Transcription of Structured note markets - Giddy
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98 Financial Stability Review: June 2004 Structured note markets : products, participants and links to wholesale derivatives marketsFOR CENTRAL BANKS,understanding how the modernfinancial system fits together is a necessaryfoundation for making sense of market developments,for understanding how to interpret changes in assetprices and, therefore, for identifying possible threatsto stability and comprehending the dynamics ofcrises. Derivatives are an integral part of this, usedwidely for the management of market , credit andother risks. The associated positions and hedgingstrategies of banks and dealers are an importantinfluence on how markets respond to changes inunderlying fundamentals.
Market structure and size Broadly, a structured note can be defined as a bond (potentially, fixed rate, floating rate or zero coupon) …
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