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    Instrument

    Uploaded by

    Adil Nasir
    The document outlines various financial instruments categorized by their market and risk profile, including short-term money market instruments like treasury bills, commercial paper, and money market funds as well as longer-term capital market instruments like mortgages, government and corporate bonds, leases, and stocks. It provides details on the major participants, original maturities, and sample interest rates for each instrument. The instruments range in risk from very low risk and short-term money market products to higher risk longer-term capital market investments.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Instrument

    Uploaded by

    Adil Nasir
    12 views2 pages
    The document outlines various financial instruments categorized by their market and risk profile, including short-term money market instruments like treasury bills, commercial paper, and money market funds as well as longer-term capital market instruments like mortgages, government and corporate bonds, leases, and stocks. It provides details on the major participants, original maturities, and sample interest rates for each instrument. The instruments range in risk from very low risk and short-term money market products to higher risk longer-term capital market investments.

    Original Description:

    Capital and money market instruments

    Original Title

    Instrument (Autosaved)

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    The document outlines various financial instruments categorized by their market and risk profile, including short-term money market instruments like treasury bills, commercial paper, and money market funds as well as longer-term capital market instruments like mortgages, government and corporate bonds, leases, and stocks. It provides details on the major participants, original maturities, and sample interest rates for each instrument. The instruments range in risk from very low risk and short-term money market products to higher risk longer-term capital market investments.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    12 views2 pages

    Instrument

    Uploaded by

    Adil Nasir
    The document outlines various financial instruments categorized by their market and risk profile, including short-term money market instruments like treasury bills, commercial paper, and money market funds as well as longer-term capital market instruments like mortgages, government and corporate bonds, leases, and stocks. It provides details on the major participants, original maturities, and sample interest rates for each instrument. The instruments range in risk from very low risk and short-term money market products to higher risk longer-term capital market investments.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    SECUTIRY CHARACTERISTICS.

    Instrument Market Major Participants Riskiness Original Interest rate on


    (1) (2) (3) (4) Maturity 12/29/2010
    (5) (6)
    Treasury bills. Money All the commercial banks. Treasury bills are on the 91 days to 1 year 9%
    Non-banking financial institutions. guarantee of
    government, so they
    have minimum default
    risk
    Bankers acceptance Money A bankers' acceptance (BA) is a short- Minimal risk, especially if Range from 30 to Variable.
    term credit investment created by a guaranteed by a strong 180 days
    non-financial firm and guaranteed by bank.
    a bank to make payment
    Commercial Paper Money issued by large financial institutions Generally regarded as a Between 30 days Variable depending on
    subject to strict requirements by SECP safe investment and not and 1 year the amount and time
    and SBP in order to finance their short backed by collaterals. period.
    term financing needs
    Money market mutual Money Investing a pool of money collected Low risk Mutual fund unit Variable depending on
    funds from investors for the purpose of holders can the maturity.
    investing in securities such as stocks, convert their
    bonds, money market instruments units into cash on
    and similar assets. any working day
    Consumer credit loans Money Issued by banks to individuals. Risk is variable Variable Variable depending on
    depending on the time period and amount
    loan. of loan.
    SECUTIRY CHARACTERISTICS.

    Instrument Market Major Participants Riskiness Original Maturity Interest rate on


    (1) (2) (3) (4) (5) 12/29/2000
    (6)
    Mortgages Capital Individuals keep their Risk is variable Upto 30 years Unavailable
    property as collateral
    when borrowing from
    banks.
    Government Bonds Capital Issued by State Inflation rate risk and Upto 20 years 11 to 13%
    government to interest rate risk but tax
    individuals and investors. free.

    Corporate bonds Capital is a debt instrument Inflation rate risk and Upto 20 years Wapda bonds 5-10%
    issued by companies to interest rate risk. PIA bonds 14 to 16%
    individuals to raise
    money to meet its
    financial requirements.
    Leases Capital Individuals and firms can Inflation rate risk and 3 to 25 years Variable
    lease assets and then buy interest rate risk.
    them when the lease is
    completed.
    Preferred stock s Capital Issued by corporations to Riskier than corporate No time limit Unavailable
    individuals and bonds but less risky than
    institutional investors. common stock.

    Common stocks Capital Issued by corporations to Risky No time limit Unavailable


    individuals and
    institutional investors.

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