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Chapter 2 Flashcards

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1
Q

The available philippine money market instruments

A

Treasury bills
Small investors program bills
Cash management bills
reverse repurchase agreements
short-term commercial papers
bankers acceptance
promissory notes

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2
Q

These are domestic government death issued regularly to finance the national government need for capital

A

treasury bills

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3
Q

These are used as a monetary tool to control liquidity

A

treasury bills

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4
Q

These are also used for reserve requirements, collateral and as a benchmark for setting rates

A

treasury bills

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5
Q

This or another form of government debt issued and launched in the late 1990s to attract retail investors

A

Small investors program bills

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6
Q

This instruments have similar characteristics as the regular auctioned instruments but issued and smaller denominations

A

Small investors program bills

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7
Q

These are short-term debt notes used in times of tight liquidity and interest rate volatility allowing the government to meet its funding requirements as it stabilizes the interest rate condition of the market

A

Cash management bills

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8
Q

This are non-tradable overnight placements in the interbank call loan market as a short-term outlet for excess liquidity of banks

A

Reverse repurchase agreements

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9
Q

This is the bangko sentral ng pilipinas principal tool in its open market operations to control liquidity in the financial system

A

Reverse repurchase agreements

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10
Q

These are unsecured debt instruments issued by resident corporations which state the terms and conditions of the borrowing

A

Short term commercial papers,

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11
Q

These are short term debt obligations issued by large commercial banks

A

Bankers acceptance

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12
Q

These are issued by a number of financial institutions and the popular time deposit products offered by most banks

A

Promissory note

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13
Q

This represent overnight placement by banks with excess cash in other banks with temporary reserve deficiency

A

inter-bank call loans (IBCL)

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14
Q

This money market is dominated by government debt issued regularly

A

domestic money market

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15
Q

Aside from the bsp this is a major investor in money market

A

banking sector

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16
Q

Other major players in the money market are

A

Social Security System (SSS)
Government Services Insurance System(GSIS)
Home Development Mutual Fund (HDMF)
Trust funds
Insurance Companies
Private pension funds
mutual funds
retail investors

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17
Q

Prior to 2005 opening of this, there is no organized money market exchange in the country

A

Fixed Income Exchange (FIE)

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18
Q

Trading activity in the instruments of fixed-income exchange is dominated by the

A

banking sector
non-bank financial intermediaries

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19
Q

Capital market debt instruments

A

treasury bonds
fixed rate notes
small investors program bonds
long term commercial papers
asset backed securities
municipal bonds
tier 2 capital notes of banks
dollar-linked notes
other instruments

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20
Q

These are like treasury bills but longer and tenor

A

treasury bonds

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21
Q

These are direct unconditional obligation of the philippine government like treasury bonds but shorter and thinner usual is 2to7 years

A

fixed-rate notes

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22
Q

This were launched in the late 1990s to attract retail investors basically the government is issuing this instruments with similar characteristics as the regular action instruments

A

Small investors program bonds

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23
Q

These are the most common form of corporate borrowings issued by resident corporations

A

Long-term commercial papers

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24
Q

These are a pool of homogeneous assets that are securitized

A

Asset-backed securities

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25
These are debts of local government unit undertaken to finance local government projects
municipal bonds
26
This will provide credit enhancement of municipal bond issues
Local government guarantee corporation and the home guarantee corporation
27
These are intended to beef up the banks capital structure in order to comply with the bsp capital adequacy ratio
tier 2 capital notes of banks
28
It is the issuance of subordinate a depth papers with a fixed yield that can be converted into equity upon maturity
Tier 2 capital notes of banks
29
These are dollar-denominated obligations of the republic of the philippines and other private companies
dollar-linked notes
30
These are the bonds offered by government owned and controlled corporations the national power corporation and the land bank of the philippines
other instruments
31
This remains the largest issuer of debt in the country
Philippine government
32
GOCC
government owned and controlled corporation
33
Asset-backed securities comprised the bulk of
private issuances, with the rest issued in bonds, corporate notes, and commercial paper lines
34
This is a comprehensive financial market infrastructure that aims to provide an electronic platform for trading clearing and settlement and depository and custodianship fixed income securities and its derivatives
Fixed-income exchange
35
BAP
Banker's Association of the Philippines
36
It plays a key role in the development of the local capital market by providing an online inter dealer trading platform for the secondary trading of government securities
Fixed Income Exchange
37
These are equity instruments
common stocks preferred stocks convertible shares warrants
38
this represent ownership in a company whereby an investor partakes in the prophets ownership and management of the company
common stocks or ordinary shares
39
They are entitled to voting rights and prorated division of profits among stockholders
common shareholders
40
They have the last claim on dividends and corporate liquidation
common stockholders
41
Who can acquire the class a shares
Philippine Nationals
42
Who can acquire the class b shares
any person, corporation, or association
43
This is also known as preferential shares and this are given preference over common shares whereby the preferred holders are entitled to dividends or assets of the corporation in case and liquidation
preferred stocke
44
This usually carries a specific rate of return or fixed dividend and a specified redemption price
preferred stocks
45
It can be converted into common shares at a specified time and price in the future
convertible shares
46
These are usually issued together with a bond, preferred stock, or common shares that give the holder the right to buy a proportionate amount of common shares at a specified price and time
warrants
47
The issuers of the philippine equities markets
Financial issuers industrial issuers holding firms issuers property issuers services issuers mining and oil issuers preferred warrants, philippine deposit receipts, etc
48
This sector includes banks and other financial institutions
Financial issuers
49
This sector includes electricity, power and water, food, beverages, and tobaco, construction, infrastructure, and allied services, chemicals, and diversified industrial
Industrial issuers
50
This sector includes companies such as ayala corporation, JG summit holdings incorporated, and sm investments corporation
Holding firms issuers
51
This sector includes land developers and real estate companies included in the sector or ayala land incorporated and robinsons land incorporated
Property issuers
52
This sector includes media, telecommunications, information technology, transportation services, hotel and leisure, education, and diversified services
services issuers
53
This includes companies engage in mineral exploration and extraction
mining and oil issuers
54
Examples of these include pldt 10% cumulative convertible preferred series and ayala corporation class a and b shares
preferred
55
Examples of these include abs-cbn holdings corporation philippine deposit receipt gma holdings incorporation philippine deposit receipt and megaworld corporation warrants
Warrants, Philippine Deposit Receipts
56
During the 1980s this are the majority investors in the philippine stock market
Individual domestic participants
57
From 1990s this have been the active participants in the stock market
Trust departments insurance firms institutional investors both local and foreign
58
More recently they are investing in the equities market by a mutual funds, affording them low initial investment outlay, asset diversification, and professional management
retail investors
59
This is the philippines formal market for equities transaction
Philippine stock exchange
60
The instruments traded in the foreign exchange market
Spot transactions foreign exchange forward contracts swap contracts
61
This is the most common foreign exchange transactions
Spot transactions
62
This is a commitment to buy one currency against another currency at a future date at a predetermined foreign exchange rate
Foreign exchange forward contracts
63
This is an agreement between two or more parties where the cash flows or exchange into different currencies based on an agreed notional amount and maturity
swap contracts
64
Most transactions in foreign currency are done through the
Philippine dealing system
65
It provides a platform for the buyers and the sellers to meet with the provision of real-time weighted average weight and volume of trades for the peso
Philippine dealing system
66
The instances when the bsp defends the peso from speculative attacks
directly or indirectly
67
It is when the bsp intervenes by buying or selling foreign exchange in the market
directly
68
It is when the bsp adjust the regulation on allowable transaction and amount an individual may purchase
indirectly
69
They are not participants in the philippine dealing system but they also have the option to self their foreign exchange to banks
money changers
70
Derivative instruments traded in the country with stock
Forward contracts swap contracts option contracts
71
These are contracts which obligate the holder to buy or sell an asset at a predetermined delivery price at a predetermined future date
Forward contracts
72
This contract specifies a simultaneous exchange in cash flows by both parties based on movements link to the prices values or returns of an underlying asset instruments
Swap contracts
73
It is an agreement between two parties obligating themselves to fulfil their contractual agreement at specified dates in the future
Swap contract
74
The most commonly used to swap contracts
Currency swaps and interest rate swaps
75
This is an contract which is a right but not an obligation to buy or sell an underlying asset at the certain date and price
option contract
76
The two basic types of options
Put option and call option
77
It gives the holder the right to buy the underlying asset be a certain date for a certain price
Call option
78
It gives the holder the right to sell the underlying asset by a certain date for a certain price
Put option
79
The first three derivatives licenses were given to
citibank bank of america hongkong shanghai banking corp
80
This is the first local bank granted a derivative license
equitable PCI bank
81
What are the hybrid securities
Convertible bonds preferred shares convertible preferred mortgage-backed securities options and futures
82
It is a fund which will assist individuals stock market investors in filing and prosecuting a criminal case against a trading participants
prosecution fund
83
PERAA
RA 9505 Personal Equity Retirement Account Act
84
This envisioned to promote long-term savings for a more dependable retirement account
PERAA
85
This act provides a maximum contribution limit of 100,000 per individual and 200,000 for ofw
PERAA
86
REIT
RA 9856 Real Estate Investment Trust Act
87
It is stablish as the framework for a more secure investment in real estate assets
REIT
88
This is envisioned to stimulate real estate investments and provide a consistent cash flow to investors with a compulsory dividend mandate and reduce income taxes
REIT
89
RA9510
Credit Information System Act
90
It is publishes a comprehensive and centralized credit information system allowing financial institutions ready access to accurate and up-to-date credit information for a more credible and stable financial system
Credit information system act
91
This act is expected to promote financial discipline and lowers intermediation cost of the system
Credit Information System Act

Capital Market (3 decks)

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