Monthly Archives: January 2007

Rates Falling Fast

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Panel 1 Rates falling quick OCR cut of 100 bps OCR at 4% by mid 09 Variable mortgages at 6-7% Panel 2 Fixed rates addiction May be broken Gap narrowing Variable rates cut hard In the last week Panel 3 All banks cut variable Down around 8% Only just above fixed Going small cheaper Panel 4 Monetary policy power Its coming back Gap now 30-100 bps Was 150 bps Rapidly closing Borrowers go small Savers go long

10. Debt Markets: Term Structure

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Financial Markets (ECON 252) The markets for debt, both public and private far exceed the entire stock market in value and importance. The US Treasury issues debt of various maturities through auctions, which are open only to formal buyers. Corporations issue debt with investment banks as intermediaries. The interest rates are not set by the Treasury, the corporations or the investment bankers, but are determined by the market, reflecting economic forces about which there are a number of theories. The real and nominal rates and the coupons of a bond determine its price in the market. The term structure, which is the plot of yield-to-maturity against time-to-maturity indicates the value of time for points in the future. Forward rates are the future spot rates that can be calculated using today’s bond prices. Irrevocably, indexed bonds, which are indexed to inflation, offer the safest asset of all and their price reveals a fundamental economic indicator, the real interest rate. Complete course materials are available at the Open Yale Courses website: open.yale.edu This course was recorded in Spring 2008.

Viasphere TechnoPark – Armenia

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The Viasphere Technopark (VST) implements a systemic innovation management logic, where innovation processes are designed holistically. This means that desisgns are integrated into a single overarching strategy for innovation, including strategy innovation, new product development, creative approaches to problem solving, and thought management. Viasphere was founded in 1998 as an incubator and accelerator headquartered in Sunnyvale, California, in the heart of Silicon Valley. The Viasphere management team has a proven track record working with startups having founded, funded, managed and helped guide numerous at among them BSQUARE Corporation (est. 1995 NASDAQ: BSQR), Mainbrace Corporation (est. 1997 M&A), Savvion, Inc., Security Pacific Home Loans, and Virage Logic (est. 1996 NASDAQ: VLOG). We have extensive experience working with multinationals including Microsoft®, Hitachi, AT&T and others. Our team members have also successfully managed angel and ventures funds in the US and Europe. The World Bank – InfoDev