Correlations in commodity markets
利率掉期(IRS-Interest Rate Swap)
Specification of Futures Contract
When developing a new contract, the exchange must specify in detail the exact nature of the agreement between the two parties.
Forward vs Futures Prices
Forward and futures prices are usually assumed to be the same. Therefore, we may use forward price as a good approximation to price futures. When interest rates are uncertain, in theory, these two prices are slightly different:
Hedging Strategies in Futures
Many of the participants in futures markets are hedgers. Their aim is to use futures markets to reduce a particular risk that they face.
It is impossible for exchanges to track all delivery prices for every individual futures they trade. To avoid the difficulty, the mechanism of margin account (保證金，孖展) is introduced:
Economists阅读积累
bear market: [金融]空头市场；[证券]熊市，行情看跌市场a situation in the stock market when people are selling a lot of sharesbecause they expect the shares will decrease in value and they will beable to make a profit by buying them again after a short timeHAD stockmarkets fallen more than 40% from their peak, the national newsbulletins(a. a news report on radio or television; b. an official statement that tells people about something important; c. a letter or printed statement that a group or organization produces to tell people its news) and the mainstream papers would be full of headlines about collapse(n. a sudden decrease in the value of something) and calamity(n. calamities a terrible and unexpected event that causes a lot of damage or suffering).As it is, the FT did make commodities the splash(make a splash: informal to do something that gets a lot of public attention) today…The Arab spring started as a response to soaring food prices in North Africa.For commodity(a. a product that is bought and sold =goods, product(s): something that is grown or made in a factory in large quantities, usually in order to be sold, produce: food or other things that have been grown or produced on a farm to be sold, merchandise, wares: old-fashioned things that are for sale, usually not in a shop) producing nations, falling prices mean loss export earnings, lost jobs and currency crises(crisis 复数形式).Inevitably, the debate focuses around China, given that it was soaring Chinese demand for raw materials that was perceived to(be deemed to)drive the great bull market last decade.be perceived as = be rated as; be considered as; be regarded as;…as the country has less need for more infrastructure(the basic systems and structures that a country or organization needs in order to work properly, e.g. roads, railways, banks, etc.), and thus for iron ore(rock or earth from which metal can be obtained), steel, copper etc.The EconomistBoth events preached(a. T to talk about a religious subject in a public place, esp. in church during a service; b. T to talk about how good or important something is and try to persuade other people about this; c. I to give someone they think is boring or annoying) the gospel of happiness. In one, a speaker explained that…. The other seminar involved… .prompt: T a. to make someone decide to do something= encourage, inspire, stimulate, urge/exhort劝导；敦促；催促, spur: spur sb. (on) to do sth. /spur sb. (on) to sth. /spur sth. , motivate, impel: formal if something impels you to do something, it makes you feel very strongly that you must do it; b. to make people say or do something as a reaction; c. to ask someone to do something on a computer.…scholars and executives alike have been obsessed with(if something or someone obsesses you, you think or worry about them all the time and you cannot think about anything else 含贬义) increasing their employees’ productivity.In particular, happiness as a way to boost productivity seems to……there is evidence to suggest that…However, we also discovered alternate(=alternative) findings, which indicates that some of the taken-for-granted wisdoms about what happiness can achieve in the workplace are mere myths.To start, we don’t really know what happiness is, or how to measure it. …we have seen this slippery concept being a proxy(formal something used to represent something else that you want to measure) for all sorts of other concepts, from pleasure and joy to plenitude(=abundance; completeness) and contentment(=satisfaction). … There are other definitions of happiness, too, but they are neither less nor more plausible(a. seemly reasonable, likely to be true/successful; b. good at talking in a way that sounds reasonable and truthful, though they may in fact in lying) but those of Rousseau or Johnson.And just because we have more advanced technology today doesn’t mean we’re any closer to pinning down(a. to make someone give clear details or make a definite decision about something—to pin sb. down to sth. ; b. to understand something clearly or be able to describe it exactly—sth. be difficult/hard to pin down; pin sth. down; pin down sth.) a definition, as Will Davies reminds us in his new book The Happiness Industry. He concludes that even as we have developed more advanced techniques for measuring emotions and predicting behaviors, we have also adopted increasingly simplified notions of what it means to be human, let alone what it means to pursue happiness. A brain scan that lights up may seem like it’s telling us something concrete about an elusive(=difficult to achieve, understand, describe, find) emotion, for example, when it actually isn’t.Happiness doesn’t necessarily lead to increased productivity.A stream of research shows some contradictory results about the relationship between happiness — which is often defined as ―job satisfaction‖ —and productivity. One study on British supermarkets even suggests there might be a negative correlation between job satisfaction and corporate productivity: The more miserable the employees were, the better the profits. Sure, other studies have pointed in the opposite direction, saying that there is a link between feeling content with work and being productive. But even these studies, when considered as a whole, demonstrates a relatively weak correlation. correlation: a connection between two ideas, facts etc, esp. when one may be the cause of the othercorrelate: v.n. C either of two things that correlate with each othercorrelative: adj. formal two or more facts, ideas etc that are correlative are closely related or dependent on each otherHappiness can be exhausting. The pursuit of happiness may not be wholly effective, but it doesn’t really hurt, right? Wrong. Ever since the 18th century, people have been pointing out that the demand to be happy brings with it a heavy burden, a responsibility that can never be perfectly fulfilled. Focusing on happiness can actually make us feel less happy.A psychological experiment recently demonstrated this. The researchers asked their subjects to watch a film that would usually make them happy — a figure skater winning a medal. But before watching the film, half of the group was asked to read out a statement about the importance of happiness in life. The other half did not. The researchers were surprised to find that those who had read the statement about the importance of happiness actually were less happy after watching the film. Essentially, when happiness becomes a duty, it can make people feel worse if they fail to accomplish it.This is particularly problematic(involving problems are difficult to deal with)at the present era, where happiness is preached as a moral obligation.As the French philosopher Pascal Bruckner put it: ―Unhappiness is not only unhappiness; it is, worse yet, a failure to be happy.‖It won’t necessarily get you through the work day. If you have worked in a front-line customer service job, like a call center or fast food restaurant, you know that being upbeat is not an option. It’s compulsory. And as tiring as this may be, it makes some sense when you’re in front of customers.But today, many non-customer facing employees are also asked to be upbeat. This could have some unforeseen consequences. One study found that people who were in a good mood were worse at picking out acts of deception than those who were in a bad mood. Another piece of research found that people who were angry during a negotiation achieve better outcomes than people who are happy. This suggests that being happy all the time may not be good for all aspects of our work, or jobs that rely heavily on certain abilities. Infact, for some things, happiness can actually make us perform worse.Happiness could damage your relationship with your boss. If we believe that work is where we will find happiness, we might, in some cases, start to mistake our boss for(mistake sth./sb, for sb/sth. = take sb. for) a surrogate(adj. +n. taking the place of someone or something else; n. a surrogate for sth.)spouse(formal配偶) or parent. In her study of a media company, Susanne Ekmann found that those who expected work to make them happy would often become emotionally needy. They wanted their managers to provide them with a steady stream of recognition and emotional reassurance. And when not receiving the expected emotional response (which was often), these employees felt neglected and started overreacting. Even minor setbacks were interpreted as clear evidence of rejection by their bosses. So in many ways, expecting a boss to bring happiness makes us emotionally vulnerable.It could also hurt your relationship with friends and family. In her book Cold Intimacies Eva Illouz noticed a strange side effect of people trying to live more emotionally at work: They started to treat their private lives like work tasks. The people she spoke with saw their personal lives as things needed to be carefully administered using a range of tools and techniques they had learned from corporate life. As a result, their home lives became increasingly cold and calculating(thinking carefully about how to get exactly what you want, often without caring about anyone 含贬义). It was no wonder, then, that many of the people she spoke with preferred to spend time at work rather than at home.It could make losing your job that much more devastating(a. badly damaging or destroying something; b. making someone feel extremely sad or shock; c. very impressive or effective). If we expect the workplace to provide happiness and meaning in our life, we become dangerously dependent on it. When studying professionals, Richard Sennett noticed that people who saw their employer as an important source of personal meaning were those who became most devastated if they were fired. When these people lost their jobs, they were not just loosing an income – they were loosing the promise of happiness. This suggests that, when we see our work as a great source of happiness, we make ourselves emotionally vulnerable during periods of change. In an era of constant corporate restructuring, this can be dangerous.Happiness could make you selfish. Being happy makes you a better person, right? Not so, according to an interesting piece of research. Participants were given lottery tickets, and then given a choice about how many tickets they wanted to give to others and how many they wished to keep for themselves. Those who were in a good mood ended up keeping more tickets for themselves. This suggests that, at least in some settings, being happy does not necessarily mean we will be generous. In fact, the opposite could be true.It could also make you lonely. In one experiment, psychologists asked a number of people to keep a detailed diary for two weeks. What they found at the end of the study was that those who greatly valued happiness also felt lonelier. It seems that focusing toomuch on the pursuit of happiness can make us feel more disconnected from other people.So why, contrary to all of this evidence, do we continue to hold on to the belief that happiness can improve a workplace? The answer, according to one study, comes down to(归根结底；实质上是) aesthetics(美学) and ideology（意识形态，观念学）. Happiness is a convenient idea that looks good on paper (the aesthetic part). But it’s also an idea that helps us shy away from more serious issues at work, such as conflicts and workplace politics (the ideological part).When we assume that happy workers are better workers, we can sweep more uncomfortable questions under the carpet, especially since happiness is often seen as a choice. It becomes a convenient way of dealing with negative attitudes, party poopers, miserable bastards, and other unwanted characters in corporate life. Invoking happiness, in all its ambiguity, is an excellent way of getting away with controversial decisions, such as letting people go. As Barbara Ehrenreich points out in her book Bright-Sided, positive messages about happiness have proved particularly popular in times of crisis and mass layoffs.Given all these potential problems, we think there is a strong case for rethinking our expectation that work should always make us happy. It can be exhausting, make us overreact, drain our personal life of meaning, increase our vulnerability, make us more gullible, selfish and lonely. Most striking is that consciously pursuing happiness can actually drain the sense of joy we usually get from the really good things we experience.In reality, work — like all other aspects of life — is likely to make us feel a wide range of emotions. If your job feels depressing and meaningless, it might be because it is depressing and meaningless. Pretending otherwise can just make it worse. Happiness, of course, is a great thing to experience, but nothing that can be willed into existence. And maybe the less we seek to actively pursue happiness through our jobs, the more likely we will be to actually experience a sense of joy in them —a joy which is spontaneous and pleasurable, and not constructed and oppressive. But most importantly, we will be better equipped to cope with work in a sober manner. To see it for what it is. And not as we — whether executives, employees, or dancing motivational seminar leaders —pretend that it is.。
Zhang-Yang波动率计算
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The price range, defined as the difference between the highest and lowest market prices over a fixed sampling interval, has been known for a long time and recently experienced renewed interest as an estimator of the latent volatility. The information contained in the opening, highest, lowest, and closing prices of an asset is widely used in Japanese candlestick charting techniques and other technical indicators (Nisson, 1991). Early application of range in the field of finance can be traced to Mandelbrot (1971), and the academic work on the range-based volatility estimator started from the early 1980s. Several authors, back to Parkinson (1980), developed from it several volatility measures far more efficient than the classical return-based volatility estimators.
CFA一、二、三级考纲对比总结_金程版
【CFA一级考纲对比总结】一、新增部分：1、SS3 R11新增内容b. distinguish between one-tailed and two-tailed tests of hypotheses;2、SS4 R13新增内容e. describe the concept of equilibrium (partial and general), and mechanisms by which markets achieve equilibrium;3、SS8 R28新增内容f. explain the requirements for segment reporting, and calculate and interpret segment ratios;4、SS10 R34新增内容a. describe reasons for investors to assess the quality of cash flow statements;5、SS12 R42新增内容c. describe defined contribution and defined benefit pension plans;6、SS15中的新增R52、R53、R54。
SS15变动最大，本章内容全部更改。
7、SS16变动较大，更改了大标题，新增R55全部内容。
二、删除内容：1、SS5 R18删除内容j. identify the past, current, or expected future business cycle phase of an economy based on economic indicators.2、SS9 R32删除内容j. describe defined contribution and defined benefit pension plans;3、SS11 R36删除内容f. describe and account for the relative popularity of the various capital budgeting methods and explain the relation between NPV and company value and stock price;4、SS15中删除R52、R53、R54、R55。
西方经济学习题集(双语版)
5 questions and answers
1-5 Why is entrepreneurial ability considered a category of economic resources, distinct from labor? What are the major functions of the entrepreneur? Entrepreneurial ability and labor are both human resources, but they perform different functions in the productive process. Entrepreneurial ability does not directly produce goods and services; it organizes the resources that do. Labor refers to the human inputs that directly engage in production. Entrepreneurs are risk-takers: They coordinate the activities of the other three inputs for profit—or loss, which is why they are called risk-takers. Entrepreneurs sometimes manage companies that they own, but a manager who is not an owner is not necessarily an entrepreneur but may be performing some of the entrepreneurial functions for the company. Entrepreneurs are also innovators, or perhaps inventors, and profits help to motivate such activities.
是非问题分析论证句式
是非问题分析论证句式Whereas other societies look to the past for guidance, we cast our nets forward （面向未来）It is the belief in a brighter future that gives us optimism.Even these days, when not all progress seems positive (nuclear weapons, air pollution, unemployment, etc.), the belief remains that for every problem there is a rational solution.The job of the parents is to give the children every opportunity while they are growing up and then get out of their way.What deference people in authority do command is based on their actual powers rather than on their age, wisdom, or dignity.In a society that changes as fast as ours, experience simply does not have the value that it does in traditional societies.It has taken a long time to convince the public that free enterprise does not mean that a company should be free to pollute the air, foul the rivers, and destroy the forests.The assembly line reduced workers to cogs of machinery and made their jobs unutterably boring, but it produced goods fast.Food is prepackaged and shopping is impersonal, but the efficiency of the operation produces lower prices and less shopping time.As an American is always striving to change his lot, he never fully identifies with any group.In America, there are no such expressions such as in china where "the fat pig gets slaughtered," or in Japan, where "the nail that sticks out gets hammered down."This freedom from the group has enabled the American to become "Economic Man"-one directed almost purely by profit motive, mobile and unencumbered（不受阻碍的）by family or community obligations.Equipped with the money, one can acquire the taste, style, and ideas that mark each class and launch a quick ascent of the social ladder.Actually, persons in status societies who are secure in their niches （适当的位置）are allowed more eccentricity than Americans, who rely heavily on signals that other people like them.When half the population goes to college, one cannot expect the colleges to maintain the same standards as in countries where only the elite attend.Just as not every Japanese is hardworking and deferential to superiors （长者、上司）, not every Chinese is devoted to family, not every American is ambitious or patriotic - or even unsophisticated.No one could seriously think that anyone who grows up poor, lives in a bad neighborhood, and attends an inferior school has an opportunity equal to that of someone more favored.Americans may not have achieved equality, but at least they aspire to it, which is more than many other nations can claim.In many countries, when jobs become available for young people in distant cities, when television begins to dominate home life, when ready - made foods appear in themarkets, the culture appears more "American" - although the resemblance could be entirely superficial.Someone who looks around or down appears shifty （不可靠的）to Americans, although in fact one doesn't stare continuously at the other person, but glances elsewhere every few seconds.When the demand for something is greater than its supply, producers and suppliers will sense the possibility of making a profit - the excess of revenues over expenses is the profit.As the case illustrates, competition takes four general forms: pure competition, monopoly, monopolistic competition, and oligopoly（少数制造商对市场的控制）.The classic example of pure competition occurs with a commodity, like wheat or corn, that has so many producers that no one of them can control its selling price.A monopoly occurs when one company alone offers a particular food or service and therefore controls the market and price for it.Private restaurants serve gourmet food for $70 per person; incentives boosted agricultural production 25 percent and industrial output 80 percent in just three years; farmers are encouraged to raise as much as they can on their own plots, and some become almost rich in the process.（注意本句中分号的使用）All these changes in China's economic life have brought changes in China's social and cultural life as well, many of which unwanted.If productivity measures the efficiency of an economy, a measure of what an economic system produces is its gross national product (GNP), which is the current market value of all final goods and services that a nation produces within a particular period.Current wisdom says that （当前流行的看法认为）if you want a successful product, you need first to perform detailed market analysis, making sure that there are plenty of people who need the new product and that your entry into the market will be able to gain a significant share of that market.Started at the turn of the century, 3M ( a giant American company) has been growing at a healthy rate of about 10 percent a year and it boasts of having 45,000 products on the market.An entrepreneur is someone like Tom Monaghan, the man who after brushes with bankruptcy turned Domino's Pizza into the nation's fastest - growing franchise chain.The extent to which the broadcast media should be censored for offensive language and behavior involves a conflict between our right as individuals to freely express ourselves and the duty of government to protect its citizenry from potential harm.Although we may not have conclusive scientific evidence of a cause - effect relationship, ample anecdotal evidence establishes a significant correlation.Moreover, both common sense and our experiences with children inform us that people tend to mimic the language and behavior they are exposed to.Those who advocate unbridled individual expression might point out that the right of free speech is intrinsic to a democracy and necessary to its survival.In sum, it is in our best interest as a society for the government to censor broadcast media for obscene and offensive language and behavior.While individuals have primary responsibility for learning new skills and finding work, both industry and government have some obligation to provide them with the means of doing so.The suggested reason for buying the car is obvious: it is the intelligent choice.（注意冒号的使用）In conclusion, I agree that appeals to emotion are more powerful tools than arguments and reasoning for promoting products.Advertising is obviously the most influential art form in this century; it is, therefore, tempting to think that it is the most important.The lesson here is that advertising, in itself, probably will not achieve as great importance as art.Requiring businesses to provide complete product information to customers promotes various consumer interests, but at the same time imposes burdens on businesses, government, and taxpayer.While I doubt that buildings determine our character or basic personality traits, I argue that they can greatly influence our attitudes, moods, and even life styles.Numerous psychological studies show that different colors influence behavior, attitudes, and emotions in distinctly different ways.Women differ fundamentally from men in childbearing ability; related to this ability is the maternal instinct - a desire to nurture - that is far stronger for women than for men, generally speaking.In consumer - driven industries, innovation, product differentiation, and creativity are crucial to lasting success.And in technology, when there are no conventional practices or ways of thinking to begin with, companies that fail to break away from last year's paradigm are soon left behind by the competition.Whether an individual saves too little or borrows too much depends on the purpose and extent of either activity.The evidence suggests that, on balance, people today tend to concern themselves with only practical matters that are related to their life.Traditionally, saving is viewed as a virtue, while borrowing is considered as a vice.However, just the opposite may be true under certain circumstances.备注说明，非正文，实际使用可删除如下部分。
FRM总复习计算题型汇总
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3. Tracking error, Information ratio, Sortino ratio
Tracking error（跟踪误差）：组合偏离基准收 益的标准差 Information ratio(信息比率）：相对于基准的超 额收益除以跟踪误差 Sortino ratio:相对于基准（最低要求）的超额收 益除以下方标准差
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4. APT模型之运用 计算Excess return
An analyst believes equity prices are completely explained by the market risk premium, earnings growth, earnings yield (E/P), and the dividend payout ratio (D/E). The analyst uses beta to represent exposure to the market risk premium and standardizes earnings growth, earnings yield, and the dividend payout ratio. The analyst's forecasted factor returns are as follows: Market risk premium = 3% Earnings growth = -2% Earnings yield = 2% What is the expected excess return for a stock with the following factor exposures? Beta = 1 Earnings growth = -0.5 Earnings yield = 0.5 E(R) = (0.03 × 1) + (-0.02 × -0.5) + (0.02 × 0.5) = 0.05%
企管理MBA专业术语汇总
MBA专业术语汇总AAbility-to-pay principle 能力纳税原则The idea that taxes should be levied on a person according to how well that person can shoulder the burdenAbsolute advantage 绝对优势The comparison among producers of a good according to their productivityAggregate-demand curve 总需求曲线A curve that shows the quantity of goods and services that households, firms, and the government want to buy at any price levelAggregate-supply curve 总供给曲线A curve that shows the quantity of goods and services that firms choose to produce and sell at any levelAppreciation 升值An increase in the value of a currency as measured by the amount of foreign currency it can buyAutomatic stabilizers 自动稳定器Changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate actionAverage fixed cost 平均固定成本Fixed costs divided by the quantity of outputAverage revenue 平均收益Total revenue divided by the quantity soldAverage tax rate 平均税率Total taxes paid divided by total incomeAverage total cost 平均总成本Total cost divided by the quantity of outputAverage variable cost 平均可变成本Variables costs divided by the quantity of outputAccelerator 加速数the effect on GDP of the increase in investment that results from an increase in output. For instance, the greater output leads a firm to believe that the demand for its products will rise in the future; the resulting increase in investment leads to growth in output and still further increases in investment, accelerating the expansion of the economyAcquired endowments 后天禀赋resources a country builds for itself, like a network of roads or an educated populationAdaptive expectations 适应性预期expectations based on the extrapolation of events in the recent past into the futureaggregate expenditures schedule 总支出曲线a curve that traces out the relationship between expenditures--the sum of consumption, investment, government expenditures, and net exports--and the national income, at a fixed price levelantitrust laws 反托拉斯法laws that discourage monopoly and restrictive practices and encourage greater competitionarbitrage 套利3 / 84the process by which assets with comparable risk, liquidity, and tax treatment are priced to yield comparable expected returnsadverse selection 逆向选择principle that says that those who most want to buy insurance tend to be those most at risk, but charging a high price for insurance (to cover the high risk)will discourage those at less risk from buying insurance at allasset 资产any item that is long-lived, purchased for the service it renders over its life and for what one will receive when one sells itassistance in kind 实物援助public assistance that provides particular goods and services, like food or medical care, rather than cashasymmetric information 信息不对称a situation in which the parties to a transaction have different information, as when the seller or a used car has more information about its quality then the buyerautonomous consumption 自主消费that part of consumption that does not depend on incomeaverage costs 平均成本the total costs divided by the total outputaverage productivity 平均产量total quantity divided by the total quantity of inputBBenefits principle 受益原则The idea that people should pay taxes based on the benefits they receive from government servicesBond 债券A certificate of indebtednessBudget constraint 预算约束The limit on the consumption bundles that a consumer can affordBudget deficit 预算赤字An excess of government spending over government receipts5 / 84Budget surplus 预算盈余An excess of government receipts over government spendinbarriers to entry 进入障碍factors that prevent firms from entering a market, such as government rules or patentsbasic competitive model 基本竞争模型the model of the economy that pulls together the assumptions of self-interested consumers, profit maximizing firms, and perfectly competitive marketsbequest savings motive 储蓄的遗产动机people save so that they can leave an inheritance to their childrenBertrand competition 伯特兰竞争an oligopoly in which each firm believes that its rivals are committed to keeping their prices fixed and that customers can be lured away by offering lower pricesbilateral trade 双边贸易trade between two partiesboom 繁荣a period of time when resources are being fully used and GDP is growing steadilyCCapital 资本The equipment and structures used to produce goods and servicesCapital flight 资本外流A large and sudden reduction in the demand for assets located in a countryCartel 卡特尔A group of firms acting in unisonCatch-up effect 追赶效应The property that countries that start off poor tend to grow more rapidly than countries that start off richCentral bank 中央银行An institution designed to oversee the banking system and regulate the quantity of money in the economyCeteris paribus 其它条件相同7 / 84A Latin phrase, translated as 'other things being equal,' used as a reminder that all variables other than the ones being studied are assumed to be constantCircular-flow diagram 循环流向图A visual model of the economy that shows how dollars flow through markets among households and firmsClassical dichotomy 古典二分法The theoretical separation of nominal and real variablesClosed economy 封闭经济An economy that does not interact with other economies in the worldCoase theorem 科斯定理The proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their ownCollective bargaining 集体谈判The process by which unions and firms agree on the terms of employmentCollusion 勾结An agreement among firms in a market about quantities to produce or prices to chargeCommodity money 商品货币Money that takes the form of a commodity with intrinsic valueCommon resources 共有资源Goods that are rival but not excludableComparable worth 同工同酬A doctrine according to which jobs deemed comparable should be paid the same wageComparative advantage 比较优势The comparison among producers of a good according to their opportunity costCompensating wage differential 补偿性工资差别A difference in wages that arises to offset the nonmonetary characteristics of different jobsCompetitive market 竞争市场A market with many buyers and sellers trading identical products so that each buyer and seller is a price takerComplements 互补品Two goods for which an increase in the price of one good leads to a decrease in the9 / 84demand for the other goodConstant returns to scale 规模收益不变The property that long-run average total cost stays the same as the quantity of output changesConsumer price index 消费物价指数A measure of the overall cost of the goods and services bought by a typical consumerConsumer surplus 消费者剩余A buyer's willingness to pay minus the amount the buyer actually paysConsumption 消费Spending by households on goods and services, with the exception of purchases of new housingCost 成本The value of everything a seller must give up to produce a goodCost-benefit analysis 成本—收益分析A study that compares the costs and benefits to society of providing a public goodCrowding-out effect 挤出效应The offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spendingCurrency 通货The paper bills and coins in the hands of the publicCyclical unemployment 周期性失业The deviation of unemployment from its natural ratecapital gain 资本增值the increase in the value of an asset between the time it is purchased and the time it is soldcapital market 资本市场the market in which savings are made available to investorscategorical assistance 分类帮助public assistance aimed at a particular category of people, like the elderly or the disabledcausation 因果关系relationship that results when an change in one variable is not only correlated with but11 / 84actually causes the change in another onecentral planning 中央计划the system in which central government bureaucrats (as opposed to private entrepreneurs or even local government bureaucrats) determine what will be produced an how it will be producedcentralization 集权organizational structure in which decision making is concentrated at the topcentrally planned economy 中央计划经济an economy in which most decisions about resource allocation are made by the central governmentcertificate of deposit (CD) 存单account in which money is deposited for a preset length of time, that must yield a slightly higher return to compensate for the reduced liquiditycircular flow 循环流程how funds move through the capital, labor, and product markets between households, firms, the government, and the foreign sectorclassical economists 古典经济学家economists prevalent before the Great Depression who believed that the basic competitive model provided a good description of the economy and that if short periods of unemployment did occur, market forces would quickly restore the economy to full employmentclassical unemployment 古典失业unemployment that results from too-high real wages; it occurs in the supply constrained equilibrium, so that rightwards shifts in aggregate supply reduce the level of unemploymentcompetitive equilibrium price 竞争性均衡价格the price at which the quantity supplied and the quantity demanded are equal to each otherconsumer protection legislation 消费者保护法laws aimed at protecting consumers, for instance by assuring that consumers have more complete information about items they are considering buyingconsumer sovereignty 消费者权益the principle that holds that each individual is the best judge of what makes him better off13 / 84consumption function 消费函数the relationship between disposable income and consumptioncontingency clauses 应变条款statements within a contract that make the level of payment or the work to be performed conditional upon various factorscorporate income tax 公司所得税a tax based on the income, or profit, received by a corporationcorrelation 相关relationship that results when a change in one variable is consistently associated with a change in another onecost-push inflation 成本推动型通货膨胀inflation whose initial cause is a rise in production costsCournot competition 古诺竞争an oligopoly in which each firm believes that its rivals are committed to a certain level of production and that rivals will reduce their prices as needed to sell that amountcredentials competition 文凭竞争the trend in which prospective workers acquire higher educational credentials, not so much because of anything they actually learn in the process but to convince potential employers to hire them by signaling that they will be more productive employees than those with weaker credentialscredit constraint effect 信贷约束效应when prices fall, firms' revenues also fall, but the money they owe creditors remains unchanged; as a result, firms have fewer funds of their own to invest. Because of credit rationing, firms cannot make up the difference; accordingly, investment decreasescredit rationing 信贷配给credit is rationed when no lender is willing to make a loan to a borrower or the amount lenders are willing to lend to borrowers is limited, even if the borrower is willing to pay more than other borrowers of comparable risk who are getting loanscross subsidization 交叉补贴the practice of charging higher prices to one group of consumers in order to subsidize lower prices for another groupDDeadweight loss 无谓损失15 / 84The reduction in total surplus that results from a taxDemand curve 需求曲线A graph of the relationship between the price of a good and the quantity demandedDemand deposits 活期存款Balances in bank accounts that depositors can access on demand by writing a checkDemand schedule 需求表A table that shows the relationship between the price of a good and the quantity demandedDepreciation 贬值A decrease in the value of a currency as measured by the amount of foreign currency it can buyDepression 萧条A severe recessionDiminishing marginal product 边际产量递减The property whereby the marginal product of an input declines as the quantity of the input increasesThe property that the marginal product of an input declines as the quantity of the input increasesDiminishing returns 收益递减The property that the benefit from an extra unit of an input declines as the quantity of the input increasesDiscount rate 贴现率The interest rate on the loans that the Fed makes to banksDiscouraged workers 丧失信心的工人Individuals who would like to work but have given up looking for a jobDiscrimination 歧视The offering of different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristicsDiseconomies of scale 规模不经济The property that long-run average total cost rises as the quantity of output increasesDominant strategy 优势战略A strategy that is best for a player in a game regardless of the strategies chosen by the17 / 84other playersdebt 债务capital, such as bonds and bank loans, supplied to a firm by lenders; the firm promises to repay the amount borrowed with interestdecentralization 分权化organizational structure in which many individuals or subunits can make decisionsdecision tree 决策树a device for structured decision making that spells out the choices and possible consequences of alternative actionsdeficit spending 赤字支出the situation that exists when government expenditures are greater than revenuesdeflation 通货紧缩a persistent decrease in the general level of pricesdemand-constrained equilibrium 受需求约束的平衡the equilibrium that occurs when prices are stuck at a level above that at which aggregate demand equals aggregate supply at the current price leveldemand-pull inflation 需求拉动型通货膨胀inflation whose initial cause is aggregate demand exceeding aggregate supply at the current price leveldemographic effects 人口效应effects that arise from changes in characteristics of the population such as age, birthrates, and locationderegulation 放松管制the lifting of government regulations to allow the market to function more freelydevaluation 贬值a reduction in the rate of exchange between one currency and other currencies under a fixed exchange rate systemdeveloped countries 发达国家或工业化国家the wealthiest nations in the world, including Western Europe, the United States, Canada, Japan, Australia, and New Zealanddiminishing marginal utility 边际效用递减the principle that says that as an individual consumes more and more of a good, each19 / 84successive unit increases her utility, or enjoyment, less and lessdividends 股息that portion of corporate profits paid out to shareholdersdownward rigidity of wages 工资下降刚性the situation that exists when wages do not fall quickly in response to a shift in the demand or supply curve for labor, resulting in an excess supply of labordual economy 二元经济the separation in many LDCs between an impoverished rural sector and an urban sector that has higher wages and more advanced technologyduopoly 双头垄断an industry with only two firmsdurable goods 耐用品goods that provide a service over a number of years, such as cars, major appliances, and furnituredynamic consistency 动态一致性a policy is said to have dynamic consistency when government announces a course ofaction and then has the incentives to actually carry out that policyEEconomics 经济学The study of how society manages its scarce resourcesEconomies of scale 规模经济The property that long-run average total cost falls as the quantity of output increasesEfficiency 效率The property of a resource allocation of maximizing the total surplus received by all members of society; The property of society getting the most it can from its scarce resourcesEfficiency wages 效率工资Above-equilibrium wages paid by firms in order to increase worker productivityEfficient scale 有效规模The quantity of output that minimizes average total costElasticity 弹性21 / 84A measure of the responsiveness of quantity demanded or quantity supplied to one of its determinantsEquilibrium 均衡A situation in which supply and demand have been brought into balanceEquilibrium price 均衡价格The price that balances supply and demandEquilibrium quantity 均衡数量The quantity supplied and the quantity demanded when the price has adjusted to balance supply and demandEquity 平等The fairness of the distribution of well-being among the various buyers and sellers; The property of distributing economic prosperity fairly among the members of societyExcess demand 超额需求A situation in which quantity demanded is greater than quantity suppliedExcess supply 超额供给A situation in which quantity supplied is greater than quantity demandedExcludability 排他性The property of a good that a person can be prevented from using itExports 出口Goods and services that are produced domestically and sold abroad; Goods produced domestically and sold abroadExternality 外部性The impact of one person's actions on the well-being of a bystandereconomic rents 经济租金payments made to a factor that are in excess of what is required to elicit the supply of that factorefficiency wage theory 效率工资理论the theory that paying higher wages (up to a point) lowers total production costs, for instance by leading to a more productive labor forceeconomies of scope 范围经济what exists when it is less expensive to produce two products together than it would be to produce each one separately23 / 84efficient markets theory 有效市场理论the theory that all available information is reflected in the current price of an assetelasticity of labor supply 劳动供给弹性the percentage change in labor supplied resulting from a 1% change in wagesequity, shares, stock 股票terms that indicate part ownership of a firm, which the firm sells in order to raise money, or capitalequity capital 股份资本capital, such as shares (or stock), supplied to a firm by its owners(shareholders); the returns received by the owners are not guaranteed but depend on how well the firm doesexchange efficiency 交换的效率the condition in which whatever the economy produces is distributed among individuals in an efficient wayexchange rate 汇率the rate at which one currency (such as dollars) can be exchanged for another(such as marks, yen, or pounds)excise tax 货物税a tax on a particular good or serviceexpected return 预期收益the average return--a single number that combines the various possible returns per dollar invested with the chances that each of these returns will actually be paidexport-led growth 出口导向型增长the strategy that government should encourage exports in which the country has a comparative advantage to stimulate growthFFactors of production 生产要素The inputs used to produce goods and servicesFederal Reserve (Fed) 联邦储备The central bank of the United StatesFiat money 法定货币Money without intrinsic value that is used as money because of government decree25 / 84Financial intermediaries 金融中介机构Financial institutions through which savers can indirectly provide funds to borrowersFinancial markets 金融市场Financial institutions through which savers can directly provide funds to borrowersFinancial system 金融体系The group of institutions in the economy that help to match one person's saving with another person's investmentFisher effect 费雪效应The one-for-one adjustment of the nominal interest rate to the inflation rateFixed cost 固定成本Costs that do not vary with the quantity of output producedFractional-reserve banking 部分准备金银行体系A banking system in which banks hold only a fraction of deposits as reservesFree rider 搭便车者A person who receives the benefit of a good but avoids paying for itfactor demand 要素需求the amount of an input demanded by a firm, given the price of the input and the quantity of output being produced; an input will be demanded up to the point where the value of the input's marginal product equals the price of theinputfederal government structure 联邦政府结构a system in which government activity takes place at several levels--national, state, county, city, and othersfirm wealth effect 厂商的财富效应lower prices or lower demand cause firms' profits and net worth to fall, and this makes them less willing to undertake the risks involved with investmentfiscal policies 财政政策policies that affect the level of government expenditures and taxesfixed exchange rate system 固定汇率体系an exchange rate system in which the value of each currency is fixed in relationship to other currenciesflexible exchange rate system 浮动汇率体系27 / 84a system in which exchange rates are determined by market forces, the law of supply and demand, without government interferencefixed or overhead inputs 不变投入或分摊投入inputs that do not change depending on the quantity of output, at least over the short termflow statistics 流量统计measurements of a certain rate of quantity per period of time, such as GDP, which measures output per yearfull-employment deficit 充分就业赤字the budget deficit that would have prevailed if the economy were at full employment, thus with higher tax revenues and lower public assistance expendituresfull-employment output/ potential output 充分就业产出或潜在产出the level of output that would prevail if labor were fully employed (output may exceed that level if workers work more than the normal level of overtime)GGDP deflator 平减指数A measure of the price level calculated as the ratio of nominal GDP to real GDP times 100Game theory 博弈理论The study of how people behave in strategic situationsGiffen good 吉芬物品A good for which an increase in the price raises the quantity demandedGross domestic product (GDP) 国内生产总值The market value of all final goods and services produced within a country in a given period of timeGross national product (GNP) 国名生产总值The market value of all final goods and services produced by permanent residents of a nation within a given period of timegains from trade 交易所得the benefits that each side enjoys from a tradeGDP per capita 人均国内生产总值the value of all goods and services produced in the economy divided by population29 / 84general equilibrium analysis 一般均衡分析a simultaneous analysis of all capital, product, and labor markets throughout the economyGini coefficient 基尼系数a measure of inequality (equal to twice the area between the 45 degree line and the Lorenz curve)green revolution 绿色革命the invention and dissemination of new seeds and agricultural practices that led to vast increases in agricultural output in LDCs during the 1960's and 1970'sHHorizontal equity 横向公平The idea that taxpayers with similar abilities to pay taxes should pay the same amountHuman capital 人力资本The knowledge and skills that workers acquire through education, training, and experience;The accumulation of investments in people, such as education and on-the-job traininghorizontal integration 横向一体化the integration of a firm with other firms producing the same product (at the same level of production)horizontal merger 横向兼并a merger between two firms that produce the same goodshorizontal restrictions 横向约束restrictions (such as an agreement not to compete in price or to enter each others' markets) by competing firms (at the same level of production, for instance, among producers, or among wholesalers, or among retailers)hostile takeover 恶意收购when one management team (one firm) takes over the control of another, against the will of the second firmIImport quota 进口限额A limit on the quantity of a good that can be produced abroad and sold domesticallyImports 进口31 / 84Goods and services that are produced abroad and sold domesticallyIn-kind transfers 实物转移支付Transfers to the poor given in the form of goods and services rather than cashIncome effect 收入效应The change in consumption that results when a price change moves the consumer to a higher or lower indifference curveIncome elasticity of demand 需求收入弹性A measure of how much the quantity demanded of a good responds to a change in consumers' income, computed as the percentage change in quantity demanded divided by the percentage change in incomeIndexation 指数化The automatic correction of a dollar figure for the effects of inflation by law or contractIndifference curves 无差异曲线Curves that show consumption bundles that give the consumer the same level of satisfaction A good for which an increase in income reduces the quantity demandedInferior good 低档商品A good for which, other things being equal, an increase in income leads to a decrease in quantity demandedInflation 通货膨胀An increase in the overall level of prices in the economyInflation rate 通货膨胀率The percentage change in the price index from the preceding periodInternalizing an externality 外部性的内在化Altering incentives so that people take account of the external effects of their actionsInvestment 投资Spending on capital equipment, inventories, and structures, including household purchases of new housingimperfect competition 不完全竞争any market structure in which there is some competition but firms face downward-sloping demand curvesimplicit contract 隐含合同an unwritten understanding between two groups involved in an exchange, such as an33 / 84understanding between employer and employees that employees will receive a stable wage throughout fluctuating economic conditionsimport function 进口函数the relationship between imports and national incomeincomplete markets 不完全市场situations in which no market may exist for some good or for some risk, or in which some individuals cannot borrow for some purposesincreasing, constant or diminishing returns to scale 规模收益递增/不变/递减when all inputs are increased by a certain proportion, output increases by a greater proportion (also known as economies of scale)indexing 指数化the formal linking of any payment to a price indexindividual income tax 个人所得税a tax based on the income received by any individual or householdinfant industry argument for protection 幼稚工业保护论the argument that industries must be protected from foreign competition while they areyoung, until they have a chance to acquire the skills to enable them to compete on equal termsinfinite elasticity of demand 无限需求弹性the situation that exists when any amount will be demanded at a particular price, but nothing will be demanded if the price rises even a small amountinfinite elasticity of supply 无限供给弹性situation that exists when any amount will be supplied at a particular price, but nothing will be supplied if the price falls even a small amountinflation tax 通货膨胀税the decrease in buying power (wealth) that inflation imposes on those who hold currency (and other assets, like bonds, the payments for which are fixed in terms of dollars)inflationary spiral 通货膨胀螺旋a self-perpetuating system in which price increases lead to higher wages, which lead to further price increasesinfrastructure 基础设施the roads, ports, bridges, and legal system that provide the necessary basis for a working economy35 / 84insider-outsider theory 局内人—局外人理论the theory that firms are reluctant to pay new workers (outsiders) a lower wage than current workers (insiders), because current workers will fear beingreplaced by the new log-wage workers and will not participate in cooperating with and training theminterest 利息the return a saver receives in addition to the original amount she deposited, and the amount that a borrower must pay in addition to the original amount she depositedinterest rate effect 利率效应the situation that exists when lower interest rates (resulting from an increase in the money supply, or a fall in the price level) induce firms to invest moreinvestment schedule 投资曲线the relationship between the level of investment and the (real) rate of interestinvestment tax credit (ITC) 投资税减免a provision of the tax code in which the government reduces a company's tax bill by an amount equal to a percentage of its spending on investmentinvoluntary unemployment 非自愿失业。
Basic Banking Jargon - 基本银行术语
ALL NIGHTEREvery analyst’s worst nightmare; entails working non-stop for at least 24 hours to meet a deadlineANALYSTThe specialist for a specific area, sector or function, also the job title new graduates are given in investment bankingARBITRAGEProfiting from differences between market prices by buying securities in one and selling them in anotherASSET MANAGEMENTFund managers/asset managers investing, typically, in the financial markets on behalf of their clients to achieve better returns than a given benchmarkAUDITProfessional examination and verification of a company’s accounting dataAUTOMATIONUsed to describe processing transactions using technology rather than manually, this is a big issue in financial services as cost and risk are seriously impacted by manual processingBACK OFFICEThe support functions not directly responsible for the revenue generation aspects of the bank (i.e. IT, accounting and human resources). In banking the back-office also includes the departments and processes related to the settlement of financial transactions; handling, position keeping, clearance and settlementBASEL COMMITTEEA group of representatives from central banks around the world that mandate regulation to ensure stability of global financial infrastructure, they are responsible for the Basel II regulatory frameworkBASIS POINTSRepresenting a hundredth of a percent; a basis point is used to measure changes in interest ratesBEARAn individual who expects the value of a commodity, security, currency or market sector to fallBEAR MARKETAny market in which prices exhibit a declining trend, for a prolonged period, usually falling by 20% or more. Because a bear attacks by clawing down, this term is associated with a falling marketBLUE CHIPA well-established company with a good record of earnings over a long period of time; these companies are valued by investors seeking relative safety and stabilityBOOKThe summary of positions held by a dealer, desk, or roomBONDA long-term debt instrument with the promise to pay a specified amount of interest and to return the principal amount on a specified maturity date; usually issued by governments and organizations in order to raise capitalBROKERAn individual or firm that charges a fee or commission for executing buy and sell orders submitted by another individual or firm. Or, the role of a broker firm when it acts as an agent for a customer and charges the customer a commission for its serviceBULL MARKETA period during which security prices in a particular market (such as the stock market) are generally rising. Because a bull attacks by thrusting upward, this term is associated with a rising marketBUY SIDEInstitutional investors that hold their customer’s money and make buy and sell decisions on their behalf i.e. mutual funds, pension funds and trust companies. A buyside firm must utilize a sell-side firm to execute the trading of securitiesCALL OPTIONThe right but not the obligation to buy stock, shares or futures at a specified price within a specified time period; the investor pays a premium in order to get the optionCAPITALMoney put into a business by its shareholders; can also be used as a general term to describe liquidity/cashCAPITAL MARKETSA general term encompassing all markets for financial instruments with more than one year to maturityCAPITAL RAISINGMechanisms by which companies raise money through the financial marketsCASH/FLOW PRODUCTSThe fundamental underlying investment products upon which derivatives are basedCENTRAL SECURITIES DEPOSITORY (CSD)An agency that clears and settles securities transactionsCHARTERED FINANCIAL ANALYST (CFA)A globally recognized US qualification taken by a range of professionals in the financial services industryCHINESE WALLThe imaginary wall between different areas in the bank that may have a conflict of interest; it denotes a commitment not to disclose confidential information to one anotherCLEARINGDenotes all activities from the time a trade is made until it is finally settled; some of the activities in clearing are reporting/monitoring, risk margining, netting of trades to single positions, tax handling and failure handlingCLEARING HOUSEA separate agency or corporation working with the commodity exchange to match up buy and sell orders. The clearing house also ensures that financial statements are made independent of the exchangeCOMMISSIONFees paid to investment banks by clients for buying investments on their behalfCOMMODITIESPhysical items such as oil, gold or grain that are traded on exchanges. They are traded for spot (trade date plus two business days) or future delivery; options also exist to buy and sell commoditiesCONVERTIBLE BONDSBonds which may be converted, at the option of the holder, into shares of the issuing corporation during a specified time period and according to specified conditionsCOUPONThis part of a bearer bond denotes the amount of interest due, and on what date and where payment will be made.As bearer bonds are no longer issued in the United States and, hence, physical coupons are increasingly scarce, dealers and investors often still refer to the stated interest rate on a registered or book-entry bond as the “coupon”COUNTERPARTYThe opposite side of a financial transaction, typically another financial institutionCREDITTypically loans on which interest is chargedCREDIT CORRELATIONMeasure of how the default risk of one company moves in relation to that of anotherCREDIT DERIVATIVEA financial transaction whose payoff depends on whether or not a credit event occurs (i.e. bankruptcy, default, upgrade or downgrade); is used to offset riskCREDIT RISKThe risk that the issuer of a security, such as a bond, may default on interest and/or principal payments or become bank rupt. Rating services such as Standard & Poor’s and Moody’s evaluate the financial condition of bond issuers to assign ratings to their bonds, in general, the better the rating, the lower the bond’s coupon rateCUSTODIANA financial institution, usually a bank or trust company that holds a mutual fund’s securities and cash in safekeepingCUSTODYAdministering of securities by a financial institution, the custodian keeps a record of a client’s investments and may also collect income, process tax reclaims and provide other services, according to client instructions. The custodian physically holds the securities for safe-keepingDEBT CAPITAL MARKETS (DCM)The market on which debt instruments are traded as well as the division of an investment bank which helps clients buy and sell them. DCM is also involved in the bond product; providing credit rating advice for corporates, organizing bond finance using a pool of investors and offering derivative solutions for risk managementDEBTMoney owed to creditors/lenders or buyers of debt securitiesDELIVERYThe settlement of a futures contractDERIVATIVEAn instrument derived from securities, currencies or commodities, or an index or indicator representing any of these, the price of which will move in a direct relationship to the price of the base instrument or index. They involve the trading of rights or obligations based on the underlying product, but do not directly transfer property. They are used to hedge risk or to exchange a floating rate of return for fixed rate of return.DOW JONES INDEXUsually refers to the Dow Jones Industrial Index (DJII), an index of share prices calculated for thirty large US stocks; the US equivalent of the FTSE100EQUITY CAPITAL MARKETS (ECM)The markets on which primary equity issues (i.e. IPOs) are traded; as well as the name of a division of an investment bank which helps clients structure, buy and sell primary equityEMERGING MARKETSThe financial markets of developing countries, examples include Mexico, Malaysia, Chile, Thailand and Philippines. Emerging-market securities are the most volatile in the world, they have tremendous growth potential, but also pose significant risks – political upheaval, corruption and currency collapse, to name just a fewEQUITIESSecurities representing ownership interest possessed by shareholders in a corporation – stock as opposed to bondsEQUITYThe net worth of a company, it represents the ownership interest of the shareholders (common and preferred) of a company, for this reason, shares are often known as equitiesEXOTIC/HYBRIDThe most complex derivatives tailored and traded over-the-counter (OTC)EXCHANGEA venue for companies to publicly and centrally offer their investment options to investorsFINANCIAL RESTRUCTURINGThe reorganization of a company’s finances; often employed when the company is experiencing financial difficultyFIXED INCOMEDebt instruments of corporations, government or agencies characterized by a fixed interest rate and stated maturity date. An example of a fixed income investment is a bond, because a bond regularly pays a fixed amount of money (interest) to its holder until maturityFINANCIAL SERVICES AUTHORITY (FSA)The UK regulatory body for the financial servicesFTSE 100/250Financial Times Stock Exchange – top 100/250 companies by market valueFOREIGN EXCHANGE MARKET (FX)An over-the-counter market where buyers and sellers trade the currencies of different countries, also referred to as a forex or FX marketFRONT OFFICEIs the area or function which relates to revenue generating (trading, investing or sales) activities for a financial firmFUNDA pool of money to be invested or a fiscal and accounting entity with self-balancing set of accountsFUND MANAGERThe individual or team of individuals that manages a fund of stocks, bonds and other securities. The fund manager decides when to buy or sell the securities held in the fundFUTURES CONTRACTA legally binding agreement to buy or sell a commodity or financial instrument at a later date. They are standardized according to the quality, quantity, delivery time and location for each commodity, the only variable is priceGENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)The methodology for preparing company accounts – it varies from country to countryHEDGEHolding two contrary positions in two or more financial instruments in order to offset a loss in one by a gain in the otherHEDGE FUNDSA fund, usually used by wealthy individuals and institutions, which is allowed to use aggressive strategies (including leverage, swaps, arbitrage, and derivatives). Because of the high-risk nature of these investments, hedge funds can often give returns to investors when markets are poorINSTRUMENTAn item which may be traded, typically stocks, bonds, futures, options, and currenciesINTEREST RATEThe cost of borrowing money, expressed as a percentage, usually over a period of one year. The rate may be either fixed (unchanging) or variable (based upon an index or market condition)INVESTMENT PRODUCTSSimilar to instrument types – different types of investments offered by asset managersINITIAL PUBLIC OFFERING (IPO)This is the initial, or first, offering of common stock to the public.JUNK BONDBonds that have little or no collateral or liquidation value and are typically very risky and for this risk, they offer a high rate of return. Also known as high yield bondsLEDGERA group of accounts in which financial transactions are recordedLEVERAGEThe degree to which a company or individual is using borrowed moneyLEVERAGED FINANCEFinance which takes advantage of the ratio between a company’s debt and equity, often associated with relatively high risk and return. It is also the name of the group in an investment bank which provides advice on these opportunitiesLIQUIDITYThe ease with which a financial asset can be exchanged for a good without the holder incurring financial loss. A currency like sterling is liquid; a life-insurance policy is notMANDATEDWhen the client company agrees to use the bank for a specific service or transactionMARKET RISKThe chance that a security’s value will decline. With debt securities, market risk is closely tied to interest rate risk – as interest rates rise, prices decline and vice versaMARKET CAPITALIZATIONThe value of a company’s stock, which gives a picture of the company’s size. It is calculated by multiplying the price of shares by the number of shares outstanding (in the hands of the public)MARKET MAKERA firm or individual who sets a price at which they’re willing to sell or buy stock, providing a stable price against which to judge any rise or fallMATUREWhen an investment based on a fixed term, such as a bond, closes and repayment of principal is madeMERGERS & ACQUISITIONS (M&A)Negotiating the buying and selling of companies or parts of companies. This also describes a division of banks that, among other things, consults companies on mergers and takeoversMIDDLE OFFICEIs the area or function which relates to risk management, they measure, monitor and occasionally proactively manage the firm’s exposureORGANIZATION OF PETROLEUM EXPORTING COUNTRIES (OPEC)Controls the price and production of oil globallyOPTIONSLike a futures contract, however, the purchaser pays a premium to gain the option (rather than the obligation) to complete the contract; the contract can be the right to buy (a call option) or to sell (a put option) a set number of shares at a fixed priceORIGINATIONGenerating business by pitching an idea to a clientOVER THE COUNTER (OTC)The buying and selling of securities that are not listed on an organized exchange; trading is handled by dealers through negotiation – the majority of securities are traded over the counterPLAIN/VANILLAThe most basic, standardized derivatives, normally exchange traded, now commonly applied to any standard banking productPORTFOLIOA collection of investments (can be shares, bonds, convertibles, cash, convertibles, derivatives, property, art, etc) belonging to an individual or institutional investor. The purpose of a portfolio is to reduce risk by diversifying investments (i.e. holding many investments and spreading out the risk)POSITIONA trading view expressed by buying or selling, it can refer to the amount of a currency either owned or owed by an investor. If the position is open it is exposed to market risk, if a position is closed the profit/loss has been realizedPRIVATE CLIENTSPeople with significant personal assets (cash, company stock, art, shares) requiring professional investment management; also called high net worth individuals (i.e. very rich)PROJECT FINANCEA form of loan extension in which the interest payments and repayments in respect of the funds are made largely or exclusively from the earnings of the investment project concernedPROPRIETARY TRADINGWhen a bank trades in the financial markets with its own capital to make more money for the businessPUT OPTIONThe right to sell shares at an agreed price on a future date (see call option)RIGHTS ISSUEThe issue of equity to current shareholders in order to raise capital for the companyRISK MANAGEMENTThe measurement of the possibility of losing or not gaining value and structuring risks at an optimal risk/reward ratioSARBANES OXLEY (SOX)The Sarbanes Oxley Act (July 2002) introduced a series of corporate reforms in an attempt to restore investor confidence and pre-empt future corporate scandalsSECURITIESCollective noun for bonds and sharesSECURITIES EXCHANGE COMMISSION (SEC)US regulatory body for the financial services industrySECURITIZATIONA financial technique that pools assets together and, in effect, turns them into a tradable securitySELL SIDEUsed to describe brokers who sell securities to customers and the research departments of brokerage firms that make recommendations to their clientele. See also Buy SideSETTLEMENTTrial stage of a transaction after clearing. Involves making payment and transferring ownership/documentationSHARESA certificate issued by a company for general purchase entitling the holder to ownership rights including dividends from any profits the company may makeSPREADThe difference between the price at which a financial institution will buy a security and the price at which it will sellSTOCKBROKERThose who advise people who want to buy/sell securitiesSTOCKAnother word for shares and equitiesSTRESS TESTA test used by risk managers to see what the impact would be on particular stocks, companies or markets in extreme hypothetical scenariosSTRUCTURED PRODUCTSA tailor-made investment solution combining bonds with options on equities and/or other asset classes, created using complex mathematical modeling techniquesSWAPThe exchange of one asset or liability for a similar asset or liability for the purpose of lengthening or shortening maturities, or raising or lowering coupon rates to maximize revenue or minimize financing costsTOMBSTONEUsually Lucite (plastic) blocks detailing a closed transaction that bankers collect on their desks to show how successful they have beenTRADERPerson who buys and sells instruments in the financial markets, also known as the sell sideTRADING A ‘BOOK’An individual trader’s total positions in the market bound by specific risk limitsTRADING FLOORWhere all trading desks sit within an investment bankUNDERWRITINGThe guarantee (which is offered by a bank in return for a fee) to buy or to find the buyers for an entire issue of stocks and sharesVALUE AT RISK (VAR)A measure of the potential change in the portfolio value for a given confidence interval and specified time-horizon。
《经济学人》常用词汇
《经济学人》常用词汇总结1、Absolute advantage 绝对优势2、Adverse choice 逆向选择3、Alternative cost 选择成本4、Arc elasticity of demand 需求的弧弹性5、Asymmetric information 非对称的信息6、Average cost 平均成本7、Average fixed cost 平均固定成本8、Average product 平均产品9、Average variable cost 平均可变成本10、Beta 投资的β11、Bond yield 债券收益12、Break-even chart 收支平衡图13、Budget line 预算线14、Bunding 捆绑销售15、Capital 资本16、Capital gain 资本收益17、Capitalism 资本主义18、Cardinal utility 基数效应19、Cartel 卡特尔20、Cobb-Douglas production function 科布-道格拉斯生产函数21、Collision 勾结22、Comparative advantage 比较优势23、Complements 互补品24、Constant-cost industry 成本不变行业25、Constant returns to scale 规模收益不变26、Consumer surplus 消费者剩余27、Contestable market 可竞争市场28、Contract curve 契约曲线29、Corner solution 角点解30、Cross elasticity of demand 需求的交叉弹性31、Deadweight loss of monopoly垄断的无谓损失32、Deadweight loss of monopsony 买方垄断的无谓损失33、Decreasing-cost industry 成本递减行业34、Decreasing return to scale 规模收益递减35、Demand curve 需求曲线36、Demand curve of loanable funds 可贷资金的需求曲线37、Discount rate 贴现率38、Diversifiable risk 可分散风险39、Dominant firm 主导厂商40、Dominant strategy 优势策略41、Duopoly 双头垄断42、Economic efficiency 经济效率43、Economic profit 经济利润44、Economic region of production 生产的经济区域45、Economic resource 经济资源46、Economies of scope 围经济47、Efficient markets hypothesis 有效市场假说48、Endowment position 财富状况49、Engel curve 恩格尔曲线50、Equilibrium 均衡51、Excess capacity 过剩生产能力52、Expansion path 扩路径53、Expected monetary vale期望货币价值54、Expected profit 预期利润55、Expected value of perfect information56、Explicit costs 显成本57、External diseconomy 外部不经济58、External economy 外部经济59、First-mover advantages 先动优势60、Fixed cost 固定成本61、Fixed input 不变投入品62、General equilibrium analysis 一般均衡分析63、Giffen’s paradox 吉芬反论64、Implicit cost 隐成本65、Income-compensated demand curve 收入补偿的需求曲线66、Income-consumption curve 收入-消费曲线67、Income effect 收入效应68、Income elasticity of demand 需求的收入弹性69、Increasing-cost industry成本递增的产业70、Increasing returns to scale 规模收益递增71、Indifference curve 无差异曲线72、Inferior good 劣质商品73、Innovation 创新74、Input 投入品75、Interest rate 利率76、Intermediate good 中间品77、Internal rate of return 部收益率78、Investment 投资79、Investment demand curve 投资需求曲线80、Isocost curve 等成本曲线81、Isoprofit curve 等利润曲线82、Isoquant 等产量曲线83、Isorevenue line 等收益线84、Kinked demand curve 折弯的需求曲线85、Labor 劳动86、Land 土地87、Law of diminishing marginal returns 边际收益递减率88、Lerner index 勒纳指数89、Learning curve 学习曲线90、Limit pricing 限制性定价91、Long run 长期92、Marginal cost 边际成本93、Marginal cost pricing 边际成本定价94、Marginal expenditure curve 边际支出曲线95、Marginal product 边际产品96、Marginal rate of product transformation 边际产品转换率97、Marginal rate of substitution 边际替代率98、Marginal revenue 边际收益99、Marginal revenue product 边际收益产品100、Marginal utility 边际效用101、Market 市场102、Market demand curve 市场需求曲线103、Market period 市场周期104、.Market structure 市场结构105、Market supply schedule 市场供给表106、Markup pricing加成定价107、Maximin strategy 最大最小策略108、Microeconomics 微观经济学109、Minmum efficient size of plant 工厂的最小有效规模110、Model模型111、Money income 货币收入112、Monopolistic competition 垄断竞争113、Monopoly 垄断114、Monopsony 买方垄断115、Moral hazard 道德风险116、Multinational firm 跨国公司117、Multiplant monopoly 多厂垄断118、Multiproduct firm 多产品厂商119、Mutual fund 共同基金120、Nash equilibrium 纳什均衡121、Natural monopoly 自然垄断122、Net-Present-Value Rule 净现值规则123、Nondiversifiable risk 不可分散的风险124、Nonprice competition 非价格竞争125、Normal goods 正常商品126、Oligopoly寡头垄断127、Oligopsony 买方寡头垄断128、Opportunity cost 机会成本129、Optimal input combination 最优投入品组合130、Ordinal utility 序数效用131、Pareto criterion 帕累托标准132、Partial equilibrium analysis 局部均衡分析133、Pecuniary benefits 货币收益134、Perfect Competition 完全竞争135、Perpetuity 不可兑换的公司债券136、Predatory pricing 掠夺性定价137、Present value 现值138、Price ceiling 最高限价139、Pric-consumption curve 价格-消费曲线140、Price discrimination 价格歧视141、Price elastic 富有价格弹性142、Price elasticity of demand 需求的价格弹性143、Price elasticity of supply 供给的价格弹性144、Price floor 最低限价145、Price inelastic缺乏价格弹性146、Price leader 价格领导者147、Price system 价格系统148、Principal-agent problem 委托-代理问题149、Prisoner`s dilemma 囚犯困境150、Private cost 私人成本151、Probability 概率152、Producer surplus 生产者剩余153、Production possibilities curve 生产可能性曲线154、Production function 生产函数156、Profit 利润157、Public good 公共物品158、Quasi-rent 准租金159、Quota 配额160、Ray 射线161、Reaction curve 反应曲线162、Real benefits 真实收益163、Rent 租金164、Ridge lines 脊线165、Risk 风险166、Risk averter 风险厌恶者167、Risk lover 风险爱好者168、Risk neutral 风险中性169、Saving 储蓄170、Second-degree Price discrimination 二级价格歧视171、Selling expenses 销售费用172、Short run 短期173、Social cost 社会成本174、Static efficiency 静态效率175、Strategic move 策略举措176、Substitutes 替代品177、Substitution effect 替代效应178、Supply curve 供给曲线179、Supply curve of loanable funds 可贷资金的供给曲线180、Target return 目标收益181、Tariff 关税182、Technological changes 技术进步183、Technology 技术184、Third－degree price discrimination 三级价格歧视185、Tit for tat 针锋相对186、Total cost 总成本187、Total cost function 总成本函数188、Total cost 总固定成本189、Total revenue 总收益190、Total surplus 总剩余191、Total utility 总效用192、Total variable cost 总可变成本193、Trading possibilities curve 贸易可能性曲线194、Transaction cost 交易成本门195、Transferable emissions permits 可转让的排放许可证196、Two-part tariff 双重收费197、Tying 搭售198、Unitary elasticity 单位弹性199、Utility 效用200、Utility of possibility curve 效用可能性曲线201、Value of marginal product 边际产品价值202、Variable cost 可变成本203、Variable input 可变投入品204、von Neumann-Morgenstern utility function •纽曼--摩根斯坦效用函数204、Winners curse 赢者的诅咒205、Ability－to－pay principle（of taxation）（税收的）支付能力原则206、Absolute advantage(in international trade）(国际贸易中的）绝对优势207、Accelerator principle 加速原理208、Actual,cycical and structual budget 实际预算、周期预算和结构预算209、Adaptive expectations 适用性预期210、Adjustable peg 可调整钉住211、Administered（or inflexible）prices 管理（或非浮动）价格212、Adverse selection 逆向选择213、Aggregate demand 总需求214、Aggregate demand（AD）curve 总需求曲线215、Aggregate supply 总供给216、Aggregate suppy(AS) curve 总供给曲线217、Allocative efficiency 配置效率218、Antitrust legislation 反托拉斯法219、Appreciation（of a currency）（通货）升值220、Appropriable 可分拨221、Arbitrage 套利222、Asset 资产223、Asset demand for money 货币的资产需求224、Automatic（or built－in）stabilizers 自动（或在）稳定器225、Average cost 平均成本226、verage cost curve，long－run（ LRAC或 LAC）长期平均成本曲线227、Average cost curve， short－run（ SRAC或 SAC）短期平均成本曲线228、Average fixed cost 平均固定成本229、Average product 平均产品230、Average propensity to consume 平均消费倾向231、Average revenue 平均收益232、Average variable cost 平均可变成本233、Balance of international payment 国际收支平衡表234、Balance of trade 贸易余额235、Balance of current account经常项目余额236、Balance sheet 资产负债表237、Balanced budget 平衡预算238、Bank，commercial 商业银行239、Bank money 银行货币240、bank reserves 银行准备会241、进入壁垒Barriers to entry242、Barter 易货贸易243、Benefit principle（of taxation）（税收的）受益原则244、Bond 债券245、Break－even point（in macroeconomics）（宏观经济学中的）收支相抵点246、Bretton woods System 布雷顿森林体系247、Broad money 广义货币248、Budget 预算249、Budget,balanced 平衡预算250、Budget constraint 预算约束251、Budget deficit 预算赤字252、Budget,government 政府预算253、Budget line 预算线254、Budget surplus 预算盈余255、Built-in stabilizers 在稳定器见自动稳定器（automatic stabilizers）256、Business cycles 商业周期257、C＋I,C＋I＋G,or C＋I＋G＋X schedule C＋I,C＋I＋G或 C＋I＋G＋X表258、Capital(capital goods,capital equipment）资本（资本商品，资本设备）259、Capital consumption allowance 资本消耗补偿见折旧（depreciation）260、Capital deepening 资本深化261、Capital gains 资本利得262、Capital markets 资本市场263、Capital－output ratio 资本-产出比率264、Capital widening 资本广化265、Capitalism 资本主义266、Cardinal utility 基数效用267、Cartel 卡特尔268、Central bank 中央银行269、Change in demand vs．change in quantity demanded 需求变化与需求量的变化270、Change in supply vs．supply in quantity 供给变动与供给且的变动271、Checking account（or bank money）支票（或银行货币）272、Chicago School of Economics （经济学）芝加哥学派273、Classical approach 古典理论274、Classical economics 古典经济学275、Classical theories（in macroeconomics）（宏观经济学中的）古典理论276、Clearing market 市场出清277、Closed economy 封闭经济见开放经济（open economy）278、Coase theorem 科斯定理279、Collective bargaining 集体谈判280、Collusion 勾结281、Collusive oligopoly 寡头勾结垄断282、Command economy 指令经济283、Commodity money 商品货币284、Common stock 普通股票285、Communism 共产主义286、Comparative advantage（in international trade）（国际贸易中的）比较优势287、Compensating differentials 补偿性（工资）差异288、Competition，imperfect 不完全竞争289、Competion，perfect 完全竞争290、Competitve equilibrium 竞争均衡291、Competitive market 竞争性市场292、Complements 互补品293、Compound interest 复利294、Concentration ratio 集中度295、Conglomerate 混合联合企业296、Conglomerate merger 混合兼并见兼并（merger）297、Constant returns to scale 规模报酬不变见规模报酬（returns to scale）298、Consumer price index 消费者价格指数（CPI）299、Consumer surplus 消费者剩余300、Consumption 消费301、Consumption function 消费函数302、Consumption-possibility line消费可能线见预算线（budget line）303、Cooperative equilibrium 合作性均衡304、Corporate income tax 公司所得税305、Corporation 公司306、Correlation 相关307、Cost，average 平均成本308、Cost，average fixed 平均固定成本309、Cost，average variable 平均可变成本310、Cost，fixed 固定成本311、Cost，marginal 边际成本312、Cost，minimum 最低成本313、Cost-push inflation 成本推动的通货膨胀314、Cost，total 总成本315、Cost，variable 可变成本316、Crawling（or sliding）peg 爬行（滑动）钉住317、Credit 信贷318、Cross elasticity of demand 需求的交叉弹性319、Crowding-out hypothesis 挤出（效应）假说320、Currency 通货321、Currency appreciation（or depreciation ）通货升值（或贬值）322、Current account 经常见贸易余额（balance of trade）323、Cyclical budget 周期预算324、Cyclical unemployment 周期性失业325、Deadweight loss 净损失326、Debit 借方327、Decreasing returns to scale 规模报酬递减328、Deficit spending 赤字性支出329、Deflating（of economic data）（经济数据）紧缩330、Deflation 通货紧缩331、Demand curve（or demand schedule）需求曲线（或需求表）332、Demand for money 货币需求333、Demand-pull inflation 需求拉动型通货膨胀334、Demography 人口学335、Depreciation（of an asset）（资产）折旧336、Depreciation（of a currency）（通货）贬值337、Depression 萧条338、Derived demand 派生需求339、Devaluation 降值340、Developing country 发展中国家见欠发达国家(less developed country)341、Differentiated products 差异产品342、Diminishing marginal utility，law of 边际效用递减规律343、Diminishing returns，law of 收益递减规律344、Direct taxes 直接税345、Discount rate 贴现率346、Discounting（of future income）（未来收人）折现347、Discrimination 歧视348、Disequilibrium 非均衡349、Disinflation 反通货膨胀350、Disposable income 可支配收入（DI）351、Disposable personal income 个人可支配收入352、Dissaving 负储蓄354、Division of labor 劳动分工355、Dominant equilibrium 占优均衡见占优战略（dominant strategy）356、Dominant strategy 占优战略357、Downward－sloping demand，law of 需求向下倾斜规律358、Duopoly 双头垄断359、Duopoly price war 双头垄断价格战360、Easy－money policy 宽松的货币政策361、Econometrics 经济计量学362、Economic goods 经济物品363、Economic growth 经济增长364、Economic reguation 经济管制365、Economic rent 经济租金见"经济租金"（rent， economic）366、Economic surplus 经济剩余367、Economics of information 信息经济学368、Economies of scale 规模经济369、Economies of scope 广度经济370、Effective tax rate 有效税率371、Efficiency 效率372、Efficiency－wage theory 有效工资理论373、Efficient market 有效市场374、Elasticity 弹性375、Employed 就业者参见"失业"（unemployment）376、Equal－cost line 等成本线377、Equal－product curve（or isoquant）等产量线378、Equilibrium 均衡379、Equilibrum（for a business firm）厂商均衡380、Equilibrium（for the individual consumer）单个消费者的均衡381、Equilibrium，competitive 竞争均衡见竟争均衡（competitive equilibrium）382、Equilibrium，general 一般均衡见一般均衡分析（general－equilibrium analysis）383、Equilibrium，macroeconomic 宏观经济均衡384、Equimarginal principle 等边际法则385、Exchange rate 汇率见外汇汇率（foreign exchange rate）386、Exchange-rate system 汇率制度387、Excise tax vs．sales tax 消费税和销售税388、Exclusion principle 排他原则389、Exogenous vs．induced variables 外生变量和引致变量390、Expectations 预期391、Expenditure multiplier 支出乘数参见乘数（multiplier）392、Exports 出口393、External diseconomies 外部不经济394、External economies 外部经济395、External variables 外部变量同外生变量（exogenous variables）396、Externalities 外部性397、Factors of production 生产要素398、Fallacy of composition 合成谬误399、Federal Reserve System 联邦储备系统美国的中央银行（centra bank）400、Fiat money 法定货币没有在价值（intrinsic value）401、Final goods 最终产品402、Financial economics 金融经济学403、Financial intermediary 金融中介404、Firm（business firm）厂商405、Fiscal-monetary mix 财政-货币政策组合406、Fiscal policy 财政政策407、Fiscal cost 固定成本见固定成本（cost，fixed）408、Fixed exchange rate 固定汇率见外汇汇率（foreign exchangs rate）409、Flexible exchange rates 弹性汇率制410、Floating exchange rates 浮动汇率制见弹性汇率制（flexibleexchange rates）411、Flow vs. stock 流量与存量412、Foreign exchange 外汇413、Foreign exchange market 外汇市场414、Foreign exchange rate 外汇汇率415、Fourfirm concentration rate 四企业集中度见集中度（concentration ratio）416、Fractional-reserve banking 部分准备金417、Free goods 免费品不属于经济品（economic goods）418、Free trade 自由贸易419、Frictional unemployment 磨擦性失业420、Full employment 充分就业421、Gains from trade 贸易利得422、Galloping inflation 急剧的通货膨胀见通货膨胀（inflation）423、Game theory 博弈论424、General-equilibrium analysis 一般均衡分析425、GDP deflator GDP紧缩指数426、GDP gap GDP缺口427、GNP 国民生产总值见国民生产总值（gloss national product）428、Gold standard 全本位制429、Government debt 政府债务430、Goverment expenditure multiplier 政府支出乘数431、Graduated income tax 累进所得税见个人所得税（income tax，personal）432、Gresham`s Law 格雷欣法则433、Gross domestic product，nominal（or nominal GDP）名义国生产总值(或名义GDP）434、Gross domestic product，real 实际国生产总值（实际GDP）435、Gross national product，nominal 名义国民生产总值（或名义GNP）436、Gross national product，real 实际国民生产总值（实际GNP）437、Growth accounting 增长核算438、Hedging 套期保值439、High-powered money 高能货币见基础货币（monetary base）440、Horizontal equity vs．vertical equity 横向平等与纵向平等441、Horizontal integration 横向整合见纵向整合与横向整合（integration， vertical vs．horizontal）442、Horizontal merger 横向兼井见兼并（merger）443、Human capital 人力资本444、Hyperinflation 恶性通货膨胀见通货膨胀（inflation）445、Imperfect competition 不完全竞争见不完全竞争（competition，imperfect）446、Imperfect competitor 不完全竞争者447、Implicit－cost elements 隐性成本要素显性货币成本（explicit money costs）448、Imports 进口见出口（exports）449、Inappropriability 不可分拨性见不可分拨（inappropriable）450、Inappropriable 不可分拨451、Incidence（or tax incidence）归宿，或税赋归宿452、Income 收入453、Income effect（of a price change）（价格变动的）收入效应454、Income elasticity of demand 需求的收入弹性455、Income statement 收益表456、Income tax，negative 负所得税见负所得税（egative income tax）457、Income tax，personal 个人所得税458、Income velocity of money 货币的收入周转率459、Incomes policy 收入政策460、Increasing returns to scale 递增的规模报酬见规模报酬（returns to scale）461、Independent goods 独立品462、Indexing（or indexation）指数化463、Indifference curve 无差异曲线464、indifference map 无差异曲线图465、Indirect taxes 间接税见直接税（direct taxes）466、Induced variables 引致变量467、Industry 产业468、Inertial rate of inflation 惯性通货膨胀率469、Infant industry 幼稚产业470、Inferior goods 低档品或劣等品471、Inflation（or inflation rate）通货膨胀（或通货膨胀率）472、Inflation targeting 通货膨胀目标473、Innovation 创新474、Inputs 投入475、Insurance 保险476、Integration，vertical vs．horizontal 纵向整合和横向整合477、Intellectual property rights 知识产权478、Interest 利息479、Interest rate 利率480、Intermediate goods 中间产品481、International monetary system（also International financial system）国际货币制度（国际金融体系）482、Intervention 干预483、Intrinsic value（of money）（货币的）在价值484、Invention 发明485、Investment 投资487、Invisible hand 看不见的手488、Involuntarily unemployed 非自愿失业见失业（unemployment）489、Iron law of wages 工资铁律490、Isoquant 等产量见等产量曲线（equal product curve）491、Keynesian economics 凯恩斯经济学492、Keynesian school 凯恩斯学派见凯恩斯主义经济学(Keynesian economics)493、Labor force 劳动力494、Labor－force participstion rate 劳动力参与率495、Labor productivity 劳动生产率见生产率（productivity）496、Labor supply 劳动供给497、Labor theory of value 劳动价值论498、Laissez－faire（"leave us along"）自由放任（“别来管我”）499、Land 土地500、Least－cost rule（of production）（生产的）最低成本法则501、Legal tender 法定清偿物502、Less developed country（LDC）欠发达国家503、Liabilities 负债504、Libertarianism 自由放任主义505、Limited Liability 有限责任506、Long run 长期507、Long－run aggregate supply schedule 长期总供给表508、Lorenz curve 洛伦茨曲线509、Lowest sustainable rate of unemployment（or LSUR）最低可持续失业率510、Lump－of－labor fallacy 劳动合成谬误511、M1、 M2参见货币供应(money supply）。
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a r X i v :0803.3884v 2 [q -f i n .S T ] 5 J a n 2009Correlations in commodity marketsPawełSieczka,Janusz A.Hołyst ∗Faculty of Physics,Center of Excellence for Complex Systems Research,WarsawUniversity of Technology,Koszykowa 75,PL-00-662Warsaw,Poland1IntroductionCommodity markets are in their origins the prime and the most basic mar-kets rooted in times when people were exchanging goods even before money was invented.Today’s commodity markets are mature and highly developed institutions,playing a very important role in modern economy.They are not only places of goods exchange,but also a theater of speculative activity.Nowadays,when we are used to highly sophisticated financial instruments,including credit derivatives,contracts for other contracts for some artificial underlying instruments,etc.,commodities seem to be rather old-fashioned.Yet,they remain important,not only due to their being primary raw materialsfor other stages of economic activity,but also because they can be a reliable measure of value,especially in times of crisis or other historical turbulence. Commodities,traded at free markets,follow the rules of the efficient market hypothesis[1],the same as stocks,currencies,and others.Changes of their prices are,therefore,random and in major part unpredictable.A model which reflects this property is the geometric Brownian motion of prices,the core of the Black-Scholes theory[2].However,real prices offinancial assets deviate from the Brownian behavior,what has been clearly shown by investigations using different tools of econophysics.The autocorrelation function of the ab-solute returns decays as a power law with an exponent−0.3[3].The returns are weakly correlated[2,4]and show persistent behavior of their sign[5,6].All those observations for stock markets should be also in general valid for com-modity markets,despite observed differences such as a spatial arbitrage effect [7],or different multifractal properties[8].Matia et al.[9]showed also that the prices of commodity futures obey a different scaling law from the prices of spots.The former are more similar to stocks in this aspect.It is well known that stocks of differentfirms are mutually correlated in a way that cannot be totally explained by the random matrix theory[10,11,12,13]. The correlation coefficients of stock price returns can be used to obtain a minimal spanning tree and associated with it a hierarchical tree of the sub-dominant ultrametric space,which was done by Mantegna[14].He detected grouping offirms of a similar profile in the minimal spanning tree.This effect can be reproduced neither by the random model of uncorrelated time series, nor by the one-factor model[15].In this paper we analyzed cross-correlations in commodity markets.We cre-ated the correlation matrix and corresponding correlation-based ing the correlation metric we created a minimal spanning tree of investigated con-tracts,looking for sector clusterization.We also examined dynamic properties of correlations,finding out that commodity contracts were getting more and more correlated,and mean distances in a corresponding minimal spanning tree were smaller and smaller in the course of time.However,individual contracts contributed to the increase of mean correlation differently.Their idiosyncratic contribution to the correlations was characterized by an introduced quantity (strength)and its evolution.The motivation for our research was a growing interest of investors and mass media in commodity markets.Skyrocketing oil prices were expected to reach the level of200USD per barrel during one week,and went down under100 USD during another.We wanted to investigate the behavior of the commodity markets with the tools of complex system physics.We found the mirroring of the specific situation of last years in a time dependent picture of commodity prices correlations.2The dataWe investigated35future contracts for commodities traded at different mar-kets.Futures rather than spots were examined as the data were more accessi-ble.We used data from:Chicago Board of Trade(CBOT),Chicago Mercantile Exchange(CME),IntercontinentalExchange(ICE),Kansas City Board of Trade(KCBT),London Metal Exchange(LME),Minneapolis Grain Exchange (MGEX),New York Board of Trade(NYBOT),New York Mercantile Ex-change(NYMEX),Winnipeg Commodity Exchange(WCE).For today’s in-vestors in the globalized world market a contract traded in London or in Chicago is only anotherfinancial instrument that they can buy or sell no matter where.Table1presents the list of investigated contracts,their symbols,and symbols of corresponding markets.All the contracts were quoted in USD.We took under consideration day closing prices.3CorrelationsLet P i(t)be a day closing price of a contract i at time t.From logarithmic returns r i=log(P i(t+1))−log(P i(t))we calculated a Pearson correlation coefficient:C ij=r i r j − r i r j( r2i − r i 2)( r2j − r j 2).(1)The correlation coefficients C ij were computed for all pairs of futures from Tab.1over a span between1998.09.01and2007.12.14.The average ... was calculated for the whole period,but only for days when all the contracts were traded.There were T=2190overlapping records in the mentioned period. One could expect that due to long,compared to a number of assets,time series,the correlation matrix would have a low level of noise.According to the random matrix theory(RMT)[10],the eigenvalues spectra of a correlation matrix for N uncorrelated Gaussian time series of the length T is bounded by a maximumλmax and a minimumλmin value,which is equal to:λmax min =1+11symbol name marketAA MW.F wheat spring MGEXAL NG.F natural gas NYMEXBO.F soybean oil CBOT F nickel LMEC.F corn CBOTPA.F palladium NYMEXCL.F crude oil NYMEXF copper LMERR.F rough rice CBOTFC.F feeder cattle CMES.F soybean CBOTHG.F copper NYMEXSC.F brent oil ICEKC.F coffee NYBOTSM.F soybean meal CBOTLB.F lumber CME F tin LMELC.F live cattle CMEF lead LME F zinc LMELH.F lean hogs CME2(1−C ij).(3)0 0.5 1 1.5 2 2.53 3.54 4.5 5 5.5 6λieigenvaluesFig.1.Eigenvalues of the correlation matrix.The gray rectangle corresponds to the area of a random matrix.-0.3-0.2-0.10.10.2 0.3-0.050 0.050.1 0.15 0.2 0.25 0.3s e c o n d e i g e n v e c t o r c o m p o n e n tfirst eigenvector componentAA_F AL_F BO.F C.FCC.FCL.F CO_F CT.FFC.FGC.FHG.FHO.FKC.F KW.F LB.F LC.F LE_FLH.FMW.FNG.FNI_F OJ.FPA.F PB.FPL.FRR.FRS.FS.FSB.F SC.F SI.F SM.FTI_FW.FZI_FFig.2.Two eigenvectors corresponding to the two largest eigenvalues of the corre-lation matrix.Each point can be identified as a contribution of a certain contract to an eigenvector.The function d ij is a well-defined metric measure.It measures a distance be-tween two time series,that is in our case between returns of two commodity futures.The closer they lie in the sense of the metric,the more correlated they are.The distance matrix d ij determines a weighted fully connected graph of cor-relation distances.Being symmetric,it has N (N −1)independent elements,so does the correlation matrix C ij .Fig.3.(Color online)MST composed of35future contracts from tab.1with corre-sponding weights.For a given node its radius is proportional to its strength.Color denotes the branch:yellow-metals,red-fuels,green-plants,brown-animals.For a weighted network associated with d ij we can create a minimal spanning tree(MST).A spanning tree of a weighted graph G is a tree that contains all vertices of G and links of the tree are a subset of the links of G.A minimal spanning tree of a graph G has the lowest sum of weights among all spanning trees of G.A MST of the distance matrix d ij has N−1links.It pictures only the most important interactions,and hence is a useful tool for correlation visualization.We calculated node strength defined as:S i= j=i1of links attached to a given node,or betweennes centrality,which is defined as[18]:B(i)= (j,l)σjl(i)F5,GC.F4.The strongest are:S.F27.7,COsymbol deg.strength betw.AA MW.F127.130 AL NG.F124.910 BO.F226.790.06F126.080 C.F226.730.16PA.F125.540 CL.F327.500.17F527.620.37RR.F124.840 FC.F224.410.06S.F627.700.59 HG.F226.540.37SC.F127.400 KC.F224.870.06SM.F226.850.21 LB.F124.260F225.780.06 LC.F124.710F126.160F227.180.06 LH.F224.680.17Fig.4.(Color online)MST with weights and none strengths for the period1989.01.03 -2001.05.10.Fig.5.(Color online)MST with weights and none strengths for the period1989.01.03 -2001.05.10Fig.6.(Color online)MST with weights and none strengths for the period2004.11.08 -2007.12.14We investigated the evolution of the mean correlation,¯C T(t)=2252627282930s t r e n g t h w i t h e r r o r b a r sFig.7.(Color online)Change in strength of the strongest contracts with errorbars included.The most noticeable is the increase of gold strength.26 26.5 27 27.5 2828.520032004200520062007s t r e n g t hplantsS.F KW.F C.F25 25.526 26.5 27 27.5 28 28.5 2920032004200520062007metals GC.FCO_FZI_F 24.525 25.5 26 26.5 27 27.5 28 28.520032004200520062007s t r e n g t ht fuelsSC.F NG.F HO.F 24.224.4 24.6 24.8 2520032004200520062007t animalsLC.F LH.F PB.FFig.8.(Color online)Evolution of the strength parameter of selected contracts for a time window ∆T =1000.where C Tij (t )is a correlation coefficient for a time window [t −∆T,t ].A con-stant upgoing trend is visible (fig.10).Its interpretation is quite obvious -the mean correlation increased significantly in the investigated period.We also calculated the variance of the correlation coefficients:σ2C =20.10.20.30.40.5 0.60.7b e t w e e n n e s sFig.9.(Color online)Betweenness of future contracts for three subperiods.Con-tracts that had betweenness 0during all three subperiods are skipped in this picture.0.070.08 0.09 0.1 0.11 0.12 0.13 0.1420032004200520062007m e a n c o r r e l a t i o nt0.0210.022 0.023 0.024 0.025 0.026 0.027 0.028 0.029 0.0320032004200520062007v a r i a n c etFig.10.Mean correlation (¯CT (t ))and variance σC of 35contracts for ∆T =1000and period 1998.09.01-2007.12.14.Because it requires 1000records to calculate ¯CT (t )for a given window ∆T =1000,the figure begins with the end of the year 2002.On the horizontal axis t =2003,2004,...means the first (trading)day of a year.During financial crashes a growth of the mean correlation can be observed [22].We can see in the investigated period a constant growth of ¯C(t ).We calculated ¯C T (t )and σ2Cfor a longer period,i.e.1990.04.03-2007.12.14with a smaller set of contracts (fig.11).We used only 27contracts that had been traded through the whole period.The mean correlation was fluctuating between 0.06and 0.07until the year 2003,next,it started a constant growth to the value 0.14at the end of 2007.0.050.06 0.07 0.08 0.09 0.1 0.11 0.12 0.13 0.14 0.151995199719992001200320052007m e a n c o r r e l a t i o nt0.0160.018 0.02 0.022 0.024 0.026 0.028 0.03 0.0321995199719992001200320052007v a r i a n c etFig.11.Mean correlation (¯C T (t ))and variance σ2Cof 27contracts for ∆T =1000and longer period 1990.04.03-2007.12.14.22.5 33.5 44.5 55.5 61995199719992001200320052007LtL 27L 35Fig.12.(Color online)The mean occupation layer L 35for all 35contracts,and L 27for a reduced sample of contracts in a longer period.The data of L 35for better visibility were shifted upwards by an additive constant equal to 1.The values were computed for the time window ∆T =1000.Let us define the mean occupation layer [22]:L =10.120.13 0.14 0.15 0.16 0.17 0.18 0.19 0.220032004200520062007f i r s t e ig e n v a l u et Fig.13.Evolution of the largest eigenvalue normalized by the sum of all eigenvalues for a moving time window ∆T =1000.ear function of different macro-economic factors.Such factors can be identified with eigenvectors of a correlation matrix.The largest eigenvector corresponds to an economic factor which has the most significant impact on the market.The level of this impact can be measured by a corresponding eigenvalue nor-malized by the sum of all eigenvalues.If we take a portfolio of contracts which is a mixture of eigenvectors with equal weights,this value would present the fraction of portfolio variance explained by the first factor.The evolution of normalized largest eigenvalue is presented in fig.13.The observed increase means that the influence of the first factor became even stronger with time,which caused the observed increase of the mean correlation (fig.10).We plotted evolution of the first eigenvector components (fig.14)which can be treated as an influence of the first factor on a given commodity.It strongly decreased for plant products,increased for metals and fuels,and remained almost unchanged for animals.While growing influence of the first factor re-sulted in the increase of mean correlation,changes of eigenvector components drove the evolution of strength parameters.It seems to be clear for metals,fu-els and animals.However,for the case of plants we observed a decrease of first eigenvector components.At the same time the largest eigenvalue increased.The two opposite tendencies resulted in slight increase of strengths of plants.5Discussion and conclusionsWe analyzed the correlation matrix of commodity prices.Due to long time series the level of noise in correlation matrix was low.Two eigenvectors of C ij ,corresponding to the largest eigenvalues were plotted.The picture (2)visualizes a clustering structure of ing a correlation metric d ij we created MST of investigated contracts.MST provides clear evidence for the existence of strong correlations of commodities within a given sector and for intersector correlations depending on the level of similarity.0.150.2 0.25 0.3 0.35 0.4200320042005200620071-s t e i g e n v e c t o r c o m p o n e n t splantsKW.F S.F C.F0 0.050.1 0.15 0.2 0.25 0.320032004200520062007metalsGC.F CO_F ZI_F0.020.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18200320042005200620071-s t e i g e n v e c t o r c o m p o n e n t st fuelsSC.F NG.F HO.F-0.02-0.01 0 0.01 0.02 0.03 0.04 0.05 0.0620032004200520062007tanimalsLC.F LH.F PB.FFig.14.(Color online)Contribution of selected contracts to the eigenvector corre-sponding to the largest eigenvalue which is normalized to unity (∆T =1000).The above picture of correlations could be expected from similar studies of stock markets and currencies.More interesting are investigated dynamical properties of correlations which,as we observed,changed in time.In the stud-ied period i.e.1998.09.01-2007.12.14the mean correlation (6)increased from about 0.08to about 0.13.The reason for this correlation increase can be as modity markets attracted a lot of investors’attention in the last years.A growing demand for energy,metals,and food from fast developing Chinese and Indian economy created a boom for commodities and an impulse for intensive speculations.This market boom makes prices follow one direc-tion,which resulted in increase of correlation between the traded assets.A similar effect was observed during market crashes [19].The effect of the boom for commodities is responsible for the observed growth of mean correlation coefficient.The mean correlation calculated as an average measure increased,but the contributions of individual contracts to this difference were various.We in-troduced strength of a contract expressing the magnitude of its correlation with other contracts.Strengths calculation for moving time window visualised the evolution of this parameter.It turned out that metals and fuels impor-tantly participated in the increase of strength,while animals almost remained unchanged.It is obvious that prices of financial assets are driven by several economic factors.Among them there is the most significant factor,called by us the first factor.A measure of importance of the factor can be a correspondingeigenvalue.We showed that the role of thefirst factor was getting stronger, so the marketfinally became more and more one-factored.This fact,that can be observed in the increase of thefirst eigenvalue,is also responsible for the increase of correlations,characterized by the mean correlation parameter. That effect was caused by a growing price bubble.We also observed the change of thefirst factor itself,or from the other view-point,the change of its influence on specific commodities.Thefirst eigenvector components evolved in time in a way that depends on the commodity branch. Contracts which became significantly more dependend on thefirst factor,that is metals and fuels,became also stronger.Contracts with weak interactions with thefirst factor,like animals,did not change their relatively low strengths. We studied correlations of commodity contracts returns.Our analysis showed that starting from the year2003the commodity market became more cor-related,and was driven by a single economic factor.The dependence on the factor got stronger with time.The result is most pronounced in an evolution of the largest eigenvalue normalized by the sum of all eigenvalues,and it can be also seen in the evolution of contracts strengths and their mean correlation. The most important result seems to be the clear evidence of the constantly increasing market synchronization.This fact can be even related to the global scale of current economic crisis.However,the authors cannot suggest that they found roots of recent dramatic market changes.It was expected that dynamics of commodities belonging to the same sector would be clustered,i.e.would be closely placed in the MST.One could how-ever not predict in advance which of commodities would become synchronized with thefirst eigenvalue(a market mode).It is surprising that the agriculture products behaved differently compared to metals that became much more synchronized.An obvious implication from our study is the increasing risk for market players that cannot effectively diversify their portfolios,since corresponding assets are more and more correlated.It is well known that such correlations modify substantially the optimal portfolios and make diversification more difficult since the effective number of asses became smaller[2]. AcknowledgementsWe acknowledge a support from the EU Grant Measuring and Modeling Complex Networks Across Domains—MMCOMNET(Grant No.FP6-2003-NEST-Path-012999)and from Polish Ministry of Science and Higher Educa-tion(Grant No.13/6.PR UE/2005/7).References[1] E.F.Fama,J.Finance25,383(1970)[2]J.-P.Bouchaud,M.Potters,Theory of Financial Risk and Derivative Pricing(Cambridge University Press,Cambridge2003)[3]P.Gopikrishnan,V.Plerou,L.A.Nunes Amaral,M.Meyer,H.E.Stanley,Phys Rev.E60,5305(1999)[4]J.Voit,Phys.A321,286(2003)[5]Yi-C.Zhang,Phys.A269,30(1999)[6]P.Sieczka,J.A.Hołyst,Phys.A387,1218(2008)[7] B.M.Roehner,Eur.Phys.J.B13,175(2000)[8]K.Matia,Y.Ashkenazy,H.E.Stanley,Europhys.Lett.61,422(2003)[9]K.Matia,L.A.Nunes Amaral,S.P.Goodwin,H.E.Stanley,Phys.Rev.E66,045103(2002)[10]loux,P.Cizeau,J.-P.Bouchaud,M.Potters,Phys.Rev.Lett.83,1467(1999)[11]V.Plerou,P.Gopikrishnan,B.Rosenow,L.A.Nunes Amaral,T.Guhr,H.E.Stanley,Phys.Rev.E65,066126(2002)[12]J.Kwapień,S.Drożdż,P.Oświęcimka,Phys.A359,589(2006)[13]R.Coelho,S.Hutzler,P.Repetowicz,P.Richmond,Phys A373,615(2007)[14]R.N.Mantegna,Eur.Phys.J.B11,193(1999)[15]G.Bonanno,G.Caldarelli, F.Lillo,S.Miccich`e,N.Vanderwalle,R.N.Mantegna,Eur.Phys.J.B38,363(2004)[16]M.Gligor,M.Ausloos,Eur.Phys.J.B63,533(2008)[17]R.C.Prim,Bell System Tech.J.,36,1389(1957)[18]G.Caldarelli,Scale-Free Networks(Oxford University Press,Oxford2007)[19]J.-P.Onnela,A.Chakraborti,K.Kaski,J.Kert´e sz,Phys.A324,247(2002)[20]J.-P.Onnela,A.Chakraborti,K.Kaski,J.Kert´e sz,Eur.Phys.J.B30,285(2002)[21]M.Tumiminello,T.Di Matteo,T.Aste,R.N.Mantegna,Eur.Phys.J.B55,209(2007)[22]J.-P.Onnela,A.Chakraborti,K.Kaski,J.Kert´e sz,A.Kanto,Phys.Rev.E68,056110(2003)[23]S.Ross,J.Econ.Theory,13,341(1976)[24]R.N.Mantegna,H.E.Stanley,An Introduction to Econophysics,CambridgeUniversity Press,Cambridge,2001。