without serious loss of liquidity, these instruments created a booming secondary market offering a wide range of allied credit techniques. By 1609 this market had become sufficiently strong to dictate terms for new public debt issues. These findings show that, contrary to commonly held notions about the emergence of secondary markets, private finance took precedence over public finance in the Dutch Republic.

scholarly journals HOUSE PRICE MOVEMENT FOR PRIMARY AND SECONDARY MARKETS: EVIDENCE FROM SELANGOR, MALAYSIA

2018 ◽  
Vol 16 (5) ◽  
Author(s):  
Haszlila Jalil ◽  
Norngainy Mohd Tawil ◽  
Md Nasir Daud ◽  
Aina Edayu Ahmad
Keyword(s):  
Market Price ◽  
House Price ◽  
Secondary Data ◽  
Secondary Market ◽  
Property Market ◽  
Price Movement ◽  
Secondary Markets ◽  
Study Approach ◽  
Market Report ◽  
Residential Properties

The aim of this study is to determine the trend of escalation for both primary and secondary housing units. This research applies the desk study approach which uses secondary data from statistical format, which is the property market report (PMR) from the year of 2004 to 2014. Data from the PMR was analysed by using descriptive statistics method which provides a general overview of the house price movement. The observation only focuses the house price movement from the (9) districts in Selangor state. Results show that even though the volume of transactions decreases, the prices of residential properties are steadily increasing which also indirectly escalates the secondary market price.

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