Policy interest rate and Private placement: Difference between pages

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imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
(Qualify reference to not trading in secondary market, because of 'placings' of equities sometimes being broader than private placement.)
 
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''Central banks - monetary policy - interest rates''.
This is a form of securities issuance that has no exact definition.


"The policy interest rate is an interest rate that... the central bank sets in order to influence the evolution of the main monetary variables in the economy...
It usually refers to an issue that has been designed for a specific set of investor needs at a particular time.


The policy interest rate determines the levels of the rest of the interest rates in the economy, since it is the price at which private agents - mostly private [commercial] banks - obtain money from the central bank.  
As such it is not normally expected to be traded in the secondary market and is not a 'public' issue.


These [commercial] banks will then offer financial products to their clients at an interest rate that is normally based on the policy rate."
It is not normally expected to be listed on an exchange.


A wide variety of securities under various names are private placements. In Germany, [[Schuldschein]] are a form of private placements, for example.


''Source: Focus Economics webpage. June 2020''


== See also ==
* [[Listing]]
* [[Issue]]
* [[MCT]]
* [[Placement]]
* [[Private bond]]
* [[Rule 144A]]
* [[Secondary market]]
* [[Security]]
* [[USPP]]


Examples include the US Fed funds rate, the European Central Bank's interest rate on its main refinancing operations, and the UK's Official Bank Rate.


== Other links ==


== See also ==
[http://www.treasurers.org/node/8624 Developing a UK Private Placement market – interim report of the PP15+ working group, 2012]
* [[Central bank]]
 
* [[Committee on the Global Financial System]]
[http://www.treasurers.org/blogs/ceo/201307 Hot money just got hotter...then evaporated, Colin Tyler, ACT July 2013]
* [[Effective lower bound]]
* [[European Central Bank]]
* [[Fed funds]]
* [[Forward guidance]]
* [[Global Financial Crisis]]
* [[Interest rate]]
* [[Lending operations]]
* [[Main refinancing operations]]
* [[Margin compression]]
* [[Negative interest rate policies]]
* [[Neutral interest rate]]
* [[Non-performing loan]]
* [[Official Bank Rate]]
* [[Quantitative easing ]]
* [[Reserve requirements]]
* [[Sterling Monetary Framework]]
* [[Supply side policy]]
* [[Unconventional monetary policy]]
* [[Zero lower bound]]
* [[ZLB problem]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_financial_management]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 06:39, 9 April 2015

This is a form of securities issuance that has no exact definition.

It usually refers to an issue that has been designed for a specific set of investor needs at a particular time.

As such it is not normally expected to be traded in the secondary market and is not a 'public' issue.

It is not normally expected to be listed on an exchange.

A wide variety of securities under various names are private placements. In Germany, Schuldschein are a form of private placements, for example.


See also


Other links

Developing a UK Private Placement market – interim report of the PP15+ working group, 2012

Hot money just got hotter...then evaporated, Colin Tyler, ACT July 2013

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