First, the concept and characteristics of financial derivatives
(A) the concept of financial derivatives
Financial derivatives, also known as "financial derivatives", is a concept corresponding to basic financial instruments, which refers to derivative financial products based on basic products or basic financial variables, and their prices depend on the price changes of the latter. By forecasting future market trends such as stock prices, interest rates and exchange rates. We will sign forward contracts or exchange emerging financial instruments in different financial products by paying a small amount of deposit or use fees.
1, the definition of American Financial Accounting StandardsNo. 133: A derivative instrument is a financial instrument or other contract with the following characteristics:
(1) has ① one or more basic variables; ② One or more nominal amounts or payment lines. There are special provisions for the settlement amount, and in some cases it is necessary to explain whether settlement is needed.
(2) No initial net investment is allowed, or less net investment is needed compared with other types of contracts that have similar reactions to changes in market factors.
(3) The terms of the contract require or allow net settlement, which can be conveniently closed by external and contractual means, or allow delivery of some assets, so that there is no significant difference between the position of the receiver and the net settlement.
2. IAS 39 definition: Derivative instruments refer to instruments with the following characteristics:
(1) Its value changes with the change of specific interest rate, securities price, commodity price, exchange rate, price or interest rate index, credit rating or credit index or similar variables.
(2) No initial net investment is required, or less net investment is required compared with other types of contracts that have similar reactions to changes in market conditions.
(3) settlement of future dates.
In 2005, China's Ministry of Finance's Interim Provisions on Recognition and Measurement of Financial Instruments (for Trial Implementation) basically followed the definitions of derivatives and embedded derivatives in international accounting standards, and clearly stipulated that all financial derivatives were classified as "transactional financial assets or liabilities", and their subsequent measurement was calculated at "fair value", and the resulting gains and losses were included in the current profits and losses.
(B) the basic characteristics of financial derivatives
1, intertemporal: first, the forecast of the changing trend of price factors, the contract of agreeing to trade at a certain time in the future or choosing whether to trade, involving the intertemporal transfer of financial assets.
2. Leverage: You can sign a long-term contract or exchange different financial instruments by paying a small amount of margin or royalties. For example, if the margin of futures trading is 5% of the contract amount, you can control the contract assets that are 20 times the amount invested, so as to make it small and broad.
3. Linkage: The value of financial instruments is closely related to the underlying products or variables, and the rules change.
4. Uncertainty and high risk: ① the credit risk of both parties' default; ② Market risk of asset or index price changes; (3) Liquidity risks that cannot be closed or realized due to lack of counterparties; (4) Settlement risks that may be caused by the counterparty's failure to pay or deliver on time; ⑤ Operational risk caused by human error or system failure or control failure; ⑤ Legal risks caused by breach of contract.
Two. Classification of Financial Derivatives (New)
(1) by product form and trading place:
1. Built-in derivatives: refers to financial derivatives embedded in non-derivative contracts (also known as master contracts). The derivative means that part or all of the cash flow of the main contract is adjusted according to the change of specific interest rate, financial instrument price, exchange rate, price or interest rate index, credit rating or credit index or similar variables. For example, the current corporate bond terms may include redemption terms, resale terms, share conversion terms and replacement terms.
2. Derivatives traded on exchanges. Refers to derivative products listed and traded on organized exchanges, such as stock option products, futures contracts and option contracts traded on exchanges.
3. OTC derivatives.
(2) According to the types of basic tools: equity products, financial derivatives, currency derivatives, interest rate derivatives, credit derivatives and other derivatives (political futures for managing political risks, weather futures for changing temperatures, catastrophe derivatives for managing catastrophe risks, etc.). ).
(3) According to their own trading methods and characteristics, they are classified into financial forward contracts, financial futures, financial options, financial swaps and structured financial derivatives.
Third, the emergence and development trend of financial derivatives
(A) the emergence and development of financial derivatives
1, the most basic reason of financial derivatives is hedging.
2. The financial liberalization since 1980s has further promoted the development of financial derivatives.
(1) Cancel the upper limit of deposit interest rate and gradually realize interest rate marketization.
(2) Breaking the geographical and business category restrictions of financial institutions, allowing the businesses of financial institutions to freely cross and penetrate, and encouraging the comprehensive development of banks;
(3) relax foreign exchange control
(4) Open all kinds of financial markets and relax restrictions on capital flows.
3. The profit drive of financial institutions is another important reason for the emergence and rapid development of financial derivatives.
4. The new technological revolution provides the material basis and means for the emergence and development of financial derivatives.
(B) the new development of financial derivatives
1, risk management innovation.
2. Enhance mobile innovation.
3. Credit innovation
4. Creative innovation of equity.
Section 2 Financial Forward, Futures and Swaps
I spot trading, forward trading and futures trading
(a) Spot transaction: "cash on delivery"
(2) Forward transactions
(3) Futures trading
Two. Financial forward contract and forward contract market:
Financial forward contract is the most basic financial derivative. It is that both parties to the transaction buy and sell a financial asset (or a contract with financial variables) with a base price at an agreed price (called forward price) on an agreed future date (delivery date) through negotiation in the OTC market.
(1) equity asset forward contract
(2) Forward contract of creditor's rights assets
(3) Forward interest rate agreement
(4) Forward exchange rate agreement
Three. Financial futures contracts and financial futures markets
(A) the definition and characteristics of financial futures
1. Definition of financial futures: first understand futures trading: the trading of futures contracts conducted by both parties in a centralized market by open bidding; Futures contracts: standardized agreements involving futures exchanges, which uniformly stipulate the types, specifications, quantity, delivery time and delivery place of designated commodities; Futures trading with various financial commodities (foreign exchange, bonds, stock price index) as the subject matter.
2. The basic characteristics of financial futures
(1) Different trading objects: spot trading is a financial commodity with a specific form, representing certain ownership or creditor's rights; The object of futures trading is financial futures contracts.
(2) The purpose of the transaction is different: is the spot transaction to obtain value or income rights, to raise funds, or to find investment opportunities; The purpose of futures trading is to hedge and provide conditions for producers and operators who are unwilling to bear price risks to stabilize costs and maintain profits.
(3) The meaning of transaction price is different: the financial spot transaction price is the equilibrium price at a certain point through public bidding. Although financial futures trading is formed in the process of trading, it is an expectation of future prices.
(4) Different trading methods. Spot trading of financial instruments requires full delivery of funds and financial instruments within a few working days after trading, and a margin system will also be implemented in mature markets, but the funds or securities gap involved will be lent to traders by brokers and the corresponding interest will be charged. Futures trading adopts margin system and daily mark-to-market system, and traders do not need to own or borrow all funds or basic financial instruments when trading.
(5) Different settlement methods: spot transaction transfer; Hedging settlement
3, the difference between financial futures and ordinary forward transactions:
(1) trading places is different from trading institutions.
(2) The supervision system of transactions is different.
(3) Financial futures trading is a standardized transaction.
(4) The margin system and daily settlement system lead to the risk of default.
(2) The main trading system of financial futures.
1, centralized trading system
2. Standardize futures contracts and hedging mechanisms.
3. Margin and its leverage
4. Clearing houses and debt-free settlement systems
5. Warehouse restriction system
6, large-scale reporting system
(3) Types of financial futures:
1, foreign exchange futures
Background of foreign exchange futures: prevention of foreign exchange rate risk (uncertainty of exchange rate in foreign exchange market) (1early 970).
Types of foreign exchange rate risk:
Commercial foreign exchange risk refers to the possibility of suffering losses due to exchange rate changes in international trade;
Financial foreign exchange risks include credit and debt risks (due to exchange rate changes of international borrowing) and reserve risks (exchange rate risks of foreign exchange reserves).
2. Interest rate futures
Its basic assets are a certain number of financial instruments related to interest rates, mainly financial instruments with fixed income, which are mainly generated to avoid interest rate risks.
(1) Bond futures: Bond futures dominated by government bonds are the most important interest rate futures of major exchanges.
(2) Main reference interest rate futures: libor and hibor.
(3) Stock futures
(1) Stock index futures: Stock value futures trading, which originated from Kansas Agricultural Products Exchange 1982 in the United States, takes the stock price index as the subject matter and the trading object, adopts the cash settlement method, and the contract value is calculated by multiplying the stock price index value by a fixed amount; Emerging stock index futures: Standard & Poor's 500 stock price composite index futures launched by CME, composite index futures launched by NSE and value line composite index futures launched by Kansas Agricultural Products Exchange; 1983 Sydney futures exchange launched stock-denominated futures; 1984 Financial Times 100 Stock value futures launched by London International Financial Futures Exchange; Hong Kong Hang Seng Price Index Futures
(2) Single stock futures: futures with a single stock as the basic tool. The buyer and the seller agree to buy and sell a certain number of shares at the agreed price on the expiration date of the contract.
③ Stock portfolio futures:
(D) the function of financial futures
1. Hedging function: it is to conduct opposite transactions in the spot market and futures market at the same time.
(1) basic principles of hedging
(2) the basic practice of hedging
2. Price discovery function: the function of forming futures prices through centralized bidding under the environment of effective competition of open stocks, which is characterized by predictability, continuity and authority, because many factors affecting supply and demand are concentrated in the trading hall, and a unified trading price is formed through open bidding.
3. Speculation function
4. Arbitrage function
Financial futures centralized trading system
Trading is conducted on the futures exchange. Responsibilities of the exchange: providing trading places and facilities; Formulate standardized futures contracts; Formulate trading rules and regulations and trading rules; Supervise the transaction process; Control market risks; Provide transaction information; Supervise and organize futures trading
The exchange implements the membership system. Non-members can only trade by entrusting member brokers.
Matching transaction method:
Market maker mode: quotation-driven mode, where traders accept quotations.
Bidding mode: instruction-driven mode, which matches directly through the matching center.
Standardized Futures Contract and Financial Futures Hedging Mechanism
Futures contracts are designed by the exchange and announced to the market after approval by the competent authorities.
The contents of the contract include: variety, trading unit, minimum price change, daily price limit, contract month, trading time, last trading day, delivery date, delivery place and method, and the variable is the transaction price of the underlying commodity.
The design is to facilitate the two parties to hedge the reverse transaction before the expiration of the contract, avoid physical delivery, and achieve the purpose of maintaining value and making profits.
About 2% of futures contracts need final delivery.
Financial futures margin and its leverage
The purpose of establishing margin system is to control the risk of futures trading and improve efficiency.
initial margin
Maintain profits
Margin level: according to the provisions of the clearing house, the level is generally 5- 10%, but the lowest is 1% and the highest is 18%.
The margin level reflects the leverage ratio.
Financial futures trading clearing house
The independent clearing house is adopted as the clearing institution, and the membership system is adopted.
Responsibilities of clearing house: determine and publish daily settlement price and final settlement price; Responsible for collecting and managing the deposit; Responsible for the daily liquidation of signed contracts; Adjust and balance the accounts of clearing house members; Supervise the physical delivery of expired contracts and publish transaction data and other information.
Debt-free settlement system
Also known as the day-to-day mark-to-market system, the average transaction price of each futures contract at the last 1 minute of the trading day or a few minutes before the closing is taken as the settlement price of the day, which is compared with each transaction price to calculate the floating profit and loss and clear the market at any time.
Taking one trading day as the longest settlement cycle, the trading positions of all accounts are calculated according to different maturity dates, and all trading gains and losses are required to be settled in time, so as to adjust the margin accounts in time and control market risks.
The role of clearing house
All transactions are published in the account of the clearing house, becoming the opponents of all traders, acting as the sellers of all buyers and the buyers of all sellers. Be responsible for clearing the profit and loss when the contract is hedged or closed.
The exchange becomes the performance guarantor of all contracts and bears all credit risks, so that traders do not have to review the financial resources and credit standing of both parties.
Limited position system of financial futures
Definition: A system that limits the number of positions held by traders to prevent excessive concentration of market risks and market manipulation.
Form: Position limit, member position limit and customer position limit are stipulated according to the amount of margin.
The principle of limiting positions: short-term is stricter than long-term, and hedging and speculation are treated differently; Institutions and retail investors are treated differently, and the total position limit is combined with the proportional position limit, and positions in the opposite direction cannot be offset.
Financial futures large-scale reporting system
After the establishment of the position limit system, members or customers must report the account opening, trading, capital source, trading motivation, etc. to the exchange when they reach the number specified by the exchange. , so that the exchange can examine whether there are excessive speculation and market manipulation behaviors of large households and judge the trading risk status of large households.
Large-scale reporting system is the first barrier of warehouse restriction system.
(5) Theoretical price and influencing factors of financial futures.
1, theoretical price of financial futures:
Opportunity cost of buying and holding spot = buying price (current spot price)+interest on funds during holding period-profit from holding spot financial instruments.
Interest or dividends and investment income
Opportunity cost of buying and holding spot = purchase price (current futures price)
2. The main factors affecting the price of financial futures.
(1) spot price
(2) the required rate of return or discount rate
(3) the length of time
(4) Interest payment of spot financial instruments
(5) delivery choice
Four. Financial swap transaction
Swap refers to a financial transaction in which two or more parties regularly exchange cash flows within an agreed time according to the agreed terms, which can be divided into currency swap, interest rate swap, equity swap and credit swap.
Section 3 Financial Options and Option Financial Derivatives
First, the definition and characteristics of financial options
(1) Definition of financial option: an option transaction form with financial commodities or financial futures contracts as the subject matter. Option trading refers to the buyer's right to buy and sell a certain number of financial commodities or financial futures contracts at a certain price within a specified time after paying a certain option fee to the seller. The core is a kind of power, and whether it is fulfilled is measured by the buyer according to the size of the income.
Option trading is a unilateral paid transfer. The buyer of the option has this right by paying the option fee, but does not undertake the obligation of buying and selling; After receiving the premium, the seller of the option must fulfill his promise according to the contract.
(2) Characteristics of financial options: The most important feature is that it is only the exchange of buying and selling rights.
(C) the difference between financial futures and financial options:
1, the underlying assets are different.
2. The symmetry of rights and obligations of traders is different.
3. The performance guarantee is different.
4. Different cash flows
5. The profit and loss characteristics are different.
6. The function and effect of hedging are different.
Second, the classification of financial options
(1) Nature of options: call options and put options.
(2) The performance time is divided into European option, American option and modified American option.
(3) According to the nature of the underlying assets of financial options: stock options, stock index options, interest rate options, currency options, financial futures contract options and swap options.
Third, the function of financial options: hedging and price discovery
Fourth, the theoretical price of financial options and its impact
(A) the intrinsic value of financial options
The performance value, the value of the option contract itself, is the income that the buyer can get by exercising the option. Intrinsic value depends on the relationship between the option agreement price and the market price of the subject matter. The agreed price is the price at which the buyers and sellers of options agree to buy and sell the subject matter at the time of option transaction.
According to the relationship between the agreed price and the market price, options can be divided into real options, virtual options and parity options.
Taking Evt as intrinsic value, S as market price, X as agreed price and M as trading unit, then
The intrinsic value of call option is: if S>x, then Evt= (s- x). M, otherwise 0.
The intrinsic value of put option is: If S
(B) the time value of financial options
External value, the amount actually paid by the option purchaser exceeds the internal value. Option buyers are willing to pay higher extra fees because they hope that the intrinsic value will increase with the passage of time and the change of market price.
Indirect calculation: subtract the intrinsic value from the actual price.
(C) factors affecting the price of financial options
1, agreed price and market price: the price relationship determines the intrinsic value and time value of the option. The greater the price gap, the smaller the time value.
2. Right period, that is, the remaining effective time of the option, and the time from the option trading date to the option expiration date. The longer the option term, the higher the option price.
3. Interest rate. Short-term interest rate changes affect option prices. Complex relationship
4. The price fluctuation of the underlying assets.
5, the income of the basic assets. The higher the return rate of the underlying assets, the lower the call option price and the higher the put option price.
Verb (abbreviation of verb) warrant (new)
Definition: If the underlying securities are issued by the issuer or a third party other than the issuer (hereinafter referred to as the "issuer"), the agreed holder has the right to buy or sell the underlying securities from the issuer at the agreed price within a specified period of time or on a specific date, or collect the securities with cash settlement.
(1) Classification of warrants:
1. Classification by basic assets: equity, bonds and other types of warrants.
2. According to the source of the underlying assets: warrants and covered warrants.
3. According to the holder's rights: call warrants and put warrants.
4. According to the exercise time: American warrants, European warrants and Bermuda warrants.
5. According to the intrinsic value of warrants, they are divided into parity warrants, in-price warrants and out-of-price warrants.
(2) the elements of the warrants
1, warrant category
2. Objectives
Step 3 exercise the price
4. Duration
5. Exercise date
6. Exercise settlement method
7. Exercise proportion
(3) Issuance, listing and trading of warrants.
1, issue warrants
(1) Provide and maintain a sufficient amount of underlying securities or cash as performance guarantee through a special account.
The target number of performance guarantee = the number of warrants listed * the exercise ratio * the guarantee coefficient.
Cash amount of performance guarantee = number of warrants listed * exercise price * exercise proportion * guarantee coefficient
(2) Provide an institution recognized by the Exchange as an irrevocable guarantor of joint and several liability.
2. Warrant T+0 is traded in a circular way.
6. Convertible securities
(1) Definition, classification and characteristics of convertible securities
1. Definition: the holder can convert it into a certain number of other securities at a certain proportion or price within a certain period of time; This is a long-term call option for common stock.
2. Classification: convertible bonds and convertible preferred shares.
Issuer's significance: save the issuance cost (bond interest rate or preferred stock dividend rate can be lower than similar credit bonds) and reduce the financing cost; Attract institutional investors (according to the law, commercial banks and other financial institutions are not allowed to invest in ordinary shares, but convertible securities belong to bonds or preferred stocks, and there is no convertible preferred stock in China at present)
The meaning of investors: the option to avoid risks within a certain range but not to avoid returns.
3. Characteristics of convertible securities
(1) is a bond with warrants, which has the dual characteristics of corporate bonds and stocks.
(2) It has the characteristics of dual choice: the holder has the right to convert or not; The issuer has the right to redeem or not to redeem.
(2) Elements of convertible securities
1, validity period, conversion period, coupon rate or dividend yield.
Validity period: the time from the bond issuance date to the debt service date.
Conversion period: the conversion start date to the end date.
According to the current laws and regulations in China, the minimum period of convertible corporate bonds is 3 years and the longest is 5 years, and they can be converted into company shares within 6 months after issuance.
2. coupon rate or dividend yield. Coupon rate (or dividend yield of convertible corporate bonds) refers to the annual coupon rate (or dividend yield of convertible preferred shares) of convertible corporate bonds, and the interest rate is determined by the issuer according to the market interest rate level, corporate bond credit rating and issuance terms.
3. Conversion ratio, conversion price, redemption terms and resale terms.
Conversion ratio * conversion price = face value of convertible securities
4. Redemption clause or resale clause.
Redemption means that the issuer redeems the issued convertible bonds in advance. The premise is often that the company's share price is higher than the conversion price by a certain margin.
Sell-back means that when the company's shares are continuously lower than the conversion price for a certain period of time, the holders of convertible bonds sell them to the issuer at a pre-agreed price.
5. Modification clause of conversion price: When the nominal price of the stock falls due to the company's share delivery and other reasons, it is necessary to adjust the conversion price.
(3) the value and price of convertible bonds
1, conversion value of convertible bonds
2. The theoretical value of convertible bonds.
Investment value: formula and actual calculation
Theoretical value: Only when the stock price rises until the conversion value of bonds is greater than the theoretical value of bonds, investors will exercise the conversion right.
3. Market price of convertible bonds: when market price = theoretical price (conversion parity); When the market price is higher than the theoretical price (conversion premium); When the market price is lower than the theoretical price (conversion discount)
Section IV Introduction of Other Derivative Products
I. Depositary receipts
(1) Definition of Depositary Receipts
Definition: A negotiable document circulating in a country's securities market that represents the securities-stocks or creditor's rights of foreign companies.
Depositary receipts involve three key institutions: depository banks, custodian banks and depository trust companies.
Form: ADR-GDR-IDR, in which ADR and GDR are the same in law, operation and management, but the difference lies in the marketing direction; GDR is denominated in one or more non-US currencies and issued anonymously.
(2) relevant business institutions of American depositary receipts.
1, deposit bank
First, as the issuer of ADR, arrange a custodian bank in the issuing country of ADR-based securities. After the underlying securities were released into the custody account and the issuance of ADR depositary receipts to investors in the United States was cancelled, the custody bank was instructed to reinvest the underlying securities in the local market.
Secondly, in the process of ADR transaction, ADR registers the transfer of ownership, arranges the depository trust company for custody and liquidation, notifies the change of the custody bank, distributes dividends and interests, and exercises rights as an agent.
Third, depository banks provide information and consulting services for ADR holders and issuers of underlying securities.
2. Custody bank: Custody bank is a bank arranged by the depository bank in the issuing country of the underlying securities, usually a local branch, subsidiary or correspondent bank of the depository bank.
Responsibilities: Responsible for keeping the underlying securities represented by ADR; Collect dividends or interest according to the instructions of the deposit bank for reinvestment or repatriation to the ADR issuing country; Provide local market information to deposit banks.
3. Central Depository Company: the central securities depository and clearing institution in the United States, which is responsible for the depository and clearing of ADR.
(3) Types of American Depositary Receipts
1. Unsecured ADR: It is issued by one or more banks according to market demand and does not involve the issuance of underlying securities. The deposit agreement only stipulates the rights and obligations between the deposit bank and the ADR holder. It doesn't exist at present.
2. Guaranteed ADR: The underwriter of the issuer of the underlying securities entrusts the depository bank to issue it. Divided into the first, second and third level public offering ADR and private offering ADR under the US 144 rules. Each one has different characteristics and operation methods, and the relevant laws in the United States also have different requirements for it.
The first-class guarantee ADR can apply to the SEC for exemption from preparing financial statements in line with American accounting standards; However, 144A private ADR does not need to be registered with the SEC, and can raise funds within the scope of qualified institutional investors.
(4) Advantages of American Depositary Receipts:
1, with large market capacity and strong financing ability.
2. The listing procedure is simple and the issuing cost is low.
3. Avoid the legal requirements of directly issuing stocks and bonds.
(5) Issuance and trading of American depositary receipts.
1. steps for issuing American depositary receipts
① Investors instruct brokers to buy ADR.
(2) The broker instructs the broker where the underlying securities are located to buy securities and remit them to the local custodian bank of the account opening bank.
③ Brokers buy in the local market.
(4) deposited in the local custodian bank.
⑤ After the securities are dissolved, the custodian bank shall notify the American Depository Bank.
⑥ The opening bank issues ADR to securities firms.
⑦ Brokers deposit ADR in trust companies or investors, and at the same time pay foreign exchange to local brokers.
2. ADR transactions of American depositary receipts.
(1) Market transactions: The transactions between ADR holders in the US market are transferred at the depository bank and cleared at the depository trust company.
(2) Cancellation: In the absence of domestic buyers, the securities firm of the issuing country of the underlying securities is entrusted to sell.
(VI) Development of Depositary Receipts in China.
1, depositary receipts issued by China company.
It covers three types: there are two types of first-class depositary receipts-one is a domestic listed company with B shares, such as chlor-alkali chemical industry, second textile machinery, deep house and so on.
Before 2004, only China Auto, which was listed in Hong Kong, issued the second-level depositary receipts, which became the main form for China Internet companies to enter Nasdaq.
Companies that issue three-tier depositary receipts are listed on the Hong Kong Stock Exchange.
2. The stage and industry characteristics of China company issuing depositary receipts.
(1)1993-1995 China Chess also issued depositary receipts in the United States.
(2) 1996- 1998 infrastructure depositary receipts have gradually become the mainstream.
(3) From 2000 to 20065438+0, high-tech companies and large state-owned enterprises were successfully listed.
(4) Since 2002, large state-owned enterprises and private enterprises
Second, asset securitization and securitization products.
(1) Definition: Asset securitization is a form of financing to issue tradable securities supported by a specific portfolio of assets or a specific cash flow. Traditional securities issuance is based on enterprises, while asset securitization is based on specific assets.
(2) Type and scope of self-produced securitization
1. According to the classification of basic assets: real estate securitization, accounts receivable securitization, credit asset securitization, future income securitization (such as highway toll collection), bond portfolio securitization, etc.
2. According to the geographical classification of securitization: domestically produced securitization and offshore asset securitization.
3. According to the different attributes of securitization: equity asset securitization, bond sub-product securitization and mixed sub-product securitization.
(3) Relevant parties to asset securitization
1, sponsor.
2. Special purpose institutions or special purpose trustees
3. Assets and asset custody institutions
4. Credit enhancement institutions
5. Credit rating agencies
6. Commitment payer
7. Investors of securitization products
Iv. asset securitization process and structure: P 146 chart
(V) Development of Asset Securitization in China
1, Sanya Development and Construction Company in 1990s: real estate securitization
2. Since 2005, CCB and CDB (chart on page P 147) have piloted asset securitization among banks.
3. On June 5438+February 2, 2005/KLOC-0, Guangdong Yuexiu REIT, the first real estate investment trust fund in the Mainland, was listed on the Hong Kong Stock Exchange.
Third, structured financial derivatives.
(1) Definition of structured financial derivatives: A new type of financial product designed by combining several basic financial commodities and financial derivatives with the structural method of financial engineering.
(2) Categories of structured financial derivatives
1. classified by linked financial basic products: equity-linked products (whose returns are related to a single stock, stock portfolio or stock price index), interest rate-linked products, exchange rate-linked products and commodity-linked products.
2. Classification by income security: income security and non-income security.
3. Divided into public offering structured products and private offering structured products according to the issuance method.
(C) the development prospects of structured financial derivatives
Derivative financial assets, also called financial derivatives, are the product of financial innovation, that is, by creating financial instruments to help managers of financial institutions better control risks. This tool is called financial derivatives. At present, the main financial derivatives are: forward contracts, financial futures, options and swaps.
Non-derivative financial instruments include currency, bonds and convertible bonds.