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金融英语电子讲义
主讲：李勤习
欢迎使用新东方在线电子教材
Unit1 Money
Figures
American oil billionaire J. Paul Gettyhas a very famous saying, that is “ If you can actually count your money, then you are not really a rich man.”美国的银行业大亨J. Paul Getty曾经说过一句话：如果你的钱是可以数得清楚的，那么你就不是一个真正的富人。Well, the sentence is interesting, but actually we must know how to count the money before we get rich, especially in English. So, in today’s class, we would first learn to say English numbers.
Most people working in finance, whether it is in accountancy, banking, broking, investment, insurance, or whatever, spend a lot of time dealing with numbers.
I. Let’s talk about the different ways to say English. Usually, we have the following 5 ways to say English. They are: OH, ZERO, LOVE, NOUGHT, NIL!
We say oh
after a decimal point six point oh three
in telephone numbers 8408 3213 eight fouroheight three two one three
in bus numbers No. 708 get the seven oheight
in hotel room numbers Room 308 I'm in room three oheight.
in years 1905 nineteen oh five
We say nought
before the decimal point nought point two oh one
We say zero
for the number 0 the number zero
for temperature -5~C five degrees below zero
We say nil
in football scores 5-0 won five nil.
We say love
in tennis 15- 0 The score is fifteen love.
Now say the following:
The exact figure is .
before the decimal point, read nought;
after a decimal point, read oh.
Nought point oh oh two.
2. Can you get back to me on 010 – 5175 – 0123 ? I'll be here all morning.
in telephone numbers, say oh.
Oh one oh five one seven five oh one two three
3. Can you put that on my bill? I'm in room 804.
in hotel room numbers, say oh. Eight oh four
4. The temperature in north-east is very low in winter. Usually, it's 20 degrees below 0!
for temperature, say zero.
5. Basically, tennis scoring proceeds from 0 to 15 to 30 to 40 to game.
love（0）, fifteen（15）, thirty（30）, forty（40）, game（胜局）。
result of the game was 3 – 0
three-nil
II. THE DECIMAL POINT
In English, we use a point (.) and not a comma (,) for decimals. 在英语当中，小数点都是写为一个点，而不是逗号。We use commas in figures only whenwriting thousands. 我们在表达数字千的时候呢，用逗号来隔开。
10,002 is ten thousand andtwo.
is ten point oh oh three
In English all the numbers after a decimal pointare read separately. For example:
twenty point six six Not twenty point sixty six
nought point two four three
nought point oh oh five
You will also bear people say:
zero point oh five or oh point oh five
But if the number after the decimal point is a unit of money, it is read like a normal number:
￡ twelve pouns fifty € five Euros ninety five
NB. This is very important. When you do business on the phone, say nought point three seven five() and not nought point three hundred and seventy five. If the listener missed the word point,youmight lose a lot of money. So, say the digits separately after the point.
Now say the following:
1. It's somewhere between and .
2. Look, it's less than ! It's hardly worth worrying about.
3. I change all those yen into sterling an I only got ￡!
Yen is the standard unit of money in ,
is the standard unit of money in the ,
(yen 是日本的货币单位，sterling是英国的标准货币单位)
4. That's about Swiss francs.（瑞士法郎）
5. Did you say or ?
6. The dollar is at .（one point nighty five）
7. No, I meant not 15,005.
Say: No, I meant fifteen point oh oh 5, not fifteen thousand and five
III. PER CENT
The stress is on the cent of per cent ten perCENT
Notice the following when talking about interest rates: (利率)
% a half of one per cent
% a quarter of a percentage point
For example:
The Bank of England raised interest rates this morning by a quarter of a percentage point.
Now say the following:
1. What's 20% of 360?
2. They have put the interest rate up by another %. (a half of one per cent)
3. % won't make a lot of difference.
IV. HUNDREDS, THOUSANDS, AND MILLIONS
In British English you hear a hundred and twenty three.
In American English you usually hear a hundred twenty three.
So, there are some small differences between British English and American English.
The number 1,999 is said one thousand nine hundred and ninety nine.
The year 1999 is said nineteen ninety nine.
The year 2000 is said the year two thousand.
The year 2001 is said two thousand and one.
The year 2015 is said two thousand and fifteen or .
Note: It is likely that: different people will refer to the early years of the 21 century in different ways.
Remember that the year 1999 is always referred to as nineteen ninety nine - not one thousand and nine hundred and ninety nine.
Now, please read the following numbers:
1,000,000 is a million or ten to the power six: (106)
1,000,000,000 is a billion or ten. to the power nine: (109)
Now let’s look at the following numbers: 11，234 is said：
eleven thousand two hundred(and)，thirty—four155,721is said：
one hundred(and)fifty-fivethousand seven hundred(and)twenty-one6，155，702is said：
six million one hundred(and)fifty-five thousand seven hundred and two26，000，008is said：
twenty-six million and eight326，414，718is said：
three hundred(and)twenty-six million，four hundred(and)fourteen thousand, seven hundred(and)eighteen4，302，000，000is said：
four billion three hunre(an)two millionFrom the above figures, we can see that from right to left, there is a coma every three figures, the function of the coma is very important. It can help us rea an remember the numbers.由以上一组数字可以看出，多位数由右向左每3位有一逗号，这个逗号的作用非同小可，在记忆数字时，它可以帮我们很大的忙!From right to left, the first coma is saithousan逆向第一个逗号读thousan；the secon coma is sai: million, 第二个逗号读million；the thir coma is sai: billion, 第三个逗号读billion；第四个逗号就是trillion。这几个逗号的作用在于，当我们听到若干thousan时，立即写下这个数，并在其后打一个逗号，并留出3位；当听到若干million，则写下数字，并在其后打一逗号，留出6位；听到若干billion，方法同上，在后面留出9位，后面的million、thousan依此法类推，让所有数字各就其位。例如，当你听到“twenty thousan anfour\'’写出20，“an four”意为后一组仅有个位，即：004，那么，这个数字完整地写下来就是20，004；若听到“six million twenty thousan four hunre an twenty—three，”则第一步先写：6，020，再将最后一组423写在第一个逗号后面。完整的翠字为6，020，423。若听到“One billion，one hunre an four million，twenty thousan four hunre an twenty-three”：主第一步写出1，104，第二步接下去写第三组020，第三步写423，这样得到的完整数字便是1，104，020，423，由此：见这个三位一逗号的作用有多大。只要我们在平时的训练中加强对三位数读写的训练，能分辨“ty”与“teen\'’，并能借助这个不可缺少的“逗号”，so, in this way no matter how big the number is , we can unerstan an rea it without any problems. 无论数字多么大，也不会对我们造成障碍。
Now, let’s have a brief review of what we learned just now, pleasesay the following sentences:
1. Why do you say ? In the States we usually say 175.
One hundredand seventy five, one hundred seventy five
2. It's got 1001 different uses.
One thousand and one
3. Profits will have doubled by the year 2000.
Two thousand 在2000年时，利润会翻一翻
4. Thanks. You're one in 1,000,000!
5. No, that's 2,000,000,000 not 2,000,000!
V. SQUARES, CUBES, AND ROOTS
102 is ten squared.
103 is ten cubed.
is the square root of 6.
VI. TELEPHONE AND FAX NUMBERS
We usually give telephone and fax numbers as individual digits: 读电话号码时，每个数字一一读出。When two numbers are same, English people usually read as “double – x” 英国人在读两个相同数字时，通常读成“double – x”
01273 736344 oh one two seven three, seven three six, three four four
344 can also be said as three double four
44 26 77 double four, two six, double seven
777 can be said as seven double seven, or seven seven seven
FRACTIONS
分数中分子用基数词表示，分母用序数词表示。先读分子，后读分母。当分子大于1时，分母要加“s”。例如1/2 is said ：a／one half(口语中更倾向于用“a”代替“one”)1/3 is said：a／one third1/8 is said：an／one eighth1/4 is said：a／one quarter(fourth)2/3 is said：two thirdsis said one and five ninths
Now read the following news item:
In an opinion poll published today, over 3/4 of the electorate say they intend to vote in nextmonth's referendum. 1/4 of voters say they will definitely vote Yes, while 1/3 will vote No. But thatleaves over 2/5 of the voters who haven't made up their minds. Both sides remain hopeful. A spokesman for the 'Yes' campaign said, "At the moment, 2/3 of the electorate won’t vote No." A spokeswoman for the other side replied, "That's true, but 3/4 won't vote Yes!"
在今天发布的一个名义调查显示有超过3/4的选民，（electorate 意思是一个国家的全体选民），表示将在下个月参加全民投票。1/4 的选民表示他们将投赞成票，1/3 的选民表示他们要投反对票，但是还有超过2/5的选民没有表态。双方依然都有盛出的可能。“赞成”阵营的一个发言人说：“目前，有2/3的选民没有投反对”，而“反对”阵营的一个女发言人说：“对，但是有3/4的选民没有投赞成”
VIII. CALCULATING
Remember to pronounce the s in equals as/z/. It is singular; the part on the left equals the part on the right.
10 + 4 = 14 ten plus four is fourteen
ten and four equals fourteen
10 - 4 = 6 ten minus four is six
ten take away four equals six
10×4 = 40 ten times four is (or equals) forty
ten multiplied by four is forty
10÷4 = ten divided by four is two and a half
IX. FOREIGN CURRENCY
Notice these ways of speaking about exchange rates:
How many yen per dollar did you get?
How many RMB are there to the dollar?
The current rate is about Euros to the pound.
X. NUMBERS AS ADJECTIVES
When a number is used before a noun - like an adjective - it is always singular. We say:
a fifty-minute English news not a fifty-minutes English news
Here are more examples:
a sixteen-week semester a thirty-five pound book
a fifteen-minute talk a six-week travel plan
a twenty-pound reduction a two and a half liter bottle
a six billion dollar loan
Say the following in a similar way:
1. They lent us ~250,000. They gave us a two hundred fifty thousand - pound loan.
2. Our house is 200 years old. We bought a 200- year-old house.
3. We lost $50,000. We made a fifty thousand – dollar lose
4. The salmon weighed 15 pounds! I caught a fifteen pound salmon
XI. REVIEW
How many of the following can you say aloud in under 1 minute?
, 567
2. 1,234,567,890
3.
4. %
5.
6. $
7. £
8. 19, 999
9. 1, 999 years
10. In 1999
11. I think the phone number is 01227-764000.
12. Have you got a pen? Their fax number is: 00 33 567 32 49.
13. He was born in 1905 and died in 1987.
14. 30 x 25 = 750
15. 30÷25 =
16. x2+y3=z
What is Money ?
As the word money is used in everyday conversation, it canmean many things, but to economists it has a very specific avoid confusion, we must clarify how economists' use of the
word money differs from conventional usage.
Economists define money as anything that is generally accepted in payment for goods orservices or in the repayment of debts.
Currency, consisting of dollarbills and coins, is one type of most people talk about money, they' re talking about currency. However, to define money merely as currency is much too narrow foreconomists. 汉语
Because checks are also accepted as payment for purchases, checking account deposits are considered money as well. Aneven broader definition of money is often needed. As you can see, there is no single, precise definition of money or the money supply, even for economists.汉语
To complicate matters further, the word money is frequentlyused synonymously with wealth. When people say, "Joe is rich—hehas an awful lot of money," they probably mean that Joe not onlyhas a lot of currency and a high balance in his checking account butalso has stocks, bonds, four cars, three houses, and a yacht. 汉语
Balance: the amount of money in an account at a particular time；帐户存款的余额
For example: Could you tell me what my balance is please? 你能告诉我的帐户余额吗？
Economists make a distinction between money and only money but also other assets such as bonds, common stock,art, land, furniture, cars, and houses.
People also use the word money to describe what economists callincome, as in the sentence "Susan would be a wonderful catch; shehas a good job and earns a lot of money."
Income is a flow of earnings per unit of time. Money, by contrast, is a stock: It is a certainamount at a given point in time. 收入是某一单位时间内收益的流量，而货币是一个存量，即某一时间点上一个特定的金额。
If someone tells you that he has anincome of $1 000, you can not tell whether he earned a lot or a littlewithout knowing whether this $1 000 is earned per year, permonth, or even per day. But if someone tells you that she has$1 her pocket, you know exactly how much this is.
Keep in mind that the money discussed refers to anything thatis generally accepted in payment for goods and services or in the repayment of debts and is distinct from income and wealth.
必须牢牢记住：我们所说的货币是在支付商品和劳务货款或在偿还债务时被普遍接受的任何东西，他与收入和财富是有区别的。
What does money do?
In this section, we will talk about the Functions of Money.
Whether money is shells or rocks or gold or paper, it has threeprimary functions in any economy: as a medium of exchange(交易媒介), a unitof account（计算单位）, and a store of value（价值的储藏）. Of the three functions, its functionas a medium of exchange is what distinguishes money from other assets such as stocks, bonds, and houses.
Medium of Exchange
In almost all market transactions in our economy, money in theform of currency or checks is a medium of exchange; it is used topay for goods and services. The use of money as a medium of exchange promotes economic efficiency by eliminating（节约） much of thetime spent in exchanging goods and services. 在我们经济社会所有的市场交易中，以通货和支票形式出现的货币都是交易媒介，也就是说我们用它来对商品和劳务进行支付。利用货币作为交易媒介省去了商品和劳务交易所需的大量时间，从而提高了经济效率。
The time spent trying to exchange goods or services iscalledatransaction cost, In a barter economy, transaction costs are high because people have to satisfy a "double coincidence of wants"（需求的双重巧合）---theyhave to find someone who has goods or service they want and whoalso wants the goods or service they have to offer.在从事商品和劳务交易时所花的时间叫做交易成本。在物物交换的经济中，交易成本很高，因为人们必须满足需求的双重巧合。即他们必须找到某个人拥有自己想要的商品和劳务，而且恰恰需要自己提供的商品和劳务。
Money is therefore essential in an economy it is a lubricant (润滑剂) that allows the economy to run more smoothly by loweringtransaction costs, thereby encouraging specialization and the divisionof labor.因此，货币在经济社会中，是十分重要的东西；它降低了交易成本，像润滑剂一样，能使经济更为迅捷的运行，并由此鼓励了专业化和劳动分工。
Now let’s come to see the second function of the money.
Unit of Account
The second role of money is to provide a unit of account; thatis, it is used to measure value in the economy. We measure the valueof goods and services in terms of money, just as we measure weightin terms of pounds or distance in terms of miles. 货币的第二个职能是：计算单位，就是说在经济社会中人们用钱来计算商品和劳务的价值。就像用磅来称重，用英里来测量距离一样。
Money we use nowadays, no matter in the form of banknotes or coin or electronic money, do not have the same value with the goods and services that it exchanged, but it represent a particular value. That is to say, money we use in the market is fiat money.不管是纸钞、硬币、还是电子货币，它们本身都与要交换的商品价值并不相等. 这是因为它们本身虽然没有什么价值，但却代表了一定的价值。这也就是说，现代货币是一种名义货币。
名义货币，也叫法定货币。英文是 Fiat money。Fiat 是拉丁文，它的意思是法令、许可、批准。
Fiat money has not only no particular value in use; it doesn't even really have a value in exchange except that which is decreed that it would have.
名义货币不仅仅没有什么特别的价值，而且在商品的交换中它本身根本没有价值。它拥有的只是法律所赋予它的价值。
So fiat money is money which is intrinsically worthless. And its value exists by virtue of the fact that it is generally acceptable. And fiat money, needless to say, is one of the most mysterious inventions of the human mind, and no economist has managed to explain exactly why it is that people will generally accept something as valuable when it clearly has no value other than that which it is decreed to have.
因此，名义货币从它的本质来说实际上一钱不值。它的价值只在于它能够获得普遍的接受。毫无疑问，名义货币是人类最神奇的发明之一。任何经济学家都还无法确切解释，为什么人们能够把一种除了法定的价值外显然没有任何价值的东西作为宝贵的东西来普遍接受。
Store of Value
Money also functions as a store of value: it is a repository ofpurchasing power over time. It is an asset. It's something that we can use to store value away to be retrieved at a later point in time. So we can not consume today, we can hold money instead - and transfer that consumption power to some point in the future. 他是一种超越时间的购买力的储藏。是一种资产。我们可以用它把价值储存起来，在以后的某个时刻再取回。这样我们不必现在就把它用掉，而是可以存着钱，把这种消费能力转移到将来的某个时刻。
Money is not unique as a store of value;any asset, be it money，stocks, bonds, land, houses, art, or jewelry, can be used to storewealth. Many such assets have advantages over money as a store of
value: They often pay the owner a higher interest rate than money,experience price appreciation, and deliver services such as providinga roof over one's head. If these assets are a more desirable store ofvalue than money, why do people hold money at all?
The answer to this question relates to the important economicconcept of liquidity, the relative ease and speed with which an assetcan be converted into a medium of exchange. Liquidity is highly desirable. Money is the most liquid asset of all because it is the medium of exchange; it does not have to be converted intoanything elsein order to make purchases. Other assets involve transaction costswhen they are converted into money.
Different Types of Money
Now, let’s clarify the meaning of some words that are related to “money”. Please look at the following words.
These are all different forms of money,
Money, Cash, Currency, Reserves, Salary, Wages, Income, Loan, Pension, Fund, Capital, Instalments, Debt, Subsidy, rebate, Deposit, Aid. Stake.
What are the exact meaning of these words in English? Now, let’s do some exercises, after that you will have a very clear idea of what they are.
Choose the correct alternative to complete each sentence:
1. Money in notes(banknotes) and coins is called
a. cash b. capital c. reserves
2. The dollar, the mark and the yen are all
a. currencies b. funds c. monies
3. Money borrowed from a bank is a
a. deposit b. income c. loan
4. Borrowed money that has to be paid back constitutes a
a. debt b. fund c. subsidy
5. All the money received by a person or a company is known as
a. aid b. income c. wages
Number 1 the answer should be: a cash. 纸币或者银币形式的钱，我们称之为：现金。
Number 2 the answer should be: a currency 美元，马克，和日元都是：通货 或 货币
Number 3 the answer should be: c loan 从银行借来的钱称之为：贷款
Number 4 the answer should be: a debt 借来的但必须要还回的钱称之为：债务
Number 5 the answer should be: b income 个人或公司所得到的所有的钱称之为：收入
6. The money earned for a week's manual work is called
a. income b. salary c. wages
7. The money paid for a month's (professional) work is a
a. loan b. salary c. wages
8. Money placed in banks and other savings institutions constitutes
a. capital b. deposits c finance
9. Money paid by the government or a company to a retired person is a
a. pension b. rebate c. subsidy
10. The money that will ultimately be used to pay pensions is kept in a
a. budget b. deposit c. fund
Number 6 the answer should be: c wages 一个星期的劳动所得称之为：wages
Number 7 the answer should be: b salary 一个月的工作所得称之为：salary，
由此我们可以看出，汉语里“公资”这个词在英文中根据工作时间的长短是有区分的。salary 和wage. 英文中按月支付的是salary, 按小时、每天、或每周支付的是 wage. 请大家注意区分。
Now, let’s look at the follow sentence which will tell you the history of salary.
Money's got a very colourful history, because a number of things have been used in the place of what we use as money. Feathers, shells, cloth ...salt. In Roman times when the Roman soldiers were paid in salt and that's how we get the word salary, from the Latin sal for salt.历史上的货币五花八门。古时候，羽毛、贝壳、布料甚至盐都曾是交换工具。古罗马士兵得到的军饷就是盐。盐这个词也是英文“工资”这个词的起源。拉丁文Sal的意思是盐，英文中工资Salary就是从它演变而来的。
Number 8 the answer should be: b deposit 存在银行或其他储蓄机构钱称之为：存款
Number 9 the answer should be: a pension 有政府或公司支付给退休人员的钱称之为：养老金
Number 10 the answer should be: c fund 最终用来支付养老金的钱是已基金的形式储存的
11. The money needed to start a company is called
a. aid b. capital c. debt_
12. The money paid to lawyers, architects, private schools, etc. is called
a. fees b. instalments c. wages
13. Regular part payments of debts are called
a. deposits b. loans c. instalments
14. Part of a payment that is officially given back is called a
a. gift b. instalment c. rebate
15. Estimated expenditure and income is written in a
a. budget b. reserve c. statement
Number 11 the answer should be: b capital 用于开办公司的钱称之为：资本
Number 12 the answer should be: a fee 支付给律师、建筑师和私立学校的钱是：费用
Number 13 the answer should be: c instalment 定期偿还的部分债务称之为：分期付款
Number 14 the answer should be: c rebate 反还的部分已付款称之为：退款
美国流行一种销售商品的方式叫rebate，意思是购物可获得大部分甚至全部退款。如果说商家承诺退还一部分购物款，无非是借此激励消费者多买自己商品而已，但在许多情况下，退款可以是百分之百，那就有点动机不明了。其实，商家聪明得很。他们事先就预期消费者购买时受到退款的诱惑，事后又不积极寻求退款，那商家不就大赚而特赚了吗？事实的确如此。据消费调查，购买rebate商品的消费者中，有70%以上事后“懒得”申请退款，余下30%申请了并且获得了退款的消费者，只是商家促销术的一点点微不足道的成本而已。促销的商家只需在申请退款的手续上面稍微制造一点“麻烦”（当然这些手续要求都是事先言明的），意在提高要求退款的交易费用，就足可以保持退款数额在有利可图的范围内。
Number 15 the answer should be: a budget 预计的支出和消费通常被写在预算里。
16. A person's money in a business is known as his or her
a. deposit b. fund c. stake
17. Money given to producers to allow them to sell cheaply is called a
a. loan b. rebate c. subsidy
18. Money given to developing countries by richer ones is known as
a. aid b. debt c. subsidy
Number 16 the answer should be: c stake 人们投入在生意上的钱叫做：股份
Number 17 the answer should be: c subsidy （政府）给生产某种产品的生产商一些钱从而让厂商低价销售产品。这部分钱叫做：津贴、或补贴
Number 18 the answer should be: a aid 发达国家赠送给发展中国家的：援助款
Ok, now we have a very clear idea of different forms of money in English.
Financial System and Financial Market
The Financial System
金融体系
在英国，每个人都与金融体系有着某种联系。银行、房屋互助协会以及保险公司等金融机构以它们各自的活动为我们的日常生活服务，例如，通过银行可以进行便捷的储蓄，房屋互助协会可以提供住房贷款，保险公司可以提供汽车、房屋、生命保险，等等。
Everyone has some contact with the financial system. We are all aware of financial institutions like banks, building societies, and insurance companies, each providing in its own way for some of our everydayneeds. For example, payments facilities through banks, convenient savings andaccess to home loans from building societies, and car, house, or lifeinsurance. Other financial institutions, such as investment trusts, venturecapital companies, and discount houses-to name only a few-are less well-known and carry out more specialized functions. Most people also knowsomething about financial markets, like the Stock Exchange where securitiesare bought and sold, though comparatively few are directly concerned withtheir activities. Again, there are other important but less familiar financialmarkets, like the money market in which large sums are borrowed and lent forvery short periods, and the foreign exchange market in which dealings inforeign currencies take place. All these financial institutions and markets fittogether into a network which comprises the financial system.
Read this paragraph and then tell me what does this paragraph tell us?
Everyone has some contact with the financial system. 每个人或多或少都与金融部门有着联系，
We are all aware of financial institutions like banks, building societies, and insurance companies, each providing in its own way for some of our everydayneeds. 我们都了解银行，房屋互助协会和保险公司这样的金融机构，它们都通过自己特有的方式为我们日常生活的需求提供帮助.
be aware of了解
for example, payments facilities through banks, convenient savings andaccess to home loans from building societies, and car, house, or lifeinsurance. 例如：银行提供的付款工具、房屋互助协会提供便利储蓄和住房信贷，以及保险公司的汽车、房屋或人寿保险。access to home loans：可以得到住房信贷
Other financial institutions, such as investment trusts, venturecapital companies, and discount houses-----to name only a few-----are less well-known and carry out more specialized functions. 其他的一些金融机构，如信托投资公司、风险资本公司、贴现银行——这只是其中的一部分——并不为大众所熟知但发挥着更为具体的职能。
Most people also knowsomething about financial markets, like the Stock Exchange where securitiesare bought and sold, though comparatively few are directly concerned withtheir activities. Again, there are other important but less familiar financialmarkets, like the money market in which large sums are borrowed and lent forvery short periods, and the foreign exchange market in which dealings inforeign currencies take place. All these financial institutions and markets fittogether into a network which comprises the financial system.
Most people also knowsomething about financial markets, like the Stock Exchange where securitiesare bought and sold, though comparatively few are directly concerned withtheir activities.大多数人还会对金融市场有些许了解，比如证券交易所——买卖证券的地方，尽管相对比较少的人会真正直接关注其活动。
Again, there are other important but less familiar financialmarkets, like the money market in which large sums are borrowed and lent forvery short periods, and the foreign exchange market in which dealings inforeign currencies take place. 此外，还有其他一些同样很重要，但人们并不熟悉的金融市场，像货币市场——那里发生着大额的极短期借贷，还有外汇市场——那里进行着一笔笔外汇交易。
All these financial institutions and marketsfittogether into a network which comprises the financial system. 所有的这些金融机构和金融市场会聚在一起交织成网便构成了金融体系.
All right, this paragraph tells us what comprises a financial system.
The quality of the services provided by the financial system affects theperformance of the economy as a whole. The most basic function of anyfinancial system is to facilitate payments in the economy. Normally theresponsibility for providing the necessary facilities falls on the note-issuingauthority-the government or the central bank-and the commercial bankingsystem. Satisfactory payments facilities are something which we are inclinednowadays to take for granted, but productive economic activity is dependent ontheir existence, and indeed on traders having reasonable access to short-termcredit facilities.
The quality of the services provided by the financial system affects theperformance of the economy as a whole. 金融系统的服务质量影响着一国经济总体的运行状况。
The most basic function of anyfinancial system is to facilitate payments in the economy. 金融系统最基本的职能是使经济生活中的支付活动更便利。
Normally theresponsibility for providing the necessary facilities falls on the note-issuingauthority-the government or the central bank-and the commercial bankingsystem. 通常，提供必要支付工具的责任落在一国的货币发行机关——通常是政府或中央银行——以及商业银行系统的肩上。
Satisfactory payments facilities are something which we are inclinednowadays to take for granted, but productive economic activity is dependent ontheir existence, and indeed on traders having reasonable access to short-termcredit facilities.今天我们想当然地乐于接受某种东西作为令人满意的支付工具，但经济生产活动正是依赖于它们的存在，更依赖于商人们拥有获得短期信贷工具的合理途径。
A properly developed and smooth-running financialsystem can do much more for the economy. It raises the levels of saving andinvestment and provides incentives for the allocation of the available resourcesto those uses where they are likely to give the highest returns. The financialsystem thus facilitates effective capital accumulation, one of the major enginesof economic growth, and it is the saving/investment aspect which will be thefocus of our attention.
A properly developed and smooth-running financialsystem can do much more for the economy.一个发展适度、运行平稳的金融体系能对经济起到许多其他的作用，
It raises the levels of saving andinvestment and provides incentives for the allocation of the available resourcesto those uses where they are likely to give the highest returns.它可以提高储蓄和投资的水平，并促进了将现有资源配置于那些有可能带来最大收益的用途。
Incentives：鼓励，激励，动机provides incentives for：促进
The financialsystem thus facilitates effective capital accumulation, one of the major enginesof economic growth, and it is the saving/investment aspect which will be thefocus of our attention.金融体系为有效的资本聚积——经济增长的主要动力之一——提供了便利，而储蓄一投资这方面正是我们关注的焦点。
How well a country's financial system satisfies users' needs is a matter forpublic concern. By their very nature financial institutions attract criticism:bankers would not be doing their jobs if they did not turn down some requestsfor loans and those who are denied funds sometimes feel hard done by and arevociferous in their complaints. The control which financial institutions wield
over very substantial sums of money also attracts the attention of governments,partly because they may see irresistible opportunities to secure cheap finance forfavored borrowers (notably governments themselves), and partly in view ofthe economic power attached to control of finance.
How well a country's financial system satisfies users' needs is a matter forpublic concern. 一国的金融系统满足使用者需求的程度如何是大众所关注的一个话题。
By their very nature financial institutions attract criticism:bankers would not be doing their jobs if they did not turn down some requestsfor loans and those who are denied funds sometimes feel hard done by and arevociferous in their complaints. 金融机构天生就容易招惹批评：如果银行家不拒绝几份贷款请求，那他就不是在认真工作；而那些被拒绝了的借款人有时会觉得十分委屈甚至大为光火，抱怨不停。
Vociferous: 大叫大嚷（抱怨的时候）
The control which financial institutions wieldover very substantial sums of money also attracts the attention of governments,partly because they may see irresistible opportunities to secure cheap finance forfavored borrowers (notably governments themselves), and partly in view ofthe economic power attached to control of finance.
Wield over: 表示对…有权利，有影响等
The control which financial institutions wieldover very substantial sums of money：金融机构拥有对大量金钱的管理权also attracts the attention of governments,同样也会引来政府部门的目光，partly because they may see irresistible opportunities to secure cheap finance forfavored borrowers (notably governments themselves)一方面是因为它们从中看到了为借款人(特别是政府自己)获取低廉融资的不可抗拒的机会，and partly in view ofthe economic power attached to control of finance另一方面是政府考虑到金融管理的经济效力。
译文：金融机构拥有对大量金钱的管理权同样也会引来政府部门的目光，一方面是因为它们从中看到了为借款人(特别是政府自己)获取低廉融资的不可抗拒的机会，另一方面是从金融管理的经济效力的角度。
Any evaluation of the financial system should be founded on anunderstanding of its functions within the economic system as a whole, and themeans by which these can be carried out. This must be complemented by knowledge of users' requirements, of the behavior of institutions, and ofmarket practices. Moreover, institutions and markets cannot be viewed inisolation, for it may not be important that one category of financial institutionmakes no provision for certain needs if these can be satisfied elsewhere in the system. What matters are not the shapes of the individual pieces, but how well the jigsaw fits together and the quality of the picture that emerges?The participants in the system
Any evaluation of the financial system should be founded on anunderstanding of its functions within the economic system as a whole, and themeans by which these can be carried out. 对金融体系的任何评估都应当建立在对它在整个经济体系中所发挥的作用，以及发挥这些作用的途径充分了解的基础上，
This must be complemented by knowledge of users' requirements, of the behavior of institutions, and ofmarket practices. 这必须通过学习那些有关使用者需求、机构实务以及市场实践的知识来补充。
Moreover, institutions and markets cannot be viewed inisolation, for it may not be important that one category of financial institutionmakes no provision for certain needs if these can be satisfied elsewhere in the system. 此外，不能孤立地看待机构和市场，因为某一类金融机构没有满足某种特定的需求这也许并不重要，只要这种需求能被金融体系中的其他部分满足就可以了。
makes no provision for certain needs=didn’t meet certain needs: 没有满足特定的需求
What matters are not the shapes of the individual pieces, but how well the jigsaw fits together and the quality of the picture that emerges.重要的不是每一片的形状，而是整幅拼图是否片片匹配，整幅图片是否和谐。
Just now we talked about three aspects of financial system:
comprises a financial system. a financial system.=Financial institutions + financial market
most basic function of anyfinancial systemis
1. Itfacilitates payments in the economy.
2. It raises the levels of saving andinvestment and provides incentives for the allocation of the available resourcesto those uses where they are likely to give the highest returns.
3. The most important thing to evaluate the financial system: treat financial system as a whole, don’t separate institutions from markets.
The participants in the financial system
The participants in the financial system can be classified into five broad groups: savers; investors and other borrowers; financial intermediaries; brokers and advisers; and regulators. The end-users of the financial system are the savers, whose current spending is less than their income and who have money available to lend to others; and the investors, who want to borrow money in order to buy capital goods or increase the scale of their business, as well as other borrowers who want to spend more than their incomes. In between lie the financial institutions and markets. Ensuring that money flows smoothly from savers through institutions and/or markets to investors is an important function of the financial system. It is the ultimate savers and ultimate borrowers who are, as it were, on the periphery of the financial system, whoseneeds it serves and who provide the rationale for its existence.
The participants in the financial system金融体系的参与者
The participants in the financial system can be classified into five broad groups: savers; investors and other borrowers; financial intermediaries; brokers and advisers;and regulators.金融体系的参与者大体上可以分为5类：储蓄者、投资者和其他贷款者、金融中介机构、经纪人和专家、管理者。
The end-users of the financial system are the savers, whose current spending is less than their income and who have money available to lend to others; 储蓄者是金融体系的最终使用人，他们的当期支出比收入少，因此有多余的钱借给别人；
and the investors, who want to borrow money in order to buy capital goods or increase the scale of their business, as well as other borrowers who want to spend more than their incomes. 投资者为了购买资本货物或扩大生意规模而有借钱的需要，他与其他借款人一样都是支出大于收入；
In between lie the financial institutions and markets. 在以上二者之间是金融机构和金融市场。
Ensuring that money flows smoothly from savers through institutions and/or markets to investors is an important function of the financial system.确保资金顺畅地由储蓄者通过金融机构或金融市场流向投资者是金融体系的一大重要功能，
It is the ultimate savers and ultimate borrowers who are, as it were, on the periphery of the financial system, whoseneeds it serves and who provide the rationale for its existence.可以说，最终储蓄者和最终借款人处于金融体系的最边缘，金融体系为他们的需求服务，他们是金融体系存在的最根本理由。
Periphery：外围，边缘；on the periphery of：在…的外围，边缘
Rationale：（决定、信念、计划的）基本原理，理论基础
Nevertheless, a good deal of the business of financial institutions andactivity in financial markets is generated, not by new saving and investment,but by rearrangements of existing savings or changes in the form of existingborrowings. People shift money from bank accounts to building societies orvice versa, and firms raise new long-term capital in order to pay off short-termdebts. Moreover, investors do not always need to borrow in order to financeexpenditure; they may choose instead to run down savings accumulated fromearnings previously, or they may use balances obtained by borrowing on otheroccasions. By permitting economic agents to organize their financing in aflexible manner, the financial system helps to make all this possible.
Nevertheless, a good deal of the business of financial institutions andactivity in financial markets is generated, not by new saving and investment,but by rearrangements of existing savings or changes in the form of existingborrowings.然而，金融机构的很大一块业务和金融市场中的活动并不是源于新增的储蓄和投资，而是产生于对已有储蓄的再分派或对已有借贷的形式改变。
People shift money from bank accounts to building societies orvice versa, and firms raise new long-term capital in order to pay off short-termdebts. 比如人们把钱从银行账户转到房屋互助协会或相反；公司筹集新的长期资本以偿还短期债务。
Moreover, investors do not always need to borrow in order to financeexpenditure; they may choose instead to use savings accumulated fromearnings previously, or they may use balances obtained by borrowing on otheroccasions. 此外，投资者融通资金以供支出并不总是需要通过借款的方式，他们也可以选择使用以前积攒下来的收入，或使用在其他机会下获得的贷款的余额。
By permitting economic agents to organize their financing in aflexible manner, the financial system helps to make all this possible.在金融体系的帮助下，通过允许经济个体以灵活的方式安排它们的融资，所有这些都成为可能。
Financial intermediaries are institutions which attempt to serve the needsof both lenders and borrowers. Saverswish to hold their savings-for example bank deposits-frequently differ from theways in which borrowers would like to obtain their funds-for example long-term loans. Financial intermediaries are often able to reconcile these divergentrequirements. In addition they provide a variety of specific services whichsavers and borrowers value in their own right. Examples are moneytransmission facilities and advice on corporate finance in the case of banks, lifeassurance cover in the case of insurance companies. Moreover, while there isnothing to prevent savers and investors from dealing directly with each other ifthey wish, the existence of financial institutions makes direct contactunnecessary, since both groups can deal with the intermediating institutions.
Financial intermediaries are institutions which attempt to serve the needsof both lenders and borrowers. 金融中介机构是指那些努力满足贷款人和借款人双方需求的机构。
Saverswish to hold their savings-for example bank deposits-frequently differ from theways in which borrowers would like to obtain their funds-for example long-term loans.储蓄者希望持有储蓄的形式——比如银行存款——通常与借款人希望获得资金的方式——比如长期贷款——不同。
Financial intermediaries are often able to reconcile these divergentrequirements.而金融中介机构经常能够协调这些要求上的分歧。
In addition they provide a variety of specific services whichsavers and borrowers value in their own right. 另外它们还提供各种储蓄者和借款者根据自身需要而看重的特殊服务。
Examples are moneytransmission facilities and advice on corporate finance in the case of banks, lifeassurance cover in the case of insurance companies.比如银行提供的资金汇送工具和公司融资咨询，又如保险公司提供的人寿保险。
Moreover, while there isnothing to prevent savers and investors from dealing directly with each other ifthey wish, the existence of financial institutions makes direct contactunnecessary, since both groups can deal with the intermediating institutions.另外，当没有任何东西能够阻挡储蓄者和投资者在他们愿意的条件下直接交易时，金融机构的存在使得他们没有必要直接签署合约，因为两大集团都可以与中介机构接洽。
In a competitive financial system (like that in ) institutionscompete for business in broadly construed "markets" for saving and lendingbusiness; they seek to attract funds from savers and supply funds to there are also organized markets which provide facilities for economicagents to borrow and lend or to buy or sell securities. The main role of brokersand advisers is to help these organized markets to function properly. Brokersand advisers provide information to participants in the markets, and attempt toensure that lenders and borrowers, buyers and sellers, have the facts they needto strike a fair bargain.
In a competitive financial system (like that in Britain) institutionscompete for business in broadly construed "markets" for saving and lendingbusiness; 在竞争的金融体系里(比如英国)，机构在广义的市场中展开储蓄和借贷业务的竞争，
they seek to attract funds from savers and supply funds to borrowers.它们努力探寻吸引储户资金和向借款者提供资金的方法。
But there are also organized markets which provide facilities for economicagents to borrow and lend or to buy or sell securities. 但也存在一些有组织的市场，它们为经济机构借钱、放贷或是买卖证券提供便利。
The main role of brokersand advisers is to help these organized markets to function properly. 经纪人和顾问们的主要角色就是帮助这些有组织的市场维持良好的运行。
Brokersand advisers provide information to participants in the markets, and attempt toensure that lenders and borrowers, buyers and sellers, have the facts they needto strike a fair bargain.经纪人和顾问为这些市场的参与者提供信息，并努力确保贷款人和借款人、买者和卖者获得他们敲定一笔公平交易所需的事实细节。
They also perform the vital task of putting actuallenders and borrowers in touch with each other-for example, the money-marketbroker brings together the lender who has money to spare with the borrowerwho wants it temporarily. By obviating the need for individual borrowers orlenders to search out counterparts themselves the brokers substantially reducetransactions costs. In most organized markets there are also market makers,professional dealers whose function is to ensure that lenders and borrowers arealways able to find a counterpart for their deals.
They also perform the vital task of putting actuallenders and borrowers in touch with each other.他们还从事一项十分重要的工作即安排贷款人和借款人实际接触。
For example, the money-marketbroker brings together the lender who has money to spare with the borrowerwho wants it temporarily. 例如，货币市场经纪人会把有钱出借的贷款人与暂时需要这笔钱的借款人拉到一起。
By obviating the need for individual borrowers orlenders to search out counterparts themselves the brokers substantially reducetransactions costs. 通过消除单个借款人或贷款人亲自寻找对方的必要，经纪人从根本上减少了交易成本。
Obviate: eliminate消除
In most organized markets there are also market makers,professional dealers whose function is to ensure that lenders and borrowers arealways able to find a counterpart for their deals.在大多数有组织的市场中还存在做市商，他们都是些专业的交易人，其功能是确保贷款人和借款人总能够找到对方进行交易。
Historical experience in many countries has shown that where large sumsof money are involved in financial markets there is a considerable danger offraud or other malpractices. Most countries therefore need regulators, whocontrol their financial institutions and regulate dealings in securities marketswith the objects of ensuring that the financial institutions are able to honortheir commitments, that people have access to relevant information before theyenter into contracts, and that dealing in securities is fair. These rules comeunder the general heading of prudential regulations.
Historical experience in many countries has shown that where large sumsof money are involved in financial markets there is a considerable danger offraud or other malpractices. 许多国家的历史经验显示，涉及到大笔资金的金融市场总会存在相当大的欺诈和其他不正当行为的风险。
Most countries therefore need regulators, whocontrol their financial institutions and regulate dealings in securities marketswith the objects of ensuring that the financial institutions are able to honortheir commitments, that people have access to relevant information before theyenter into contracts, and that dealing in securities is fair.因此大多数国家需要管理者，他们以保证金融机构能履行义务为目标，管理金融机构，监督证券市场的交易，从而人们在签署协议前能获得相关信息，证券交易保证公平。
These rules comeunder the general heading of prudential regulations. 这些管理都是在审慎监管的原则下进行的。
But more generaleconomic controls are also needed. Sharp expansions or contractions of activityin financial markets are often associated with booms and slumps in theeconomy at large, and the intimate connection between money, credit andeconomic stability compels countries to curb the expansion of credit in someperiods and to stimulate it in others. Economic controls may also be required toguard against monopolistic structures or practices in the financial system.
But more generaleconomic controls are also needed.但更全面的经济监管同样必不可少。
Sharp expansions or contractions of activityin financial markets are often associated with booms and slumps in theeconomy at large, and the intimate connection between money, credit andeconomic stability compels countries to curb the expansion of credit in someperiods and to stimulate it in others.金融市场活动的剧烈膨胀或萎缩经常与经济的普遍高涨或衰退密切相关，货币、信贷与经济稳定间的内在联系迫使各国在一些时期遏制信贷膨胀而在另外一些时候刺激信贷。
反义词：Expansion：contractions
Boom: slump
Compel: force
Curb: control or limit
expansion of credit:信贷膨胀
Economic controls may also be required toguard against monopolistic structures or practices in the financial system.防范金融体系内的垄断组织和垄断行为同样也需要经济调控。
Ok, that’s the introduction of participants of financial system.
Financial instruments
The financial system deals in financial instruments. These are mostly moreor less sophisticated forms of IOUs or claims-they are an asset of one party anda liability of another. In most instances the former party is entitled to repayment at a specified time, and receives a promise of some interest, share of profits, or other service as compensation for the loan. For example, deposits are liabilities of banks or other institutions, are generally repayable on demand or in the fairly near future, and usually bear interest.
Financial instruments金融工具
The financial system deals in financial instruments.金融体系进行金融工具的交易。
These are mostly moreor less sophisticated forms of IOUs or claims-they are an asset of one party anda liability of another. 它们大多数都是复杂或简约的借据或权证形式——它们对一方而言是资产，对另一方而言是负债。
In most instances the former party is entitled to repayment at a specified time, and receives a promise of some interest, share of profits, or other service as compensation for the loan. 在大多数情况下，前一方拥有在规定的时间要求偿还的权利，并且获得给付利息、分享利润或享受其他服务作为贷款酬金的承诺。
For example, deposits are liabilities of banks or other institutions, are generally repayable on demand or in the fairly near future, and usually bear interest.例如，存款对银行和其他机构而言是一笔负债，大多是要随时偿还或在很短的时间内偿还的，并且通常要支付利息。
Loans are often liabilities of ultimate borrowers, are usually repayable by the end of some predetermined period, and carry an obligation to pay interest. And ordinary shares are liabilities of firms, which confer on their owners the right to a share of the profits earned but, in contrast with loans, do not have to be repaid. As well as claims there are also derivative instruments-contracts relating to theprices of securities, interest rates or foreign exchange rates at some date in the future.
Loans are often liabilities of ultimate borrowers, are usually repayable by the end of some predetermined period, and carry an obligation to pay interest. 贷款对最终借款人而言通常是负债，在某一事先确定的期限结束前需要偿还，并且负有支付利息的责任。
And ordinary shares are liabilities of firms, which confer on their owners the right to a share of the profits earned but, in contrast with loans, do not have to be repaid. 普通股对企业而言是一笔负债，它授予了它的持有者分享盈利的权利，但与贷款相比它不需偿还。
Common stock(US)=ordinary shares(GB)
Confer=entitle.
As well as claims there are also derivative instruments-contracts relating to theprices of securities, interest rates or foreign exchange rates at some date in the future.包括各种权证在内，还存在着各种衍生的金融工具合约，它们与未来某天的证券价格、利率或汇率保持着某种联系。
Although a wide variety of financial instruments exists, differing significantly in detail, the major distinctions rest on three characteristics-risk, liquidity, and real-value certainty (that is, their susceptibility to loss of value due to inflation). A distinction can be drawn between on the one hand deposits and loans, which are generally made only if repayment of capital and interest is confidently expected, and on the other company shares, which are claims to a share of the surplus income after prior claims have been met.
Although a wide variety of financial instruments exists, differing significantly in detail, the major distinctions rest on three characteristics-risk, liquidity, and real-value certainty (that is, their susceptibility to loss of value due to inflation). 虽然种类繁多的金融工具共同存在，它们在具体细节上显著不同，但主要的差异存在于三个因素中——风险性、流动性及实际价值的确定性(即它们价值缩水相对于通货膨胀的敏感度)。
A distinction can be drawn between on the one hand deposits and loans, which are generally made only if repayment of capital and interest is confidently expected, and on the other company shares, which are claims to a share of the surplus income after prior claims have been met. 在一方——存款与贷款和另一方——公司股票之间我们能发现一处差异：对于前者而言只要本金和利息的偿还有所保证，交易便达成了；而对于后者而言，在上述要求得到了满足的前提下，它还要求分享超额的收入。
People think of their deposits with financial institutions as safe, and loans are usually secured on assets or made conditional on the borrower's financial performance, to give the lender added confidence in the safety of the funds, though there is usually some small chance of partial or total loss. The risk of loss, and conversely the possibility of gain, is heavily concentrated on equity assets, mainly the ordinary shares of companies. The shareholder is entitled to a share of the company's profits but must also accept the chance of experiencing some , for reasons discussed in chapter 8, the effects on the shareholders of success or failure of a company are magnified if the company has loans outstanding as well as ordinary shares.
People think of their deposits with financial institutions as safe, and loans are usually secured on assets or made conditional on the borrower's financial performance, to give the lender added confidence in the safety of the funds, though there is usually some small chance of partial or total loss.人们都认为存款存在银行里很安全，而为了给贷款人多一份信心确保自己的钱平安无事，贷款通常都以资产作保或对借款人的财务表现附加条件，但是通常还会留下一些贷款部分或全部损失的可能性。
The risk of loss, and conversely the possibility of gain, is heavily concentrated on equity assets, mainly the ordinary shares of companies. 损失的风险，以及它的反面——受益的可能，很大程度上都集中决定于产权资产——主要是公司的普通股。
The shareholder is entitled to a share of the company's profits but must also accept the chance of experiencing some loss.股东有权分享公司的利润，但也必须接受遭受损失的可能。
Indeed, the effects on the shareholders of success or failure of a company are magnified if the company has loans outstanding as well as ordinary shares.如果一个公司既有贷款又有普通股的话，公司经营成败对股东的影响将会被放大。
Liquidity refers to the ease and speed with which savings in nonmonetaryform can be turned into cash, and reflects both the maturity of financial instruments and their marketability. By maturity we mean the time which elapses before a deposit or loan is due to be repaid. Deposits which are repayable on demand have a short maturity, mortgage loans due for repayment after 25 years a long one. Thus maturity covers a very wide range, and the shorter is the maturity of a deposit or loan the greater is its liquidity. But assets which are marketable may also be liquid, even if they are not automaticallyrepayable in the near future.
Liquidity refers to the ease and speed with which savings in nonmonetaryform can be turned into cash, and reflects both the maturity of financial instruments and their marketability. 流动性指非货币形式的储蓄转化成现金的难易度和速度，它同时反映了金融工具的偿还期和市场化程度。
By maturity we mean the time which elapses before a deposit or loan is due to be repaid. 我们所说的偿还期是指一笔存款或贷款在到期偿付之前所需的时间。
Deposits which are repayable on demand have a short maturity, mortgage loans due for repayment after 25 years a long one. 活期存款期限非常短，而25年后才偿付的抵押贷款期限很长。
Thus maturity covers a very wide range, and the shorter is the maturity of a deposit or loan the greater is its liquidity.因此偿还期覆盖了很宽泛的范围，一笔存款或贷款的偿还期越短，则它的流动性就越强。
But assets which are marketable may also be liquid, even if they are not automaticallyrepayable in the near future.但可通过市场买卖的资产即便不能在近期自动偿付也同样具有流动性。
For example, ordinary shares in many companiescan be sold at short notice and their value turned into cash, though at a pricewhich is uncertain. Not all assets are marketable-fixed-term deposits are anexample-and in other cases the ease of selling and ability to obtain a reasonableprice may be in doubt. A house may hang fire for many months and the pricereceived will be a matter for negotiation. The existence of an organized marketfor an asset and the ability to deal at short notice therefore adds to an asset'sliquidity.
For example, ordinary shares in many companiescan be sold at short notice and their value turned into cash, though at a pricewhich is uncertain. 例如，许多公司的普通股凭一纸卖出指令便可以售出，其价值转化成了现金，尽管价格并不确定。
Not all assets are marketable-----fixed-term deposits are anexample----and in other cases the ease of selling and ability to obtain a reasonableprice may be in doubt.并不是所有的金融资产都是可以通过市场交易的——定期存款就是一个例子。在其他情况下，出售的难易程度和取得合理价格的能力有可能是不确定的。
A house may hang fire for many months and the pricereceived will be a matter for negotiation. 一所房子挂牌出租了好几个月而最后决定的价格取决于讨价还价。
The existence of an organized marketfor an asset and the ability to deal at short notice therefore adds to an asset'sliquidity.所以正因为存在着针对某种资产有专门的有组织的市场和凭一纸卖出命令就可以进行交易的能力，资产的流动性才得以大大增强。
The third distinguishing characteristic of financial instruments is their realvalue certainty. Neither deposits nor loans, whose values are fixed in money(or nominal) terms, provide their holders with protection against price levelchanges. Ordinary shares stand a good chance of doing better on this score,because profits can be expected in the end to rise roughly in line with thegeneral price level, though there may be prolonged periods when this does nothold good. The same goes for property, where rents can be expected to mirrorgeneral price changes over long periods-though as with ordinary shares theremay be considerable fluctuations in prices around any long-term trends.
The third distinguishing characteristic of financial instruments is their realvalue certainty. 金融工具的第三大区别因素是它们实际价值的确定程度。
Neither deposits nor loans, whose values are fixed in money(or nominal) terms, provide their holders with protection against price levelchanges. 无论是存款还是贷款，它们的价值都根据货币量(或名义价格)确定，因此都不能为其持有者提供抵御物价水平变动的保护。
Ordinary shares stand a good chance of doing better on this score,because profits can be expected in the end to rise roughly in line with thegeneral price level, though there may be prolonged periods when this does nothold good.普通股这时便有了出色表现的机会，因为可以预见，利润最终会根据价格总水平上涨的程度大体同步地上升；然而可能这不会马上见效，因为存在时滞。
The same goes for property, where rents can be expected to mirrorgeneral price changes over long periods-though as with ordinary shares theremay be considerable fluctuations in prices around any long-term trends.房产也是如此，租金在长期内会随价格总水平偕同变化，就像普通股价格围绕其长期趋势波动一样。
Unit 2 Central BankⅠ
Central Bank
First, I would like to introduce the names of the central banks in different countries in the world.
在多数国家, “ Bank of+ 国名”就是中央银行。例如：Bank of Japan,(日本银行)， Bank of Canada (加拿大银行)、Bank of Mexico (墨西哥银行)、Bank of France （法兰西银行），英国的央行是Bank of England(英格兰银行)；但是“Bank of China( 中国银行)却不是中国的央行，Can you tell me the name of central bank in China? Well, we should know that central bank in China我们中国的央行是(People’s Bank of China) 中国人民银行; 那么 Bank of America 是美洲银行，而不是美国的央行，它是一个普通的商业银行，其实呢也不普通，它在2005年的财富500强中排名52位。美国的央行是美国“联邦储备系统”简称“美联储”英文是“Federal Reserve System”, 简称“Fed” or FRS; 德国的央行为：“德意志联邦银行Bundesbank。
下面让我们一起看一下英文中对各国“财政部”、“财政部长”、“和央行行长”的称呼的用词的不同。
财政部： In Britain and America, they say “ the Treasury; the other countries say “ the Ministry of Finance”; 翻译成中文都是“财政部”，而不是“金融部”。
财政部长：In Britain, it is called “ Chancellor of the Exchequer, 财政大臣；In the , it is called “ Treasury Secretary (secretary of treasury); the other countries say “ Finance Minister”.
央行行长：Usually, in English, they say “governor”, because he has the responsibility to govern or regulate the other banks. 因为他有监管(govern or regulate)其他银行的职责,副行长是：deputy governor，而其他的银行的行长呢则称为：President. 副行长是vice president.
But, the States, this superpower always has his own characteristic(但是呢，美国这个超级大国呢总是有他自己的特点)：美国的央行是多层次的“联邦储备系统”，称呼也有其特色。我们来了解一下这个系统。请看这句话Fed has 12 districts in the States. 意思是美联储在全国分设12个储备区，每区设立一个“地区联邦储备银行”(regional Federal Reserve Bank)为该地区的央行，其下是会员银行(member banks). Federal Reserve （美联储）的最高决策机构是联邦储备委员会（Board of Directors）, 委员会的成员叫董事（governor）,注意他们不是央行的行长，行长一般由总统从中挑选，英文用chairman(主席)一词。那么在全国12个区的地区联邦储备银行其行长称为：president. 为了加深印象我们来看business week商业周刊上的两句话：1. Federal Reserve Chairman Alan Greenspan is a conductor with a style all his own. 意思是美联储主席格林斯潘是一个独具风格的指挥。
2．Greenspan and Dallas Fed President Robert D. McTeer Jr., are New Economy enthusiasts. 格林斯潘和达拉斯储备银行行长罗伯特是崇尚新经济者。
从上面的介绍，我们了解了中央银行在各个国家的名称，及各国对中中央银行行长、财政部及部长的用词，称呼。
Ok, next let’s do some exercises to find out the functions of the central bank.
Complete these sentences about Central Banks using the words in the box:
Central Banks, such as the Bank of , the Federal Reserve Board in the , and the Bundesbankin :
act control
fix function
implement influence
issue supervise
1 function as banks for the government and for other banks.政府的银行和其他银行的银行。
2 implementmonetary policy - either the government's, as in , or their own, if they areindependent, as in and the .执行货币政策- 或者是政府的货币政策，例如：英国；或者是中央银行自己的货币政策，如果央行是独立的，例如：德国和美国。
Well, maybe you would ask why in Britain Central Bank implement the government’s monetary policy, while in the and they implement their own monetary policy. Well, this is decided by the types of central bank in different countries. Here I would like to introduce to you the types of central banks in the world. Usually, there are two types of central bank; one is subservient central bank. That means when they formulate a monetary policy, they have to take the intentions of the Treasury or the Ministry of Finance into account. The person who have the right to decide which monetary policy should be adopted is the Chancellor of the Exchequer, not the governor. 多数国家的中央银行都是从属型央行(subservient central bank)一’，
即中央银行在制定货币政策时需要考虑政府(主要是财政部)的意图，二者意见相
左时，最终决定货币政策的是“财政部部长”，而不是“中央银行行长”。The Bank of England is the typicalsubservient central bank. 英格兰银行是典型的从属型中央银行。
Another type is: independent central bank; it is independent of the Treasury, they can formulate their own monetary policy, in this way to avoid the monetary policy just service for the short-term politics. 它独立于财政部，制定货币政策时主要着眼于长期的价格稳定，可以不考虑财政部长甚至政府首脑的意愿，因此避免了货币政策为短期政治目的服务。The Fed in the ,
Bundesbank in , Newsiland Reserve Systerm and European Central Bank are all belong to this type.
3 controlthe money supply控制货币供应量，
4 fixthe minimum interest rate.限定最小利率
5 actas lender of last resort to commercial banks with liquidity problems.为资金流动有问题的银行充当最后贷款人。最后贷款人的英文表达是：lender of last resort. 在英文中，
of last resort: means used when everything else has failed. 表示最后一招。例如：weapon of last resort.:使出最后的武器。
As a last resort: 作为最后的手段：as a last resort, we could borrow more money on the house. 实在不行，我们可以用房子做抵押来多贷些款。
6 issue coins and bank notes.发行硬币和银行券
7 influence(floating) exchange rates by intervening in foreign exchange markets.通过干预外汇市场来影响浮动汇率。
8 supervise the banking system.监管整个银行系统。
下面我们来看一下中央银行的这些职能的发展过程，及一些经济学家对这些功能的看法。Central banks are key economic policy institutions in most modern economies. But around the world, the role and functions of central banks have been under challenge from changing fashions in monetary policy and from the deregulation and globalisation of financial markets.
Let’s see some important words in this part.
First, deregulation: 这个单词是有前缀：de +词根regulation构成。Regulation: 管理，管制。
de: =remove, so deregulation: means remove the regulation of sth. 取消…的管制。
Under challenge from: 来自….的挑战。
在大多数现代国家的经济中，中央银行是一个重要的机构。但是世界各国中央银行的角色和功能一直受到货币政策不断演变以及金融市场取消管制和全球化的挑战。
现在让我们来看下面一段话：
The central banks usually began their existence as a banker that dealt exclusivelywith the national government, that really provides credit to the government of the country and in return for so doing, gets particular privileges which quite often is a monopoly on the issue of paper money. 1 exclusive 专门的，专有的，排他的
2．Credit：信贷
3．Privilege: 特权
4．Monopoly: 垄断。中央银行在问世之初通常都是只单独与各自政府打交道的银行，为政府提供信贷。作为交换，中央银行获得某些特权，通常是垄断货币的发行
From that strength, as these banks become large and important ，they acquire, almost by natural process, a vitally important function and that is what we've called a lender of last resort. 借助这一实力地位，随着中央银行越来越庞大和重要，它们几乎是自然而然地获得了极其重要的功能，也就是我们所说的“最后贷款者”。
1．Acquire：获得
2 vitally important 极其重要的3 liquid assets 流动资金，指可以迅速变成现金而不会有价值损失或损失较小的资产4 bail out 帮助...摆脱困境They become the banker for commercial banks. They're seen to be safe, other banks will put money on deposit with them. They become a leader of the banking community and in times of crisis it's this central bank that can assist banks who get into trouble.它们成为商业银行的银行。它们被认为是安全的。其它银行会把钱放在中央银行作为存款。中央银行成为银行界的领袖。在遭遇危机的时候，正是中央银行能够为陷入困境的银行提供帮助。
Now, there's a price to pay to be in the club, to have a central banker, and that is usually there is a set of sort of informal rules grow up about the behaviour of the other banks. They will hold a certain amount of capital, they'll hold some of their liquid assetson deposit with the central bank. If you're going to be bailed out you have to abide by convention.现在，要为参加这个俱乐部和拥有一个中央银行而出代价了。通常会产生一系列关于其它银行运作的非正式规则。它们需要保持一定数量的资本，需要在中央银行里存储一定的流动资产。若想得到中央银行的救助，就必需遵守规则。
deregulation 解除管制 globalisation 全球化regulator 管理者，调整者 administrator 管理人 exclusive 专门的，专有的，排他的 vitally important 极其重要的 lender of last resort 最后贷款者，为其它银行提供贷款的银行，这是中央银行的职能之一 commercial banks 商业银行 liquid assets 流动资产，指可以迅速变成现金而不会有价值损失或损失较小的资产 bail out 帮助摆脱困境
the Function of Central Bank
Just now, we talked about the a very important function of central bank, a lender of last resort.
最后贷款人这一职能意味着中央银行在其它商业银行遇到危机时要伸出救援之手。但是中央银行是否有能力成为各商业银行危难中坚强的后盾呢？我们来看下面的这段话：Support for the safety of the banking system via a lender of last resort mechanism became the most important function of central banks in the early twentieth century. However, the capacity of central banks to support commercial banks in trouble should not be overestimated.这段话说，通过最后贷款人机制来维护银行系统的安全已在二十世纪初成为中央银行最重要的功能。但是，不应该过高估计中央银行救援陷于困境的商业银行的能力。
那么为什么不能过高估计中央银行救援能力呢，我们来看下面的这段话的解释。Central banks have never actually had that much capital of their own, and they've never been able to finance any large scale rescue entirely on their own. Instead they act as information gatherers and co-ordinators of the banking system and they encourage and corral the banks as a group to provide support and assistance to the bank in difficulty.
1 capital 资本2 information gatherer 信息收集人3 coordinator 协调人4 corral 把...集合在一起5 rescue 救援中央银行自己实际上从来没有那么多的资金，也从来没有能力完全独立地资助任何大规模的救援行动。相反，它们是银行系统的信息收集者和协调人，鼓励并召集各个银行成为一个团体，为陷于困境的银行提供支持和援助。
And that has actually been the case more or less throughout ... and the Bank of England has acted as the co-ordinator and the central operator of a rescue system, rather than doing it all by itself.实际上几乎一直都大致是这种情况。英格兰银行就一直扮演着一个救援体系中的协调和中央运作的角色，而不是单独靠自己进行救援。More recently, the willingness of the banks to get together to bail out and support their colleagues has actually been diminishing with the more competitive system we now have. Actually now the fund to bail out or to provide any large scale support system for the banks has to come from the taxpayer.
近来，各银行联合起来援助和支持同伴的愿望实际上已经降低，因为我们现在有了竞争更激烈的体制。事实上，现在为银行提供的救援或大规模支持系统所需的资金只能来自纳税人。
二十世纪三十年代的经济大萧条使各国中央银行有了新的责任。我们来看下面的介绍：
The global depression of the 1930s and the demands for economic controls during the second world war thrust new responsibilities upon central banks. New economic ideas, principally those of the English economist John Maynard Keynes, legitimated a more interventionist set of government policies to direct the economy in pursuit of full employment and price stability.这段话中我们重点了解一个短语动词的意思，及用法。出现：thrust something upon/on somebody phrasal verb
if something is thrust upon you, you are forced to accept it even if you do not want it: 如果有某事thrust upon you,意味着你不得不接受某件事即便你不想要他。
Some people achieve fame by hard working(like film stars), some have fame thrust upon them(like crime victims).
He had marriage thrust upon him.
在文章中的这句话：second world war thrust new responsibilities upon central banks.二次你可以理解为二次世界大战把新的责任强加在中央银行身上。但是翻译呢，我们译为世界大战期使中央银行背负上新的责任。
我们再来了解这样一些英文词汇1 global depression 全球经济萧条2 legitimate 使...合法化3 interventionist 干涉主义者，干涉主义的4 full employment 充分就业，全面就业5 price stability 价格稳定二十世纪三十年代的大萧条以及第二次世界大战期间对经济进行控制的需要使中央银行背负上新的责任。新的经济观念，主要是英国经济学家凯恩斯的观点，使政府采用了一套更倾向于干涉主义的政策来指导经济，以追求全面就业和价格稳定。
由于各国政府在二十世纪三十年代的大萧条之后采行新的对经济进行干预的政策，各国中央银行因此有了新的职责。墨尔本大学银行史学家大卫梅里特解释说：The central bank was an institution that was already in existence, that now could act as agent for the government, combined with what we call fiscal policy, in bringing about full employment, price stability and so on. This became really their dominant or prime function from the end of the Second World War probably up until the 1970s. It's really the exercise of monetary policy which becomes the overriding objective. The older ones of lender of last resort, managing the note issue, being banker to government, really slide back into the background.大卫梅里特说，中央银行是一个已经存在的机构,现在它可以作为政府的代理，与我们所说的财政政策相配合，以实现充分就业和价格稳定等等。从第二次世界大战结束后可能一直到二十世纪七十年代末期，这一直是中央银行最重要的职能。实际上执行货币政策已成为压倒一切的目标。原来的“最后贷款人”、管理货币发行和充当政府银行等功能已经退居其次。
在这里我们要补充的是，到了二十世纪八十年代中期，各国中央银行的角色再次发生了变化，压低通货膨胀率取代了全面就业，成为货币政策压倒一切的目标。
1 capital 资本2 information gatherer 信息收集人3 co-ordinator 协调人4 corral 把...集合在一起5 rescue 救援6 global depression 全球经济萧条7 legitimate 使...合法化8 interventionist 干涉主义者，干涉主义的9 full employment 充分就业，全面就业10 price stability 价格稳定
Ok, now let’s see another function of central bank, that is: influence foreign exchange rate by intervening foreign exchange market.
各国的中央银行或储备银行大都会在关键时刻对市场进行干预，以减缓货币汇率的剧烈动荡。
First, let’s look at the following new words which you will meet in the passage. 1 fluctuations波动，动荡2 cushion 缓冲垫，减震器3 intervene 干预4 contention 辩论5 on balance 总的来说6overshooting 过火，过激The Reserve Bank tries to play a role in providing a comfort cushion by intervening from time to time in the foreign exchange market with a view to limiting its more extreme fluctuations.储备银行试图在减缓市场冲击力方面发挥作用，对外汇市场不时进行干预，目的是要限制它更剧烈的动荡。(翻译过程中，我们要求忠实于原文，但是呢，请不要逐字逐字的翻译)，
with a view to (doing) something： because you are planning to do something in the future: 翻译成汉语，我们可以说因为我们将来计划做某事，或者说我们的目的是去做谋事。Let’s see one example,
We bought the house in with a view to retiring there.
Well, what is the meaning of this sentence? It means we bought a house in because we are planning to live there after retiring.
So, in this sentence, “The reserve bank intervenes in the foreign exchange market with a view to limiting its more extreme fluctuations”, 可以理解为：The reserve bank intervenes in the foreign exchange market because they are planning to limit its more extremefluctuations储备银行对外汇市场进行干预，因为想要限制其更剧烈的动荡或着说目的是为了限制其更剧烈的动荡。
Whether the central bank should be doing this, and whether it actually can influence exchange rates in the face of market forces, are matters of some contention.中央银行是否应当采取这样的行动（即对市场进行干预），以及它在面对市场力量时是否真能对汇率发挥影响，是需要继续讨论的问题。
许多经济学家对中央银行进行干预的效果持怀疑态度。美国斯坦福大学经济学教授安妮克鲁格就是谈到了她自己的看法，她说：The first question is: can a central bank out-guess the market in terms of where the underlying market forces are taking the exchange rate? More interventions than not, I think, historically, have been when the central bank has been betting against the market. You may recall in 1992 when you had the upheavals in the European currencies, where there were a lot of bets against the markets and a lot of money was lost on the part of a lot of countries, including the Bank of England. So that basically, there's a real risk in central bank intervention.安妮克教授说，我认为从历史上来看，多数市场的干预都是中央银行逆市场走向下的赌注。可以回想一下1992年欧洲货币的那场大动荡。当时许多人都逆市场而动，投下大批赌注，很多国家都损失了大笔的资金，包括英格兰银行在内。因此基本上来说，中央银行的干预确实存在着危险。
The first question is: can a central bank out-guess the market in terms of where the underlying market forces are taking the exchange rate?In this sentence , Outguess: 猜中, underlying marketforces潜在的市场势力in terms of: 关于…方面。所以呢，这句话这样理解：首先的问题是，中央银行是否能够猜中（市场的有关。。。的方面）潜在的市场势力会把市场汇率带向何处。More interventions than not, I think, historically, have been when the central bank has been betting against the market.主语是More interventions than not，谓语是have been,即‘是’，宾语是when the central bank has been betting against the market.此句中，bet : 下赌注，bet against the market：逆市场走向下的赌注。所以这句话告诉我们：我认为从历史上来看，多数市场的干预都是中央银行逆市场走向下的赌注。我们来看下一句话：You may recall in 1992 when you had the upheavals in the European currencies, where there were a lot of bets against the markets and a lot of money was lost on the part of a lot of countries, including the Bank of this sentence, “recall” means remember,回响，回忆。Upheaval: a very big change that often causes problems: 大的变化，动荡。political upheaval：政治动荡。on the part of：就某人而言。In this sentence, “on the part of a lot of countries”就某些国家来说，因此，这句话可以理解为：可以回想一下1992年欧洲货币的那场大动荡。当时许多人都逆市场而动，投下大批赌注，很多国家都损失了大笔的资金，包括英格兰银行在内。So that basically, there's a real risk in central bank intervention.因此基本上来说，中央银行的干预确实存在着危险。
Ok, let’s see the last sentence: I think central bank intervention is dangerous. They're betting on one side of the market and then that gives speculators a one-sided bet, because they know that they can't really lose by going on the other side. 我认为中央银行的干预是危险的。它们就市场的一方打赌，这就给了投机者向另一方下赌注的机会。因为投机者知道投向另一方就肯定不会输。
the History of Bank
usury 高利贷
melt down 倒闭
lose confidence on 失去信心
reserves 准备金
nationalize 国有化
the Brief Introduction of Monetary Policy in Chinese
货币政策 monetary policy
货币供应量 money supply
利率 interest rate
宏观经济 macroeconomy
宽松货币政策 easy / loose policy
紧缩货币政策 tight / stringent policy
1、改变存款准备金要求 legal reserve requirement
准备金率 required reserve rato
信用紧缩 credit tightening
2、公开市场业务 open market operations
政府债券 government securities
3、变动再贴现率
再贴现率 discount rate
发货 shipment
贴现 discount
收取 charge
提息 raise / hike / lift interest rate
降息 cut interest rate
联邦基金率 federal fund rate
联邦基金市场 federal fund market
拆借 inter-bank lending
position
隔夜借贷 overnight
Unit 3 Central BankⅡ
Tools of Monetary Policy: the Open Market Operation
Open Market Operations are the most important monetary policy tools because they are the primary determinants of changes in interest rates and the moneta
ry base, the main source of fluctuations in the money supply. Open market purchases expand the monetary base, thereby raising the money supply and lowering short—term interest rates, and open market sales shrink the monetary base, lowering the money supply and raising short—term interest rates.
There are two types of open market operations: Dynamic open market operations are intended to change the level of reserves and the monetary base, and defensive open market operations are intended to offset movements in other factors that affect reserves and the monetary base, such as changes in Treasury deposits with the Fed conducts open market operations in U. S. Treasury and government agency securities, especially U. S. Treasury bills. The Fed conducts most of its open market operations in Treasury securities because the market for these securities is the most 1iquid and has the largest trading volume. It has the capacity to absorb the Fed's substantial volume of transactions without experiencing price fluctuations that would disrupt the market.
Open market operations have several advantages over the other tools of monetary policy.
the Advantages of the Open Market Operation
(1) Open market operations occur at the initiative of the Fed, which has complete control over their volume. This control is not found, for example, in discount operations, in which the Fed can encourage or discourage banks to takeout discount loans by altering discount rate but cannot directly control the volume of discount loans.
(2) Open market operations are flexible and precise; they can be used to any extent. No matter how small a change in reserves or the monetary base is desired, open market operations can achieve it with a small purchase or sale of securities. Conversely, if the desired change in reserves or the base is very large, the open market operations tool is strong enough to do the job through a very large purchase or sale of securities.
(3) Open market operations are easily reversed. If a mistake is made in conducting an open market operation, the Fed can immediately reverse it. If the Fed decides that the federal funds rate is too low because it has made too many open market purchases, it can immediately make a correction by conducting open market sales.
(4) Open market operations can be implemented quickly, they involve no administrative delays. When the Fed decides that it wants to chance the monetary base or reserves, it just places orders with securities dealers, and the trades are executed immediately.
Tools of Monetary Policy: Reserved Requirement
Changes in reserve requirements affect the money supply by causing the money supply multiplier to change. A rise in reserve requirements reduces the amount of deposits that can be supported by a given level of the monetary base and will lead to a contraction of the money supply. Conversely, a decline in reserve requirements leads to an expansion of the money supply because more multiple deposit creation can take Fed has had the authority to vary reserve requirements since the 1930s, and this is a powerful way of affecting the money supply. Indeed, changes in reserve requirements have such large effects on the money supply that the Fed rarely resorts to using this tool to control it.
The main advantage of using reserve requirements to control the money supply is that they affect all banks equally and have a powerful effect on the money supply. The fact that changing reserve requirements is a powerful tool, however, is probably more of a curse than a blessing because small changes in the money supply are hard to engineer by varying reserve requirements.
Another disadvantage of using reserve requirements to control the money supply is that raising the requirements can cause immediate liquidity problems for banks with low excess the Fed has raised these requirements in the past, it has usually softened the blow by conducting open market purchases or by making the discount window more available, thus providing reserves to banks that needed them. Continually fluctuating reserve requirements would also create more uncertainty for banks and make their liquidity management more difficult.
the People's Bank of
to raise required reserves of financial institutions by %
BEIJING, June 16 (Xinhua) -- The People's Bank of China, the nation's central bank, said Friday that it will raise the required reserves of financial institutions at the central bank by percentage points starting on July 5.
This means that the required reserves for State-run commercial banks and share-holding commercial banks will be increased from current percent to 8 percent.
Other financial institutions such as city credit cooperatives will also face a percentage point hike in their varying reserve requirements. Rural credit cooperatives (including rural cooperative banks) will not be affected.
China's national economy has maintained a steady and fast growth momentum this year; however, some striking problems, including fast growth in fixed asset investment and money credit, as well as widening trade surplus, still exist.
The move aims to further prevent credit from growing too fast and to provide a stable currency and financial environment for the sustainable and healthy development of the national economy, the central bank said.
From January to May this year, 's total lending of Renminbi, the country's currency, increased by trillion yuan, or billion yuan more than the same period of 2005.
The central bank believed that although the consumer price index is still relatively low, the rapid increase in credit would likely stimulate the economy to develop overheatedly and lead to inflation.
It is necessary to step up currency control policy while continuing to stick to an overall stable principle.
It is reported that commercial banks' required reserves at the central bank currently amounted to trillion yuan, in addition to 7 trillion yuan worth of floating state treasury bonds, financial bonds and central bank notes.
The increase in the reserve ratio will take about 150 billion yuan (US$ billion; billion) in funds out of circulation.
A deputy head of the China Banking Regulatory Commission said on Thursday that banks should reduce the amount of loans they issue.
Commission vice-chairman Jiang Dingzhi said during a meeting with financial institutions that the banking sector should pay close attention to macro-economic development.
Many economists warn that the economy is facing overheated investment and earlier central bank figures showed that domestic banks issued trillion yuan in loans in the first five months, already consuming more than 70 percent of the annual target.
Banks should move to reduce non-performing lending, Jiang said. He called on commercial banks to adjust the lending structure by actively increasing loans to small enterprises, saying big clients are often more risky because of their "complication and affiliation".
Tools of Monetary Policy:Discount Policy
Discount policy, which primarily involves changes in the discount rate, affects the money supply by affecting the volume of discount loans and the monetary base. A rise in discount loans adds the monetary base and expands the money supply; a fall in discount loans reduces the monetary base and shrinks the money supply. Federal Reserve facility at which discount loans are made to banks is called the discount window. It is easiest to understand how the Fed affects the volume of discount loans by looking at how the discount window operates.
The Fed can affect the volume of discount loans in two ways: by affecting the price of the loans (the discount rate) or by affecting the quantity of the loans through its administration of the discount window.
The mechanism through which the Fed's discount rate affects the volume of discount loans is straightforward: A higher discount rate raises the cost of borrowing from the Fed, so banks will take out fewer discount loans; a lower discount rate makes discount loans more attractive to banks, and loan volume will increase.
To examine how the Fed affects the quantity of discount loans through its administration of the discount window, we have to examine more closely how these loans are made.
A bank faces three costs when it borrows from the discount window: the interest cost represented by the discount rate, the cost of concerns that might be raised about the health of the bank if the market guesses that the bank has gone to the discount window, and the cost of being more likely to be turned down for a discount loan in the future because of too frequent trips to the discount window. The Fed's setting of rules for use of the discount window is frequently referred to as moral suasion.
The use of discount policy to control the money supply seems to have little to recommend it. Not only does it suffer from the disadvantages described, but it is also less effective than open market operations for two additional reasons: open market operations are completely at the discretion of the Fed, whereas the volume of discount loans is not--the Fed can change the discount rate, but it can' t make banks borrow.
The use of discount policy to control the money supply seems to have little to recommend it. Not only does it suffer from the disadvantages described, but it is also less effective than open market operations for two additional reasons. Open market operations are completely at the discretion of the Fed, whereas the volume of discount loans is not--the Fed can change the discount rate, but it can' t make banks borrow. In addition, open market operations are more easily reversed than changes in discount policy.
Unit 4 Commercial BankⅠ
Commercial Banks in the
In 1992, there were about 11 500 commercial banks in the . A commercial bank can be chartered either by the state (state-chartered banks) or by the federal government (national banks). Of the 11 500 banks, more than half were state-chartered. All national banks must be members of the Federal Reserve System and must be insured by the Bank Insurance Fund (BIF), which is administered by the Federal Deposit Insurance Corporation. BIF was created early in 1989.
State-chartered banks may elect to join the Federal Reserve System. Their deposits must be insured by BIF. In spite of the large number of banks that elect not to be members of the Federal Reserve System, banks that are members hold more than 70% of all deposits in the . Moreover, with the passage of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA), the reserve requirements that apply to members of the Federal Reserve System apply also to state-chartered banks.
解释：Charter: to say officially that a town, organization, or university officially exists and has special rights：特许成立（城镇、组织、或大学）。授权。
be chartered by the state （state-chartered banks）由州授予执照叫做(州银行)
be charteredby the federal government(national banks). 由联邦政府授予执照叫做(国家银行).翻译：到1992年为止，美国约有11 500家商业银行。商业银行既可由州也可由联邦政府授予执照，
Of the 11 500 banks, more than half were state-chartered.
在所有11 500家银行中，有一半以上是州银行。
All national banksmust be members of the Federal Reserve System and must be insured by the Bank InsuranceFund (BIF), which is administered by the Federal Deposit Insurance Corporation.所有的国家银行都是联邦储备系统的成员并参加银行保险基金(BIF)的保险，which 引导定语从句修饰BIF, 表示该基金由联邦存款保险公司(FDIC)管理。BIF wascreated early in 1989.， BIF是1989年初成立的。
2．State-chartered banks may electto join the Federal Reserve System. Their deposits must beinsured by BIF. In spite ofthe large number of banks that elect not to be members of the FederalReserve System, banks that are members hold more than 70% of all deposits in the .Moreover, with the passage of the Depository Institutions Deregulation and Monetary ControlAct of 1980 (DIDMCA), the reserve requirements that apply to members of the Federal ReserveSystem apply also to state-chartered banks.
State-chartered banks may electto join the Federal Reserve System.
elect to do something formal to choose to do something:
You can elect to delete the message or save it
美国的州银行对于是否参加联邦系统有选择权，
Their deposits must beinsured by BIF.但其存款必须向BIF投保。
In spite ofthe large number of banks that elect not to be members of the FederalReserve System, banks that are members hold more than 70% of all deposits in the .虽然许多州州银行选择不参加联邦储备系统，但作为联邦系统成员的银行却持有美国全部存款的70%。
Moreover, with the passage of the Depository Institutions Deregulation and Monetary ControlAct of 1980 (DIDMCA), the reserve requirements thatapply to members of the Federal ReserveSystem apply also to state-chartered banks.
而且，随着《1980年存款机构管制放松和货币控制法制法案》的通过，对州银行开始适用与联邦系统成员银行相同的准备金要求。
Bank Services
banks provide numerous services in the financial system. The services can be broadly classified as follows: (1) individual banking, (2) institutional banking, and (3) global banking. Of course, different banks are more active in certain of these activities than others. For example, money center banks(defined later) are more active in global banking.
Commercial banks provide numerous services in the . financial system.在美国的金融体系中，商业银行为整个经济提供着多种服务。The services can be broadly classified as follows: (1) individual banking, (2) institutional banking, and (3) global banking. 这些服务大致可分为三类：①零售银行业务；②机构银行业务；③全球银行业务。Of course, different banks are more active in certain of these activities than others. For example, money center banksare more active in global banking.当然，不同的银行在某些特定的领域（这里指以上三大类服务）表现得可能比其他银行活跃。例如，金融中心银行在国际银行业务中就活跃_些。
2. Individual banking encompasses consumer lending, residential mortgage lending, consumer installment loans,credit card financing, automobile and boat financing, brokerage services,students loans, and individual-oriented financial investment services such as personal trust and investment services. Interest and fee income are generated from mortgage lending an d credit card financing. Mortgage lending is often referred to as "mortgage banking" Fee income isgenerated from brokerage services and financial investment services.
Individual banking encompasses consumer lending, residential mortgage lending, consumer installment loans,credit card financing,automobile and boat financing,brokerage services,students loans, and individual-oriented financial investment services such as personal trust and investment services. 零售银行业务包括消费贷款、住房抵押贷款、分期消费贷款、信用卡融资、车船融资、经纪业务、学生贷款和为个人提供的金融投资服务，如个人信托和投资服务。
Interest and fee income are generated from mortgage lending and credit card financing.抵押贷款和信用卡融资为银行带来利息和费用收入。
Mortgage lending is often referred to as "mortgage banking"抵押贷款通常被称为“抵押银行业务”.
Fee income isgenerated from brokerage services and financial investment services.
isgenerated from: 由…而产生
经纪服务和金融投资服务能为商业银行带来费用收入。
to nonfinancial corporations, financial corporations (such as life insurance
companies), and government entities (state and local governments in the and foreign
governments) fall into the category of institutional banking. Also included in this category arecommercial real estate financing, leasing activities, and factoring. In the Case of leasing, a bankmay be involved in leasing equipment either as lessors, as lenders to lessors, or as purchasers ofleases. Loans and leasing generate interest income, and other services that banks offerinstitutional customers generate fee income. There services include management of the assetsof private and public pension funds, fiduciary and custodial services, and cash managementservices such as account maintenance, check clearing, and electronic transfers.
Loans to nonfinancial corporations, financial corporations (such as life insurancecompanies), and government entities (state and local governments in the and foreigngovernments) fall into the category of institutional banking.
Fall into: to belong to or be part of a particular group, or type of things 属于….fall into the category of institutional banking.…属于机构银行的业务范畴。
Entity:实体，eg: economic entity: 经济实体 political entity: 政治实体，如：一个州或一个国家。Government entity: 政府实体即政治机构。
翻译：
机构银行业务是指对非金融公司、金融公司(如人寿保险公司)和政府机构(美国的州、当地政府和外国政府)的贷款。
Also included in this category arecommercial real estate financing, leasing activities, and factoring.这一类业务中还包括商业房地产融资、租赁和保付代理。
Lease: 租赁
Collocations: take out a lease (=start having a lease)开始一个租赁活动或业务
renew a lease (=start having a lease again after it has finished)续租
a lease expires/runs out (=a lease stops)租赁到期
a long lease 长期租赁
a short lease短期租赁
factoring: 保付代理
保付代理(Factoring)业务是在以赊销(O/A)为支付方式的贸易中,由保理商(Factor)通常是银行或金融机构）向出口商提供的一种集融资,结算,财务管理,信用担保为一体的综合性的贸易支付方式,简称保理业务. 分国内保理和国际保理两种. 通常在赊销方式下,卖方根据合同或订单发货交单后,只能被动地等待买方到期时付款,因赊销是汇款方式中货到付款,属商业信用,并不象信用证那样,由银行来承担第一性的付款责任. 由于各种原因,一些买方可能会一再拖延付款, 而有一些卖方可能永远也不会付款, 除非买方的资信可靠, 或者双方中的一方是另一方的子公司. 如果出口商和保理商签定了协议, 情况就会发生根本性的变化. 保理商将负责对买方的资信进行调查,提供风险担保, 并替出口商催收帐款及进行有关帐务管理和资金融通等, 从而解除了卖方的后顾之忧. 同时资金的占用也是一个突出的问题，赊销将使出口方的资金大量被应收帐款所占用。国际保理业务便是一种专门为出口赊销服务的金融工具，它可以使企业在得到赊销利益的同时，最大程度地避免赊销的负面影响，从而达到企业利润最大化的目标。
In the Case of leasing, a bankmay be involved in leasing equipment either as lessors, as lenders to lessors, or as purchasers ofleases.
Be involved in : involved adj, = to take part in an activity or event, or be connected with it in some way. 参与某项活动或卷入某个事件。有时翻译根据上下文，也可以很灵活，如在本文我们就可以翻译成：银行可以从事设备租赁业务，银行充当的角色可以是
在设备租赁业务中银行可以担当出租人、出租人的贷款人或出租标的的购买人等角色。
Loans and leasing generate interest income, and other services that banks offerinstitutional customers generate fee income.贷款和融资租赁会带来利息收入，而银行对机构客户提供的
其他金融服务则带来费用收入。
These services include management of the assetsof private and public pension funds, fiduciary and custodial services, and cash managementservices such as account maintenance, clearing, and electronic transfers.
这些服务包括管理私人或公共养老基金的资产、代理和保管服务，以及记账、清算和
电子转账等现金管理服务。
Fiduciary来源于罗马法，既是名词，又是形容词，其中心意思是指一个人具有受托人品格中所要求的关于信任、信赖和谨慎善意、坦诚的品格。（注：《布莱克法律辞典》1979年第五版（英文），第 563页。）这样的一个人在有关其承诺的事务中负有因其承诺而生的、首先为受托人利益而行事的职责。
做名词时我们把它翻译为：被信任的人或受信人，或代理。
做形容词时我们把他翻译为：诚信的，fiduciary duty: 诚信责任,诚信(Fiduciary Duty)是西方国家公司法中的一个极其重要的法律原则，它产生于传统的信托制度
For example: Investment banks are fiduciaries to clients, public investors and even the whole society. In breach of such fiduciary duties, the investment banks shall undertake contractual, tort and fiduciary liabilities. 投资银行对客户、投资者乃至整个社会承担一种特殊的诚信义务，违反这种诚信义务，投资银行要承担契约、侵权和诚信法律责任.
Custodial: Custodial Account.保管帐户1 在一家银行、证券行或共同基金开设的帐户，由一名成人为一名18或21岁以下的儿童管理2.一名保管人为合资格员工管理的养老金户口
Custodian：保管人：需要对于客户证券负法律责任的金融机构。这包括管理及安全保管。
4．It is in the area of global banking that banks have begun to compete withanother financial institution--investment banking firms. Global banking covers a broad range ofactivities involving corporate financing and capital market and foreign exchange products andservices. Most global banking activities generate fee income rather than interest income.
It is in the area of global banking that banks have begun to compete withanother financial institution--investment banking firms.国际银行业务是商业银行与另一个金融机构———投资银行展开竞争的领域之一。
Global banking covers a broad range ofactivities involving corporate financing and capital market and foreign exchange products andservices.
国际银行业务涉及公司理财、资本市场、外汇产品和服务等广泛领域，
Most global banking activities generate fee income rather than interest income.
大多数国际银行业务活动产生费用收入而不是利息。
5．Corporate financing involves two components. First is the procuring of funds for a bank's
customers. This can go beyond traditional bank loans to involve the underwriting of securities,though the Glass-Steagall Act limits bank activities in this area. In assisting its customers inobtaining funds, banks also provide bankers' acceptances, letters of credit, and other types ofguarantees for their customers. That is, if a customer has borrowed funds backed by a letter ofcredit or other guarantee, its lenders can look to the customer's bank to fulfill the second area of corporate financing involves advice on such matters as strategies forobtaining funds, corporate restructuring, divestitures, and acquisitions.
Procure: obtain 获得，获取。
Divestiture: 撤资。
Invest: v.投资. Divest v. 撤资。
bankers' acceptances：银行承兑汇票
corporate restructuring：公司重组
acquisition： n. 收购兼并
Corporate financing involves two components. First is the procuring of funds for a bank's
customers.公司理财涉及两个内容：一是帮银行客户获取其所需的资金。
This can go beyond traditional bank loans to involve the underwriting of securities,though the Glass-Steagall Act limits bank activities in this area.公司理财业务使商业银行业务范围超过了传统的贷款而涉足证券承销领域，尽管有限制其从事证券承销的格拉斯．斯蒂格尔法案。In assisting its customers inobtaining funds, banks also provide bankers' acceptances, letters of credit, and other types ofguarantees for their customers.为了帮助客户获得资金，银行还为客户提供银行承兑汇票、信用证和其他保证。That is, if a customer has borrowed funds backed by a letter ofcredit or other guarantee, its lenders can require the customer's bank to fulfill the obligation.也就是说，当客户凭信用证或其他保证借钱时，贷款人可以要求客户的银行承担义务。The second area of corporate financing involves advice on such matters as strategies forobtaining funds, corporate restructuring,divestitures, and acquisitions.公司理财的第二个领域是提供融资策略、公司重组、撤资和收购兼并方面的建议。
6．Capital market and foreign exchange products and services involve transactions where the
bank may act as a dealer or broker in a service. Some banks, for example, are dealers in government or other securities. Customers who wish to transact in these securities can do sothrough the government desk of the , some banks maintain a foreign-exchangeoperation, where foreign currency is bought and sold. Bank customers in need of foreignexchange can use the services of the bank.
government desk国债柜台
Dealer交易商
Broker经纪商
Capital market and foreign exchange products and services involve transactions where the
bank may act as a dealer or broker in a service. 资本市场和外汇产品及服务业务中银行可作为交易商或经纪商， Some banks, for example, are dealers in or other securities. 例如一些银行是美国政府证券和其他证券的交易商，Customers who wish to transact in these securities can do sothrough the government desk of the bank.做这些证券交易的客户可通过银行的国债柜台成交。Similarly, some banks maintain a foreign-exchangeoperation, where foreign currency is bought and sold. 另一些银行从事外汇业务，即外币买卖。Bank customers in need of foreignexchange can use the services of the bank.需要外汇的客户可以利用银行的这种服务。
7．In their role as dealers, banks can generate income in three ways: (1) the bid-ask spread,(2) capital gains on the securities or foreign currency used in transactions, and (3) in the case ofsecurities, the spread between interest income earned by holding the security and the cost offunding the purchase of that security.
bid-ask spread：买卖差价。Spread: 差额，差价。
Capital gain: 资本收益：资本资产（投资或房地产）价值的上升，令其价值高于买入价格。这项收益在出售有关资产时才能实现。也就是说人们卖出股票（或其他资产）时所获得的超过原来为它支付的那一部分的收益，资本收益可能是短期的（一年或以下）或长期（一年以上），并且必须支付所得税
In their role as dealers, banks can generate income in three ways:作为交易商的银行可以从三个渠道获得收入：(1) the bid-ask spread,①买卖差价；capital gains on the securities or foreign currency used in transactions,②证券和外汇交易的资本收益：in the case ofsecurities, the spread between interest income earned by holding the security and the cost offunding the purchase of that security.通过持有证券所获得的利息收入与用于购买证券的资金成本之间的差额。
(3)证券的利息收入和购买证券的资金成本之间的差额。
8．The financial products that banks have developed to manage risk also yield income. Theseproducts include interest rate swaps, interest rate agreements, currency swaps, forward contracts,and interest rate options. Banks can generate either commission income (that is, brokerage fees)or spread income from selling such products.
The financial products that banks have developed to manage risk also yield income.
Yield: generate产生。
银行开发的用以管理风险的新金融产品也能产生收入
These products include interest rate swaps, interest rate agreements, currency swaps,forward contracts,and interest rate options.
Swap: exchange
swap something for something
He swapped his watch for a box of cigars.
swap something with somebody
The girls chatted and swapped clothes with each other.
这些产品包括利率互换、利率协议、货币互换、远期协议和利率期权等。
interest rate swaps：A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies.多家银行或公司之间的交易，借贷人将浮息贷款转换为另一个国家的定息贷款，两项贷款可以是同一货币或不同的货币。（以后可以增加些内容）基In an interest rate swap, the principal amount is never exchanged,利率互换中，本金量不会发生变化。礎
：
forward contract:A cash market transaction in which delivery of the commodity is deferred until after the contract has been made. Although the delivery is made in the future, the price is determined at the initial trade date.远期合约。一种现金市场交易，将交付商品的日期延迟到签订合约后。虽然商品在未来交付，但价格在最初交易日决定
currency swap: A swap that involves the exchange of principal and interest in one currency for the same in another currency.将一种货币的本金及利息交换成为另一种货币本金或利息的互换。
Interest rate option:Interest rate options allow your company to actively manage its interest rate exposure by providing a form of “insurance” against adverse market moves while still allowing you to benefit from favorable market moves. Like all insurance, a premium is typically paid for that protection. That premium can be minimized or eliminated by selling an option that limits some of your upside market potential利率期权可以让您的公司积极的管理利率风险，它在市场出现不利走势时为您提供保险，在市场出现有利走势时让您受益。正如所有保险一样，保障要付出费用，这费用可以通过出售（在升市时限制获利潜力）的期权而得以减少或免除。Interest rate options can be tailored to your company’s specific requirements. The three basic structures are the Interest Rate Cap, Interest Rate Floor, and the Interest Rate Collar。利率期权可配合您公司的特殊需要。利率期权的三个基本结构是：利率上限，利率下限，利率上下限。
有关期权的知识，我们在以后的课程中会有更详细的介绍，这里就不多介绍。
Banks can generate either commission income (that is, brokerage fees)or spread income from selling such products.银行通过卖出这些产品获得佣金收入(经纪费)或利差(差额)收入。
Bank Funding银行资金的来源
1．In describing the nature of the banking business, we have focused so far on how a bank cangenerate income. We will have a look at how a bank can raise funds. There are three sourcesof funds for banks: (1) deposits, (2) nondeposit borrowing, and (3) common stock and retainedearnings. Banks are highly leveraged financial institutions, which means that most of theirfunds come from borrowing--the first two sources we refer to. Included in nondepositborrowing are borrowing from the Federal Reserve through the discount window facility,borrowing reserves in the federal funds market, and borrowing by the issuance of instruments inthe money and bond martets.
In describing the nature of the banking business, we have focused so far on how a bank can
generate income. We will have a look at how a bank can raise funds. There are three sources
of funds for banks: (1) deposits, (2) nondeposit borrowing, and (3) common stock and retained
earnings.在描述银行业务的性质时，我们已经集中研究了银行如何获得收入，现在看一看银行如何筹集资金。银行的资金来源有三个：①存款；②非存款性借款：③普通股和留存利润。Banks are highly leveraged financial institutions, which means that most of theirfunds come from borrowing--the first two sources we refer to.银行是高杠杆率的金融机构，（这意味着）他们的大部分资金来源于借款——上述前两种来源。Included in nondepositborrowing are borrowing from the Federal Reserve through the discount window facility,borrowing reserves in the federal funds market, and borrowing by the issuance of instruments inthe money and bond markets.
非存款性借款包括从美联储贴现窗口借款、从联邦基金市场借款（联邦基金指美联储的会员银行在央行的储备金帐户中的存款，美国的联邦基金市场类似于英国的同业拆借市场，）以及在货币和债券市场上发行债券筹集的资金。
2．Deposits--There are several types of deposit accounts. Demand deposits (checking
accounts) pay no interest and can be withdrawn upon demand. Savings deposits pay interest
(typically below market interest rates), do not have a specific maturity, and usually can be
withdrawn upon demand.
Deposits--There are several types of deposit accounts.存款——存款账户种类繁多。
Demand deposits (checkingaccounts) pay no interest and can be withdrawn upon demand.活期存款(支票账户)——不支付利息但可在需要时随时提取。Savings deposits pay interest(typically below market interest rates), do not have a specific maturity, and usually can be
withdrawn upon demand.储蓄存款——支付利息(一般低于市场利率)且没有确定期限，一般在需要时也可提取。
Time deposits, also called certificates of deposit, have a fixed maturity date and pay either afixed or floating interest rate. Some certificates of deposit can be sold in the open market priorto their maturity if the depositor needs funds. Other certificates of deposits cannot be sold. If adepositor elects to withdraw the funds from the bank prior to the maturity date, a withdrawalpenalty is imposed. A money-market demand account is one that pays interest based onshort-term interest rates. The market for short-term debt obligations is called the money market,which is how these deposits get their name.
Time deposits, also called certificates of deposit, have a fixed maturity date and pay either afixed or floating interest rate.定期存款，也称存单——有固定到期日，按固定或浮动利率支付利息。Some certificates of deposit can be sold in the open market priorto their maturity if the depositor needs funds.某些未到期的定期存单当存款者需要资金时可在市场上出售，而Other certificates of deposits cannot be sold.除此以外的存单则是不可出售的。If adepositor elects to withdraw the funds from the bank prior to the maturity date, a withdrawalpenalty is imposed.如果存款者在到期日前从银行提取资金，就会受到提前提款的惩罚。A money-market demand account is one that pays interest based onshort-term interest rates.货币市场活期账户是按短期利率支付利息的账户。The market for short-term debt obligations is called the money market,which is how these deposits get their name.短期债务市场被称为货币市场，其存款的名称——货币市场活期账户——也就因此而得名
4. Borrowing at the Fed discount window---The Federal Reserve Bank is the banker's bank
-or, to put it another way, the bank of last resort. Banks temporarily short of funds can borrowfrom the Fed at its discount window. Collateral is necessary to borrow, but not just any collateralwill do. The Fed establishes (and periodically changes) the type of collateral that is it includes: (1) Treasury securities, federal agency securities, and municipal securities,all with a maturity of less than six months, and (2) commercial and industrial loans with 90 daysor less to maturity.
Borrowing at the Fed discount window联邦贴现窗口借款
---The Federal Reserve Bank is the banker's bank-or, to put it another way, the bank of last resort.
——联邦储备银行是银行的银行，或者说最后贷款银行。Banks temporarilyshort offunds can borrowfrom the Fed at its discount window.暂时缺少资金的银行可以向联储贴现窗口借入资金。Collateral is necessary to borrow, but not just any collateralwill do银行借款时需要提供抵押品，但不是任何资产都有资格作为抵押品。The Fed establishes (and periodically changes) the type of collateral that is eligible.
Eligible: adj. be eligible for sth, or be eligible to do sth有资格做某事。Are you eligible for social securities? 你有资格享受社会福利吗？
对于抵押品资格的确定由联储负责(而且按期更新)。
Currently it includes: (1) Treasury securities, federal agency securities, and municipal securities,
all with a maturity of less than six months,目前可作为抵押品的资产包括：①国库券、联邦机构证券和市政证券，期限必须在六个月以下；(2) commercial and industrial loans with 90 days
or less to maturity.②90天或90天以下的工商贷款。
5．The interest rate that the Fed charges to borrow funds at the discount window is called the
discount rate. The Fed changes this rate periodically in order to implement monetary borrowing at the Fed to meet required reserves is quite limited in amount, despite the factthat the discount rate generally is set below the cost of other sources of short-term fundingavailable to a bank. This is because the Fed views borrowing at the discount window as aprivilege to be used to meet short-term liquidity needs, and not a device to increase earnings.
The interest rate that the Fed charges to borrow funds at the discount window is called the
discount rate.联储在贴现窗口收取的贷款利率称为再贴现率，The Fed changes this rate periodically in order to implement monetary policy.联储定期改变这一利率以实施货币政策。Bank borrowing at the Fed to meet required reserves is quite limited in amount, despite the fact
that the discount rate generally is set below the cost of other sources of short-term funding
available to a bank.尽管再贴现率比银行可获得资金的其他短期筹集资金渠道的成本要低，但是银行为了满足贮备金要求而从美联储借的钱是有限的。This is because the Fed views borrowing at the discount window as aprivilege to be used to meet short-term liquidity needs, and not a device to increase earnings.这是因为联储把在贴现窗口借款视为一种特权，一种赋予商业银行满足短期流动性需要的特权，而不是增加收入的工具
6．Continual borrowing for long periods and in large amounts is thereby viewed as a sign of a
bank's financial weakness or as exploitation of the interest differential for profit. If a bank
appears to be going to the Fed frequently to borrow, relative to its previous borrowing pattern,
the Fed will make an "informational" call to ask for an explanation for the borrowing. If thereis no subsequent improvement in the bank's borrowing pattern, the Fed then makes an"administrative counseling" call in which it tells the bank that it must stop its borrowing practice.
Continual borrowing for long periods and in large amounts is thereby viewed as a sign of a
bank's financial weakness or as exploitation of the interest differential for profit.持续不断的大额长期借款会被视为银行经营不善或利用利息差来牟利益。If a bankappears to be going to the Fed frequently to borrow, relative to its previous borrowing pattern,the Fed will make an "informational" call to ask for an explanation for the borrowing.如果一个银行频繁地借款，综合这个银行从前的表现，联储会询问借款的原因。If thereis no subsequent improvement in the bank's borrowing pattern, the Fed then makes an"administrative counseling" call in which it tells the bank that it must stop its borrowing practice.如果银行的表现没有改善的话，联储会对其进行规范并告之停止借款。
Other nondeposit borrowing--Most deposits have short maturities. Bank borrowing in the
federal funds market and at the discount window of the Fed is short-term: Other nondeposit
borrowing can be short-term in the form of issuing obligations in the money market, or
intermediate to long-term in the form of issuing securities in the bond market. An example of
the former is the repurchase agreement (of "repo") market, example of intermediate--or
long-term borrowing is floating-rate notes and bonds.其他的非存款性借款——银行存款大部分是短期的，联邦资金市场和联储贴现窗口的
借款也是短期的。但其他非存款性借款既可以是短期的也可以是长期的，前者以货币市场
发行债务的形式筹借，而后者以债券市场发行证券的形式进行。前者的代表是回购协议市
场，而中长期借款的典型代表是浮动利率的票据和债券。
Banks that raise most of their funds from the domestic and international money markets,
relying less on depositors for funds, are called money center banks. A regional bank, by
contrast, is one that relies primarily on deposits for funding and makes less use of the money
markets to obtain funds. In recent years, larger regional banks have been merging with other
regional banks to form so-called "super regional banks." Nations Bank is the result of a merger
between NCNB of , and C&S/Sovran of . With their
greater size, these super regional banks can compete in certain domestic and international
financial activities that were once the domain of money center banks.
货币中心银行很少依靠存款筹资，而是在国内或国际货币市场上筹集主要资金。与此
相反，地区银行是指主要依靠存款融资而较少使用货币市场融资的银行。近年来，规模较
大的地区银行致力于兼并其他地区银行以建立“超级地区银行”，国民银行就是北卡罗来纳
州夏洛特的NCNB银行和弗吉尼亚州诺弗克的C&S索兰银行合并的结果。由于具有较大
的规模，超级地区银行在国内和国际金融业务中都可与一度占先的金融中心银行相抗衡。．
,上海证券报刊登了一篇题为：金融脱媒趋势确立商业银行面临机遇挑战在国际上,金融脱媒业已成为经济发展的长期趋势。我国金融脱媒的大幕已经拉开,我国商业银行正面临全新的经营环境,商业银行有必要在经营理念、管理体制以及产品开发等方面展开根本性的改革,以全新的姿态迎接金融脱媒时代的到来。商业银行必须最大限度地利用或创造内部优势和外部环境机会。通过经营理念的创新,促进管理制度和产品的创新,积极应对外部环境带来的挑战。
金融脱媒,是指资金绕过商业银行等间接金融中介机构,直接由资金的供给方流向资金的需求方,从而降低商业银行等间接金融中介机构在整个金融体系中的重要程度。换句话说,金融脱媒又可称为“非中介化”,是指资金的融通、支付等活动更多地直接通过证券市场进行,从而降低以商业银行为主体的传统中介在金融体系中的重要程度。金融脱媒现象日益突出的今天,商业银行表外业务收入已成为其主要利润来源和各金融机构竞争焦点,因此大力发展以表外业务为主体的金融衍生产品业务具有了更为重要的现实意义。下面为大家选取的是一篇介绍美国商业银行的表外业务的文章。
请大家阅读第一段：
Unit5 Commercial BankⅡ
Off-Balance Sheet Activities
1. Once negligible in amount, and therefore worthy of no more than passing mention in banking texts, off-balance sheet items of banks now amount to trillions of dollars in the United States. They include contingent claims that represent a variety of exposure across markets and credit risks--standby letters of credit, interest rate and currency swaps, note issuance facilities, options, foreign currencies, fixed—and variable—rate loan commitments, and futures and forward contracts on everything from Treasury bills to gold. Loan commitments are among the largest components of the off-balance sheet items of banks. Also, when added together off-balance sheet items exceed the bank’s total recorded assets. This is a little misleading, however, since only some contingent claims impose a (contingent) liability on the bank, and this contingent liability is only a fraction of its outstanding contingent claims.
Once negligible in amount, and therefore worthy of no more than passing mention in banking texts, off-balance sheet items of banks now amount to trillions of dollars in the United States.
negligible：adj. 十分轻微的,可以忽视的,微不足到的。
amount to：（数量上）总计,达到。
如果不考虑绝对数量,那么在考察商业银行的业务时我们就不仅仅要关注银行的资产负债表了。目前,美国商业银行的表外业务已经达数十亿美元。They include contingent claims that represent a variety of exposure across markets and credit risks--standby letters of credit, interest rate and currency swaps, note issuance facilities, options, foreign currencies, fixed—and variable—rate loan commitments, and futures and forward contracts on everything from Treasury bills to gold.表外业务指那些反映大量市场风险和信用风险的或有债权---如：备用信用证,利率及货币互换,票据发行便利,期权,外汇,固定和浮动利率贷款承诺,及从国库券到黄金的各种期货和远期合约。
（近年来,金融市场最重要的发展就是期货、期权及相关衍生工具市场的成长。这些衍生工具为我们提供了取决于其他各类资产价值的支付手段,这些资产价值有商品价格、债权与股票的价格或市场指数值。由于这一原因,这些工具有时被称为衍生资产(derivative assets)或或有债权(contingent claims)。它们的价值由其他资产的价值派生出来的,或由其他资产的潜在价值派生出来。）
Balance sheet: 资产负债表
Off-balance sheet: 表外业务
Contingent claims: 或有债权,
Contingent: dependent on something that is uncertain or that will happen in the future. 因情况而变的,视情况而定的。
Contingency: 可能性,或有性
Claim: a right to have or get something such as land, a title that belongs to you. 权利,所有权。Contingent liability: possible future liabilities that are mentioned in notes added to a balance sheet. 或有负债。
Exposure: 汉语常常把它翻译成揭发,暴露
,如：skin cancer can be caused by prolonged exposure to the sun. 翻译成：长时间晒太阳（暴露在太阳下）可能会导致皮肤癌。
我们来看一下朗文词典对这一词的英语解释。to danger, means the state of being put into a situation that is harmful because you have no protection from something that is dangerous. 从英文解释我们可以看出这个词实际上可以理解为：处于某种危险状态。
Exposure across market: 理解为：市场带来的风险。
Loan commitments are among the largest components of the off-balance sheet items of banks.贷款承诺是商业银行表外业务的最主要成分之一。Also, when added together, off-balance
sheet items exceed the bank’s total recorded assets.把表外业务加总,它将超过银行帐户上记录的资产的总额。
This is a little misleading, however, since only some contingent claims impose a(contingent)liability on the bank, and this contingent liability is only a fraction of its outstanding contingent claims.
Impose: impose sth on sb.给某人带来某物。
Outstanding: 未偿还的。
Outstanding contingent claim: 未偿或有债权
Outstanding loan: 未偿还的贷款
然而,由于Some contingent claims impose a liability on the bank. 仅有一小部分的或有债权给银行带来了负债。This contingent liability is only a fraction of its outstanding contingent claims.而且这种或有负债只是银行未偿或有债权的一部分。This is misleading 所以人们往往对表外业务缺乏足够的认识。
2. OBS banking refers to transactions that do not appear on the bank’s balance sheet, except possibly as footnotes. OBS items Can be divided into two groups：option-like contingent claims
and nonoption contingent claims. Table 1 8-l shows the various items within each group. Any contingent claim involves a commitment on the part of the bank. According to Webster’s dictionary, a “commitment” is a promise to do something in the future. An option like contingent claim is a promise by the bank to settle in the future at prespecified terms and at the option of the holder of the commitment. Thus an option 1ike contingent claim imposes a contingent liability on the bank (the seller) and endows the buyer of the commitment with an option. In a competitive market for contingent claims. The bank should be paid a fee at the time the contingent claim is sold that equals the value of the option contained in that claim. Nonoption contingent claims may also involve fees for the bank, but they do not necessarily impose a
contingentliability on the bank because there is a symmetry in the obligations ofthe bank and the customer. Thus even though there is a future contingency that determines the settlement of the contract, it is not one that gives the customer all option. for example, a forward or futures contract is a nonoption contingent claim.
OBS banking refers to transactions that do not appear on the bank’s balance sheet, except
possibly as footnotes.表外业务(OBS)指那些不在银行的资产负债表上出现的(除去可能在脚注中出现的)交易。OBS items Can be divided into two groups：OBS可以分为两类：option-like contingent claims and nonoption contingent claims.带有选择权特征的或有债权和非选择权或有债权。Table 1 8-l shows the various items within each group.表表示以上两类中包含的具体项目。Any contingent claim involves a commitment on the part of the bank.任何或有债权都涉及银行的承诺。According to Webster’s dictionary, a“commitment'’is a promise to do something in the future.根据韦氏大词典,“commitment”是在未来做某事的允诺。
An option—like contingent claim is a promise by the bank to settle in the future at prespecified terms and at the option of the holder of the commitment.
Prespecified: specify, to state sth in an exact and detailed way. 具体指明,明确的规定。Prespecified 指事先就具体指明的,明确规定好的。
Settle：支付,偿还,结算。
具有选择权特征的或有债权是银行做出承诺,即在未来按预先确定的条件,在持有者行使选择权时进行偿付的承诺。
Thus. an option like contingent claim imposes a contingent liability on the bank(the seller)and endows the buyer of the commitment with an option.
Endow: endow sb with sth赋予,给予某人某物
因此,选择权性质的或有债权给银行(卖者)带来了或有负债而赋予了承诺购买者一种选择权。
In a competitive market for contingent claims. the bank should be paid a fee at the time the contingent claim is sold that equals the value of the option contained in that claim.在或有债权的竞争性市场中,银行在出售或有债权的时候收取一定的费用,that指代的是fee, 该笔费用在数量上等于或有债权所含选择权的价值。
Nonoption contingent claims may also involve fees for the bank, but they do not necessarily impose a contingent liability on the bank because there is a symmetry in the obligations ofthe bank and the customer.非选择权或有债权也可能涉及付给银行的费用,但这种债权不一定构成银行的或有负债,因为这种情况下银行与其客户的义务是平衡的。
Symmetry: exact likeness in size and shape between two sides of something. 对称性,平衡。
Thus even though there is a future contingency that determines the settlement of the contract, it is not one that gives the customer all option.这样,尽管存在着未来的或有性并决定着合同的最终履行,但却没有给客户提供选择权。For example, a forward or futures contract is a nonoption contingent claim.例如,远期或期货合同就是非选择权或有债权
3. Why has OBS banking grown so explosively in the 1970s and 1980s?It was during this period that interest rates and foreign exchange rates became increasingly volatile. This increased volatility in financial and foreign exchange markets created a strong demand from corporations for financial risk management services, and banks found it profitable to provide these services. Thus German companies that once borrowed only in marks but derived income in other currencies from their foreign operations were now helped by banks to control their foreign currency risk. Similarly, technology-intensive firms for whom unpredictable short-term revenues imposed severe constraints on research and development(R&D)budgets, approached banks that provided products designed to hedge overseas income and plan R&D over longer periods. The growth of OBS banking was a natural outcome of banks providing these risk management services.
Why has OBS banking grown so explosively in the 1970s and 1980s?explosively : adv. Explosive:除了我们非常熟悉的爆炸性的意思之外,还表示数量或数字的激增,increasing suddenly or rapidly in amount or number. 因此,grown explosively理解为迅速的发展。这句话的意思是：为什么OBS业务在20世纪70～80年代会有如此迅速的发展呢?
It was during this period that interest rates and foreign exchange rates became increasingly volatile. 原因是在这一时间利率和汇率变得日益波动不稳。Increasingly: =more and more 越来越…Volatile: a volatile situation means a situation is likely to change suddenly and without warning. 易变的,动荡不定的。
This increased volatility in financial and foreign exchange markets created a strong demand from
coorporations for financial risk management services, and banks found it profitable to provide
these services金融和外汇市场日益增加的波动性创造出了公司对财务风险管理服务的大量需求,而银行也发现提供这些服务具有丰厚的利润。
Thus, German companies that once borrowed only in D-marks but derived income in other currencies from their foreign operations were now helped by banks to control their foreign currency risk.
这样,曾经借入德国马克但是却在外汇交易中收入其他货币的德国公司,就可以在银行的帮助下控制其交易中的汇率风险。
Similarly, technology-intensive firms for whom unpredictable short-term revenues imposed severe constraints on research and development(R&D)budgets, approachedbanks that provided products designed to hedge overseas income and plan R&D over longer
periods.整句的主体结构是：technology-intensive firms approachedbanks技术创新行公司接近银行。For whom后面告诉了公司有什么样的问题,unpredictable short-term revenues imposed severe constraints on research and development(R&D)budgets, 不可预测的短期收入给研发预算带来很多限制,banks后面的that引导从句告诉我们银行可以提供的服务也就是解释了技术创新行公司technology-intensive firms为什么愿意接近银行。provided products designed to hedge overseas income and plan R&D over longer提供为海外收入套期保值和为R&D制定长期计划的金融产品,
Hedge v. 作为动词,它本意就是规避风险的意思。作为金融术语我们把它理解为：reducing the risk of unfavorable movement in commodity or security prices, or exchange or interest rates, by way of future contracts. 通过远期和约来规避商品或证券价格,汇率及利率的变动所带来的风险。也就是我们汉语所说的套期保值。
The growth of OBS banking was a natural outcome of banks providing these risk management services OBS业务的增长是银行提供此类风险管理服务的自然结果。
4. A bank’s customer faces two main types of risks. The first is business risk. It may be routine. Such as that arising from unpredictable shifts in demand for the firm’s output. Or it may be strategic. Such as that faced by a defense firm faced with lower demand for arms following the end of the Cold War. The second type of risk is financial. It includes the risk of being shut out of the credit market, and the risk of random movements in interest rates, commodity prices, or currencies. This is where banks enter. They offer loan commitments that can simultaneously guarantee credit availability and interest rate insurance. And banks can offer a variety of derivatives to hedge unpredictable price movements in volatile markets
A bank’s customer faces two main types of risks. The first is business risk.
银行的客户面临两类主要风险。第一种是交易风险。It may be routine, such as that arising from unpredictable shifts in demand for the firm’s output这种风险可能是日常的,例如由于对公司产品需求的不可预测的变化引起的风险；Or it may be strategic, such as that faced by a defense firm faced with lower demand for arms following the end oft he Cold War.这种风险也可能是战略性的,例如军工厂商在冷战后面临的武器需求的下降。The second type of risk is financial.第二类风险是财务风险。It includes the risk of being shut out of the credit marketand the risk of random movements in interest rates, commodity prices, or currencies.这种风险包括被排除在信贷市场之外的风险及利率、商品价格和货币的随机变化风险等。This is where banks enter.这就是银行介入的领域。They offer loan commitments that can simultaneously guarantee credit availability and interest rate insurance.银行推出了贷款承诺,这一业务可以保证信贷供应同时进行利率保险。And banks can offer a variety of derivatives to hedge unpredictable price movements in volatile markets银行还能提供对变动市场中不可预测的价格波动进行套期保值的各种衍生产品。
5. While derivatives and other OBS items have been around for a long time, they became widely used only when risk escalated sufficiently. Initially, banks were not involved in the action.
Futures and options were offered mainly by organized exchanges such as the Chicago Mercantile Exchange and the Chicago Board of Trade. These were standard contracts for hedging the risks associated with volatile markets. However, when corporations wanted products tailored to their specific needs, they turned to banks for those products. This demand led to a variety of custom tailored contracts such as commitments, forward contracts, and swaps.
While derivatives and other OBS items have been around for a long time, they became widely used only when risk escalatedsufficiently.
Escalate: if fighting, violence, or an unpleasant situation escalates,, it becomes much worse. 如果战斗,暴力或不好的情况escalates,说明这些情况变的更加糟糕。衍生工具和其他OBS项目产生了很长一段时间后,在各种风险大大增加时才得到了广泛的应用。
Initially, banks were not involved in the action. Futures and options were offered mainly by organized exchanges such as the Chicago Mercantile Exchange and the Chicago Board of Trade.起初,银行没有涉足交易之中,期货和期权主要由有组织的交易所——例如芝
加哥商业交易所(CME)和芝加哥期货交易所(CBOT)——提供。
These were standard contracts for hedging the risks associated with volatile markets.这些是为变动市场的风险进行套期保值的标准化合同。However, when corporations wanted products tailored to their specific needs, they turned to banks for those products.然而,当公司需要符合他们特殊需求的产品时,他们转向银行寻求那些产品。This demand led to a variety of custom-tailored contracts such as an commitments, forward contracts, and swaps.这种需求使一系列为顾客定制的合同应运而生,例如：贷款承诺、远期合同和互换。
Banks were interested in custom-designing contingent claims for their clients not only to strengthen customer relationships, but also because sales of contingent claims have proved to be a source of fee income. There are two popularly cited advantages of OBS banking. First, since OBS banking does not involve deposit funding, cash—asset reserves are not needed, and the implicit tax of reserve requirements is avoided. Second, in the past banks were not required to main capital against OBS contingencies, although they are now required to do s0 under me guidelines adopted with the Bank for International Settlements BIS) accord. In the next section we describe loan commitments。
Banks were interested in custom-designing contingent claims for their clients not only to strengthen customer relationships, but also because sales of contingent claims have proved to be
a source of fee income
银行对于为顾客设计的或有债权表示了极大的兴趣,这不仅仅是为了加强客户关系,而
且是因为或有债权的出售为银行提供了费用收入。
There are two popularly cited advantages of OBS banking. OBS业务有两个公认的优点：
First, since OBS banking does not involve deposit funding, cash—asset reserves are not needed, and the implicit tax of reserve requirements is avoided.第一,由于OBS业务不涉及利用存款融资,所以不需要现金资产储备。而且,储备资产的隐性税收因此而可以避免。
Second, in the past banks were not required to maintain capital against OBS contingencies, although they are now required to do so under the guidelines adopted with the Bank for International Settlements (BIS)accord.
With…accord: 与…相一致。with the Bank for International Settlements (BIS)accord.与 BIS相一致。
第二,过去银行不必为OBS业务持有资本,尽管目前为与国际清算银行(BIS)采纳的规定相一致,银行必须持有一定数量与表外业务对称的资本。
Loan Commitment
下面我们介绍贷款承诺。
1. A loan commitment is a promise to lend up to a prespecified amount to a prespecified customer at prespecified terms. Such a promise is tenable for a prespecified time period (not to be confused with the maturity of the loan).The terms usually specify how the interest rate on the loan will be computed, the maturity of the loan, and the use to which borrowed funds will be put. The bank’s compensation for selling the commitment comes in a variety of forms, used in various combinations. It can take the form of a commitment fee that is expressed as a percentage of the total commitment and paid up front by the borrower when the commitment is negotiated. It can also take the form of a usage fee that is levied on the used portion ofthe edit line(for example, 25 to 50 basis points per year).
A loan commitment is a promise to lend up to a prespecified amount to a prespecified
customer at prespecified terms.贷款承诺是一项对特定客户在特定条件下提供特定数量贷款的承诺。
Such a promise is tenable for a prespecified time period (not to be confused with the maturity of the loan)
Tenable: be tenable for, 意思是可保持或持续一段时间。
这项承诺可维持到某一特定时间(注意不可与贷款的到期日相混淆)。
The terms usually specify how the interest rate on the loan will be computed, the maturity of the loan, and the use to which borrowed funds will be put.承诺贷款条款通常详述贷款利率如何
计算、贷款的到期日、所借资金投于何种用途。
The bank’s compensation for selling the commitment comes in a variety of forms, used in various combinations.银行出售贷款承诺的补偿有多种形式、也可用多种形式的组合。
It can take the form of a commitment fee that is expressed asa percentage of the total commitment and paid up front by the borrower when the commitment is negotiated这种补偿可以采取承诺费的形式,通常以总承诺金额的一定百分比表示并且在承诺出售协议达成时由买者提前支付。
It can also take the form of a usage fee that is levied on the used portion ofthe oredit line(for example,25 to 50 basis points per year.)该补偿也可以采取使用费的形式,即对贷款额度的使用部分征收(如每年25～50个基点)的费用。
Levy: officially make someone pay a tax or fee. 征税/收费
Levy on sth: 对…收税或收费 a new tax has been levied on all electrical goods. 对所有电器商品开始征收一种新税。
2. Quite often, commitment and usage fees are employed simultaneously. Also frequently used are servicing fees on the borrowed amount to,cover the bank’s transactions costs, and compensating balance requirements that are deposit balance the borrower must keep withthe bank during the period of their commitment relationship. Thesebalances are computed as fractions of the total commitment and the bank pays below—market interest rates on these balances. The following table is a detailed description of an actual loan commitment contract. This contract illustrates a relatively recent innovation in loan commitments, namely offering the customer a choice among rate bases. In this case, Blockbuster Entertainment can borrow at the prime rate, the LIBOR plus percent, or the CD rate plus percent. The choice increases the customer’s flexibility and therefore enhances the commitment’s value.
Quite often, commitment and usage fees are employed simultaneously. 常用的作法是承诺费和使用费同时征收。
Also frequently used are servicing fees on the borrowed amount tocover the bank’s transactions costs, and compensating balance requirements that are deposit balance the borrower must keep withthe bank during the period of their commitment relationship.
另外两种也较常用的是旨在弥补银行交易成本的按借款数量收取的服务费和在承诺期借款者必须保有的称作补偿差额要求的存款余额。
Thesebalances are computed as fractions of the total commitment and the bank pays below—market interest rates on these balances.这些差额按全部承诺金额的一部分计算,并且银行对这些存款余额支付低于市场利率的利息。
The following table is a detailed description of an actual loan commitment contract.下表是一个真实的贷款承诺合同的详细描述。
This contract illustrates a relatively recent innovation in loan commitments, namely offering the customer a choice among rate bases.该表反映了贷款承诺中最近的创新：给客户提供了利率基础的选择权。
In this case, Blockbuster Entertainment can borrow at the prime rate, the LIBOR plus percent, or the CD rate plus percent.在这一例子中,布罗克巴斯特娱乐公司可以按基准利率,LIBOR加％或CD利率加上％进行借款。
LIBOR伦敦银行同业拆借利率(London Interbank Offered Rate,LIBOR)是伦敦大银行之间愿意出借资金的利率。这种以美元贷款利率表示的利率已经成为欧洲货币市场最主要的短期利率报价,并成为许多金融交易的参考利率。例如,一家公司可能以浮动利率贷款,贷款利率就为伦敦银行同业拆借利率再加上2%。
CD大额存单(certificate of deposit)或称CD是银行的大额定期存款。CD利率：指大额定期存款存单利率
The choice increases the customer’s flexibility and therefore enhances the commitment’s value.
这一选择权增加了客户的灵活性所以也增加了承诺的价值.
BLOCKBUSTER ENTERTAINMENT ┃
┣━━━━━━━━━━━━┳━━━━━━━━━━━━━━┫
┃ Amount ┃$200 000 000 ┃
┃ Maturity ┃ 48 Months ┃
┃ Beginning ┃ .┃
┃ Lender ┃Security Pacific ┃
┃ Use ┃ General Corporate Purposes ┃
┣━━━━━━━━━━━━┻━━━━━━━━━━━━━━┫
┃ Fee Structure ┃
┣━━━━━━━━━━━━┳━━━━━━━━━━━━━━┫
┃ Commitment fee ┃ O ┃
┃ Annual servicing fee ┃ basis points ┃
┃Usage fee┃ basis points ┃
┃ Concellation fee ┃ 0 ┃
┣━━━━━━━━━━━━┻━━━━━━━━━━━━━━┫
┃ Take—down Interest Rate Alternative┃
┣━━━━━━━━━━━━━━━━━━━━━━━━━━━┫
┃ Prime ┃
┃ LlBOR+50 Basis Points ┃
┃ CD+ Basis Points ┃
Uses of Loan Commitments
Most business loans are made under loan commitments. These include construction and land development loans, as well as loans to finance leveraged buyouts (LBOs) and mergers and acquisitions (M&A).Loan commitments also include backup lines of credit on commercial paper ( the bank agrees to lend to the customer as an alternative to its issuing paper)and issuance facilities (called NIF, in which the bank agrees to buy the short-term note, of a borrower if the latter is unable to sell them in the markets). Roughly 80 percent of all commercial lending in the
is done under commitments.
Most business loans are made under loan commitments.
大多数商业贷款都是在贷款承诺下运作的。These include construction and land development loans, as well as loans to finance leveraged buyouts (LBOs)and mergers and acquisitions(M&A).这些商业贷款包括建筑和土地开发贷款、杠杆收购(LBOs)融资贷款以及兼并与收购(M&A)贷款。
Loan commitments also include backup lines of credit on commercial paper (the bank agrees to lend to the customer as an alternative to its issuing paper)and issuanceFacilities (called NIF, in which the bank agrees to buy the short—term note of a borrower if the latter is unable to sell them in the markets).
贷款承诺也包括备份的商业票据信用额度 (银行同意向客户贷款作为其发行票据的选择)和票据发行便利(称作NIF,在这种情况下银行同意当客户不能在市场上售完其发行的票据时购买剩余的短期票据)。
Roughly 80 percent of all commercial lending in the is done under commitments.
在美国,大约有80％的商业贷款是在贷款承诺方式下进行的。
Classification of Loan Commitments Based on Interest Rate Insurance Provided
提供利率保险基础上的贷款承诺分类
the Usage of Loan Commitment
Use of loan commitments:
In addition to use, loan commitments can be classified according to the nature of the interest rate insurance provided to the customer.
In addition to use, loan commitments can be classified according to the nature of the interest
rate insurance provided to the customer.除了按使用方式分类以外,贷款承诺也可以根据提供给客户的利率保险性质进行分类。
Commitments vary in the extent to which they provided interest rate insurance to the borrower.
Afixed-rateloan commitmentgivesthecustomerthe righttoborrow ataninterest ratethatisknown in advance and hence eliminates all interest rate and availability uncertainty. The more popular variable-rate (or fixed formula) loan commitment does not hold the borrowing rate fixed. Rather, it determines the rate according to a formula that involves some index rate. Two common formulas are: additive and multiplicative. The additive version of the variable-rate loan commitment stipulates a borrowing rate that is an index rate at the time of takedown plus a fixed add-on. The less frequently used multiplicative version stipulates a borrowing rate that is an index rate at the time oftakedown times a constant. Commonly used index rates are the prime rate, the CD rate, the LIBOR, and the commercial paper rate. Customers may also be offered a choice of formula within a given commitment, for example, prime plus 10 basispoints or the CD rate times .
Commitments vary in the extent to which they provided interest rate insurance to the borrower.承诺根据其提供给客户的利率保险而存在程度上的差异。
Afixed-rateloan commitmentgivesthecustomerthe righttoborrow ataninterest ratethatisknown in advance and hence eliminates all interest rate and availability uncertainty。
固定利率贷款承诺给借款者某种权利,即以预先知道的利率取得借款,因此也就排除了所有的利率及其他可能的不确定性。Eliminates：消除,排除。Uncertainty：不确定性。Availability：所有的可能发生的情况。
The more popular variable-rate(or fixed formula)loan commitment does not hold the borrowing rate fixed.但更普遍的方式是浮动利率(或固定利率计算公式)贷款承诺,这种方式下借款利
率不是固定不变的。
Rather, it determines the rate according to a formula that involves some index rate.相反,它根据一个涉及某些指数比率的公式计算贷款利率。
Two common formulas are：additive and multiplicative.
两个通用的公式是：附加法和倍乘法。
The additive version of the variable—rate loan commitment stipulates a borrowing rate that is an index rate at the time of takedown plus a fixed add-on.浮动利率贷款承诺的附加法计算公式是:以贷款执行时一个指标利率加上某一固定的附加利率得出贷款利率。
Stipulate：规定,约定。
index rate：指标利率
at the time of takedown :贷款执行时
add-on:附加利率
The less frequently
The less frequently used multiplicative version stipulates a borrowing rate that is an index rate at the time oftakedown times a constant.相对使用较少的倍乘法用贷款执行时的一个指标利率乘以一个常数得出贷款利率。
Commonly used index rates are the prime rate,the CD rate,the LIBOR,and the commercial paper rate.通常使用的指标利率有：基准利率、CD利率、LIBOR.以及商业票据利率。
Customers may also be offered a choice of formula within a given commitment,for example,prime plus 10 basis points or the CD rate times .
有时客户也可获得在特定贷款承诺下确定计算利率方式的选择权,例如,基准利率加上10个基点或CD利率乘以。
Relative to a fixed-rate commitment, a variable-rate commitment does not provide the customer protection against stochastic fluctuations in the index rate. However, as long as there is an element of fixing in the borrowing rate, the commitment will have some insurance value to the customer. In the prime-plus commitment, the add-on is held fixed. The customer is thus insured against its add-on being increased due to a possible increase in its credit risk during the commitment period. Likewise, in the prime-times commitment, the multiple is held fixed. In both cases, the customer’s commitment borrowing rate at the time of commitment takedown may be lower than the spot rate it would have faced in the absence of the commitment.
Relative to a fixed-rate commitment,a variable-rate commitment does not provide the customer protection against random fluctuations in the index : 任意的,随意的。
与固定利率贷款承诺相比,浮动利率贷款承诺没有给客户提供防止指标利率任意的波动
的保护。
However, as long as there is an element of fixing in the borrowing rate,the commitment will have some insurance value to the customer.然而,由于存在着固定借款利率的因素,贷款承诺对于客户仍有某些保险价值。
In the prime-plus commitment,the add—on is held fixed.
在基准利率加附加利率的承诺中,附加利率是固定不变的。
The customer is thus insured against its add-on being increased due to a possible increase in its credit risk during the commitment period.客户因而避免了在贷款承诺期内由于可能上升的信用风险引起的附加利率上升的风险。
Likewise,in the prime—times commitment,the multiple is held fixed同样,在基准利率乘以某常数的贷款承诺中,乘数(常数)是固定的。
In both cases,the customer’s commitment borrowing rate at the time of commitment takedown may belower than the spot rate it would have faced in the absence of the commitment.
在上述两种情况下,在承诺执行期客户获得的承诺借款利率有可能低于没有贷款承诺情况下可能面临的即期利率。
Although a loan commitment obliges a bank to lend at a rate below the borrower’s spot rate, the bank usually has some latitude in determining whether or not to honor a commitment, even in the case of the most formal agreement. This latitude arises from the adoption of a "material adverse change” (MAC) clause as part of the commitment covenants. This clause allows the bank to dissolve the commitment if the customer’s financial condition has“materially”deteriorated between the time the commitment was issued and the time the customer can exercise it. What constitutes material deterioration can, of course, become a legal issue should the denied customer decide to challenge the bank’s assessment through litigation. This clause does, however, introduce an element of discretion into the 10an commitment contract.
Although a loan commitment obliges a bank to lend at a rate below the borrower’s spot rate,
the bank usually has some latitude in determining whether or not to honor a commitment,even in
the case of the most formal agreement.
尽管贷款承诺使银行有义务以低于借款者的即期利率的利率提供贷款,但银行通常有
决定是否履行承诺的自由,即使是在最正式的协议的情况下。
Obliges: oblige sb to do sth迫使,责成某人去做某事。
Latitude：freedom to choose to do or not to do sth. 有选择做或者不做某事的自由。
honor a commitment：履行承诺。
Honor a contract/agreement: 履行合同/协议
Honor a check / voucher: 接受支票/代金券
This latitude arises from the adoption of a“material adverse change”(MAC)clause as part of the commitment covenants.这种自由源于在贷款承诺条款中采纳了“重大不利变化”条款。
Covenants：契约（条款）。正式债券协议中的条款,承诺将会或不会进行某些行动
Material: (law) important.
Material evidence: 重要证据。Material changes: 影响深远的重大变化。
This clause allows the bank to dissolve the commitment if the customer’s financial condition has“materially”deteriorated between the time the commitment was issued and the time the customer can exercise it.
当客户的财务条件从承诺生效到客户执行承诺合约的期间内发生重大恶化时,这样的条款允许银行不履行其承诺。Dissolve: 溶解,比如：糖溶于水中：Sugar dissolves in water.
Dissolve: dissolve a meeting, 取消一个会议。Dissolve an organization: 解散一个组织。
Dissolve a commitment: 取消一个承诺,或不履行一个承诺。
Materially：极大地,重大地。
Deteriorate: to became worse. 恶化。
What constitutes material deterioration can,of course,become a legal issue should the denied
customer decide to challenge the bank’s assessment through litigation.
当然,什么情况构成重大恶化常成为一个法律争端,被拒绝的借款者往往通过法律手段向银行对其财务能力的评估提出抗辩。
Litigation: (law)法律上的（非刑事案件的）诉讼。
This clause does, however, introduce an element of discretion into the loan commitment contract.然而,这一条款确实在贷款承诺协议中引入了自由决策的因素。
Discretion: the ability and right to decide exactly what should be done in a particular situation. 在特定的情况下的自由决策权和能力。
A Summary 总结
It should be clear by now that a loan commitment is a contingent claim. The contract’s contingency hinges upon the interest rate applicable to the specific borrower at the time of commitment takedown. If the spot rate is higher than the commitment rate, the customer will exercise the commitment and the bank will suffer a loss. If the spot rate is exceeded by the commitment rate, the customer will let the commitment expire unused and borrow instead in the spot market. Thus, the bank has an obligation and the customer has an option. The bank has a loss in those states of nature in which the customer will exercise the commitment, and this loss is contingent on the occurrence of those states of nature.
It should be clear by now that a loan commitment is a contingent claim.现在,贷款承诺是一种或有债权已变得非常清楚了,
The contract’s contingency hinges upon the interest rate applicable to the specific borrower at the time of commitment takedown.合同的或有性依赖于承诺执行时适用于特定客户的利率情况而定。hinges upon:
hinge n. 门的合叶或铰链。
hinges upon : =depend on completely. 取决于,依赖 The future prospects of a student hinge on his performance in these examinations. 一个学生的发展前途取决于他在这些考试中的表现。
applicable to=对…适用,适合的。Few of these laws are applicable to citizen while they are abroad. 这些法律几乎没有使用于在国外的英国公民的。the interest rate applicable to the specific borrower 适用于特定借款者（客户）的利率
If the spot rate is higher than the commitment rate, the customer will exercise the commitment and the bank will suffer a loss.如果即期利率高于承诺利率,客户将执行该承诺协议。这样银行就遭受损失。
If the spot rateis exceeded by the commitment rate, the customer will let the commitment expire unused and borrow instead in the spot market.如果即期利率低于承诺利率,客户将不使用承诺协议直到它到期失效并且以在即期市场借款代替执行承诺合约。
Expire: no longer be legally used失效。
Thus, the bank has an obligation and the customer has an option.也就是说,银行承担了一项义务而客户却获得了一项选择权。
The bank has a loss in those states of nature in which the customer will exercise the commitment, and this loss is contingent on the occurrence of those states of nature
银行在客户决定执行贷款承诺协议的情况下承受损失,这种损失依具体情况的出现是一种或有损失。
Well, that’s the end of the introduction of off-balance sheet of commercial bank in the .
Unit6 Investment Banking
The practice of Investment Banking投资银行实务
Venture Capital and Acquisition
1．Investment banks are involved with venture capital venture capital fund management, taking portfolio companies public, or selling out to other businesses. Mostinvestment banks have venture capital operations. Venture capitaltypically provides capital andstrategic guidance tocompanies thatmay be recently formed andrapidly growing, but not yet largeenough to access the public equity markets. Venture investing includesstartups, growth stage, buyouts, and consolidation and companyturnaround. Venture CapitalMarkets describes venture capitaloperations, investment agreements, and exit strategies. Mergers andAcquisitions (M&As) are an integral part of investment bankingbusiness. Mergers and Acquisitions coversstrategic planning,valuation, financing, closing, and legal considerations. Top advisorsin the include Merrill Lynch, Goldman Sachs, MorganStanley Dean WiRerlomon Smith Barney, Lehman Brothers, CreditSuisse First Boston. JP Morgan, Bear Steams, andDLJ.
投资银行实务
风险投资与收购
Investment banks are involved with venture capital investments.投资银行会参与风险投资业务
Thisincludes venture capital fund management, takingportfolio companiespublic, or taking the selling out to other businesses.
fund management：基金管理
Pottfolio companies: 可译为组合公司。在风险投资业，一个基金把所有筹集到的资金投资到多个证券公司，以此来追求一种组合式的投资策略；而接受此资金的证券公司被称为组合公司。（英文就是portfolio company）
Take …public: 上市，
Go public: 公开上市。
Public Company：上市公司
taking the selling out: 卖给
参考译文：其中包括风险投资基金的管理，使所投资的公司上市或将其卖给其他企业。
Mostinvestment banks have venture capital operations.大多数投资银行都有风险投资业务。
Venture capitaltypically provides capital andstrategic guidance tocompanies thatmay be recently formed andrapidly growing, but not yet largeenough to access the public equitymarkets.
Equity: 在会计学上指净资产(net assets). 也就是“总资产（total assets）减去“总负债”（total liability）的余额，通常，在股份制企业呢，把净资产成为股东权益，(shareholders’ equity), 在非股份制企业，成为所有者权益(owners’ equity). 公司公开上市后，股票发行所获得的款项叫做“权益资本”英文是：(equity capital). 公开发行股票来募集资金的市场叫做，公募股票市场，英文为(public equity markets)，这句话中的access，意思是进入，那么access the public equity markets 我们理解为从从公募股票市场上融资。
（好，我们来看一下这句话。）Venture capitaltypically provides capital andstrategic guidance tocompanies风险投资主要（通常）是为企业提供资本和战略指导，that 后面的从句告诉我们为什么样的企业或公司提供资本和战略指导。这些公司是一些may be recently formed新近成立的，rapidly growing, 成长快速的，but not yet largeenough，但还没有足够的能力to access the public equitymarkets.从公募股票市场上融资的公司。
（参考译文）风险投资主要（通常）是为那些处于初创阶段，具有快速成长潜力、但还没有足够的能力从公募股票市场上融资的企业提供资本和战略指导。
Venture investing includesstartups, growth stage, buyouts, and consolidation and companyturnaround.风险投资包括初创(或启动)期、成长阶段、收购、合并以及公司经营的转向。
buyouts：The purchase of a company or a controlling interest of a corporation's shares. A leveraged buyout is accomplished with borrowed money or by issuing more stock.买一家公司或一家公司的控股股权。负债收购（杠杆收购）指通过借贷或发行更多股票来获得另一家公司的产权完成收购 interest：在这里是股权的意思。Acontrolling interest：控股股权
consolidation：意思是“新设合并”指要合并的公司全部解散、法律地位均归于消失，然后重新设立一家新公司。英语中另外一个单词 merger和它的意思是一样的。（我们来看一句话：The watershed deal set off a wave of consolidation in the automotive industry and signaled that German companies were prepared to play aggressivelyon the world stage. (Business week)
这笔交易具有转折意义，在汽车产业掀起一股整和（或合并）浪潮，它同时向外界发出一个信号：德国公司就要在世界舞台上扮演猛烈的角色。
Venture CapitalMarkets describes venture capitaloperations, investment agreements, and exit strategies. 风险投资市场讲述了风险投资的运作、投资协议以及退出策略。（风险资本的使命和特征在于，通过注入资金和管理，协助创业者创业，加速企业走向成熟；一般在新创业成熟之前，创业资本就会自动退出，寻求下一个有发展潜力的新创业公司。）（创业资本退出的方式主要有4种：1首次公开发行（IPO initial public offering）。通过公司的go public公开上市，风险投资者将自己持有的股份售给公众投资者，在股市上实现套现(cash out). 2. 被另一家企业收购(acquire/ take over). 3. 新创企业回购（buy back）风险投资家手中的股份。 4. 将风险投资家的股份转让给第三方，从而第三方成为公司的新股东。
Mergers and Acquisitions (M&As) are an integral part of investment bankingbusiness.兼并与收购(M&As)是投资银行的一个业务核心。
Mergers and Acquisitions covers strategic planning,valuation, financing, closing, and legal considerations.兼并与收购讲述的内容包括战略计划、评估、融资、结盘以及有关的法律问题。
Top advisorsin the include Merrill Lynch, Goldman Sachs, MorganStanley Dean WiRerlomon Smith Barney, Lehman Brothers, CreditSuisse First Boston. JP Morgan, Bear Steams, andDLJ.
在美国，顶级金融顾问包括美林公司、高盛公司、摩根斯坦利－丁韦特公司、曼兄弟公司、瑞士信贷第一波士顿、J．P．摩根、
高盛 Goldman Sachs 世界上最早的专业投资银行，由Goldman Sachs先生创办于1861年。高盛以其浓厚的企业文化著称，在100多年的历史上一直坚持投行主体战略，很少涉足商业银行、零售经纪等领域（但并非完全不涉足），是华尔街投行之首。值得注意的是，最近几年高盛的老大地位被摩根士丹利严重动摇，去年丢掉了全球销售额第一的宝座，在中国又屡次被大摩超过。在商业银行和投资银行日益整合的今天，没有商业银行传统的高盛能否再续辉煌，是投行界一直关注的话题。
摩根士丹利 Morgan Stanley 绰号“大摩”，原摩根财团下属的投行，但现在摩根财团早已瓦解，大摩与JP摩根并无特殊关系。1933年美国规定投资银行和商业银行必须分开，大摩才成为纯粹投资银行，历史上一直紧追高盛，去年已经夺去第一把交椅。摩根士丹利是对中国市场动手最早的投行之一，是中金的大股东。摩根士丹利几年前收购了美国最大的证券经纪公司——添惠（Dean Witter），但证券经纪业务并没有与其原有业务融合，而且不久前刚刚经历高层震荡，未来几年的前景很难预料。
JP摩根 JPMorgan 原摩根财团下属的商业银行，早在1989年就被美国政府特许从事投资银行业务.2001年由于经营不善,遭遇危机,与大通银行合并。随着美国放松投资银行业务管制，JP摩根逐渐发展为类似于德意志银行、瑞士银行的“全能银行”，下属的Bank One也是著名银行品牌。JP摩根还是美国最大的资产管理公司，许多著名的基金经理都出自JP摩根旗下。
美林证券 Merrill and Lynch 全世界最大的散户证券经纪商，依靠散户投资的浪潮起家，其证券分析和咨询部门是全世界最强的。严格的说，投资银行并不是美林的主要业务，但随着其“第一证券经纪人”地位的巩固，其投资银行业务也越做越大，仅次于高盛、大摩等传统投行。但是，美林的投资银行和证券经纪两个主要部门的利益冲突也日益积累，大客户与散户的利益很难兼顾，在投资银行与证券经纪及咨询业务日益分离的今天，美林也面临着难以预料的挑战。
瑞士银行 UBS 瑞士银行是欧洲最大的全能银行之一，其投资银行部门主要是瑞银华宝(Warsburg)，原为英国华宝集团的投资银行。瑞士银行主要以其强大的商业银行部门著称，在美国市场不是主流投资银行，在中国证券领域也没有太大动作。可以肯定的是，瑞士银行会不断发展利润丰厚的投行业务，向JP摩根、德意志银行靠拢
雷曼兄弟 Lehman Brothers 2004年被评为“在欧洲最受欢迎的投资银行”，但其总部在美国，地位次于高盛、大摩，与美林、所罗门美邦（现在已经瓦解）处于差不多的等级。雷曼兄弟主要从事固定收益和兼并重组业务,在投资银行传统的股票发行领域却建树不多.它在中国的业务开展比较迟缓，目前主要进攻的是日本和香港市场，虽然在北京也有分部，但并没有听说什么大的动作。
Securities Underwriting
Most Wall Street firms offer a full range of capital raising andcorporate finance service, from initial public offerings (IPOs) andsecondary equity offerings, to debt financing, to private Underwriting describes the process of bringing securities tothe public.
证券承销
华尔街的大多数公司都提供全方位的资本筹集和公司财务服务，从首次公开发行(IPOs)和二次股票发行到债务融资、私募。股票承销讲述了证券上市的过程。
Bring …to the public:上市。
Investment banks, through their primarydealerships, activelyparticipate in the government securities annual issuancevolume is huge--$2 trillion to $ trillion in recent years. Thegovernment securities market is the largest and most liquid of allmarkets. Other fixed-income securities, such as agency issues,amount to additional hundreds of billions of dollars.
Investment banks, through their primarydealerships, activelyparticipate in the government securities market. 投资银行通过其交易商的身份在政府证券市场表现非常活跃。
The annual issuancevolume is huge--$2 trillion to $ trillion in recent years.年发行数额十分巨大，近年来总额已达2～2．5万亿美元。
Thegovernment securities market is the largest and most liquid of allmarkets.政府证券市场是所有市场中最大的，也是流动性最好的市场。Other fixed-income securities, such as agency issues,amount to additional hundreds of billions of dollars.
其他固定收入型证券，例如美国政府代理机构发行的证券，总额也达到上千亿美元。
Asset Securitization ,
Asset securitization is the selling of securities backed by thecash flows from a pool of financial assets. It has revolutionized the way by which business are financed. It provides businesses with access to new sources of capital at lower costs, even after factoring inupfront analysis, structuring, and credit enhancement costs. Therevolutionary process first began with mortgage pass-through andthen moved to other asset types. One of the largest asset-bookedmarkets is the mortgage securities market. The discussion coversprepayment risk, valuation, trading, and settlement. Other asset-backed issuances, such as collateralized bond obligations, which convert junk bonds to investment-grade investments, are recent additions to the asset-backed innovations.
资产证券化
Asset securitization is the selling of securities backed by thecash flows from a pool of financial assets.资产证券化是指由一批金融资产组合产生现金流作为支持的证券的出售过程。
It has revolutionized the way by which business are financed.这一创新给企业融资方式带来了一场革命. It provides businesses with access to new sources of capital at lower costs, even after factoring inupfront analysis, structuring, and credit enhancement costs.它给企业提供了成本更低的资金来源，即使在考虑了前期分析、业务结构的构造以及信用增强成本之后其成本还是很低。
Factor v. factor in…..: （固定的搭配）：把…..考虑在内。
Therevolutionary process first began with mortgage pass-through andthen moved to other asset types.这一革命性业务首先从抵押转递证券开始，进而扩展到了以其他资产类型为支持的证券。One of the largest asset-backedmarkets is the mortgage securities market.抵押资产为支持的证券市场是最大的资产支持证券市场之一，The discussion coversprepayment risk, valuation, trading, and settlement. 其内容涵盖提前偿付风险、定价、交易和结算。Other asset-backed issuances, such as collateralized bond obligations, which convert junk bonds to investment-grade investments, are recent additions to the asset-backed innovations.其他类型的资产支持证券发行，近来已经成为资产支持证券的创新品种。如：附担保的债券可以使垃圾债券成为投资级证券，。collateralized bond obligations：附担保的债券：由垃圾债券作为支持的证券称为附担保的保证债券（
Trading
Many investment banks put up a substantial amount of capitalfor proprietary trading as part of the firm’s principal transactions. Suchactivities may involve a significant exposure to market, credit, and liquidity risks. Investment banks earn a significant proportion of revenue from trading and investment. Outstanding players intrading include many of the best-known investment banking housesand hedge funds. Scientific-approach-based trading and arbitrageplays are high-stakes strategies anticipatechanges in absolute rate and price levels, while relative-value strategies anticipatechanges in relationships between markets and classesof instruments. Day trading requiresthe trader's feel of the succeed, day traders must understand that they are competingwith the sharpest minds and have to handle it as a serious intellectualpursuit.
交易
Many investment banks put up a substantial amount of capitalforproprietary trading as part of the firm’
s principal transactions.许多投资银行将产权交易(proprietary trading)作为公司的主要业务，在该交易上投入大额资本.
put up a substantial amount of capitalfor：为某事而注入大量资本。
Suchactivities may involve a significant exposure to market, credit, and liquidity risks.此类交易意味着巨大的市场风险、信用风险和流动性风险。
exposure to market =exposure across market 市场风险。
Most investment banks earn a significant proportion of revenue from trading and investment.大多数投资银行的很大一部分收入是从交易和投资活动中获得的. Outstanding players intrading include many of the best-known investment banking housesand hedge funds.交易活动中的参与者包括著名的投资银行和对冲基金。
A hedge fund ：A hedge fund is an investment group often organized as a limited partnership. Most hedge funds are limited to a maximum of 100 investors. For the most part, hedge funds are unregulated because it is assumed the people investing in these are very sophisticated and wealthy是由有限的成员组成的投资组合。大部分对冲基金包含的投资者数目限于最多100名。对冲基金大多不受监管，因为投资对冲基金的投资者大多经验丰富，财力雄厚
Scientific-approach-based trading and arbitrageplays are high-stakes games.以科学技术为基础的交易和套利，其风险巨大。
arbitrage套利：The simultaneous purchase and selling of a security in order to profit from a differential in the price. This usually takes place on different exchanges or marketplaces.同时买入及卖出证券，意图从差价中获利，在一般于不同的交易所或市场进行买卖。
Directional strategies anticipatechanges in absolute rate and price levels, while relative-value strategies anticipatechanges in relationships between markets and classesof instruments.指导性的战略预测的是绝对利率和价格水平的变化，相对价值战略则预测市场和各种工具之间关系的变化。
Day trading requiresthe trader's feel of the market.当日交易(daytrading)要求交易者对市场要有感觉.To succeed, day traders must understand that they are competingwith the sharpest minds and have to handle it as a serious intellectualpursuit.取得成功，当日交易者必须明白他们是在与最敏锐的头脑打交道，应该把交易当作一项严肃的智力活动。
Pursuit: n. an activity which you spend a lot of time doing. 活动。
The Practice of Investment Banking ( II )
Repurchase Agreements
Repurchase agreements (repos) are extensively used in dealerfinancing, customer funding, and matched-book trading. In addition, understanding the market is essential to assessingvalue in thesecurities markets. The repomarket has grown rapidly over the pastseveral years, with the average daily amount outstanding toppings $2 market is expected to continue to grow fueled by theaeries in demand for funding and innovations in the relaxation of regulation will further benefit the fixed-income repo market help foster the equity repots relaxation of Regulation T will further benefit the development of the fixed-income repo market and will, together with the National Securities Markets Improvement Act of l996, help give birth to the equity repo market
投资银行实务
(二)回购协议
Repurchase agreements (repose) are extensively used in dealerfinancing, customer funding, and matched-book trading回购协议(repos)在经纪人融资、客户基金和平衡账目交易中广泛运用。
回购购协议是由借贷双方鉴定协议，规定借款方通过向贷款方暂时售出一笔特定的金融资产而换取相应的即时可用资金，并承诺在一定期限后按预定价格购回这笔金融资产的安排。其中的回购价格为售价另加利息，这样就在事实上偿付融资本息。回购协议实质上是一种短期抵押融资方式，那笔被借款方先售出后又购回的金融资产即是融资抵押品或担保品。回购协议分为债券回购和股票回购两种。两种形式都是融资的手段，而且一贯都被认为是比较安全且回报高而快的方式。
matched-book：(When the distribution of maturities of a bank's liabilities equal its assets)指到期日银行或交易商的负债与资产相当，. (A dealer'saccount in which borrowing costs equal the interest earned on loans.) 也指借款成本与货款利息收入相当。
In addition, understanding the market is essential to assessingvalue in thesecurities markets.另外，了解这一市场对在证券市场上进行价值评估至关重要。The repomarket has grown rapidly over the pastseveral years, with the average daily amount toppings$2 trillion.回购市场在过去几年里发展迅速，日平均发行额高达2万亿美元。 Comment by IDA: 加符号
Toppings：在英式英语中意思是：顶呱呱的。
The market is expected to continue to grow fueled by theincrease in demand for funding and innovations in the marketplace.由于市场对融资和创新工具的需求上升，预计这一市场将继续发展。
In a typical repo transaction, a dealer puts up liquid securities as collateral against a cash loan while agreeing to repurchase the securities at a future date. The start-leg is usually settled the same day. The close-leg, repurchase, is a forward transaction. A repo is in format a securities transaction, but is in essence a collateralized loan to finance the purchase of the underlying security. The repo markets are therefore often called financing markets.
在一笔典型的回购交易中，交易商将流动性证券作为现金贷款的抵押品，同时承诺在未来的某个日子将证券购回。第一笔交易通常在同一天进行结算。而第二笔交易，即回购，是一种远期交易。回购协议从表面上看是一笔证券交易，但实际上它是一笔为作为购买基础的证券进行融资的抵押贷款。因此回购市场经常被称为融资市场。
Financial Engineering
FinancialEngineering explains how competition among investment banking professionals to meet the needs of borrowers and in stores--such as hedging, funding, arbitrage, yield enhancement,and tax purposes-drives the explosive growth in the structured andderivatives markets (rapidly approaching the $30 trillion mark).The junk bond and asset-backed markets provide borrowers with additional funding sources at lower costs. Structured notes add anotherdimension in the funding and investment spectrum. Transactions inrepurchase agreements provide borrowers with lower funding costs and give lenders legal title to the collateral. Through swap contracting, borrowers and investors obtain a high degree of flexibility in asset-liability management at better terms. Credit derivatives are thenew trend with widespread applications, but new products emerge all the time.
金融工程
FinancialEngineering explains how competition among investment banking professionals to meet the needs of borrowers and investors--such as hedging, funding, arbitrage, yield enhancement,and tax purposes-drivesthe explosive growth in the structured financial instruments andderivatives markets (rapidly approaching the $30 trillion mark).金融工程解释了投资银行家之间为满足借款人和投资者的需要(比如套期保值、融资、套利、提高收益（yield=profit）和税收方面的考虑)所进行的竞争，是如何促进结构化金融工具和衍生工具市场的爆炸性发展的(这些市场的交易额已经迅速接近到了30万亿马克)。
The junk bond and asset-backed markets provide borrowers with additional funding sources at lower costs.垃圾债券和资产支持证券市场向借款人提供了新的、成本更低的融资渠道。Structured notes add anotherdimension in the funding and investment spectrum结构化票据的发展则进一步扩大了融资和投资领域。
dimension ：方向，方面，领域。Spectrum：范围，系列，领域。（同义词）
Transactions inrepurchase agreements provide borrowers with lower funding costs and give lenders legal title to the collateral.
回购协议交易降低了借款人的融资成本并赋予了贷款人对担保品的法律所有权。
Through swap contracting, borrowers and investors obtain a high degree of flexibility in asset-liability management at better terms.通过互换交易，借款人和投资者在资产负债管理方面则以更有利的条款获得了较高程度的灵活性。Credit derivatives are thenew trend with widespread applications, but new products emerge all the time.
信用衍生工具成为新的趋势，被广泛应用，不过，新的金融产品仍将不断涌现。
Money Management
Money management is an important segment of the capital markets and is becoming an integral part of the investment banking business. Money Management explains why for investment banking houses, fund business is not a question of whether to enter, butwhether to "buy" or to "build". Wall Street firms are buying intofund management operations for obvious reasons. First of all, it isone of the most attractive segments of the financial services industryit expands the scope of products and services that investment banksoffer to clients. Furthermore, the income stream is less volatile than trading, underwriting, or mergers and acquisition. The affiliatedfunds also provide synergy to the bank's underwriting business.
资金管理
Money management is an important segment of the capital markets and is becoming an integral part of the investment banking business.资金管理是资本市场中的一项重要业务，并正在成为投资银行业务中必不可少的一部分。
Segment: a part of something. 部分。
Money Management explains why for investment banking houses, fund business is not a question of whether to enter, butwhether to "buy" or to "build".对于投资银行来说，基金业务不是是否应该进入的问题，而是“购买”或“建立”的问题，资金管理解释了其中的原因。Wall Street firms are buying intofund management operations for obvious reasons.华尔街公司进入基金行业的目的很明显。First of all, it isone of the most attractive segments of the financial services industry，it expands the scope of products and services that investment banksoffer to clients.
首先,这是金融服务行业最吸引人的一部分，它扩展了投资银行向客户提供的产品和服务范围。Furthermore, the income stream is less volatile than trading, underwriting, or mergers and acquisition.其次，其收入不像交易、承销、兼并和收购那样容易大幅波动，The affiliatedfunds also provide synergy to the bank's underwriting business.附属基金(或关联基金)也已成为银行承销业务的一部分。Synergy：（两个人的精力和思想结合后产生的）协同作用，增效作用。
Clearing and Settlemen
Clearing and Settlement describes the process ofclearing andsettlement for various types of securities. Clearing is processing a trade and establishing what the parties to the trade owe each other. Settlement is the transfer of cashand securities between the parties, so the transaction can be completed. Clearing and settlement are usually referred to as the back-office operations. The first step in theclearing and settlement process is to convey the details of the tradefrom traders to the back office. The second step is to compare andmatch between the purchaser and the seller to ensure that they agreeon what is to be traded and on what terms. The final phase is to deliver what has been promised in the trade.
清算和结算
Clearing and Settlement describes the process of clearing andsettlement for various types of securities.清算和结算描述了各种各样证券的清算和结算过程。Clearing is processing a trade . 清算是一个交易过程。Settlement is the transfer of cashand securities between the parties.结算在交易双方之间进行现金和证券的转移以便结束交易。Clearing and settlement are usually referred to as the back-office operations.清算和结算通常被认为是后勤部门的活动。The first step in theclearing and settlement process is to convey the details of the tradefrom traders to the back office.清算和结算的第一步是将交易细节传回到后勤部门，The second step is to compare andmatch between the purchaser and the seller to ensure that they agreeon what is to be traded and on what terms.第二步是在买方和卖方之间进行比较，以确定双方在交易标的和交易条件上的一致性，The final phase is to deliver what has been promised in the trade.最后一步是发送交易的标的物。
a Piece of News of Investment Banks
东亚经济评论的一篇文章：21世纪的投资银行革命:从华尔街到全世界
文章说：近年来，“投资银行”可以说是中国金融界最热门的词汇。在各种招聘会、展示会上，各大投资银行的柜台总是水泄不通；从年轻的大学毕业生到已经摸爬滚打多年的金融老手，几乎人人都盼望为投资银行工作。然而，吸引人们的主要是投行的丰厚待遇和所谓的“广阔发展空间”，至于投资银行业究竟前景如何，在整个金融生态链中处于什么地位，人们往往并没有足够的理性认识。 其实：“投资银行”(Investment Banking)完全是一个美国词汇，在欧洲或日本，原来不存在这样一种东西。严格的说，投资银行不是银行。在传统的金融学教科书里，“银行”是经营间接融资业务的，通过储户存款与企业贷款之间的利息差距赚取利润；而投资银行却是经营直接融资业务的，一般来说，它既不接受存款也不发放贷款，而是为企业提供发行股票、债券或重组、清算业务，从中抽取佣金。 投资银行业务的利润是很高的。以最常见的股票发行业务为例，投资银行一般要抽取7%的佣金，也就是说，如果客户发行价值100亿美圆的股票，投资银行就要吃掉7亿美圆。如果客户的股票上市之后立即大涨，投资银行还能再赚取一笔差价。债券发行业务的利润相对较少，但风险也较小。除此之外，兼并重组与破产清算是投资银行最激动人心的业务，近年来欧美动辄发生价值几百亿甚至几千亿美圆的超级兼并案，如美国在线兼并时代华纳、惠普兼并康柏等等，背后都有投资银行的推波助澜。因为兼并业务的技术含量很高，利润又很丰厚，一般被认为是投资银行的核心业务，从事这一业务的银行家是整个金融领域最炙手可热的人物。 在美国，投资银行往往有两个来源：一是由商业银行分解而来，典型的例子如摩根士丹利, 摩根银行分解为从事投资银行业务的摩根士丹利以及从事商业银行业务的JP摩根。；二是由证券经纪人发展而来，典型的例子如美林证券。美国投资银行与商业银行的分离发生在1929年的大股灾之后，但是在欧洲，各国政府一直没有颁布这样的限制，投资银行业务一般都是由商业银行来完成的，所以形成了许多所谓的“全能银行”，如德意志银行、荷兰银行、瑞士银行、瑞士信贷银行等等。事实证明，商业银行和投资银行由同一金融机构完成，在欧洲不但没有引起金融危机，反而在一定程度上加强了融资效率，降低了金融系统的风险。 在日本和中国，具备投资银行职能的金融机构被称为“证券公司”，它们除了为企业承销股票和债券、负责企业兼并重组及破产清算事宜之外，还负担着证券分析和证券经纪人的角色。日本最大的证券公司如东洋证券，中国最大的证券公司如申银万国，既为企业融资充当经纪人，又为大小投资者买卖股票充当经纪人。因此，中国的大型证券公司实际上就是美国的投资银行，只是人们往往没有注意到这一点而已。 在中国，国有商业银行往往也兼有投资银行的职能，它们可以为企业承销债券，并接受委托理财，只是不能承销股票而已。
在美国，JP摩根银行、美洲银行等大型商业银行却在大举进军投资银行领域，商业银行与投资银行的整合在美国已经形成趋势，美国法律对此也开起了绿灯。商业银行经营投资银行业务有先天优势，它可以利用与各大企业的存款、贷款关系网争取到许多客户，不用像传统的投资银行那样依靠证券分析和咨询吸引客户。在投资者心目中，商业银行拥有更充足的资金和更良好的信誉，它们主要缺乏的是投资银行领域的业务经验。可以预测，未来几十年内，传统投资银行和商业银行在投行领域的竞争将越来越激烈，新秩序的形成可能需要相当漫长的时间。 ，中国却仍然保持着“证券公司”体制。除了高盛高华、中金国际等少数有外资背景的投资银行之外，国内企业的股票发行大部分是由申银万国、湘财、海通这样的大型证券公司完成，它们同时也为证券投资者提供经纪和咨询业务；对大部分证券公司来说，经纪业务甚至是它的主要业务，这与美国美林证券公司的风格比较类似。 目前在中国出现了一个非常奇怪的现象：人人都对投资银行趋之若鹜，却对本土的“证券公司”嗤之以鼻，人们并不了解“证券公司”只是“投资银行”的另一种称谓，其中最大的区别是中国证券公司业务利润远远没有海外投资银行那样丰厚，对金融从业人员的吸引力不高。但是，只要中国资本市场持续发展，中国肯定会产生扎根于本土的国际性投资银行。对于有志于投身投资银行业务的国内求职者来说，选择本土大型证券公司也不失为一种好的选择
Types of Banks Exercise
First, I would like you to do some exercises, this exercise defines the most important kinds of bank. After that, you will have a general idea of the functions of different types of banks and the most important thing is you will know how to use English to express the functions of banks.
Ok, now. Complete the text using these words:
central banks building societies finance house
commercial banks merchant banks investment banks
supranational banks universal banks
(1)__central bankssupervise the banking system; fix the minimum interest rate; issue bank notes; controlthe money supply; influence exchange rates; and act as lender of last resort.中央银行监督整个银行业；限定最底利率；发行钞票；控制货币供应量；影响汇率；起着最后贷款人的作用。
(2)commercial banksare businesses that trade in money. They receive and hold deposits in currentand savings accounts, pay money according to customers' instructions, lend money, and offerinvestment advice, foreign exchange facilities, and so on.商业银行是进行货币交易的行业。商业银行接受存款并且持有放在活期存款帐户和储蓄帐户中的存款，并根据储户要求支付货币，发放贷款，并且提供投资建议，经营外汇业务，等等。
In some countries such as thesebanks have branches in all major towns; in other countries there are smaller regional banks. UnderAmerican law, for example, banks can operate in only one state. Some countries have banks that wereoriginally confined to a single industry, . the Credit Agricole in , but these now usually havea far wider customer some European countries, notably Germany, Austria, and Switzerland, there are(3)universal banks which combine deposit and loan banking with share and bond dealing, investmentadvice, etc. Yet even universal banks usually form a subsidiary, known as a (4)__finance house_____________, to lendmoney - at several per cent over the base lending rate - for hire purchase or installment credit, that is,loans to consumers that are repaid in regular, equal monthly amounts.
Facilitiy: 功能，作用。
In some countries such as England thesebanks have branches in all major towns; in other countries there are smaller regional banks.在一些国家，例如英国，央行和商业银行在各个大城市都有分行；在其他的一些国家，央行和商业银行都有一些小的地区银行。UnderAmerican law, for example, banks can operate in only one state.例如，美国现行法律规定，银行可以由州来授予执照。Some countries have banks that wereoriginally confined to a single industry, . the Credit Agricole in , but these now usually havea far wider customer base.有些国家的银行原本只是为某一个产业服务的，例如：法国的农业信贷银行。然而现在这些银行都有非常广泛的客户群。In some European countries, notably Germany, Austria, and Switzerland, there are(3)universal banks which combine deposit and loan banking with share and bond dealing, investmentadvice, etc.在欧洲一些国家，特别是德国，奥地利，和瑞士这三个国家都有一个银行叫做多功能银行，这种银行同时拥有存款、贷款业务、股票，债券业务和投资咨询业务。
Yet even universal banks usually form a subsidiary, known as a (4)__finance house_to lendmoney - at several per cent over the base lending rate - for hire-purchase or installment credit, that is,loans to consumers that are repaid in regular, equal monthly amounts.
hire-purchase or installment credit：loans to consumers that are repaid over 2 or 3 years. 指的是2或3年内还清的的贷款。
不过，即便是多功能银行，他们也有子公司，如：financial house（金融公司），它的功能是为分期付款购买发放贷款，贷款利率要高出基本贷款利率的几个百分点，也就是说他们financial house发放贷款给那些定期、按月反还贷款的客户。
In , the and , however, there is, or used to be, a strict separation betweencommercial banks and banks that do stockbroking or bond dealing. Thus in Britain, (5) merchant banksspecialise in raising time for industry on the various financial markets, financing international trade,issuing and underwriting securities, dealing with takeovers and mergers, issuing government bonds, andso on. They also offer stockbroking and portfolio management services to rich corporate andindividual clients. (6) investment banks in the are similar, but they can only act as intermediariesoffering advisory services, and do not offer loans themselves.
In Britain, the USA and Japan, however, there is, or used to be, a strict separation betweencommercial banks and banks that do stockbroking or bond dealing.然而在英国，美国和日本却相反。这些国家现在或者过去对于商业银行和进行股票交易和债券业务的银行都有很严格的区分。
Thus in Britain, (5) merchant banksspecialise in raising time for industry on the various financial markets, financing international trade,issuing and underwriting securities, dealing with takeovers and mergers, issuing government bonds, andso on.
在英国，商人的银行专门从各种金融市场为企业筹集资金，投资（融资）进行国际贸易业务，发行并承销证券，负责接管，并购，发行政府债券，等等。
They also offer stockbroking and portfolio management services to rich corporate andindividual clients.他们同时为大公司和一些私人客户提供股票买卖和投资组合管理服务。
(6) investment banks in the are similar, but they can only act as intermediariesoffering advisory services, and do not offer loans themselves.
在美国，投资银行起着相似的作用，但他们仅作为中介机构提供咨询服务，并不发放贷款。
Yet despite the Glass-Steagall Act in the , and Article 65, imposed by the Americans in in 1945, which enforce this separation, the distinction between commercial and merchant orinvestment banks has become less clear in recent years. Deregulation in the and is leadingto the creation of "financial supermarkets" - conglomerates combining the services previously offeredby stockbrokers, banks, insurance companies, etc.
Yet despite the Glass-Steagall Act in the USA, which enforce this separation, the distinction between commercial and merchant orinvestment banks has become less clear in recent years.不过，尽管在美国有（格-斯法）法案，加强了这种分离，但是在近几年商业银行和商人或投资银行的区别却越来越不太清晰。
Deregulation in the and is leadingto the creation of "financial supermarkets" - conglomerates combining the services previously offeredby stockbrokers, banks, insurance companies, etc.
在美国和英国的放松金融管制导致了“超级金融市场”的产生，超级金融市场是指：巨大的集团公司，他提供综合性的服务，即以前由股票经纪商，银行，保险公司提供的服务的综合。
Conglomerates：(报刊：p159)
In there are also (7)building societiesthat provide mortgages, . they lend money to home-buyers on the security of houses and flats, and attract savers by paying higher interest than the are also (8) supranational bankssuch as the World Bank or the European Bank forReconstruction and Development, which are generally concerned with economic development.
In there are also (7)__building societies_that provide mortgages, . they lend money to home-buyers on the security of houses and flats, and attract savers by paying higher interest than the banks.在英国，有专门的建屋协会可以提供抵押借款，例如：他们发放贷款给买房子的人通过抵押房子或公寓，并且通过比银行利息高的方式来吸引存款的人。
There are also (8)___supranational banks__such as the World Bank or the European Bank forReconstruction and Development, which are generally concerned with economic development.
除了上述几种银行之外呢，还有超国家的银行例如：世界银行和欧洲复兴与开发银行，他们住要经营经济开发业务。
Unit7 Financial Derivatives
Financial Engineering
Chapter 23 Financial Engineering
背景介绍
20世纪70年代初布雷顿森林体系瓦解后，浮动汇率以及波动日益加强的市场利率使得许多金融市场的参与者望而生畏。风险曾一度限制了金融市场的发展；但在它的召唤下产生的金融创新和衍生工具却又在一个更高的层次上刺激了金融市场的发展。这种发展是深刻的、有革命性意义的。正在这种大发展的背景下，人们创造出了更加科学的管理风险的办法——这就是人们所说的金融工程。中国的金融体制改革起步很晚，金融机构与企业对金融市场介入程度很浅，没有介入也就没有风险，这在一定程度上限制了金融工程在中国的发展。但是在锐意改革和进取的中国经济中，企业和金融组织对国际金融市场的介入将不断深入。而随着介入的加深必将产生巨大的金融风险，所以对于金融工程的研究已迫在眉睫。
One of the most important uses of financial derivatives is risk management. Some types ofrisk are simple to manage with financial derivatives, but others require custom engineering generally refers to the creation of custom solutions to complex riskmanagement problems. The financial engineer might use a combination of futures, options, andswaps, to tailor a solution to a specific risk management problem.
金融工程
One of the most important uses of financial derivatives is risk management.金融衍生品最重要的作用之一就是风险管理。Some types ofrisk are simple to manage with financial derivatives, but others require custom solutions.有些类型的风险仅用金融衍生品就可以实现管理，但是另外一些风险却需要为其度身订做的方法才能解决。Financial engineering generally refers to the creation of custom solutions to complex riskmanagement problems.金融工程通常就是指对复杂的风险管理问题的特定解决办法的创造。The financial engineer might use a combination of futures, options, andswaps, to tailor a solution to a specific risk management problem.金融工程可能使用期货、期权和互换的组合以解决特定风险管理问题。tailor a solution:找到一个特定的解决办法。
Introduction
One of the most innovative areas to develop in the financial markets within the last fiftyyears has been the trading of derivative products related to capital markets instruments. Aswith all new products, derivatives have been both described as uncontrollable methods ofspeculation and touted as money-saving hedging techniques. Part of the problem surrounding thenewest generation of derivatives is that they are products of financial engineering, not of thetraditional derivatives exchanges. They have proven troublesome to regulators because of theircomplexity, and they have even proven difficult,to quantify. But despite all of their qualitiesand drawbacks, financial engineering and derivatives trading have proven highly successful toinvestment banks that have mastered their intricacies.
Introduction概述
One of the most innovative areas to develop in the financial markets within the last fiftyyears has been the trading of derivative products related to capital markets instruments.最近50年，在金融市场的发展中最具创新精神的领域莫过于与资本市场工具相关的衍生产品的交易了。Aswith all new products, derivatives have been both described as uncontrollable methods ofspeculation and touted as money-saving hedging techniques.与所有新产品一样，衍生产品既作为一种无法控制的投机手段而备受指责，同时又作为一种省钱的保值技术而被兜售。Tout: to praise something or someone in order to persuade people that they are important or worth a lot (也就是说，最初人们对衍生产品是具有两面性的：一方面是无法控制的投机手段，而受到人们的指责，另一方面，它又是省钱的规避风险，保植技术，而受到人们的喜爱。Part of the problem surrounding thenewest generation of derivatives is that they are products of financial engineering, not of thetraditional derivatives exchanges.围绕最新一代衍生产品的问题之一是：它们是金融工程中的衍生品而不是传统的衍生品交易了。They have proventroublesome to regulators because of theircomplexity, and they have even proven difficult to quantify.由于它们的复杂性，这些衍生品对于管理者是巨大的麻烦，而且它们也很难量化。
Proven: adj. 已经被证实确实存在的。
But despite all of their qualitiesand drawbacks, financial engineering and derivatives trading have proven highly successful toinvestment banks that have mastered their intricacies.尽管种种特性和缺陷令人生畏，但对于那些精通其复杂机理的投资银行来说，金融工程及其衍生品的交易仍是极有发展前景的。
Drawbacks:缺陷，不足。
Intricacy: the complicated details of something:复杂机理
The derivatives discussed here are not those first-generation derivatives appearing in themid-1970s. Options on common stock shares and futures on financial and interest rateinstruments all developed in the post-Bretton Woods era characterized by inflation, rising oilprices, and volatile interest rate. Most are traded on independently organized options exchangesor futures exchanges and, while extensively used by investment banks, are still mainly in the province of their respective exchanges. It is the second-generation derivatives that have proved most profitable to both investment banks and commercial banks.
The derivatives discussed here are not those first-generation derivatives appearing in themid-1970s.我们这里讨论的衍生品并不是那些出现于20世纪70年代中期的第一代衍生产品。Options on common stock shares and futures on financial and interest rateinstruments all developed in the post-Bretton Woods era characterized byinflation, rising oilprices, and volatile interest rate..普通股期权和金融及利率工具的期货都是在后布雷顿森林体系时代发展起来的，这一时代以通货膨胀、油价上升及反复无常的利率为特征。Most are traded on independently organized options exchangesor futures exchanges and, while extensively used by investment banks, are still mainly in the province of their respective exchanges大多数上述衍生品在不同的期权或期货交易所进行交易，尽管投资银行广泛使用这些产品，它们仍主要在各自的市场内进行交易。It is the second-generation derivatives that have proved most profitable to both investment banks and commercial banks.而恰恰是第二代衍生产品使投资银行和商业银行都大获其利。
Second-generation derivatives, namely interest rate swaps, currency swaps, and commodity swaps, have all appeared since the early 1980s and have become, in aggregate, the largest market for certificateless financial products in the world. They combine having the features of tradedoptions or futures with serving the large-scale hedging needs of many investors who are not served by the volume traded on options or futures exchanges. While certainly products of thepost-Bretton Woods era, their raison d'etre can be found more directly in the debtcrisis that followed the inflation and recession of 1980-82.
Second-generation derivatives, namely interest rate swaps, currency swaps, and commodity swaps, have all appeared since the early 1980s and have become, in aggregate, the largest market for certificateless financial products in the world.第二代衍生品，如利率互换、货币互换和商品互换都是在80年代初期出现的，而且总的来说已经成为世界最大的无证金融产品市场。
Aggregate: total.
Aggregate demand: 总需求Aggregate demand curve:总需求曲线
A technique developed in the mortgage market in the 1970s became increasingly popularwith both investment banks and commercial banks as a method of financial innovation withfar-reaching possibilities. During the late 1970s and early 1980s, many companies had borrowedfloating-rate, both in the bond markets and from the banks. While a necessary source of funds,floating-rate (or adjustable) debt had proved costly for many companies in the interest rate spiralof 1980-1982. In short, many companies were in the same position in which developingcountries found themselves. Borrowed money was becoming more and more costly on a periodicbasis. As long as interest rates remained uncertain, the economic outlook for many borrowersremained uncertain as well.
A technique developed in the mortgage market in the 1970s became increasingly popularwith both investment banks and commercial banks as a method of financial innovation withfar-reaching possibilities.抵押市场在20世纪70年代发展起来的一项技术受到投资银行与商业银行共同垂青, 这一技术作为金融创新的一种方式带来了非常广阔的机遇。（这一技术就是我们后面要引出的“swap”互换概念）
During the late 1970s and early 1980s, many companies had borrowedfloating-rate, both in the bond markets and from the banks. 20世纪70年代末和80年代初，许多公司不仅从债券市场上而且还从银行中借入了浮动利率的债务。While a necessary source of funds,floating-rate (or adjustable) debt had proved costly for many companies in the interest rate spiralof 1980-1982. While: 虽然。While后面省略了主语和谓语，While a necessary source of funds意思是虽然从债券市场上以浮动利率借钱这件事，是一种资金来源。floating-rate (or adjustable) debt had proved costly for many companies，这句话中proved costly 表示付出高昂代价。那么，这句话告诉我们浮动利率(或称可调节)的债务让很多公司付出了高昂代价。in the interest rate spiralof 1980-1982Spiral：本意是螺旋型的，这里理解为波动。也就是说，在1980~1982年的利率大幅波动中
译文：虽然这不失为一种资金来源，但许多公司在1980~1982年的利率大幅波动中仍为浮动利率(或称可调节)的债务付出高昂代价。
In short, many companies were in the same position in which developingcountries found themselves：简言之，许多公司处于与发展中国家相同的境遇之中Borrowed money was becoming more and more costly. 借款变得越来越昂贵。As long as interest rates remained uncertain, the economic outlook for many borrowersremained uncertain as well.只要利率不确立，许多借款者的经济前景就是不确定的。
The alternative was to retire the debt that had become too expensive, but in many cases that
was not a viable option. But that would stillleave many companies with funding problems after the debt had been retired. Moreover, manylenders would refuse to renegotiate debt unless the borrower was in dire economic straits, as proved in answer to this manifold problem would lie in what became knownas the interest rate swap market.
The alternative was to retire the debt that had become too expensive, but in many cases that
was not a viable option.
Retire: To take out of circulation. 使…退出流通，清偿=pay off retire the bonds: 使债权推出流通，retire the debt：清偿债务。
Viable: （计划或系统）切实可行的。economically/ commercially viable: 经济效益上是可行。
译文：解决办法之一是清偿那些高成本债务，但在许多情况下，这并不是一个可行的选择。
But that would stillleave many companies with funding problems after the debt had been retired.但那仍然使得许多公司在清偿债务之后存在种种资金问题。
Moreover, manylenders would refuse to renegotiate debt unless the borrower was in dire economic straits, asMexico proved in 1982.此外，许多贷款人拒绝对债务重新议价，除非借款者已陷入像1982年的墨西哥一样的经济深渊。
renegotiate debt ：对贷款重新议价。
Dire: extremely serious, bad or terrible. 极其严重的糟糕的。
Be in Dire straits: be in an extremely difficult or serious situation. 处于岌岌可危的境地。
The answer to this manifoldproblem would lie in what became knownas the interest rate swap market.这一复杂的问题将由人们称为利率互换市场的金融工程提供解决办法。
Manifold：多种多样的，繁杂的。
Interest rates were not the only pressing problem of the early and mid-1980s. Because ofthe extreme movements in interest rates, currencies also became extremely volatile, in manycases wreaking havoc on the balance sheets of multinational companies with extensive foreign exchange exposure．Many of those companies needed currency to be supplied on a long termhedged basis that would immunize them to the risks of precipitous currency movements. As in the case of interest rates，many of these currency exposures were in large amounts--too large to lay off in the futures market or even in the traditional forward market where the longest period one could hedge effectively was 1 2 months．
Interest rates were not the only pressing problem of the early and mid-1980s.利率并不是20世纪80年代初期和中期唯一紧迫的问题。
Pressing：urgent 紧迫的，急需解决的。
Because ofthe extreme movements in interest rates, currencies also became extremely volatile,由于利率的剧烈波动，货币也变得极端不稳定.in manycaseswreaking havoc on the balance sheets of multinational companies with extensive foreign exchange exposure．在许多情况下，使得在资产负债表上有外汇头寸敞口的跨国公司蒙受了巨大的损失。
wreaking havoc: to cause a lot of damage, problems, and sufferings. 带来麻烦，使遭受损失。
exposures敞口
Many of those companies needed currency to be supplied on a long termhedged basis that would immunize them to the risks of precipitous currency movements.
hedged basis: 保值基础
immunize：to protect someone from a particular illness. 保护某人不受疾病的威胁,使某人具有免疫能力。
Immunize sb against sth:There is still no vaccine(疫苗) to immunize people against the virus. 还没有疫苗可以预防这种病毒。
Precipitous:very sudden剧烈的，突发的
（课文中说：along term hedged basis that would immunize them to the risks长期的套期保值基础可以使他们预防风险，那么什么风险呢？the risks of precipitous currency movements。货币价值剧烈变动带来的风险）
译文：其中的许多公司需要在长期套期保值基础上的货币供给，只有这样，才能避免它们遭受突发的货币价值剧烈变动带来的风险。
As in the case of interest rates，many of these currency exposures were in large amounts--too large to lay off in the futures market or even in the traditional forward market where the longest period one could hedge effectively was 1 2 months．如利率一样，许多货币头寸的敞口数额巨大——大到无法在期货市场甚至是传统的远期市场消化，其中远期市场最长只能提供12个月的套期保值。
lay off：lay off (something) informal to stop using or doing something:
I think you'd better lay off alcohol for a while.
lay off doing something
I had to lay off running for several months.
Many hedgers also found that the futures market required expertise that they did not possess and did not have time to develop．The risk incurred in dealing with futures--basis risk was not
worth many companies’time and was an additional risk，albeit small，that many were not willing
to assume．Because of this problem，the investment banks and the commercial banks with merchant banking expertise began to experiment with methods designed to help offset corporateinterest rate and foreign exchange risks while making money for themselves at the same time.
Many hedgers also found that the futures market required expertise that they did not possess and did not have time to develop．许多套期保值者发现期货市场要求他们拥有某种经验技能，而这种技能确实他们所不具备的，且没有时间去积累的。
Hedgers:套期保值者
Expertise:special skills or knowledge in a particular subject that you learn by experience or training. 通过经验积累或培训而获得的特殊的技能。
Possess: 拥有，具有。
The risk incurred in dealing with futures--basis risk---was not worth companies’time and was an additional risk，albeit small，that many were not willing to assume．期货交易中产生的风险——基差风险——并不值得许多公司浪费时间，而且它只是一项附加风险——虽小却是许多公司不愿承担的风险。
Incur：（本意）招惹，招致麻烦
（句子中的）The risk incurred in dealing with futures：理解为：期货交易中（带来）产生的风险
Basis risk:基差风险
当期货价格与现货价格不一致或期货价格与现货价格的变动幅度不同时，便产生了期货的基差风险
在套期保值的情况下，一种资产的现货市场的价格与相应的期货价格之差，被称为期货的基差（basis）。即. 基差=现货价格-期货价格.
Albeit:=although
Because of this problem，the investment banks and the commercial banks with merchant banking expertise began to experiment with methods designed to help offset corporateinterest rate and foreign exchange risks while making money for themselves at the same time.因此，投资银行、商业银行与商人银行家们开始试验以发现一种方法，这种方法既可以帮助公司回避利率风险及外汇风险同时又可赚钱的方法。
experiment with methods:实验某种方法。
Offset: 抵消，补偿。methods designed to help offset corporateinterest rate and foreign exchange risks. 意思是：（他们想找到）一种方法能够抵消利率和汇率风险。
The 1980s generally was the decade of the swap idea．The concept originated in the 1 970s in a related field and eventually was imported into the foreign exchange and interest rate markets. Although the areas that borrowed the idea were highly developed and intricate, the original idea was quite simple and involved simple“horse trading”between two parties．
The 1980s generally was the decade of the swap idea. 整个20世纪80年代就是互换的年代。 The concept originated in the 1970s in a related field and eventually was imported into the foreign exchange and interest rate markets. 这个设想起始于70年代的一个相关领域并且最终引入了外汇和利率市场。
Although the areas that borrowed the idea were highly developed and intricate, the original idea was quite simple and involved simple“horse trading”between two parties．虽然移入这一概念的领域是高度发达和复杂的，但最初的设想却十分简单，如同两队人马之间的“马匹互换”。
In the 1970s, many oil producing countries，especially in the Arab world，began to arrange barter agreements with trading partners, especially those in other Third World countries. Oil would be traded for specific commodities or supplies at predetermined levels in order to avoid fluctuating exchange rates. Following hard on the heels of those barter arrangements came what are known as countertrade arrangements whereby trade arrangements were constructed to benefit buyers of goods．A buyer in one country would arrange with a seller in another to buy a specific amount of goods with the understanding that the seller would buy a certain amount of goods or services from the buyer in return．This arrangement was contractual and enabled the buyer to effectively receive a discount on its purchases while allowing the seller to charge the original price without being seen to give a discount for its goods or services．Again，the intent on the original buyer’s part was to avoid some of the exchange risk involved in international transactions involving more than one currency．
In the 1970s, many oil producing countries，especially in the Arab world，began to arrange barter agreements with trading partners, especially those in other Third World countries。在70年代，许多产油国——尤其是阿拉伯地区的产油国，开始与贸易伙伴安排易货贸易协定，特别是那些第三世界国家. Oil would be traded for specific commodities or supplies at predetermined levels in order to avoid fluctuatingexchange rates. (这些国家的)原油将以预先决定的价格水平与对方特定的商品或物品互换，从而避免浮动汇率的风险
Following hard on the heels of those barter arrangements came what are known as countertrade arrangements whereby trade arrangements were constructed to benefit buyers of goods．易货安排方式之后出现了所谓的对等贸易安排，这里的交易合同建立在对买方有利的基础之上。
Came hard/hot/close on the heels of something: very soon after something在某事之后很快出现。
Countertrade：对等贸易
Whereby：by means of which,连接词，=由此
A buyer in one country would arrange with a seller in another to buy a specific amount of goods with the understanding that the seller would buy a certain amount of goods or services from the buyer in return．所谓对等贸易是这样的,一个国家中的买主与另一个国家中的卖主达成协议，买主购买一定数量的商品或劳务，而卖主也要购买买主的一定数量的商品或劳务作为回报。
This arrangement was contractual and enabled the buyer to effectively receive a discount on its purchases while allowing the seller to charge the original price without being seen to give a discount for its goods or services．
这个协定是契约性的，并且能使买方在卖方原始订价的基础上享受折让，而卖方在购买买方商品时却不享受这种优惠。
Contractual：契约性的
Again，the intent on the original buyer’s part was to avoid some of the exchange risk involved in international transactions involving more than one currency．同样的，这种交易中原始买方的意图也是为了避免非单一货币的国际贸易中隐藏的外汇风险。
Countertrade became popular about the same time that swaps were beginning to emerge as means of hedging interest rate and currency risks．Originally，investment banks came to the swap business as arrangers of deals rather than as counterparties．In the early 1 980s，no one could have foreseen the acute interest that swaps of all sorts would engender among institutional investors. Once that interest proliferated，both the commercial banks and the investment banks had to quickly adapt in order to keep abreast of each other in the marketplace．This was especially important for the investment banks since they were less well capitalized than the commercial banks and most did not maintain market-making facilities for foreign exchange trading.
Countertrade became popular about the same time that swaps were beginning to emerge as means of hedging interest rate and currency risks．在对等贸易流行起来的同时，互换也作为利率和货币风险套期保值的方式开始出现。Originally，investment banks came to the swap business as arrangers of deals rather than as counterparties．起初，投资银行就作为经纪人而非交易方介入互换交易。
In the early 1 980s，no one could haveforeseen the acute interest that swaps of all sorts would engender among institutional 世纪80年代初期，没有人能预料到各种互换交易会引起机构投资者的巨大兴趣。
Forsee: 预见，预料
Acute: 是表示程度的一个形容词，它和不同的名词连用，翻译时会略有差别。比如：
Acute embarrassment: 极其尴尬
Acute pain: 剧烈的疼痛
Acute problem: 重大的问题
Acute interest:强烈的兴趣
Engender: cause: 引起，产生
Once that interest proliferated，both the commercial banks and the investment banks had to quickly adapt in order to keep abreast of each other in the marketplace．一旦这种兴趣膨胀起来，投资银行与商业银行不得不迅速采取行动以保证它们能在市场中并肩前行。
Proliferate:if something proliferates, it increases quickly and spreads to many different places:
Master of Financial Engineering continue to proliferate:金融工程硕士持续升温，越来越热。
Adapt: to gradually change your behaviour and attitudes in order to be successful in a new situation. 改变自己的行为或态度来适应新的环境。
keep abreast of：了解…的最新情况
abreast: 并排 abreast：２／３／３个人并排。
This was especially important for the investment banks since they were less well capitalized than the commercial banks and most did not maintain market-makingfacilities for foreign exchange trading.这对投资银行来讲尤为重要，因为它们的资本化程度远不及商业银行，而且它们中的大多数并没有占据外汇市场的庄家地位。
market-maker：庄家
market-makingfacilities:庄家活动便利，庄家地位
The swap concept has become the best-known form of financial engineering to emerge from the 1980s，although at the outset the idea appeared quite simple．The first swaps were interest rate swaps，although currency swaps existed on different levels among corporations and central banks as well．The modern swap market is actually a blend of simple exchange techniques with an element of flexibility added that justifies the name financial engineering．Unlike the early varieties，the term “market”now means secondary, or trading．market for swaps—something which did not exist originally．
The swap concept has become the best-known form of financial engineering to emerge from the 1980s，although at the outset the idea appeared quite simple．从20世纪80年代开始，互换概念就已成为金融工程中最为人熟知的形式了，尽管这个想法的产生是如此简单。
best-known：为人熟知的
at the outset:从一开始。
The first swaps were interest rate swaps，although currency swaps existed on different levels among corporations and central banks as well．最初的呼唤是利率互换，虽然货币互换同样不同程度地存在于公司及央行。The modern swap market is actually a blend of simple exchange techniques with an element of flexibility added that justifies the name financial engineering．
Blend …A with …B:把 A 与B融合在一起。blend of simple exchange techniques with an element of flexibility 简要的交易技巧与灵活多变的因素融合在一起。
Added: adj, =in addition to. 并且。
Justify:证明….是有正当理由的。
译文： 现代的互换市场实际上是一个混血儿，它结合了简要的交易技巧与灵活多变的因素，并被冠以金融工程的头衔。
Unlike the early varieties，the term“market”now means secondary, or trading, market for swaps—something which did not exist originally. 与早期的多种解释不同，“市场”这个词现在意指二级或者进行“互换”交易(的市场)，而“互换市场”更是从前没有的。
Swaps have become so successful within the last decade that they are in many ways victims of their own success．Regulatory authorities have become increasingly wary of them，especially in light of the swaps debacle in Great Britain in 1988—89，discussed later．They have become so intricate that questions have arisen as to whether they are not as risky as the financial exposures they were designed to mitigate．However the generic term“swap” is becoming more and more difficult to generalize about since so many varieties have been devised since the mid-1980s．
Swaps have become so successful within the last decade that they are in many ways victims of their own success．互换交易在最近10年中的巨大成功, 同时也使其自身在许多方面成为受害者。Regulatory authorities have become increasingly wary of them，especially in light of the swaps debacle in Great Britain in 1 988—89，立法机构的权威已经对它们提高警惕，特别是发生了1988～1989年英国的互换危机之后。
Wary: be wary of sth=be careful of sth对某事多加小心，提高警惕。
In light of : 根据，考虑到if you do or decide something in the light of something else, you do it after considering that thing. In light of the thunderstorm, we cancelled the travel plan. 考虑到暴风雪，我们取消了此次旅行。
Debacle: an event or situation that is a complete failure 残败，崩溃，危机
They have become so intricate that questions have arisen as to whether they are not as risky as the financial exposures they were designed to mitigate．这些互换交易已演变得如此复杂，以至于要提出这样一个疑问：它们是不是比它们希望回避的（金融敞口）或外汇风险敞口更安全一些?
Mitigate 减轻，缓和。
Not as risky as….：不像….一样有风险，比…安全。
exposures they were designed to mitigate：他们希望缓和或回避的风险。
However the generic term“swap” is becoming more and more difficult to generalize about since so many varieties have been devised since the mid-1 980s．然而，80年代中期以来各种各样的互换衍生产品被设计出来，互换的总体概念已变得越来越难以总结。
Generic: generic term/name: a word that describes a whole class of things: 用于描述一类事物的词，通称。
Generalize: v. 概括
Devise: v.设计
The Financial Engineer and Risk Management
Not all financial risk is bad, and not all financial risk should be avoided．However, prudence requires that investors understand the risks to which they are exposed and manage those risks wisely．Investing in financial instruments, borrowing, and raising funds through stock offerings all involve financial risk．When the amounts at risk are small and when the instruments employed are simple, the financial risks CAD be comprehended readily．However complex risk exposures involving substantial sums of money can be very important, yet difficult, to manage, calling for the services of a financial engineer．
The Financial Engineer and Risk Management金融工程与风险管理
Not all financial risk is bad, and not all financial risk should be avoided．并不是所有的金融风险都是不好的，也并不是所有的金融风险都应回避。
However, prudence requires that investors understand the risks to which they are exposed and manage those risks wisely．然而，谨慎性原则要求投资者理解他们所面临的风险并且明智地管理那些风险。
Prudence: a sensible and careful attitude that makes you avoid unnecessary risks谨慎性
Investing in financial instruments，borrowing，and raising funds through stock offerings all involve financial risk．投资于金融工具、借款和通过股票发行筹集资金，均涉及金融风险。
When the amounts at risk are small and when the instruments employed are simple，the financial risks can be comprehended readily．当风险的数量很少且使用的金融工具简单时，金融风险可以毫无困难地被理解。
Readily：quickly and easily 很快，很容易。
However complex risk exposures involving substantial sums of money can be very important，yet difficult, to manage，calling for the services of a financial engineer.然而，涉及巨额资金的风险敞口的管理就很重要，不过却困难了，这时就需要应用金融工程进行必要的管理。
substantial sums of money：巨额资金
The Social Role of Financial Derivatives
From the point of view of society as a whole, the risk management and risk transference function of financial engineering provide a substantial benefit. Because financial derivatives are available for risk management, firms can undertake projects that might be impossible without advanced risk management techniques．For example, the pension fund manager discussed earlier in this chapter many be able to reduce the risk of investing in stocks and thereby be able to improve the well—being of the pension fund participants．
金融工程的社会作用
From the point of view of society as a whole，the risk management and risk transference function of financial engineering provide a substantial benefit．从整个社会的角度来看，金融工程的风险管理和风险转移功能给社会带来了巨大的效益。Because financial derivatives are available for risk management，firms can undertake projects that might be impossible without advanced risk management techniques．因为金融衍生产品可以用来进行风险管理，所以公司可以执行一些项目，那些在没有先进风险管理技术情况下不可能的项目。
For example，the pension fund manager may be able to reduce the risk of investing in stocks and thereby be able to improve the well－being of the pension fund participants．例如，年金公司经理可以通过金融工程降低投资于股票的风险，并由此增加年金基金参加者的收益。
pension fund: 年金，养老金。
well－being：福利
Similarly, the auto firm that seeks to build a plant in Germany might abandon the project if it is unable to manage the financial risks associated with it．Individuals in the economy also benefit from the risk transference role of financialderivatives. For example．Most individuals who want to finance home purchases have a choice of floating rate or fixed rate mortgages．The ability of the financial institution to offer this choice to the borrower depends on the institution’s ability to manage its own financial risk through he financial derivatives market．
Similarly, the auto firm that seeks to build a plant in Germany might abandon the project if it is unable to manage the financial risks associated with it．与此相似，欲在德国建立分厂的汽车公司可能会放弃该项目，如果其不能有效管理与此相应产生的金融风险。
Individuals in the economy also benefit from the risk transference role of financialderivatives.
经济社会中的个人也可以从金融衍生产品的风险转移中获益。
For example．Most individuals who want to finance home purchases have a choice of floating rate or fixed rate mortgages．例如，大多数想要融资购房的个人都可有浮动利率或固定利率抵押贷款的选择。
The ability of the financial institution to offer this choice to the borrower depends on the institution’s ability to manage its own financial riskthrough he financial derivatives market．金融机构提供这种选择的能力依赖于其通过金融衍生产品市场管理其自身风险的能力。
Financial derivatives markets are instrumental in providing information to society as a whole．The existence of financial derivatives increases trader interest and trading activity in the derivatives instrument and the cash market instrument from which the derivative stems. As a result of greater attention，prices of the derivative and the cash market instrument will be morelikely to approximate their true value. Thus,the trading of financial derivatives aids economicagents in price discovery--the discovery of accurate price information--because it increases thequantity and quality of information about prices. When parties transact based on accurate prices,economic resources are allocated more efficiently than they would be if prices poorly reflectedthe economic value of the underlying assets. Further, even mere observers of the markets gaininformation that is useful in making their own trading decision. Firms and individuals can use theinformation discovered in the financial derivatives market to improve the quality of theireconomic decisions, even if they do not trade financial derivatives themselves.
Financial derivatives markets are instrumental in providing information to society as a whole．金融衍生市场能够为整个社会提供信息。
The existence of financial derivatives increases trader interest and trading activity in the derivatives instrument and the cash market instrument from which the derivative stems.金融衍生品的存在提高了交易者的兴趣并增加了对衍生工具和产生衍生工具的现货市场工具的交易活动。
As a result of greater attention，prices of the derivative and the cash market instrument will be morelikely to approximate their true value.由于引起了更大的注意，衍生品的价格和现货市场工具将更有可能接近其真实价值。
Thus, the trading of financial derivatives aids economicagents in price discovery--the discovery of accurate price information--because it increases thequantity and quality of information about prices.因此，金融衍生品的交易帮助经济代表人发现价格——真实价格信息的发现——因为它提高了价格信息的数量和质量。
When parties transact based on accurate prices,economic resources are allocated more efficiently than they would be if prices poorly reflectedthe economic value of the underlying assets.当交易双方以真实价格为基础成交时，经济资源的配置要更加有效，比价格无法真实反映隐含资产经济价值的情况更加有效。
Allocate：分配，配置。
Further, even mere observers of the markets gaininformation that is useful in making their own trading decision. 此外，即使是市场的观察者也能获得帮助其做出交易决策的有用信息。
Firms and individuals can use theinformation discovered in the financial derivatives market to improve the quality of theireconomic decisions, even if they do not trade financial derivatives themselves.
公司和个人也可利用在金融衍生产品市场发现的信息提高其经济决策的质量，即使他们并不亲自参与这些金融衍生品的交易，
Unit 8 Financial Innovation and Derivative Markets
Background:背景介绍
20世纪70年代以来，全球金融市场发展最引入注目的特点是金融创新以及衍生证券市场的空前发展。金融创新的发展主要归因于全球金融市场一体化、逃避金融风险的需求以及逃避立法管制的需求。衍生证券市场是金融创新最重要的一部分。事实上，对于金融创新的定义及分类仍没有定论。
本章介绍了金融创新的几种分类方法以及运用金融创新的风险与效用。在随后的几节课我们会分别对期货、期权以及互换这些基本的衍生产品进行介绍。
Financial Innovation
Competition among financial institutions has brought forth and fostered the development of new products and markets. Regulations that impede the free flow of capital and competitionamong financial institutions (particularly interest rate ceilings) have fostered the development offinancial products and trading strategies to get around these restrictions. Finally, the globalpattern of financial wealth has transformed financial markets from local markets into globallyinternationalized financial markets. Through technological advances and the reduction in tradeand capital barriers, surplus funds in onecountry can be shifted more easily to those who needfunds in another country. As a result, there has arisen a need for financial products and tradingstrategies to protect more efficiently against the adverse movements of foreign currencies.
金融创新与衍生市场
(我们都知道竞争是发展和创新的原由，竞争推动着整个社会的发展，在金融领域，正是金融机构之间的竞争，才促进了新的金融产品的创新和整个金融市场的发展。)
金融创新
Competition among financial institutions has brought forth and fostered the development of new products and markets.金融机构之间的竞争引起并孕育了新产品和新市场的发展。
Bring forth: means to produce sth. or make it appear. 产生，或使出现
Foster： help a skill, feeling, idea etc develop over a period of time [= encourage, promote]:
2. to take someone else's child into your family for a period of time but without becoming their legal parent 在一段时间内照顾别人的孩子，而不变为他的法律上的父母。
The couple wanted to adopt a black child they had been fostering.
Adopt: to take someone else's child into your home and legally become its parent收养别人的孩子，并成为起法律上的父母
Regulations that impede the free flow of capital and competitionamong financial institutions (particularly interest rate ceilings) have fostered the development offinancial products and trading strategies to get around these restrictions.那些阻止资本自由流动和金融机构间竞争(尤其是利率上限)的立法促进了金融产品发展并且促进避开这些限制的交易战略的发展
Regulation：an official rule or order 条理，规定，立法。
Regulator: 管理者，调控者。
Impedeto make it difficult for someone or something to move forward or make progress:阻碍
get around：to avoid or solve a particular problem or difficult situation. 逃避，回避，采用计谋防止 .
Two president tried to get around the sensitive problems in their conversation.
Finally, the globalpattern of financial wealth has transformed financial markets from local markets into globallyinternationalized financial markets.最后，金融资产的全球分配模式已经把金融市场由地方市场转变为全球的国际化金融市场。
Through technological advances and the reduction in tradeand capital barriers, surplus funds in onecountry can be shifted more easily to those who needfunds in another country.
Barrier：a rule, problem etc that prevents people from doing something, or limits what they can do阻碍物。
tradebarriers贸易壁垒：the removal of trade barriers(=something such as a tax that makes trade between countries difficult)
capital barriers资本壁垒
surplus funds：盈余资金
shift：to move from one place or position to another转移
参考译文：由于技术进步和贸易、资本壁垒的减少，一国的盈余资金可以更容易地转移到另一国那些需要资金的人手中。
As a result, there has arisen a need for financial products and tradingstrategies to protect more efficiently against the adverse movements of foreign currencies.因此，对于金融产品和更有效地防止汇率不利变动的交易战略的需求日益上升。
adverse: not good or favourable不利的The expedition was abandoned because of adverse weather conditions
the adverse movements：不利变动
Categorizations of Financial Innovation
Since the 1960s, there has been a surge in significant financial innovations. Observers offinancial markets have categorized these innovations in different ways. Here are just threeways suggested to classify these innovations.
The Economic Council of Canada classifies financial innovations into the following threebroad categories:
, ·Market-broadening instruments, which increase the liquidity of markets and the availability of funds by attracting new investors and offering new opportunities for borrowers;
· Risk-management instruments, which reallocate financial risks to those who are less averse to them or who have offsetting exposure, and who are presumably better able shoulder them;
·Arbitraging instruments and processes, which enable investors and borrowers to take advantage of differences in costs and returns between markets, and which reflect differences in the perception of risks, as well as in information, taxation, and regulations.
Categorizations of Financial Innovation金融创新的分类
Since the 1960s, there has been a surge in significant financial innovations. 从20世纪60年代开始，形成了一次重要的金融创新浪潮。
Surge：v.. to suddenly move very quickly in a particular direction朝着某个特定的方向快速移动。
n. a sudden increase in amount or number。急剧增加，或者涌现。
Observers offinancial markets have categorized these innovations in different ways.金融市场的研究者以不同的方法对这些金融创新加以分类。Here are just threeways suggested to classify these innovations.这里介绍三种对这些创新进行分类的方法。
The Economic Council of Canada classifies financial innovations into the following threebroad categories:加拿大经济委员会把金融创新划分为以下三大类：
·Market-broadening instruments, which increase the liquidity of markets and the availability of funds by attracting new investors and offering new opportunities for borrowers;扩展市场的工具，这种创新工具增加了市场的流动性和资金的可获得性，通过吸收新的投资者和对借款人提供新的机会
·Risk-management instruments, which reallocate financial risks to those who are less averse to them or who have offsetting exposure, and who are presumably better able shoulder them;风险管理工具，这类创新工具将金融风险重新分配到有风险偏好、有对冲敞口和能更好地承担风险的人那里。
Reallocate：重新分配
Allocate：分配
averse. Adj. be averse to do sth. =be unwilling to do sth. 不愿意去做某事,讨厌做某事。
Be averse to sb/sth=dislike sb/sth
Be not averse to do sth= be willing to do sth
Benot averse to sb/sth=like sb/sth who are not averse to risk=who like risk. 喜欢风险，有风险偏好的投资者。
Risk aversion: 风险偏好。广义地讲，就是投资者在追求其价值增值过程中所愿意接受的风险数量。
(收益和风险通常是相关联的，风险大收益高，风险小收益少。要想获得高收益往往要承担高风险。投资者在追求其价值增值过程中所愿意接受的风险数量越多，我们说他的风险偏好度也越高。)
Offset：抵消，对冲
Exposure：敞口，风险
Shoulder：承担
·Arbitraging instruments and processes, which enable investors and borrowers to take advantage of differences in costs and returns between markets, and which reflect differences in the perception of risks, as well as in information, taxation, and regulations.套利工具和过程，这类创新使投资者和借款人利用不同市场的成本收益差别（进行套利交易），这些差别反映了不同市场对于风险的感知、及信息、税收、管制情况。
(在投资银行一章，我们介绍过)Arbitrage: The simultaneous purchase and selling of a security in order to profit from a differential in the price. This usually takes place on different exchanges or marketplaces.同时买入及卖出证券，意图从差价中获利，在一般于不同的交易所或市场进行买卖
Another classification system of financial innovations based on more specific functions hasbeen suggested by the Bank for International Settlements: price-risk-transferring innovations, credit-risk-transferringinstruments, liquidity-generating innovations, credit-generating instruments and equity-generating instruments. Price-risk-transferring innovations are those that provide market participants with more efficient means for dealing with price or exchange-rate risk reallocating the risk of default is the function of credit-risk-transferring instruments. Liquidity-generating innovations do three things: (1) they increase the liquidity of the market, (2) they allow borrowers to draw upon new sources of funds, (3) they allow market participants to circumvent capitalconstraints imposed by regulations. Instruments to increase the amount of debt funds available to borrowers and to increase the capital base of financial and non-financial institutions are the functions of credit-generating and equity-generating innovations, respectively.
Another classification system of financial innovations based on more specific functions hasbeen suggested by the Bank for International Settlements:国际清算银行提出了另一种按更加特定的经济功能划分金融创新的体系：price-risk-transferring innovations, credit-risk-transferringinstruments, liquidity-generating innovations, credit-generating instruments and equity-generating instruments.转移价格风险创新、转移信用风险创新、创造流动性的创新、信用和权益工具的创新。
Price-risk-transferring innovations are those that providemarket participants with more efficient means for dealing with price or exchange-rate risk。价格风险转移创新是那些给市场参与者提供更有效的处理价格和汇率风险的方法的创新。（互换）
reallocating the risk of default is the function of credit-risk-transferring instruments.重新分配违约风险是信用风险转移创新工具的功能。
Liquidity-generating innovations do three things:流动性创新有三项功能：(1) they increase the liquidity of the market.增加了市场的流动性； (2) They allow borrowers to draw upon new sources of funds,为借款者提供了新的资金来源；
draw upon/on：to use information, experience, knowledge etc for a particular purpose:利用
(3)they allow market participants to circumvent capitalconstraints imposed by regulations.
Circumvent:to avoid a problem or rule that restricts you, especially in a clever or dishonest way=get around 逃避，避开
circumvent capitalconstraints：逃避资本管制
③为市场参与者逃避立法当局实施的资本管制创造了条件。
Instruments to increase the amount of debt funds available to borrowers and to increase the capital base of financial and non-financial institutions are the functions of credit-generating and equity-generating innovations, respectively. 信用和权益创新工具的创新功能分别为市场参与者增加可供使用的债务资金数量和为金融和非金融机构增加了资本金。
debt funds债务资金
debt funds available to borrowers提供给借款者的债务资金
the capital base: 资本金（基础）。
资本金（基础）：The capital acquired during an IPO, or the additional offerings of a company, plus any retained earnings. 公司首次公开上市或后续股票发行获取的资金，加上保留盈利（留存收益）。
。
Finally, Professor Stephen Ross suggests two classes of financial innovation: (l) newfinancial products (financial assets and derivative instruments) better suited to the circumstance of the time (., to inflation) and to the markets in which they trade; and (2) strategies that primarily use these financial products.
Finally, Professor Stephen Ross suggests two classes of financial innovation:最后，斯蒂芬．罗斯教授建议将金融创新分为两类：(l) New financial products (financial assets and derivative instruments) better suited to the circumstance of the time (., to inflation) and to the markets in which they trade;新式金融产品 (金融资产和衍生工具)，这些产品能更好地适应当时的经济环境（通货膨胀）并且适应这些产品进行交易的市场；(2) strategies that primarily use these financial products.使用这些金融创新产品的策略。
Motivation for Financial Innovation
There are two extreme views of financial innovation. At one extreme are those who believethat the major impetus for innovation has been the endeavor to circumvent (or "arbitrage")regulations and find loopholes in tax rules. At the other extreme are those who hold that theessence of innovation is the introduction of financial instruments that are more efficient forredistributing risks among market participants.
Motivation for Financial Innovation金融创新的动机。
There are two extreme views of financial innovation. 对于金融创新有两种对立的看法：At one extreme are those who believethat the major impetus for innovation has been the endeavor to circumvent regulations and find loopholes in tax rules.一种看法认为逃避立法管制(或套利)和寻找税收规则上的漏洞是创新的主要推动力；
Extreme：极端。
Impetus：an influence that makes something happen or makes it happen more quickly
impetus for
The report may provide further impetus for reform.
Endeavor: an attempt to do something new or difficult努力，试图
Loopholes：a small mistake in a law that makes it possible to avoid doing something that the law is supposed to make you do （法律上的）漏洞
legal/tax loophole
loophole in ：a loophole in the law
loopholes in tax rules
At the other extreme are those who hold that theessence of innovation is the introduction of financial instruments that are more efficient forredistributing risks among market participants.另一种观点则坚持认为创新的实质是引入金融工具，这些金融工具能够更有效地在市场参与者之间分配风险的
Essence：the most basic and important quality of something
essence of
Many of the innovations that have passed the test of time have provided more efficientmechanisms for redistributing risk. Other innovations may just represent a more efficient way ofdoing things. If we consider the ultimate causes of financial innovation, the following emerge as the most important:
Many of the innovations that have passed the test of time have provided more efficientmechanisms for redistributing risk.许多经过时间考验的金融创新提供了重新分配风险的更有效的机制，Other innovations may just represent a more efficient way ofdoing things.其他金融创新也许只是代表了更为有效的操作方式。If we consider the ultimate causes of financial innovation, the following emerge as the most important:
如果要考虑金融创新的最终动因，以下几点是最为重要的。
1. increased volatility of interest rates, inflation, equity prices, and exchange rates.利率、通货膨胀率、股票价格和汇率不断增加的变动性。
2. Advances in computer and telecommunication technologies.计算机和电子通讯技术的进步。
3. Greater sophistication and educational training among professional market participants.市场专业人员越来越复杂的交易策略和教育培训水平的提高。
4. Financial intermediary competition.金融中介机构的竞争。
5. Incentives to get aroundexisting regulation and tax laws.逃避监管和税收法律的动机。
Incentive: something that encourages you to work harder, start a new activity etc. 刺激，动力，鼓励。The company doesn’t provide an incentive for young people to improve their skills.这个公司没有给年轻人提供一个激励机制，来促使年轻人提高他们的各项技能。
Stock options is a good incentive for young managers to work hard for the company. 股票期权是很好的激励机制，他使得年轻的经理们为公司努力工作。
6. Changing global patterns of financial wealth.全球金融财富格局的改变。
With increased volatility comes the need for certain market participants to protectthemselves against unfavorable consequences. This means new or more efficient ways of risksharing in the financial market are needed. Many of the financial products require the use ofcomputers to create and continually monitor them. To implement trading strategies using thesefinancial products also requires computers, as well as telecommunication networks. Withoutadvances in computer and telecommunication technologies, some innovations would not havebeen possible. Although financial products and trading strategies created by some market participants may be too complex for other market participants to use, the level of marketsophistication, particularly in terms of mathematical understanding, has risen, permitting theacceptance of some complex products and trading strategies.
With increased volatility comes the need for certain market participants to protectthemselves against unfavorable consequences.随着各种变动性（变动指interest rates, inflation, equity prices, and exchange rates等方面的变动。）的加大，市场参与者加强自身保护的需求不断加大。
With…. Comes the need for….: 伴随着…的出现，出现了….的需求。
protectthemselves against unfavorable consequences：保护自己不要受到不利结果的影响。
This means new or more efficient ways of risksharing in the financial market are needed.这意味着需要新的、能在金融市场上分担风险的有效措施。Many of the financial products require the use ofcomputers to create and continually monitor them. 许多金融产品都要求使用计算机进行开发，并对开发出的产品实施监管。To implement trading strategies using thesefinancial products also requires computers, as well as telecommunication networks. 执行这些金融产品的交易策略也要用到计算机和电子通讯网络。Withoutadvances in computer and telecommunication technologies, some innovations would not havebeen possible.没有计算机和电子通讯技术的进步，某些创新就不能产生。Although financial products and trading strategies created by some market participants may be too complex for other market participants to use, .虽然某些市场参与者开发、创造的金融产品和交易策略对其他参与者而言太过复杂，the level of marketsophistication, particularly in terms of mathematical understanding, has risen, permitting theacceptance of some complex products and trading strategies.但是市场的总体复杂程度，尤其是数学分析手段的增加，使某些复杂的产品和交易策略成为可能。
Effect and Risk of Financial Innovation
One important effect of these innovations has been to disperse risk across the financialsystem as a whole. This has two possible effects: First, (as mentioned earlier,) risks will betransmitted through the system until they reach “faultiness” .Thus the impact of the risk positionmay fall on an institution far removed from the initial apparent risk. For example, a savingsand loan institution may make fixed-rate mortgage loans. If they are funded in the federal fundsmarket it is obviously at risk from interest-rate changes. But, the thrift institution may have donean interest-rate swap, which has transferred the risk to, say, a commercial bank across the is the latter, then, which will suffer if rates rise.
效用与风险
One important effect of these innovations has been to disperse risk across the financialsystem as a whole.金融创新的一个重要效用是通过作为一个整体的金融体系来分散风险。
Disperse：1 if a group of people disperse or are dispersed, they go away in different directions: 如果一些人disperse 或 are dispersed, 意思是这些人自动的散开，走向不同的方向，或者被驱散如：Police used tear gas to disperse the crowd.警察使用催泪弹来驱散人群。
2. If something disperses or is dispersed, it spreads in different directions over a wide area: 如果是某个东西disperse or is dispersed, 意思是：某个东西向不同的地方分散开来。
3. 当disperse 放在经济文章中和risk连用，意思为：分散风险。
This has two possible effects: First, (as mentioned earlier,) risks will betransmitted through the system until they reach "faultiness."这又有两种可能的效用：第一，如前所述，风险将通过金融体系传递开直到这些风险达到实际可能引致危害的临界点。Thus the impact of the risk positionmay fall on an institution far removed from the initial apparent risk.那么，风险头寸的冲击就可能由一个最初远离风险的机构承担。For example, a . savingsand loan institution may make fixed-rate mortgage loans.例如，一个美国存贷机构可以发放固定利率的抵押贷款。
Make loan: 发放贷款。make fixed-rate mortgage loans ：发放固定利率抵押贷款。
If they are funded in the federal fundsmarket it is obviously at risk from interest-rate changes.如果其贷款从联邦基金市场进行融资，则显然该机构承担了利率变动的风险But, the thrift institution may have donean interest-rate swap, which has transferred the risk to, say, a commercial bank across the country.。但是，该金融机构可以做一个利率互换交易（在后面的章节中有专门的介绍，这里不多说），从而在国内将风险转移给商业银行。It is the latter, then, which will suffer if rates rise.那么，利率上升时遭受损失的就是商业银行。
A second effect of the new innovations, arising from this, is that interest rates must now probably rise by more than before to have the same effect. For example, a central bank mightbecome concerned that conditions in the housing market are becoming overheated, fueled bycheap mortgages. It might therefore raise interest rates in order to cut back the supply of cheap,fixed-rate mortgages.
A second effect of the new innovations, arising from this, is that interest rates must now probably rise by more than before to have the same effect.由此而产生的金融创新的第二个效用是，如果利率要发挥与以往相同的效果，（to 在这里表示目的，相当于in order to）就必须上升得更多。For example, a central bank mightbecome concerned that conditions in the housing market are becoming overheated, fueled bycheap mortgages.例如，央行注意到住房市场变得过热，由于廉价的抵押贷款提供了燃料，It might therefore raise interest rates in order to cut back the supply of cheap,fixed-rate mortgages.因此它（中央银行）有可能为了减少廉价的固定利率抵押贷款的供给而提高利率。
cut back：削减，减少
cutback: n. 削减，减少 the cutback in sth: the cutback in lending ： 贷款的削减。
But, if the housing finance institutions are protected by interest-rate swaps from interest-riskexposure, and if they are able to finance their lending by means of sales of mortgage-backedsecurities, the cutback in their lending may take longer to achieve, because the housing financeinstitutions themselves are not directly affected. It is only when investors in mortgage-backedbonds, and those institutions that supply interest cover through interest-rate swaps, have felt theimpact of the rate rise that there will be an effect on the ability of the housing finance institutionsto continue lending.
But, if the housing finance institutions are protected by interest-rate swaps from interest-riskexposure, and if they are able to finance their landings by means of sales of mortgage-backedsecurities,但是，如果住房融资机构用利率互换防止了利率敞口风险，并且如果它们能够通过出售抵押支持的证券为其贷款融资，（then the result is , 结果是）the cutback in their lending may take longer to achieve, because the housing financeinstitutions themselves are not directly affected. 则缩减贷款的目的需要较长时间才能实现，(why,) 因为住房融资机构本身并没受到直接影响。
It is only when investors in mortgage-backedbonds, and those institutions that supply interest cover through interest-rate swaps, have felt theimpact of the rate rise that there will be an effect on the ability of the housing finance institutionsto continue lending.
It is only when investors in mortgage-backedbonds, (即指前面提到的出售抵押支持的证券的投资者)and those institutions that supply interest cover （利率保护）through interest-rate swaps, have felt theimpact of the rate rise thatthere will be an effect on the ability of the housing finance institutionsto continue lending.
只有在抵押支持债券的投资者和那些通过利率互换提供利率保护的机构感觉到了利率上升的冲击时，（央行提高利率的措施）才会对住房融资机构继续贷款的能力产生影响。
Both of these effects flow from risk-transferring innovations. It is perhaps thecredit-creatinginnovations that have created most controversy and this for two reasons. First, the economyis clearly now much more leveraged. At the end of 1976, credit market debt was 150% of nominalgross national product; by the end of 1986 it exceeded 200%. Second, the volume of securitizeddebt itself creates risk. Securitized debt is marketable, but it may not be liquid. In a bear market itmay be untradable.
Both of these effects flow from risk-transferring innovations.以上这些效用都源于风险转移的创新。
flow from：to come from a particular idea, place, or person. 来自，源于，产生于
It is perhaps thecredit-creatinginnovations that have created most controversy and this for two reasons.信用创造型创新引起的争论可能最多，这有两个原因。First, the . economyis clearly now much more leveraged.首先，美国经济目前显然更具杠杆性，At the end of 1976, credit market debt was 150% of nominalgross national product; by the end of 1986 it exceeded 200%.在1976年末，信贷市场债务规模是名义GNP的150%；到了1986年，这一比例超过了200%。
nominalgross national product：名义国民生产总值
Second, the volume of securitizeddebt itself creates risk. 其次，证券化的债务规模本身产生风险。Securitized debt is marketable, but it may not be liquid. In a bear market itmay be untradable. 证券化债务是可流通的：但它也可能不具有流动性。在熊市中它就可能是不可交易的。
A more controversial feature of the new shape of the financial system is that the bulk of itsparticipants now have a vested interesting in instability. This is because the advent ofhigh-technology dealing rooms has raised the level of fixed costs. High fixed costs imply ahigh turnover required for profitability to be achieved. High turnover tends to occur only whenmarkets are volatile..
A more controversial feature of the new shape of the financial system is that the bulk of itsparticipants now have a vested interesting in instability.金融体系新形式具有更受争议的特征是因为其大量的参与者现在对于不稳定性有特别的兴趣。
the new shape of the financial system：refers to financial innovations. 金融体系新形式(金融创新)
Vested: vested interest a strong reason for wanting something to happen because you will gain from it:对某物强烈的兴趣，因为你能从中获益。
have a vested interesting in instability：对不稳定性有强烈的兴趣，（暗含的意思是，因为不稳定性能够带来巨大的收益，尽管也存在巨大的风险，）
This is because the advent ofhigh-technology dealing rooms has raised the level of fixed costs.这是因为高技术交易场所的出现提高了固定成本的水平。
Advent: advent of something: the time when something first begins to be widely used:
Eg: The advent of the computer changes people’s life.
the dealing rooms = "trading rooms"-- rooms or financial markets (NASDAQ,那斯达克证券市场 NYSE, 纽约证交所etc.) where the actual trading/dealing is done. 交易系统：那斯达克证券市场是一个电子化市场；因此它没有、也不需要设置证券交易大厅。然而，这个市场在世界各地一共装置了40多万台计算机销售终端(如Reuters和Bloomberg等)，向世界各个角落的交易商、基金经理和经纪人传送5000多种证券的全面报价和最新交易信息。所以说：高技术交易场所的出现提高了固定成本的水平
High fixed costs imply ahigh turnover required for profitability to be achieved.（高固定成本意味着所要求的营业额较高, 为了实现利润。换句话说即）高固定成本想要实现利润则要求较高的营业额。
Profitability:
Turnover: 营业额
High turnover tends to occur only whenmarkets are volatile.高营业额仅在市场波动时可能出现。
Innovation and volatility, therefore, have become intertwined: innovations have been madein response to volatility, but they have also created an environment where unless volatilitycontinues, the number of players in the system as a whole will have to contract. Trading growthand position taking between professionals has also become an important feature of the market,because speculative position taking on secondary markets has become a standard source ofprofits at a time when competitive pressures weigh heavily on profit margins. A subsidiary pointis that risk-transferring innovations have allowed traders to build much larger positions. In thepast, risk was limited by cutting down positions. Now, the positions are held, but hedged withderivative instruments; balance sheets do not shrink in the same way. Large basis-risk positionscan build up unnoticed.
Innovation and volatility, therefore, have become intertwined: innovations have been madein response to volatility, but they have also created an environment where unless volatilitycontinues, the number of players in the system as a whole will have to contract.
Innovation and volatility, therefore, have become intertwined:因此，金融创新与不稳定性已成为相互缠结的问题：innovations have been madein response to volatility,创新为了适应不稳定性而产生，but they have also created an environment where unless volatilitycontinues,the number of players in the system as a whole will have to contract.
但是创新也创造出一个环境，在这种环境下除非不稳定性继续存在，否则体系中的参与者作为一个整体将不得不萎缩。
Intertwine: v. if two situations, ideas etc are intertwined, they are closely related to each other.
The problems of crime and unemployment are closely intertwined.
Contract: v. 不及物动词to become smaller or narrower. 缩小，萎缩
Trading growthand position taking between professionals has also become an important feature of the market,because speculative position taking on secondary markets has become a standard source ofprofits at a time when competitive pressures weigh heavily on profit margins.
Trading growthand position taking between professionals has also become an important feature of the market,专业人员之间的交易增长和头寸持有是市场的又一个重要特征，because speculativeposition taking on secondary markets has become a standard source ofprofits因为二级市场的投机头寸已经成为基本利润来源，at a time when competitive pressures weigh heavily on profit margins.在竞争压力严重威胁利润率时的。
Weigh on: to make someone worried or give them problems. 使烦恼，使陷入困境
Weigh heavily on : 使陷入极大的困境，或严重威胁
profit margin:利润率盈利能力的指标，计算方法为税后净利润除以总收入。利润率一般以百分比表示
A subsidiary pointis that risk-transferring innovations have allowed traders to build much larger positions. 另外一点是风险转移创新允许交易者建立更大的头寸。
Subsidiary：n. 子公司 adj. 附属的，附带的
In thepast, risk was limited by cutting down positions.在过去，风险通过缩减头寸得到限制。
Cut down=cut back 缩减，减少
Now, the positions are held, but hedged withderivative instruments; balance sheets do not shrink in the same way.现在，头寸往往被持有，但是可用衍生工具进行保值；资产负债表并不像以前那样萎缩。
Shrink=contract: 萎缩
Large basis-risk positionscan build up unnoticed.
因此，交易者就建立起大量不为人知的基差风险头寸。
The events of October 1987 showed how this emphasis on inter-professional trading couldcombine with the ability to hedge on futures markets to create enormous stock market those who have criticized “program trading” or “computerized portfolio insurance” haveperhaps failed to appreciate the true role of the stock futures markets in the crash. In my viewprogram trading did not itself contribute to the collapse (though it clearly added to tradingvolume). Program trading, being an arbitrage between cash and futures markets, should have theeffect of reversing a collapse in one market in the other. If the cash market looks oversold,program traders buy cash and sell futures, and vice versa.
The events of October 1987 showed how this emphasis on inter-professional trading couldcombine with the ability to hedge on futures markets to create enormous stock market instability. 1987年10月的事件(1987年10月的美国股市崩盘，美国华尔街股市单日暴跌近25％，从而引发全球股市重挫的金融风暴，即著名的“黑色星期五”。)表明，大量专业人员之间的交易能够把在期货市场保值而产生股票市场巨大动荡的能力聚集起来。
Instability=volatility
But those who have criticized "program trading" or "computerized portfolio insurance" haveperhaps failed to appreciate the true role of the stock futures markets in the crash.但是那些批评“程序化交易”或“计算机化的投资组合保险”的人可能并没有理解股票期货市场在股市崩溃中的作用.
portfolio insurance投资组合保险。通过卖空股票指数期货对冲股票投资组合的市场风险。采用的金融技术，主要包括动态套期保值和期权保值技术。
program trading did not itself contribute to the collapse (though it clearly added to tradingvolume).程序化交易本身并不导致崩溃(尽管它确实明显增加了交易规模)。
contribute to: =result in.
Program trading, being an arbitrage between cash and futures markets, should have theeffect of reversing a collapse in one market in the other.程序化交易，作为现货与期货市场之间套利，应该具有把一个市场的崩溃风险转移到另一个市场的作用。
Reverse: to change something, such as a decision, judgment, or process so that it is the opposite of what it was before改变
reverse a decision：改变一个决定
reverse a trend：扭转一个局面
If the cash market looks oversold,program traders buy cash and sell futures, and vice versa.如果现货市场看上去供过于求，程序交易者就会买现货并卖期货，反之亦然。
Oversell:1. to praise someone or something too much吹嘘，过度表扬
to sell more of something than is actually available. 卖出的数量比实际提供的要多。
在金融中是技术分析用词，指市场的卖出证券或商品的数量高于根据基本面分析的合理出售数量
在这句话中，我们简单的理解为供大于求。
Portfolio insurance clearly did contribute to the collapse. But the grandiose title hides thefact that portfolio insurance is a set of stop-loss orders. The fact that they are triggered by acomputer program makes no difference. In a panic, stop-loss orders are always triggered, makingthe panic worse. It is early yet to assess the position: but in my belief those who blame financialinnovations for the crash are indulging in the age-old habit of killing the bearer of bad crash of 1987 came because of a delayed response to some fundamental economic problemswhich had been ignored earlier.
Portfolio insurance clearly did contribute to the collapse.投资组合保险显然要对股票市场崩溃负一部分责任。But the grandiose title hides thefact that portfolio insurance is a set of stop-loss orders.但被夸大的罪名掩盖了事实的真相：投资组合保险它本是为阻止损失而签发的一套订单。
Grandiose：冠冕堂皇的，浮夸的，不切实际的。
stop-loss order：止损定单，停止损失定单。以协议价格买入/卖出的定单。交易商还可以预设一份停止损失定单，并可凭此在到达或超过指定价格时，自动清算未结头寸。 例如一投资者以买入USD，他会希望下一停止损失定单为，这样就可以防止当美元跌穿时给他带来的更大的损失。
The fact that they are triggered by acomputer program makes no difference.投资组合保险由计算机程序进行办理的事实，并没使情况有任何不同。
In a panic, stop-loss orders are always triggered, makingthe panic worse.这句话的意思是：
In a panic, ………, making the panic worse:When a panic happens,some things happen as a result that then make the panic even worse." 意思是：当恐慌发生时，其他的事情发生更是加剧了恐慌。(这个句子中，两个逗号中间的内容，stop-loss orders are always triggered阻止风险的保险订单往往由计算机办理, 这件事加剧了恐慌)
人们本已处于恐慌中，阻止风险的保险订单往往由计算机办理只是加剧了这种恐慌。
It is early yet to assess the position: but in my belief those who blame financialinnovations for the crash are indulging in the age-old habit of killing the bearer of bad news.对于情况做出评价尚为时过早：但我确信那些因股市崩溃指责金融创新的人们是沉迷于消灭一切带来坏消息的人。
Indulge: to let yourself do or have something that you enjoy, especially something that is considered bad for you沉迷于某件事情，（特别是不好的事）
indulge in…： He is indulging in drinking for a long time. 他沉迷于酗酒已经有很长时间了。
age-old： having existed for a long time. 长期存在的。
age-old habit: 长期的习惯。
Bearer: 带信人，bearer of bad news：带来坏消息的人。
The crash of 1987 came because of a delayed response to some fundamental economic problemswhich had been ignored earlier.
a delayed response to sth: 对于某事做出迟滞的反映，（那么股市崩溃是因为对什么做出的反映太迟了呢？）some fundamental economic problemswhich had been ignored earlier.意思是对一些基本的经济问题，而且which had been ignored earlier，告诉我们这些问题以前就已经被忽略了。
（所以整句的意思是）1987年的股市崩溃是因为对以前就已忽视的一些基本经济问题的迟滞反映才发生。
In particular, a good part of the problem stemmed from the fact that in the 1980's the capital markets were performing the balance of payments recycling role undertaken by the banks in the1970's. The "globalization" of the markets meant that there was a rapid chain reaction round theworld, this certainly added to instability. Yet at bottom it remained an old-fashioned panic after a long period of excess. Financial innovation has brought its problems, but on balance I believe itremains beneficial. There is much to be positive about. The benefits to the investor of innovationare many. The investor has the choice of a far wider range of instruments. Many are tailored tomeet specific investor requirements. Others give the ability to hedge risks which before could notbe guarded against. Old instruments have become more liquid and flexible.
In particular, a good part of the problem stemmed from the fact that in the 1980's the capital markets were performing the balance of payments recycling role undertaken by the banks in the1970's.尤其是，有很大一部分问题源于这样一个事实，即20世纪80年代资本市场发挥了国际收支平衡再循环的功能，而这一功能在70年代是银行承担的。
Stem from: =flow from: 来源于，来自
Perform….role: 发挥…功能
Recyling : n. 再循环，cycle: n. 循环
balance of payments：国际收支，国际收支平衡A record of all transactions made by one particular country during a certain period of time. It compares the amount of economic activity between a country and all other countries一个国家在特定期间进行的所有交易的纪录，可用作比较一个国家与其他国家的经济活动量。
The "globalization" of the markets meant that there was a rapid chain reaction round theworld, this certainly added to instability.金融市场的全球化意味着在世界范围内有快速的连锁反应：这当然就加大了不稳定性。
Yet at bottom it remained an old-fashioned panic after a long period of excess.事实上，它保留了在长期超额之后的那种老式的恐慌。
At bottom: formalthe way a person or situation really is, although they may seem different:
Eg: She's a good kind person at bottom.事实上，他是个好人。
Financial innovation has brought its problems, but on balance I believe itremains beneficial.金融创新已带来了它的问题，但是公平地讲它仍是有益的。There is much to be positive about. 金融创新有许多积极的东西。The benefits to the investor of innovationare many.创新的投资者所获的益处也有许多。The investor has the choice of a far wider range of instruments.投资者可选择的金融工具范围更广泛。Many are tailored tomeet specific investor requirements.其中许多金融工具是为特定投资者的要求度身定做的，Others give the ability to hedge risks which before could notbe guarded against.还有一些创新具有为以前无法防范的风险套期保值的能力。Old instruments have become more liquid and flexible.旧的金融工具已变得更富流动性和灵活性。
On balance, however, the innovations have been almost certainly beneficial for the systemas a whole. The different types of risk involved in the various instruments have been should increase the efficiency of the financial entity
On balance, however, the innovations have been almost certainly beneficial for the systemas a whole.然而，全面考虑金融创新无疑对整个金融体系是有益的。The different types of risk involved in the various instruments have been unbundled.不同工具涉及的不同类型的风险已经被分解开。
Bundle: v. bundle… up: 把…捆上，把…扎紧Bundle the newspapersup把报纸捆在一起
Unbundle: v. 散开，分散，分解
This should increase the efficiency of financial entity.这可以增加金融体系的效率。
Overview of Derivative Markets
A financial derivative is a financial instrument that is based upon another more elementaryfinancial instrument, and the value of the financial derivative depends upon the more basicinstrument. Usually, the base instrument is a cash market financial instrument, such as a bond ora share of stock. For example, a stock option gives its owner the right to buy or sell the shares of stock that underlie the stock option. In this sense, the stock option is based upon a share of the stock option cannot exist without the underlying stock, the stock option is derivedfrom the stock itself. Because the stock is a financial instrument, the stock option is a financialderivative. The succeeding section briefly discusses three types of financial derivatives-futures,options, and swaps.
金融衍生产品
概述
A financial derivative is a financial instrument that is based upon another more elementaryfinancial instrument, and the value of the financial derivative depends upon the more basicinstrument.金融衍生产品是基于另外一种更加基本的金融工具而存在的金融工具，其价值取决于基本的金融工具。Usually, the base instrument is a cash market financial instrument, such as a bond ora share of stock.通常，基本金融工具是现货市场金融工具，例如债券或股票。For example, a stock option gives its owner the right to buy or sell the shares of stock that underlie the stock option.例如，股票期权给予其所有者买或卖某种股票的权利。In this sense, the stock option is based upon a share of stock.在这种意义上讲，股票期权以股票为基础，Because the stock option cannot exist without the underlying stock, the stock option is derivedfrom the stock itself.因为股票期权不能在没有隐含的股票的情况下存在，所以它是源于股票本身的衍生品。Because the stock is a financial instrument, the stock option is a financialderivative.因为股票是一种金融工具，所以股票期权是金融衍生产品。The succeeding section briefly discusses three types of financial derivatives-futures,options, and swaps.在下面的部分，我们简要地介绍三种金融衍生品——期权、期货、和互换。
Unit 9 Option
Definition of Option 期权合同定义
Chapter 22 Definition of Option 期权合同定义
期权合约是一种外延极广的投资工具。广义上的期权不仅指在期货或证券交易所交易的期权合约。事实上，金融市场上的许多金融产品都具有期权特性或是由期权组合而成的衍生工具：如股市中的认股权证；债券市场中的可转换债券；货币市场的信用卡等等。因此有人认为期权是筑起金融证券大厦的砖块。本章从期权的概念入手，并着重介绍了期权的风险与收益特征。在分析过程中，我们使用了假说基础上的例子，浅显易懂并触及本质。
An option is a contract in which the writer of the option grants the buyer of the option the right, but not the obligation, to purchase from or sell to the writer something at a specified price within a specified period of time (or at a specified date). The writer, also referred to as the seller, grants this right to the buyer in exchange for a certain sum of money, which is called the option price or option premium. The price at which the asset may be bought or sold is called the exercise or strike price. The date after which an option is void is called the expiration date. Our focus in this chapter is on options where the "something "underlying the option is a financial instrument, financial index, or financial futures contract.
An option is a contract in which the writer of the option grants the buyer of the option the right, but not the obligation, to purchase from or sell to the writer something at a specified price within a specified period of time (or at a specified date).
An option is a contract in which the writer of the option grants the buyer of the option the right, but not the obligation, 期权是期权的鉴发者赋予其购买者权力而不是义务的一项合同。
writer of the option ：期权的鉴发者
buyer of the option：期权的购买者
Grant： to give someone something or allow them to have something that they have asked for: 赋予，给予。Grant sb the right: 赋予某人某种权利。
to purchase from or sell to the writer something at a specified price within a specified period of time (or at a specified date).在这种合同项下，期权购买者可以在特定时期(或特定日期)以特定价格从鉴发者手中购买或向其出售某种产品。
The writer, also referred to as the seller, grants this right to the buyer in exchange for a certain sum of money, which is called the option price or optionpremium. 鉴发者，也称作卖方，以收取一定数额的货币作为条件给予买者这项买或卖的权利，这部分货币金额称作期权价格或期权费
in exchange for：作为交换
option price or optionpremium：期权价格或期权费即 “期权手续费”。是指期权买方为获得在规定期限内买卖某种商品或资产的权利而向期权卖方支付的费用
The price at which the asset may be bought or sold is called the exercise or strike price.合同项下资产可能被买或卖的价格称作执行或履约价格。
exercise or strike price：执行或履约价格
The date after which an option is void is called the expiration date.期权变为无效的日期称作到期日。
Void：a contract or official agreement that is void is not legal and has no effect无效
Our focus in this chapter is on options where the "something "underlying the option is a financial instrument, financial index, or financial futures contract. 本章集中讨论那些期权项下的“标的”是金融工具、金融指数或金融期货合同的期权交易。
When an option grants the buyer the right to purchase the designated instrument from the writer (seller), it is referred to as a call option, or call. When the option buyer has the right to sell the designated instrument to the writer, the option is called a put option, or put.
When an option grants the buyer the right to purchase the designated instrument from the writer (seller), it is referred to as a call option, or call.当一项期权赋予买者从卖者那里购买一特定工具的时候，该期权称作看涨期权或买权。
Designated：指定的，特定的
call option, or call：看涨期权或买权
When the option buyer has the right to sell the designated instrument to the writer, the option is called a put option, or put.当一项期权赋予买者向卖者出售特定工具的时候，则该期权称作看跌期权或卖权。
put option, or put.：跌期权或卖权。
An option is also categorized according to when the option buyer may exercise the option. There are options that may be exercised at any time up to and including the expiration date. Such an option is referred to as an American option. There are options that may be exercised only at the expiration date. An option with this feature is called a European Option.
An option is also categorized according to when the option buyer may exercise the option.期权也根据期权的购买者可以何时执行期权进行分类。There are options that may be exercised at any time up to and including the expiration date. 有些期权可以在到期前的任何时间(包括到期日)执行，Such an option is referred to as an American option.这类期权称作美式期权。There are options that may be exercised only at the expiration date. 有些期权仅可以在到期日执行, An option with this feature is called a European Option. 具有这一特征的期权称为欧式期权。
To demonstrate the fundamental option contract suppose that jack buys a call option for $3(the option rice) with the following terms.
1. The underlying asset is one unit of Asset XYZ.
2. The strike price is$100.
3. The expiration date is three months from now, and the option can be exercised any time up to and including the expiration date (that is, it is an American option).
To demonstrate the fundamental option contract suppose that jack buys a call option for $3(the option rice) with the following terms. 为了说明基本的期权合同，假设杰克以3美元(期权价格)购买了一项买权，其购买的期权条件如下：
1. The underlying asset is one unit of Asset XYZ. 期权项下隐含的资产是XYZ资产的一个单位.
2. The strike price is$100.履约价格是100美元。
3. The expiration date is three months from now, and the option can be exercised any time up to and including the expiration date (that is, it is an American option). 到期日是现在起3个月，期权可以在包括到期日在内及之前的任何时间执行(也就是说这是一个美式期权)。
At any time up to and including the expiration date, jack can decide to buy from the writer of this option one unit of Asset XYZ, for which he will pay a price of $ it is not beneficial for jack to exercise the option, he will not, and will explain shortly how he decides when it will be beneficial. Whether jack exercises the option or not, the $3 he paid for the option will be kept by the option writer. If jack buys a put option rather than a call option, then he would be able to sell Asset XYZ to the option writer for a price of $100.
At any time up to and including the expiration date, jack can decide to buy from the writer of this option one unit of Asset XYZ, for which he will pay a price of $100.在包括到期日在内的之前的任何时间，杰克可以决定从这项期权的出售者那里购买一单位的XYZ资产，这种情况下他将为此支付100美元。
If it is not beneficial for jack to exercise the option, he will not, and will explain shortly how he decides when it will be beneficial.如果执行期权对杰克来说不利，他将不去执行；并简短地解释他如何决定何时将对他有利。
Whether jack exercises the option or not, the $3 he paid for the option will be kept by the option writer. 无论杰克是否执行该期权，他为期权支付的3美元将为期权的出售者所有。
If jack buys a put option rather than a call option, then he would be able to sell Asset XYZ to the option writer for a price of $100.如果杰克购买了一项卖权而不是买权，那么他可以向期权出售者以100美元的价格出售XYZ资产。
The maximum amount that an option buyer can lose is the option price. The maximum profit that the option writer can realize is the option price. The option buyer has substantial upside return potential, while the option writer has substantial downside risk.
The maximum amount that an option buyer can lose is the option price. 期权购买者的最大损失是期权费。The maximum profit that the option writer can realize is the option price.而期权出售者能实现的最大利润也是期权价格。The option buyer has substantial upsidereturn potential, while the option writer has substantial downside risk. 期权购买者有走势向上的巨大潜在回报，而期权出售者有巨大的损失风险。
Upside 走势向上
Downside 走势向下
Margin Requirements
There are no margin requirements for the buyer of an option once the option price has been paid in full. Because the option price is the maximum amount that the investor can lose, no matter how adverse the price movement of the underlying asset, there is no need for margin. Because the writer of an option has agreed to accept all of the risk (and none of the reward) of the position in the underlying asset, the writer is generally required to put up the option price received as margin. In addition, as price changes occur that adversely affect the writer's position, the writer is required to deposit additional margin (with some exceptions) as the position is marked to market.
保证金要求
Margin：保证金
There are no margin requirements for the buyer of an option once the option price has been paid in full. 当期权价格全额支付时对于期权的买者来说没有保证金要求
Because the option price is the maximum amount that the investor can lose, no matter how adverse the price movement of the underlying asset, there is no need for margin.。因为期权价格是投资者可能损失的最大金额，不论隐含资产的价格如何走低，都没有支付保证金的需要。
Adverse: not good or favourable:不好，不利
Because the writer of an option has agreed to accept all of the risk (and none of the reward) of the position in the underlying asset, the writer is generally required to put up the option price received as margin.因为期权的出售者已经同意接受对于隐含资产的所有风险(没有任何报酬)，所以就要求他把期权价格积累起来当作期权保证金。
In addition, as price changes occur that adversely affect the writer's position, the writer is required to deposit additional margin (with some exceptions) as the position is marked to market.此外，当影响出售期权者头寸的价格出现反向变化时，该出售者必须存入额外的保证金(除某些例外情况以外)，因为期权交易采取逐日结算的头寸制度。
marked to market：逐日结算
（这段话告诉我们，期权买方不需要交纳保证金，而期权的卖方因为其在交易中的风险损失是很难预测的，为此必须预先交纳一定数量的履约保证金。而在期货交易中，交易双方都要根据交易所的规定，向交易所预先交纳一定数量的保证金。）
Exchange-Traded versus OTC（over-the-counter）Options
Options, like other financial instruments, may be traded either on an organized exchange or in the over-the-counter market. An exchange that wants to create an options contract must obtain approval from either the Commodities Futures Trading Commission or the Securities and Exchange Commission. Options traded on an organized exchange have three advantages. First, expiration date of the contract are standardized. Second, as in the case of futures contracts, the direct link between buyer and seller is severed after the order is executed because of the interchangeability of exchange-traded options. The clearinghouse associated with the exchange where the option trades performs the same function in the options market that it does in the futures market. Finally, the transactions costs are lower for exchange-traded options than for OTC options.
Exchange-Traded versus OTC Options场内交易期权与店头交易期权
Options, like other financial instruments, may be traded either on an organized exchange or in the over-the-counter market. 期权像其他金融工具一样可以在有组织的交易所交易也可以在场外市场进行交易。
An exchange that wants to create an options contract must obtain approval from either the Commodities Futures Trading Commission or the Securities and Exchange Commission.想从事期权合同交易的交易所必须取得商品期货交易委员会或证券交易委员会的同意。
An exchange交易所
create an options contract：建立一个期货交易合同，即从事期货交易
Options traded on an organized exchange have three advantages. 场内交易的期权有三个优点First, expiration date of the contract are standardized.第一，合同到期日是标准化的。
Second, as in the case of futures contracts, the direct link between buyer and seller is severed after the order is executed because of the interchangeability of exchange-traded options. 第二，如果是期货合同的期权，在指令执行后买卖双方的直接联系会因为场内交易期权的相互可交换性而被分割开。
（此句的主体结构是the direct link is severed.）
Sever: v. to cut through something completely, separating it into two parts,分割，切割
Interchangeability:相互可交换性
The clearinghouse associated with the exchange where the option trades performs the same function in the options market that it does in the futures market. 与进行期权交易的交易所相配合的清算中心在期权市场中发挥着与在期货市场上相同的功能
Clearinghouse: 票据交换所，清算中心。
performs the same function：发挥着相同的功能
Finally, the transactions costs are lower for exchange-traded options than for OTC options. 最后，场内交易的期权的交易成本低于场外交易期权。
The higher cost of an OTC option reflects the cost of customizing the option for the many situations where an institutional investor needs to have a tailor-made option because the standardized exchange-traded option does not satisfy its investment objectives. As we known, some commercial and investment and banking firms act as principals as well as brokers in the OTC options market. OTC options are sometimes referred to as dealer options. While an OTC option is less liquid than an exchange-traded option, this is typically not of concern to an institutional investor--most institutional investors who use OTC options as part of an asset/liability strategy intend to hold them to expiration.
The higher cost of an OTC option reflects the cost of customizing the option for the many situations where an institutional investor needs to have a tailor-made option because the standardized exchange-traded option does not satisfy its investment objectives.场外交易期权的较高成本就反映了这种提供定制期权的成本， （在场外交易所）在机构投资者需要有适当的期权时，期权出售者往往提供为特定客户设计的期权，而标准化的场内交易期权无法满足机构投资者的投资需求，
the cost of customizing the option定制期权的成本
As we known, some commercial and investment and banking firms act as principals as well as brokers in the OTC options market. 正如我们所知，有些商业、投资银行和金融公司在场外期权交易市场中不仅以经纪人身份而且以本人身份进行交易。
Principal：本人，本金
OTC options are sometimes referred to as dealer options.场外期权交易有时也称作交易者期权。
While an OTC option is less liquid than an exchange-traded option, this is typically not of concern to an institutional investor--most institutional investors who use OTC options as part of an asset/liability strategy intend to hold them to expiration.由于场外交易期权比场内交易期权的流动性差，所以机构投资者对它通常不是特别感兴趣——绝大多数的机构投资者利用场外期权作为其部分资产／负债战略的一部分，他们倾向于一直持有这种期权到期。
Concern: 关注 be not of a concern: 不是关注的焦点
Differences between Options and Futures Contracts
Notice that, unlike in a futures contract, one party to an option contract is not obligated to transact--specifically, the option buyer has the right but not the obligation to transact. The option writer does have the obligation to perform. In the case of a futures contract, both buyer and seller are obligated to perform. Of course, a futures buyer does not pay the seller to accept the obligation, while an option buyer pays the seller an option price.
Differences between Options and Futures Contracts期权合同与期货合同之间的差别
Notice that, unlike in a futures contract, one party to an option contract is not obligated to transact--specifically, the option buyer has the right but not the obligation to transact.
值得注意，与期货合同不同的是：期权合同的一方当事人不负有必须交易的义务——这
是特指期权的购买者有进行交易的权利而不是义务。
The option writer does have the obligation to perform. 期权的鉴发者确有履行合同的义务。
In the case of a futures contract, both buyer and seller are obligated to perform.在期货合同中，买卖双方都有履约的强制性义务。
Of course, a futures buyer does not pay the seller to accept the obligation, while an option buyer pays the seller an option price. 当然，期货的买方不必为使卖方接受义务而支付价款，而在期权交易中买方向卖方支付了期权价格。
Consequently, the risk/reward characteristics of the two contracts are also different. In the case of a futures contract, the buyer of the contract realizes a dollar-for-dollar gain when the price of the futures contract increases and suffers a dollar-for-dollar loss when the price of the futures contract drops. The opposite occurs for the seller of a futures contract.
（48．10）Consequently, the risk/reward characteristics of the two contracts are also different.因此，两种合同的风险／回报特点也存在差异。
In the case of a futures contract, the buyer of the contract realizes a dollar-for-dollar gain when the price of the futures contract increases and suffers a dollar-for-dollar loss when the price of the futures contract drops.在期货合同交易中，合同的买方在期货合同价格上升时实现实实在在的美元收益；反之期货合同价格下降则遭受损失。
realizes a dollar-for-dollar gain
suffers a dollar-for-dollar loss
The opposite occurs for the seller of a futures contract.期货合同卖方的情况与此相反。
Options do not provide this symmetric risk/reward relationship. The most that the buyer of an option can lose is the option price. While the buyer of an option retains all the potential benefits, the gain is always reduced by the amount of the option price. The maximum profit that the writer may realize is the option price; this is offset against substantial downside risk. This difference is extremely important because, investors can use futures to protect against symmetric risk and options to protect against asymmetric risk.
Options do not provide this symmetric risk/reward relationship.期权合同不提供这种平衡的风险／收益关系。
The most that the buyer of an option can lose is the option price.期权买方可能的最大损失是期权价格。
While the buyer of an option retains all the potential benefits, the gain is always reduced by the amount of the option price.由于期权的买方持有全部潜在的收益，所以其收益往往被期权价格抵消一部分。
The maximum profit that the writer may realize is the option price; 期权的卖方可能实现的最大利润是期权价格；this is offset against substantial downside risk.这一可能的利润往往被巨大的风险抵消。
This difference is extremely important because, investors can use futures to protect against symmetric risk and options to protect against asymmetric risk.这种差异非常重要，因为投资者可以利用期货合同防止平衡风险而利用期权防止非平衡风险。
Risk and Return Characteristics of Options
Here we illustrate the risk and return characteristics of the four basic option positions-- buying a call option, selling a call option, buying a put option, and selling a put option. The illustrations assume that each option position is held to the expiration date and not exercised early. Also, to simplify the illustrations, we ignore transactions costs.
Risk and Return Characteristics of Options期权的风险与收益特征
Here we illustrate the risk and return characteristics of the four basic option positions-- buying a call option, selling a call option, buying a put option, and selling a put option, The illustrations assume that each option position is held to the expiration date and not exercised early这里，我们介绍四个基本的期权头寸的风险与收益特征——购买买权、出售买权、购买卖权以及出售卖权。这里的说明假设每一个期权头寸一直保持到到期日而不提前执行。Also, to simplify the illustrations, we ignore transactions costs.另外，为了减化问题我们也忽略了交易成本。
Buying Call Options
The purchase of a call option creates a financial position referred to as a long call position. To illustrate this position, assume that there is a call option on Asset XYZ that expires in one month and has a strike price of $100. The option price is $3. Suppose that the current price of asset XYZ is $100. Suppose that the current price of asset XYZ is $100. The profit and loss from the strategy will depend on the price of Asset XYZ at the expiration date. A number of outcomes are possible.
Buying Call Options购买买权
The purchase of a call option creates a financial position referred to as a long call position.一个买权的购买产生一个称作多头买权的资金头寸。
long call position:多头买权
To illustrate this position, assume that there is a call option on Asset XYZ that expires in one month and has a strike price of $100.为了说明这一头寸，假设对于资产XYZ有一项一个月到期的买权且其履约价格是100美元。 The option price is $3. 期权费是3美元。Suppose that the current price of asset XYZ is $100.假设资产XYZ的现行价格是100美元。 The profit and loss from the strategy will depend on the price of Asset XYZ at the expiration date.那么购买这一买权并持有这一头寸直到到期日的投资者的利润与损失情况如何? 这一投资策略的利润和损失情况将依赖于资产XYZ的价格和到期日。A number of outcomes are possible.有以下几种可能的结果。
1. If the price of Asset XYZ at the expiration date is less than $100, then the investor will not exercise the option. It would be foolish to pay the option writer $100 when Asset XYZ can be purchased in the market at a lower price. In this case, the option buyer loses the entire option price of $3. Notice, however, that this is the maximum loss that the option buyer will realize regardless of how Asset XYZ's price declines.
If the price of Asset XYZ at the expiration date is less than $100, then the investor will not exercise the option.如果资产XYZ的价格在到期日少于100美元，那么投资者将不执行该期权。It would be foolish to pay the option writer $100 when Asset XYZ can be purchased in the market at a lower price.当资产XYZ可以在市场上以较低的价格购买时，愿意支付给期权出售者100美元购买该资产的行为将是愚蠢的。In this case, the option buyer loses the entire option price of $3.在这种情况下，期权购买者损失全部3美元期权价格。Notice, however, that this is the maximum loss that the option buyer will realize regardless of how Asset XYZ's price declines.注意，无论资产XYZ的价格降至多低这是期权购买者的最大损失。
2. If Asset XYZ's price is equal to $100 at the expiration date; there is again no economic value in exercising the option. As in the case where the price is less than $100, the buyer of the call option will lose the entire option price, $3.
If Asset XYZ's price is equal to $100 at the expiration date, there is again no economic value in exercising the option.如果XYZ的价格在到期日等于100美元，在执行该期权时也无经济价值。As in the case where the price is less than $100, the buyer of the call option will lose the entire option price, $3.与上一种情况一样，买权的购买者将损失全部3美元期权价格。
3. If Asset XYZ's price is more than $100 but less than $103 at the expiration date, the option buyer will exercise the option. By exercising, the option buyer can purchase Asset XYZ for $100 (the strike price) and sell it in the market for the higher price. Suppose, for example, that Asset XYZ's price is $102 at the expiration date. The buyer of the call option will realize a $2 gain by exercising the option. Of course, the cost of purchasing the call option was $3, so $1 lost on this position. By failing to exercise the option, the investor loses $3 instead of only $1.
If Asset XYZ's price is more than $100 but less than $103 at the expiration date, the option buyer will exercise the option.如果XYZ的价格在到期日大于100美元而小于103美元，期权的购买者将执行该期权。By exercising, the option buyer can purchaseAsset XYZ for $100 (the strike price) and sell it in the market for the higher price.通过执行该期权，期权购买者能够以100美元(执行价格)购买XYZ并以较大的价格在市场上出售它。Suppose, for example, that Asset XYZ's price is $102 at the expiration date. 例如，假设在到期日XYZ的价格是102美元，The buyer of the call option will realize a $2 gain by exercising the option.买权的购买者将通过执行期权获得2美元的收益。Of course, the cost of purchasing the call option was $3, so $1 lost on this position.当然，购买该买权的成本是3美元，所以这种头寸的净损失是l美元。By failing to exercise the option, the investor loses $3 instead of only $1.而若不执行期权，投资者的损失是3美元而不是1美元。
4. If Asset XYZ's price at the expiration date is equal to $103, the investor will exercise the this case, the investor breaks even, realizing a gain of $3 that offsets the cost of the option, $3.
If Asset XYZ's price at the expiration date is equal to $103, the investor will exercise the option.如果XYZ的价格在到期日等于103美元，投资者执行该期权。In this case, the investor breaks even, realizing a gain of $3 that offsets the cost of the option, $3.在这种情况下，投资者收支相抵，其实现的3美元收益抵消了期权的成本3美元。
Break even: 持平，相抵
5. If Asset XYZ's price at the expiration date is more than $103, the investor will exercise the option and realize a profit. For example, if the price is $113, exercising the option will generate a profit on Asset XYZ of $13. Reducing this gain by the cost of the option ($3), the investor will realize a net profit from this position of $10.
If Asset XYZ's price at the expiration date is more than $103, the investor will exercise the option and realize a profit. 如果XYZ的价格在到期日高于103美元，投资者将执行期权并实现利润。For example, if the price is $113, exercising the option will generate a profit on Asset XYZ of $13.例如，如果价格是113美元，执行期权将在XYZ上产生13美元的利润。Reducing this gain by the cost of the option ($3), the investor will realize a net profit from this position of $10.从该利润中减去期权成本3美元，投资者将从该头寸中实现10美元的净利润。
It is worthwhile to compare the profit and loss profile of the call option buyer totaking a long position in one unit of Asset XYZ. The payoff from the position depends on Asset XYZ's price at the expiration date. Consider again the five price outcomes given above:
It is worthwhile to compare the profit and loss profile of the call option buyer to taking a long position in one unit of Asset XYZ. 对投资者持有一单位XYZ的买权与实际持有该资产的利润与损失的对比是有意义的。
Profile:状况，情况。
profit and loss profile：利润与损失情况
compare…to…:
The payoff from the position depends on Asset XYZ's price at the expiration date.持有多头的收支情况依赖于到期日XYZ的价格。Consider again the five price outcomes given above:仍然考虑上面讨论过的五种价格结果：
1. If Asset XYZ's price at the expiration date is less than $100, then the investor loses the entire option price of $3. In contrast, a long position in Asset XYZ will have one of three possible outcomes:
If Asset XYZ's price at the expiration date is less than $100, then the investor loses the entire option price of $3.如果在到期日XYZ的价格低于100美元，则投资者损失全部期权价格3美元。In contrast, a long position in Asset XYZ will have one of three possible outcomes:相比较，实际持有XYZ将有以下三种可能结果的一种：
a. If Asset XYZ's price is less than $100 but greater than $97, the loss on the long position in Asset XYZ will be less than $3.
Asset XYZ's price is $97, the loss on the long position in Asset XYZ will be $3.
Asset XYZ's price is less than $97, the loss on the long position in Asset XYZ will be greater than $3. For example, if the price at the expiration date is $80, the long position in Asset XYZ will result in a loss of $20.
If Asset XYZ's price is less than $100 but greater than $97, the loss on the long position in Asset XYZ will be less than $3.如果XYZ的价格低于100美元但高于97美元，则持有XYZ的损失将少于3美元。If Asset XYZ's price is $97, the loss on the long position in Asset XYZ will be $3. 如果XYZ的价格等于97美元，则持有XYZ的损失是3美元。If Asset XYZ's price is less than $97, the loss on the long position in Asset XYZ will be greater than $3.如果XYZ的价格低于97美元，则持有XYZ的损失大于3美元。For example, if the price at the expiration date is $80, the long position in Asset XYZ will result in a loss of $20. 例如，如果到期日价格是80美元，则XYZ多头将导致20美元的损失。
2. If Asset XYZ's price is equal to $100, the buyer of the call option will realize a loss of $3 (option price). There will be no gain or loss on the long position in Asset XYZ.
If Asset XYZ's price is equal to $100, the buyer of the call option will realize a loss of $3 (option price). There will be no gain or loss on the long position in Asset XYZ.如果XYZ的价格等于100美元，买权的购买者将遭受3美元的损失(期权价格)，持有XYZ则没有损失也没有收益。
3. If Asset XYZ's price is more than $100 but less than $103, the option buyer will realize a loss of less than $3, while the long position in Asset XYZ will realize a profit.
如果XYZ的价格大于100美元而小于103美元，期权购买者将遭受少于3美元的损失，而XYZ多头却实现利润。
4. If the price of Asset XYZ at the expiration date is equal to $103, there will be no loss or gain from buying the call option. The long position in Asset XYZ, however, will produce a gain of $3.
If the price of Asset XYZ at the expiration date is equal to $103, there will be no loss or gain from buying the call option. XYZ的价格在到期日等于103美元，购买买权时收支相抵。The long position in Asset XYZ, however, will produce a gain of $3.持有XYZ则获3美元的收益。
5. If Asset XYZ's price at the expiration date is greater than $103, both the call option buyer and the long position in Asset XYZ will post a profit, but the profit for the buyer of the call option will be $3 less than that for the long position. If Asset XYZ's price is $113, for example, the profit from the call position is $10, while the profit from the long position in Asset XYZ is $13.
If Asset XYZ's price at the expiration date is greater than $103, both the call option buyer and the long position in Asset XYZ will post a profit, but the profit for the buyer of the call option will be $3 less than that for the long position. XYZ的价格在到期日高于103美元，买权的购买者与持有XYZ多头都将获得利润，买权的购买者的利润将比持有XYZ少3美元，If Asset XYZ's price is $113, for example, the profit from the call position is $10, while the profit from the long position in Asset XYZ is $13.如果XYZ的价格是113美元，购买买权的利润是10美元，而持有XYZ多头的利润则是13美元。
This comparison clearly demonstrates the way in which an option can change the risk/return profile for investors. An investor who takes a long position in Asset XYZ realizes a profit of $1 for every $1 increase in Asset XYZ's price. As Asset XYZ's price falls, however, the investorloses dollar-for-dollar. If the price drops by more than $3, the long position in asset XYZ results in a loss of more than $3. The long call strategy, in contrast, limits the loss to only the option price of $3 but retains the upside potential, which will be $3 less than for the long position in Asset XYZ.
This comparison clearly demonstrates the way in which an option can change the risk/return profile for investors.这一比较清楚地说明了期权改变投资者风险／收益情况的途径。An investor who takes a long position in Asset XYZ realizes a profit of $1 for every $1 increase in Asset XYZ's price. 投资者若持有XYZ多头则在XYZ价格上升1美元时就获得1美元的利As Asset XYZ's price falls, however, the investorloses dollar-for-dollar.但是当XYZ价格下降时，投资者也遭受实实在在的损失。If the price drops by more than $3, the long position in asset XYZ results in a loss of more than $3.如果价格下降超过3美元，持有XYZ多头导致同样多的损失。The long call strategy, in contrast, limits the loss to only the option price of $3 but retains the upside potential, which will be $3 less than for the long position in Asset XYZ.
相反多头买权战略将使损失限制在期权价格的3美元，但是仍然保持着上升的潜在收益，这种潜在收益比持有XYZ多头少3美元。
We can also use this hypothetical call option to demonstrate the speculative appeal ofoptions. Suppose an investor has strong expectations that Asset XYZ's price will rise in onemonth. At an option price of $3, the speculator can purchase call options for each $100invested. If Asset XYZ's price rises, the investor realizes the price appreciation associated units of Asset XYZ; while with the same $100, the investor could buy only one unit ofAsset XYZ selling at $100, realizing the appreciation associated with one unit if Asset XYZ'sprice increases.
We can also use this hypothetical call option to demonstrate the speculative appeal ofoptions.我们也可以利用这一假设的买权说明对于期权的投机要求。Suppose an investor has strong expectations that Asset XYZ's price will rise in onemonth.假设对于XYZ价格在一个月内上升有很强的预期。At an option price of $3, the speculator can purchase call options for each $100invested.在期权价格是3美元时，投资者可以用投资的每一百美元购买 个买权。If Asset XYZ's price rises, the investor realizes the price appreciation associated with
units of Asset XYZ;如果XYZ的价格上升，投机者实现单位XYZ的价格上升收益；while with the same $100, the investor could buy only one unit ofAsset XYZ selling at $100, 而如果XYZ的市场价格为100美元，投资者以100美元仅能实际购买并持有l单位XYZ realizing the appreciation associated with one unit if Asset XYZ'sprice increases.，如果XYZ价格上升，仅能实现l单位XYZ的价格上升收益。
Now, suppose that in one month the price of Asset XYZ rises to $120. The longcall position will result in a profit of $ [($20")-$100] or a return of % on the$100 investment in the call option. The long position in Asset XYZ results in a profit of $20, foronly a 20% return on $100.
Now, suppose that in one month the price of Asset XYZ rises to $120, 在假设一个月内XYZ的价格上升到120美元，The longcall position will result in a profit of $ or a return of % on the$100 investment in the call option.多头买权将产生美圆的收益，或者说投资者用于投资购买买权的$100的收益率为%.=[($20")-$100]的收益率。The long position in Asset XYZ results in a profit of $20, for only a 20% return on $100.
持有XYZ多头带来则是20美元的利润，收益率仅为20％
It is this greater leverage that attracts investors to options when they wish to speculate onprice movements. There are some drawbacks of leverage, however. Suppose that AssetXYZ's price is unchanged at $100 at the expiration date. The long call position results in this
case in a loss of the entire investment of $100, while the long position in Asset XYZ produces
neither a gain nor a loss.
It is this greater leverage that attracts investors to options when they wish to speculate onprice movements.正是这一更大的杠杆效应吸引投资者在希望投机于价格变动的时候购买期权。There are some drawbacks of leverage, however.然而，也有一些下跌的杠杆。Suppose that Asset
XYZ's price is unchanged at $100 at the expiration date.假设XYZ的价格在到期日保持在100美元不变。The long call position results in thiscase in a loss of the entire investment of $100, while the long position in Asset XYZ producesneither a gain nor a loss.
在这种情况下多头买权导致全部投资额100美元的损失，然而XYZ的多头既不产生收益也不产生损失。
Writing or Selling Call Otions
The writer of a call option is said to be in a short call position. To illustrates the options seller’s(writer’s) position, we use the same call option we used to illustrate buying a call option. The profit and loss profile of the short call position (that is, the position of the call option writer) is the mirror image of the profit and loss profile of the long call position (the position of the call option buyer).That is, the profit of the short call position for any given price for Asset XYZ at the expiration date is the same as the loss of the long call position. Consequently, the maximum profit that the short call position can produce is the option price. The maximum loss is not limited because it is the highest price reached by Asset XYZ on or before the expiration date, less the option price; this price can be indefinitely high.
鉴发(出售)买权
The writer of a call option is said to be in a short call position. 买权的鉴发者就是所说的空头买权。To illustrates the options seller’s(writer’s) position, we use the same call option we used to illustrate buying a call option. 为说明期权出售者的头寸，我们利用与说明购买买权相同的买权。The profit and loss profile of the short call position (that is, the position of the call option writer) is the mirror image of the profit and loss profile of the long call position (the position of the call option buyer).空头买权(也就是买权鉴发者的头寸)的利润与收益是多头买权(买权买方的头寸)的利润与收益的镜像。
Profile：状况，情况。
That is, the profit of the short call position for any given price for Asset XYZ at the expiration date is the same as the loss of the long call position.也就是说，XYZ在到期日的任何给定价格的空头买权的利润与多头买权的损失相同。Consequently, the maximum profit that the short call position can produce is the option price.因此，空头买权能产生的最大利润是期权价格，The maximum loss is not limited，最大损失没有限制，because it is the highest pricereached by Asset XYZ on or before the expiration date, lessthe option price; this price can be indefinitely high.
因为这种损失等于在到期日之前或到期日XYZ达到的最高价格减去期权价格这种价格可以无限制升高。
（理解这句话的意思关键理解一个单词，less, 在这里=minor减去。
The short call position
The maximum profit =the option price
The maximum loss = the highest price - the option price (indefinitely high)
Buying Put Options
The buying of a put option creates a financial position referred to as a long put position. To illustrate this position, we assume a hypothetical put option on one unit of Asset XYZ with one month to maturity and a strike price of $100. Assume the put option is selling for $2. The current price of Asset XYZ is $100. The profit or loss for this position at the expiration date depends on the market price of Asset XYZ.
购买卖权
The buying of a put option creates a financial position referred to as a long put position. 购买一项卖权产生的头寸称作多头卖权的资金头寸。To illustrate this position, we assume a hypothetical put option on one unit of Asset XYZ with one month to maturity and a strike price of $100.为了说明这种头寸，我们假设有一项一个月到期、执行价格为100美元的针对一单位XYZ的假想卖权。Assume the put option is selling for $3假设卖权价格为3美元. The current price of Asset XYZ is $的现行价格是100美元。The profit or loss for this position at the expiration date depends on the market price of Asset XYZ.到期日时这一头寸的利润与损失依赖于XYZ的市场价格。
As with all long option positions, the loss is limited to the option price. The profit potential, however, is substantial，the theoretical maximum profit is generated if Asset XYZ's price falls to zero. Contrast this profit potential with that of the buyer of a call option. The theoretical maximum profit for a call buyer cannot be determined beforehand because it depends on the highest price that can be reached by Asset XYZ before or at the option expiration date．
As with all long option positions, the loss is limited to the option price.与所有的多头期权一样，损失被限制在3美元期权价格的范围，The profit potential, however, is substantial:而潜在利润却是巨大的。The theoretical maximum profit is generated if Asset XYZ's price falls to zero.理论上的最大利润在XYZ价格降至0时产生。Contrast this profit potential with that of the buyer of a call option.把这一潜在利润与买权购买者的潜在利润相比，The theoretical maximum profit for a call buyer cannot be determined beforehand because it depends on the highest price that can be reached by Asset XYZ before or at the option expiration date.买权买方的理论最大利润不能预先决定，因为它依赖于到期日或之前的XYZ价格所能达到的最高水平。
Writing (Selling)Put Options
Writing Put option creates a financial position referred to as a short put position．The profit and loss profile for a short put option is the mirror image of the long put option. The maximum position is the option price．The theoretical maximum 10ss can be substantial should the price of the underlying asset fall；at the outside，if the price were to fall all the way to zero，the loss would be as large as the strike price less the option price.
Writing (Selling)Put Options签发(出售)卖权
Writing Put option creates a financial position referred to as a short put position．出售卖权产生的头寸称作空头卖权的资金头寸。The profit and loss profile for a short put option is the mirror image of the long put option.空头卖权的利润与损失是多头卖权利润与损失的镜像。The maximum position is the option price．这种头寸的最大利润是期权价格The theoretical maximum loss can be substantial should the price of the underlying asset fall；，如果期权项下的资产价格下降，理论上的最大损失将很巨大；
should the price of the underlying asset fall:是倒装句=if the price of the underlying asset would fall
at the outside，if the price were to fall all the way to zero，the loss would be as large as the strike price less the option price.在期权外部的市场当中，如果价格降至零，损失将是执行价格减去期权价格。
To summarize，buying calls or selling puts allows the investor to gain if the price of the underlying asset rises. Selling calls and buying puts allows the investor to gain if the price of the underlying asset falls．
To summarize，buying calls or selling puts allows the investor to gain if the price of the underlying asset rises.下面作简要总结，购买买权或出售卖权使投资者在期权项下资产价格上升时获利。Selling calls and buying puts allows the investor to gain if the price of the underlying asset falls．出售买权或购买卖权使投资者在期权项下资产价格下降时获利。
词汇
Unit10 Futures and Swap
Background
Futures Market
期货市场与金融期货的产生 1848年美国芝加哥期货交易所(CBOT)正式成立的成立标志着期货交易正式开始。由于期货交易所最初和最主要的功能是提供一个现货价格风险转移的场所，因此，从期货交易的合约中即可看到各个时代经济结构的演变。 在期货市场150余年的历史上，最重要的一个里程碑即是，芝加哥商业交易所(CME)的国际货币市场(IMM)推出外汇期货合约(Foreign Gurrency Futures)，标志着金融期货这一新的期货类别的诞生，从而掀起一个期货市场发展的黄金时代。1982年2月，美国堪萨斯期货交易所(KCBT)推出价值线综合指数期货交易。短短十年间，利率期货(Interest Rate Futures)和股票指数期货(Stock Index Futures)相继问世，标志着金融期货三大类别的结构已经形成。期货市场也由于金融期货的加盟而出现结构性变化。1995年，金融期货的成交量已占期货市场总成交量的80％左右，稳居期货市场的主流地位。此外，金融期货的诞生，给了美国以外的国家和地区发展期货市场的时机。
How does Futures Market Work?
下面我们通过一篇文章看一下，期货市场是如何运做的
How-Futures Markets Work ( I )
Futures markets arose in the mid-1800s in .
The economic functions of futures markets are to provide a competitive market price discovery mechanism, a hedging mechanism for price risk, and a means to improve market efficiency. The price of futures contract for a commodity or financial instrument represents the expectations of a large number of buyers and sellers concerning the current and prospective effect of all market influence. As events shape the current situation, the expected change are reflected in the form of changing prices for futures contracts. In short, futures markets provide a current consensus of knowledgeable opinions about the future price of commodities or financial instruments, Future markets improve market efficiency by providing a central marketplace where price offers, are known and compared. This free flow of information defuses attempted monopoly position. Futures markets enhance competition by allowing the free flow of information relative to prices, volume, and market expectations. Thus, futures markets help eliminate market imperfections and contribute to more efficient economic activity.
How-Futures Markets Work ( I )期货市场业务如何运作
Futures markets arose in the mid-1800s in .期货市场源于19世纪中叶的芝加哥。
The economic functions of futures markets are to provide a competitive market price discovery mechanism, a hedging mechanism for price risk, and a means to improve market efficiency.
This sentence tell us the function of the future markets: 这句话告诉我们期货市场的功能functions of futures markets are to provide a competitive market price discovery mechanism,提供价格发现的竞争市场机制, (这句话中，我们主要把握一点one of the functions of future market is price discovery. 价格发现) ，a hedging mechanism for price risk价格风险的规避机制a means to improve market efficiency改进市场效率的手段。
译文：期货市场具有以下经济功能：提供价格发现的竞争市场机制、价格风险的规避机制和改进市场效率的手段。
The price of futures contract for a commodity or financial instrument represents the expectations of a large number of buyers and sellers concerning the current and prospective effect of all market influence.
The sentence tells us that: The price of futures contract for a commodity or financial instrument商品或者金融工具期货合约的价格represents the expectations of a large number of buyers and sellers代表着许多买者和卖者的预期concerning the current and prospective effect of all market influence.有关目前和未来所有影响市场的因素的预期。
商品或者金融工具期货合约的价格代表着许多买者和卖者对于目前和未来所有影响市场的因素的预期。
As events shape the current situation, the expected change are reflected in the form of changing prices for futures contracts. 人们对于未来预期的变动。are reflected in the form of由。。形式而反映出来的changing prices for futures contracts.不断变化的期货价格
正如许多事件的综合作用导致了目前的市场状况，不断变化的期货价格反映了人们对于未来预期的变动。
In short, futures markets provide a current consensus of knowledgeable opinions about the future price of commodities or financial instruments,简而言之，期货市场提供了对商品或金融工具未来价格综合各方信息后所作出的市场判断。
Consensus:
Future markets improve market efficiency by providing a central marketplace where price offers, are known and compared. 期货市场提高了市场效率，它提供了一个中心市场，这个市场可以公开竟价和比较价格。
译文：期货市场提供了一个可以公开竞价和比较的中心市场，因而有利于提高市场效率。
This free flow of information defuses attempted monopoly position.信息的自由流动冲破市场垄断，
Defuse: 冲破
Defuse: to improve a difficult or dangerous situations, for example by making people less angry or by dealing with the causes of a problem 缓和，改善
defuse a situation/crisis/row etc缓和现场的情况/危机/争吵
His quiet voice helped to defuse the situation.他温和的声音有助于缓和现场的情况。
defuse tension：改善冲突
The agreement was regarded as a means of defusing ethnic tensions. 协议被认为是改善种族冲突的手段
Futures markets enhance competition by allowing the free flow of information relative to prices, volume, and market expectations. 期货市场促进了市场竞争的发展，由于允许价格、交易数量和市场预期信息自由流动
Thus, futures markets help eliminate market imperfections and contribute to more efficient economic activity.，从而期货市场有助于消除市场的不完善，促使经济活动更加有效地进行。
Futures contracts, simply stated, are a promise between two parties to exchange a commodity at a specified time and place in the future for a stated price. As a commitment between a buyer and seller, a futures contract specifies precisely the commodity being traded and the terms of delivery. The clearinghouse of the commodity exchange, made up of exchange members, guarantees contract performance by both parties. Individual traders cease to deal with each other and instead become obligated to the clearinghouse, which be comes the guarantor of performance of all futures contracts traded on a particular exchange. At the close of every trading day, the clearinghouse matches buy and sell contracts for the day and informs every exchange member of their net settlement status.
Futures contracts, simply stated, are a promise between two parties to exchange a commodity at a specified time and place in the future for a stated price.简单地讲，期货合约是交易双方就在未来确定的时间和地点，按照确定的价格交换某种商品的一份承诺。
As a commitment between a buyer and seller, a futures contract specifies precisely the commodity being traded and the terms of delivery.作为双方责任和义务的承诺，期货合约必须具体、准确地规定交易的商品和交割条件。
Delivery：交割
Delivery Price：交割价格
Delivery instrument: 交割文件
Delivery date: 交割日期
The clearinghouse of the commodity exchange, made up of exchange members, guarantees contract performance by both parties.由清算会员组成的商品交易所的清算公司，保证交易双方履约。
Individual traders cease to deal with each other and instead become obligated to the clearinghouse, which becomes the guarantor of performance of all futures contracts traded on a particular exchange. 单个交易商之间不再直接进行交易，而是由双方分别与清算公司间的责任义务取而代之。清算公司就成为一个交易所中所有交易合约履约的担保方。
Cease: 停止
At the close of every trading day, the clearinghouse matches buy and sell contracts for the day and informs every exchange member of their net settlement status.在每天的交易结束之后，清算公司将当天的买卖合约进行撮合，并且将各自的净结算头寸通知每一个交易所清算成员。
Match: 撮合
net settlement status净结算头寸
Financial Futures Contract
Financial futures contracts are not different from commodity futures contracts, except that the item delivered is a financial instrument, rather than a commodity, such as a wheat or cattle. Today, financial futuresbased on currencies, debt instruments, and financial indexes trade futures, based on specific foreign currencies, allow various commercial incrests to hedge against fluctuations in exchange rates. Foreign currencyfutures are futures contracts calling for the delivery of a specific amount of a foreign currency ata specified future date in return for a given payment of . addition,financial futures trade based on financial indexes. For thesekinds of financial futures, there is no delivery, but traders complete their obligations by makingcash payments based on changes in the value of the index.
A recent innovation is stock index futures. Based on the performance of a group of stocks, these futures allow investors to protect a portfolio of stocks from a decline in value. The narrower term interest-rate futures refers to specific contracts for interest sensitive financial instruments.
Financial futures contracts are not different from commodity futures contracts, except that the item delivered is a financial instrument, rather than a commodity, such as a wheat or cattle.金融期货合约和商品期货合约完全一样，只是交割的对象不是小麦、牲畜这样的实际商品，而是金融工具。。
Today, financial futuresbased on currencies, debt instruments, and financial indexes trade actively.目前，基于货币、债务工具和金融指数的金融期货交易非常活跃。Currency futures, based on specific foreign currencies, foreign Currencyfutures allow various commercial interests to hedge against fluctuations in exchange rates.基于某种外汇的货币期货即外汇期货可以使商业利益有关各方来防范外汇汇率波动的风险。
various commercial interests: 各种商业利益，实际上是指获得各种商业利益人或机构，英文为了简洁，就用various commercial interests 来指代获得各种商业利益人或机构，翻译汉语时我们可以简洁的翻译为商业利益的有关各方
Foreign currencyfutures are futures contracts calling for the delivery of a specific amount of a foreign currency ata specified future date in return for a given payment of . dollars.外汇期货是在未来特定日期交割特定数量某种特定外汇以换取给定数量美元的期货合同。
Call for: 要求，规定
In addition,financial futures trade based on financial indexes.此外，金融期货也以金融指数为基础进行交易。For thesekinds of financial futures, there is no delivery, but traders complete their obligations by makingcash payments based on changes in the value of the index.这类金融期货没有实际交割，交易者完成其义务（即交易），通过进行以指数价值变化为基础的现金支付。
A recent innovation is stock index futures. 期货市场最近的创新是股票指数期货。
Based on the performance of a group of stocks, these futures allow investors to protect a portfolio of stocks from a decline in value.股票指数期货以一组股票的市场业绩为基础，投资者利用这种期货规避投资股票组合市场价值下跌的风险。
Interest rate Futures
The Mechanics of Interest Rate Futures
Interest-rate futures are based on long and short-term, fixed-income financial debt instruments with prices that vary inversely to their interest rates. For example, U. S. Treasury bills are sold on a discount basis and then redeemed at maturity at face value. The difference between the face value and the discounted selling price equals the amount of interest earned. Similarly, the price of a futures contract is inversely related to the interest rate of the underlying debt instruments.
Interest rate futures take adebt instrument, such as a Treasury bill (T-bill) or Treasury bond (T-bond), as their underlyinggood.利率期货是以债务工具——例如国库券或国债——作为合同标的金融期货。With these kinds of contracts, the trader must deliver a certain kind of debt instrument tofulfill the contract.在这类合同项下，交易者必须交割一特定种类的债务工具来完成合同义务。
The Mechanics of Interest Rate Futures利率期货的交易机制
Interest-rate futures are based on long and short-term, fixed-income financial debt instruments with prices that vary inversely to their interest rates.利率期货以长期和短期固定收益的金融债券为基础，这些债券价格随它们市场利率的变化呈相反方向波动。
Inverse: adj. 向相反方向变动的，反向的，
Inversely: adv.
Vary inversely: 反向波动
For example, U. S. Treasury bills are sold on a discount basis and then redeemed at maturity at face value.例如，美国国库券一般折价发行，到期按照票面值赎回。
Redeem: 赎回
Face value: 票面值
The difference between the face value and the discounted selling price equals the amount of interest earned.面值和折价值的差额代表该债券的收益。
Similarly, the price of a futures contract is inversely related to the interest rate of the underlying debt instruments.类似地，一种期货合同的价格与其基础债券利率的变动负相关。
Participants in futures markets can take one of two positions in the market. A buyer of a futures contract takes a long position in the market. This is true because the buyer owns a contract that can be sold at any time. To profit from a long position, he must sell the contract for a price higher than the purchase price. In the case of an interest-rate futures contract, such as a Treasury-bill contract, a long position profits from a decline in interest rates. A lower interest rate means a higher contract price, since the two are inversely related. Thus, a long position in a Treasury bill futures contract can be sold at a profit when interest rates fall. An increase in interest rates, on the other hand, produces a loss in a long position.
Participants in futures markets can take one of two positions in the market.期货市场的入市者可以在两种市场部位之间选择一个：
A buyer of a futures contract takes a long position in the market. This is true because the buyer owns a contract that can be sold at any time.期货合约买方在市场上处于多头部位，由于买方持有合约，并且可以随时售出，因而称为多头。
To profit from a long position, he must sell the contract for a price higher than the purchase price.以多头部位获利，交易者必须在高于买价的价格上售出该合约。
In the case of an interest-rate futures contract, such as a Treasury-bill contract, a long position profits from a decline in interest rates.
以利率期货如国库券合约为例，多头部位将从利率下降中获利，
A lower interest rate means a higher contract price, since the two are inversely related.因为双方负相关，利率下跌意味着合约价格上升。
Thus, a long position in a Treasury bill futures contract can be sold at a profit when interest rates fall. An increase in interest rates, on the other hand, produces a loss in a long position.在国库券期货合约中持多头部位，在利率下跌时售出合约可以获利。反之，利率上升会使多头部位亏损。
A seller of a futures contract takes a short position in the market. That is true because the seller sells a contract that is a promise to deliver on a specific date a commodity or financial asset, even he may not currently own that asset. To profit from a short position, he must buy the contract at a price lower than the selling price. In the Treasury bill futures contract example, a short position profits from an increase in interest rates, because the contract price then declines, allowing the contract to be bought at a profit. A decline in interest rates produces a loss in a short position.
A seller of a futures contract takes a short position in the market.期货合约的售出方处于空头部位。
That is true because the seller sells a contract that is a promise to deliver on a specific date a commodity or financial asset, even he may not currently own that asset.售出的期货合约是在一定日期交割某种商品或者金融资产的承诺，即使售出期货时可能并不拥有该项资产。
To profit from a short position, he must buy the contract at a price lower than the selling price.以空头部位获利，交易者必须在低于售价的价格上买入该合约。
In the Treasury bill futures contract example, a short position profits from an increase in interest rates, because the contract price then declines, allowing the contract to be bought at a profit.以国库券合约为例空头部位将从利率上升中获利，因为这时合约价格将下跌，买入该合约即可获利，
A decline in interest rates produces a loss in a short position.
而利率下降将会造成空头部位亏损。
Only rarely do buyers and sellers of futures contracts ever make or accept delivery of the actual instrument. Rather, most participants offset their positions by taking a market position opposite to the original one. For instance, if the original position was to buy a March Treasury bill contract, the position would be offset by subsequently selling a March Treasury bill contract. When futures positions are offset this way, the final result is a loss or profit, not an exchange of securities. Only 2 percent of all futures contracts are believed to result in actual delivery of the financial instrument or commodity involved. Most market participants prefer to offset futures positions, rather than to make actual delivery, for many reasons. The most common reason, however, that the market is used primarily for either risk management or speculation, and neither purpose
Only rarely do buyers and sellers of futures contracts ever make or accept delivery of the actual instrument. Rather, most participants offset their positions by taking a market position opposite to the original one.期货买卖双方实施和接受实际金融工具交割的情况极为少见，大多数入市者通常采用与初始交易相反的部位对冲了结。
For instance, if the original position was to buy a March Treasury bill contract, the position would be offset by subsequently selling a March Treasury bill contract.例如：若初始部位是买入一份3月期国库券合约，这一多头部位可以用后来售出一份3月期国库券合约加以对冲。
When futures positions are offset this way, the final result is a loss or profit, not an exchange of securities.期货市场上部位的对冲可能亏损也可能盈利，不必进行实际证券的换手。
Only 2 percent of all futures contracts are believed to result in actual delivery of the financial instrument or commodity involved.最终进行实际金融工具或者商品交割的仅占全部交易期货合约的2％。
Most market participants prefer to offset futures positions, rather than to make actual delivery, for many reasons.期货市场人市交易者大部分不愿意进行实际交割，而愿意对市场部位对冲了结。
The most common reason, however, that the market is used primarily for either risk management or speculation, and neither purpose-------
个中有许多原因，主要原因在于：这一市场或是用来进行风险管理，或是进行投机交易，而这两种目的都不需要进行实际交割。
The Essential Concept of Hedging
Hedging in futures markets is synonymous with shifting risk.
A hedge is placed by taking a future position opposite to the position held in the cash market, and exactly equivalent in value. For example, a banker who expects to invest $1 million in a Treasury bill in three months needs to protect himself against a decline in interest rates. A decline would lower his interest income. To hedge, he buys a Treasury bill futures contract, thus taking a long position.
Essential Concepts of Hedging套期保值的基本概念
Hedging in futures markets is synonymous with shifting risk.期货市场上的套期保值实际上就是转移风险。
Synonymous：同义的
Antonymous: 反义的
A hedge is placed by taking a future position opposite to the position held in the cash market, and exactly equivalent in value.套期保值是指在期货市场上采取和现货市场头寸方向相反、价值完全相等的合约部位的交易。
For example, a banker who expects to invest $1 million in a Treasury bill in three months needs to protect himself against a decline in interest rates.例如一位银行家打算在3个月后在国库券上投资100万美元，他需要防范利率下降的风险。
A decline would lower his interest income. To hedge, he buys a Treasury bill futures contract, thus taking a long position.利率下降就会使投资收益率下跌，为了套期保值，他购买一份国库券期货合约，从而在期货市场处于多头部位。
Later, when he actually invests the $1 million, he offsets his futures position by selling a Treasury bill futures contract. Such a strategy protects the banker against the risk of an adverse movement in interest rates, because reduced yields in the cash market resulting from lower interest rates are offset by profits in the futures position.
Later, when he actually invests the $1 million, he offsets his futures position by selling a Treasury bill futures contract.等到他实际要投资于国库券时，他将售出一份国库券期货对冲掉自己原来的部位。
Such a strategy protects the banker against the risk of an adverse movement in interest rates, because reduced yields in the cash market resulting from lower interest rates are offset by profits in the futures position.采用这种战略使该银行家免受利率不利变动的风险，因为利率下降造成的现货市场收益率下降可以由期货市场的获利对冲。
There are few perfect hedges in the real world. This is because of basis risk. Basis is defined as the difference between the futures market price and the cash market price. Basis is both stable and predictable, because of the tendency of the cash and futures prices of a financial instrument to move together. Three market forces operate to assure similar price movements. First, arbitrage between the cash and futures markets help remove distortions in the basis. Second, Changes in economic and financial market conditions influence cash and futures prices simultaneously. Third, the possible delivery of the cash instrument forces cash and futures prices to converge as the delivery date approaches.
There are few perfect hedges in the real world. This is because of basis risk.在现实情况中完全套做保值的例子很少，这是因为存在基差险(basis risk)缘故。
Basis is defined as the difference between the futures market price and the cash market price.基差是指期货市场价格与现货市场价格的差额。
Basis is both stable and predictable, because of the tendency of the cash and futures prices of a financial instrument to move together.因为金融工具期货市场和现货市场价格运动的趋势一致，基差较稳定而且可预见程度较高。
Three market forces operate to assure similar price movements. 3种市场力量的运作确保了相似的价格运动方向：
First, arbitrage between the cash and futures markets help remove distortions in the basis.首先，现货市场和期货市场间的套利交易可以排除对于基差的扭曲；
Second, Changes in economic and financial market conditions influence cash and futures prices simultaneously.其次，经济和金融市场条件的变化同时影响期货和现货市场；
Third, the possible delivery of the cash instrument forces cash and futures prices to converge as the delivery date approaches.其三，可能发生的现货证券交割迫使现货和期货价格在交割期临近时趋于一致。
Converge: to come from different directions and meet at the same point to become one thing 来自不同的方向，并交于一点，趋于一致
Antonym(反义词): diverge
Basis risk refers to unexpected changes in the cash-futures price relationship. These unexpected changes can arise for a number of reasons. In essence, however, to the extent that futures prices correctly anticipate impending movements in cash market interest rates, basis risk will be minimized．And while swings in the basis at times can be large，they are generally less than price movements in the cash or future’s markets alone．
Basis risk refers to unexpected changes in the cash-futures price relationship.基差风险是指现货和期货之间价格关系出现的意外变化
。
These unexpected changes can arise for a number of reasons.引起这种变化的原因很多，In essence, however, to the extent that futures prices correctly anticipate impending movements in cash market interest rates, basis risk will be minimized．但从根本上讲，基差风险依期货市场对现货市场利率变化的可预见性程度的增大而减少。
And while swings in the basis at times can be large，they are generally less than price movements in the cash or future’s markets alone．尽管有时基差变动的幅度也很大，但一般来讲，这种变动幅度总是小于现货或者期货市场价格单独的变动幅度。
Factors to Influence the Bases
Many factors interact to influence the basis．Changing economic conditions can cause interest rates in cash and futures markets to fluctuate differently．When a cross hedge--- hedging with a similar but not identical futures contract--is placed，the relationship between the prices of the cash instrument and the futures contract maybe more volatile than expected． If the cash instrument bears an administered rate while the futures instrument bears a free market rate，the basis can be affected by changing market conditions．Of greatest importance，changing expectations about future interest rates，particularly the future shape of the yield curve，can cause wide basis swings．On balance，however，basis risk remains less volatile and more manageable than cash market risk．
Many factors interact to influence the basis．许多因素综合影响到基差。
Changing economic conditions can cause interest rates in cash and futures markets to fluctuate differently．经济情况的变动可能会引起现货市场利率和期货市场利率发生不同的波动，
When a cross hedge -----hedging with a similar but not identical futures contract----is placed，the relationship between the prices of the cash instrument and the futures contract maybe more volatile than expected．在交叉套利时即利用与现货相近但不完全相同的期货合约进行套利。现货证券价格与期货合约价格更可能出现意外的变动：
If the cash instrument bears an administered rate while the futures instrument bears a free market rate，the basis can be affected by changing market conditions．
(这句话我们要注意在翻译的时候不能直译)
Bear: v. 携带，to carry sth.
如果按照字面意思翻：意思是：如果现货证券携带受管理干预的利率，（听起来特别的不舒服，不像汉语，所以翻译一定要注意，在忠实于原文的基础上，要符合汉语表达习惯，因此我们把他翻译为：如果现货证券利率是受管理干预的利率，同样的while the futures instrument bears a free market rate，翻译为而期货证券的利率是自由市场利率，the basis can be affected by changing market conditions那么基差就会受到市场条件的变化的影响。
译文：如果现货证券利率是受管理干预的利率而期货证券的利率是自由市场利率，那么市场条件的变化就会影响到基差。
Of greatest importance，changing expectations about future interest rates，particularly the future shape of the yield curve，can cause wide basis swings．其中（影响基差）最具重要意义的因素是对未来利率预期的变动，尤其是对收益曲线未来形状的预期的变动将会引起基差大幅度的变动。
On balance，however，basis risk remains less volatile and more manageable than cash market risk．一般来说，基差风险比现货市场要小，而且较易控制。
Other important hedging concepts are margin requirement and leverage．The initial margin requirement on a futures transaction is simply a good—faith deposit to ensure performance according to the terms of the futures contract．For example，an investor might purchase a$1 million 90 day Treasury bill contract and be required to deposit$1 500 margin money，less than 1 percent of the face value of the contract．Daily settlements are made relative to each trader’s profits and losses—that is。futures positions are marked—to-market daily．A trader that suffers a loss on a futures contract is required to post additional margin money to maintain the original margin level．A trader that profits from the futures transaction on a part icular day has any excess margin money added to the account，and it can be withdrawn．
Other important hedging concepts are margin requirement and leverage．和套期保值相关的其他重要概念有：保证金要求和杠杆效应。
The initial margin requirement on a futures transaction is simply a good faith deposit to ensure performance according to the terms of the futures contract．期货交易的初始保证金实质上是一个信誉存款（good faith deposit），为了保证按照期货合约条款履约 ()。
For example，an investor might purchase a$1 million 90 day Treasury bill contract and be required to deposit$1 500 margin money，less than 1 percent of the face value of the contract．例如，投资者可以购买100万美元90天国库券期货合约而只需交付1 500美元，不足合约面值的1％。
Daily settlements are made relative to each trader’s profits and losses—that is，futures positions are marked-to-market daily．每一位交易商的盈亏要每日结算——期货部位要逐日盯市
A trader that suffers a loss on a futures contract is required to post additional margin money to maintain the original margin level．当天合约交易亏损的交易商必须追加保证金以保持初始保证金水平，
A trader that profits from the futures transaction on a particular day has any excess margin money added to the account，and it can be withdrawn．而当天期货合约交易盈利的交易商，拥有超额的账面保证金，超出金额可以提取。
Margin requirements ensure the performance of both parties to a futures contract．They also provide traders with substantial leverage．A position can be taken in the futures market with less capital than in the cash market，which requires that a much higher percentage be deposited in a margin account with the broker.
Margin requirements ensure the performance of both parties to a futures contract． They also provide traders with substantial leverage．保证金要求是期货合约双方履约的保证，同时也给了交易商以极大的财务杠杆的便利。
A position can be taken in the futures market with less capital than in the cash market，which requires that a much higher percentage be deposited in a margin account with the broker.在期货市场上拥有和现货市场头寸金额相等的部位所需要的资本大大少于现货市场，在现货市场上需要存入经纪商账户的保证金比例远远高于期货市场。
Category of Futures
下面我们用一个图表来表示期货的种类：
请画一个图表表示
Types of futures
commodity futures商品期货
agricultural products futures 农产品期货
precious metals futures 贵重金属期货
energy futures 能源期货
financial futures金融期货
foreign currency futures 外汇期货 Based on foreign currency :基于某种外汇
interest rate futures 利率期货 Based on debt instrument: 基于债务工具
stock index futures股指期货 Based on financial index: 基于金融指数
Swap Deals
A swap is an agreement between two or more parties to exchange sets of cash flows over aperiod in the future.互换是两方或多方在将来某一时期内交换现金流的协议。For example, Party A might agree to pay a fixed rate of interest on $1million each year for five years to Party B.例如，A可能同意在5年内每年向B就1000万美元支付固定的利息。In return, Party B might pay a floating rate of intereston $1 million each year for five years.相对应，B要在5年内就1000万美元每年按浮动利率支付利息。The parties that agree to the swap are known ascounterparties.同意进行互换的双方称作对应方：The cash flows that the counterparties make are generally tied to the value of debtinstruments or to the value of foreign currencies.对应方收付的现金流往往与债务工具或外汇的价值相联系。Therefore, the two basic kinds of swaps areinterest rate swaps and currency swaps.因此，两种基本的互换是利率互换和货币互换。
A swap involves the simultaneousbuying and selling of a currency for different maturities. Swap dealsused for forward cover are of two basic types: forward/forward andspot/forward. In either case, the exporter begins by covering theforeign currency transaction forward to an arbitrarily selected butfixed date, just as in an ordinary fixed-date forward contract. Then,if the precise settlement date is subsequently agreed before the initialforward contract mature, the original settlement date may be extended to the exact date by a forward/forward swap. Alternatively,if an exact settlement date is not agreed by the date when the initial forward contract matures, the forward cover may be extended by aspot/forward swap. This may sound quite complicated;a closer look shows that it is not all that difficult. A forward/forward swap, or forward swap as it is sometimes called, is merely a pair of forward exchange contracts involving a forward purchase and a forward sale of a currency, simultaneously entered into but for different maturities.
互换交易
A swap involves the simultaneousbuying and selling of a currency for different maturities.互换包括同时买入和卖出期限不同的一种货币。
Swap dealsused for forward cover are of two basic types: forward/forward andspot/forward.远期抛补的互换交易有两种基本形式：远期／远期和即期／远期。
In either case, the exporter begins by covering theforeign currency transaction forward to an arbitrarily selected butfixed date, just as in an ordinary fixed-date forward contract.在任何一种情况下，出口商开始是任意选择一个固定日期作为远期外汇交易的付款时间，就像通常确定日期的远期合约一样。
Then,if the precise settlement date is subsequently agreed before the initialforward contract matures, the original settlement date may be extended to the exact date by a forward/forward swap.
Well, the sentence tell us: if the precise settlement date is subsequently agreed如果准确的结算日期最后确定下来，before the initialforward contract matures,在最初的远期合约到期之前，the original settlement date may be extended to the exact date最初结算日可能会延长至那天，by a forward/forward swap.通过远期/远期互换.
译文：然后，如果后来在最初的远期合约到期之前确定了准确的结算日期，可能通过一个远期／远期互换把原来的结算日期延长至那一天。
Alternatively,if an exact settlement date is not agreed by the date when the initial forward contract matures, the forward cover may be extended by aspot/forward swap.另外，如果在最初的远期合约到期时还没有协商好准确的结算日，这个远期合约的风险安排可以用即期／远期互换来进行。
This may sound quite complicated;a closer look shows that it is not all that difficult.
听起来很复杂，仔细看看就会发现并不困难。
A forward/forward swap, or forward swap as it is sometimes called, is merely a pair of forward exchange contracts involving a forward purchase and a forward sale of a currency, simultaneously entered into but for different maturities.
This sentence tell us what is a forward/forward swap, 这句话告诉我们什么是远期／远期互换，or forward swap as it is sometimes called有时称为远期互换 is merely a pair of forward exchange contracts两个远期外汇合约, involving a forward purchase and a forward sale of a currency包括一个远期买进和一个远期卖出合约simultaneously entered into but for different maturities.意思是同时签定的但是到期日不同的。
译文：远期／远期互换，或有时称为远期互换，仅仅是同时签订但到期日不同的两个远期外汇合约，包括一个远期买进和一个远期卖出。
Assume that the details of an export contract from to are set out except that the expected settlement date is uncertain (maybe because delivery date is equally uncertain). The British exporter takes out a forward contract on (the date ofthe sale contract with the French importer). This forward contract is for an arbitrary period, say two months. So he sells FF 5 million forward for delivery on .
Assume that the details of an export contract from to are set out except that the expected settlement date is uncertain (maybe because delivery date is equally uncertain).设想一份从英国到法国的出口合约除预期的结算日没有确定以外，其余全部条款已经确定(可能是因为交货日期不能相应确定)。
The British exporter takes out a forward contract on May 1, 1999 (the date ofthe sale contract with the French importer).英国出口商在(与法国进口商签订合约的日期)取得一份远期合约。
This forward contract is for an arbitrary period, say two months.该合约有一个任意期，比如2个月。
So he sells FF 5 million forward for delivery on June 30, 1999.这样他远期卖出500万法郎，交割日为。
FF= Franc
Now let us suppose that on , the exporter and the French purchaser agree that settlement will take place on . What the British exporter needs to do now is to counter the original forward sale of francs for settlement on June 30 and replace it with a contract for delivery on July 31. This he does by buying FF 5 million forward for delivery on June 30, 1999 (thereby creating a contrary to his original forward sale of francs)and simultaneously selling FF 5 million forward 41 days, thereby extending delivery to July 31. Let us further assume that on , the bank gives the exporter the following quotes:
Now let us suppose that on June 20, 1999, the UK exporter and the French purchaser agree that settlement will take place on July 31, 1999.现在让我们假设在日，英国出口商和法国购买者同意在进行结算。
What the British exporter needs to do now is to counter the original forward sale of francs for settlement on June 30 and replace it with a contract for delivery on July 31.英国出口商现在必须冲销原来到期的卖出远期法郎的合约，并且用一个到期的合约代替原来的合约。
This he does by buying FF 5 million forward for delivery on June 30, 1999 (thereby creating a contrary to his original forward sale of francs)and simultaneously selling FF 5 million forward 41 days, thereby extending delivery to July 31.
This he does by buying FF 5 million forward他所做的是买入500万远期法国法郎for delivery on June 30, 1999交割日为(thereby creating a contrary to his original forward sale of francs) (即签订一个与原来出售远期法郎相反的合约) simultaneously selling FF 5 million forward 41 days,同时售出500万天期远期法郎thereby extending delivery to July 31.把交割日延长至
他所做的是买入500万远期法国法郎，交割日为(即签订一个与原来出售远期法郎相反的合约)，同时售出500万天期远期法郎，把交割日延长至。
Interest Rate Swap
利率互换
An interest-rate swap is a contract between two parties in which each party agrees to make a series of interest payments to the other on scheduled dates in the future. 利率互换是一种双方合同。在合同中，一方同意在未来的某些特定日期向另外一方进行一系列利息的偿付。
In most interest-rate swaps,there are two legs.在大多数的利率互换中，交易分为两个部分
One counterparty pays a floating rate of interestsuch as LIBOR and the other pays a fixed rate or a different floatinginterest rate.：交易的一方按照浮动利率进行利息支付，如LIBOR；交易的另外一方按照固定利率或者另外一种浮动利率进行支付。
The basic structure of an interest-rate swap is depictedin Figure利率互换的基本结构见表1.
Company A borrows in the floating-rate market by issuing a 7-year floater at 6-month LIBOR + %. A 公司通过发行7年期利率为6个月LIBOR+ ％的浮动利率债券在浮动利率市场进行筹资。
Company B has issued a 7-year fixed-rate bond at % over 7-year Treasury. B公司发行固定利率债券，其利率比7年期国库券高 ％。
Theythen enter into an interest-rate swap transaction with an AAA swapdealer. 而后他们与一个AAA级别的互换交易商签订了利率互换合同。
Under the swap agreementcounterparty A receives 6month LIBOR from the swap dealer and will pay a fixed-rate of 7year Treasury plus %在互换协议下，A公司从互换交易商处得到6个月的LIBOR利率，按7年期国库券利率加上 ％付出固定利率的利息。
The cost to Company A is then 1. 0 %over 7-year Treasury, and A has converted floating-rate obligation tofixed-rate.这样A公司的成本就是7年期国库券利率加上 ％，同时A公司将浮动利率的债券转换为固定利率的债券。
Counterparty B pays a rate of 6-month LIBOR and receives from the dealer the 7-year Treasury plus %. B公司按照6个月的LIBOR向互换交易商支付利息，从交易商处收到7年期国库券利率加上 ％的固定利息。
Company Bhas changed the interest payments to floating at a cost of LIBOR %.这样B公司就将固定利率的债券转换为利率为LIBOR+ ％的浮动利率债券。
The swap dealer profits 20 basis points from the transactions.互换交易商从这笔交易中得到20个基点的收入。
Swaps can also be arranged to manage the risk of a specific assistor liability exposure. An asset swap combines an existing asset suchas a bond with all interest rate swap to recreate a different return portfolio．The investor might use the fixed coupon to swap for floating rate income or vice versa．If the asset is a MBS，index amortizing swaps can be used to mirror the asset’s remaining principal amount．
A derivative consisting of an option to enter into an interest—rate swap or to cancel an existing swap in the future is called swaption．
Swaps can also be arranged to manage the risk of a specific assetor liability exposure.互换也可以用于规避某种特定的资产或债务敞口的风险。
An asset swap combines an existing asset suchas a bond with all interest rate swap to recreate a different return portfolio．资产互换就是将某一笔资产(例如债券)与利率互换相结合形成一种新的收益组合。
The investor might use the fixed coupon to swap for floating rate income or vice versa．投资者可以用固定利率的息票来交换浮动利率的收入，或进行相反的操作。
If the asset is a MBS，index amortizing swaps can be used to mirror the asset’s remaining principal amount．如果这种资产是抵押支持的证券，就可以采用指数摊销互换来反映该资产的剩余本金数。
index amortizing swaps：指数摊销互换
Some swaps have a，clean up call whereby the swap can be called away if：the remaining notional principal drops to，about 5 ％ of the original amount．A mortgage swap falls into this type．The notionalprincipal amortizes over the life of the swap and the tenor of the swap is shorter than the final maturity of the mortgage pools．
Some swaps have a clean up call whereby the swap can be called away if：the remaining notional principal drops to，about 5 ％ of the original amount．有些互换附带有提前结清赎回条款，这样，当名义的本金数降到原始数据的5 ％以下时，就可以结束互换交易。
a clean up call：提前结清赎回条款
called away：结束
A mortgage swap falls into this type．The notionalprincipal amortizes over the life of the swap and the tenor of the swap is shorter than the final maturity of the mortgage pools．
抵押互换就是这种类型的互换交易，在互换期间将名义本金进行摊销，互换的期限短于抵押的期限。
Unit11 Securities
Asset Securitization in the
现代意义上的证券化(或称资产证券化)业务起源于20世纪70年代初的美国，当时的主要目的是为了开发住宅抵押贷款的二级市场。后来，参与证券化的机构、证券化的结构类型迅速增长，正如本文指出的那样，目前由证券化创造的各种证券类型(抵押支持证券和资产支持证券等)已经成为美国继国库债券后第二大证券类型。在某种意义上，证券化的巨大发展既可看作是商业银行在金融中介领域的地位的下降，也可看作是商业银行向表外业务发展的成功表现。无论如何，证券化都是近20年来最富创新意义的新兴业务，特别是在美国已成为独具特色并具有强大生命力的金融工具。
本文回顾了证券化在美国发展的历程，特别是详细讲述了抵押支持证券和资产支持证券的发展以及证券化在处理不良资产中的应用情况；对证券化结构中的信用增强措施和信用评级机构的功能或作用作了具体论述；分析了证券化在美国获得巨大发展的特殊背景和其他刺激因素。因此，本文对于试图在本国开展证券化业务的其他国家有比较实际的借鉴意义。
Over the past two decades, securitization has emerged as a distinctive feature of thefinancial system in the . To some degree this reflects the fact that the has long had two channels for financial intermediation (the banking system and the capitalmarket), with the competitive balance between the two channels often changing over time. Inrecent years in particular, the process of disintermediation by the banking system has progressedfarther than in other OECD countries, and to some degree securitization is one manifestation ofthis broader process. There is some controversy as to whether the process of "disintermediation"represents a declining role for banks in financial intermediation, or merely a shift by banks tooff-balance-sheet activity. In either case, the analysis presented here would not be affected.
证券化在美国的发展
Over the past two decades, securitization has emerged as a distinctive feature of thefinancial system in the United States.在过去的二十年间，证券化逐渐兴起并成为美国金融体系中独具特色的金融工具。To some degree this reflects the fact that the UnitedStates has long had two channels for financial intermediation (the banking system and the capitalmarket), with the competitive balance between the two channels often changing over time.在某种程度上这反映了美国的现实，即美国长期以来存在两种金融中介渠道(银行系统与资本市场)，而且这两种渠道在不同时期表现出不同的、经常的竞争以及制衡。Inrecent years in particular, the process of disintermediation by the banking system has progressedfarther than in other OECD countries,特别是近些年来，美国银行系统非中介化(脱媒)的进程走得更远，与其他经合组织国家相比，and to some degree securitization is one manifestation ofthis broader process.在某种程度上证券化就是这一较为广阔进程的一项证明。There is some controversy目前尚存在一些争论。as to whether the process of "disintermediation"represents a declining role for banks in financial intermediation,究竟这种“非中介化”进程代表了银行系统在金融中介领域地位的逐渐下降，or merely a shift by banks tooff-balance-sheet activity.还是仅仅表示银行系统向资产负债表表外业务的转变，
Controversy: 争论a serious argument about something that involves many people and continues for a long time:
a political controversy
In either case, the analysis presented here would not be affected.但无论怎样，都不会影响我们在此所作的分析。
American-style securitization has typically involved complete removal of the securitizedasset from the balance sheet of the originating institution. The assets become "collateral" which supports the payments of interest and principal on the newly created security. If the originating institution continues to participate, it is usually as "servicer", . the collector of principal and interest payments and processor of other back-office functions related to the assets supporting the transaction. The collateral which produces the cash flows to support the security are segregated into an identifiable pool.
American-style securitization has typically involved complete removal of the securitizedasset from the balance sheet of the originating institution.典型的美国式的证券化的结果（之一）就是被证券化的资产从发起机构的资产负债表内彻底地脱离。
the removal of A from B: A从B脱离
A=the securitizedasset被证券化的资产
B= the balance sheet of the originating institution：发起机构的资产负债表内
The assets become "collateral" which supports the payments of interest and principal on the newly created security.
Collateral：担保品，抵押品
Newly created security：新创造的证券
译文：这些资产成为“担保品”，用以支持新创造的证券的本金和利息的支付。
If the originatinginstitution continues to participate, it is usually as "servicer",如果发起机构继续参与证券化过程，它通常充当“服务人”，（什么样的服务人呢？就是下面说的“collector” and “ processor”）. the collector of principal and interest payments and processor of other back-office functions related to the assets supporting the transaction.也就是本金和利息支付的收集人以及与支持本交易的资产相关的其他后续办公职能的操作人。The collateral which produces the cash flows to support the security are segregated into an identifiable pool.产生现金流量以支持所创造的证券的该项担保品被分离成一组可识别的资产集合。
Segregate: 分离，分割 be segregated into: 被分离 pool: 资产组合 identifiable: 可识别的
The investor purchases a security which is based upon the cash flows resulting from the securitized assets without recourse to the originating institution, and thus accepts all risks inherent in the assets, including credit, market and prepayment risk. Indeed, this is a test that is usually applied by accountants, lawyers, rating agencies and regulators: have all risks associated with a given asset in fact been transferred from the originator?
The investor purchases a security which is based upon the cash flows resulting from the securitized assets without recourse to the originating institution,投资者购买证券，这种证券基于被证券化的资产所产生的现金流量而产生，同时，投资者对发起机构不享有追索权，and thus accepts all risks inherent in the assets, including credit, market and prepayment risk.因而接受了证券化资产固有的所有风险，包括信用风险、市场风险和提前偿付风险。
Recourse: 是表示“追索”，“请求偿还”之意，为了准确地表示其意，常用追索权.
无追索权融资non-recourse finance
有追索权信用证With Recoures Letter of Credit
Indeed, this is a test that is usually applied by accountants, lawyers, rating agencies and regulators: have all risks associated with a given asset in fact been transferred from the originator?实际上，这是会计师、律师、评级机构和监管者通常要考虑而且仍未可知的问题：和给定资产有关的所有风险确实已经由发起机构转移到投资者了吗?
Mortgage Backed Securities
The largest category of instrument created by securitization are MBS supported by United States Government agencies or Federally-sponsored companies and fall into the broad category of "government agency paper"---a category of assets considered fairly close toTreasury securities in terms of credit risk, but with somewhat higher yields. At the end of 1993 the outstanding stock of US agency MBS exceeded $ trillion and represented the second largest category of bonds in the after Treasury bonds.
Mortgage-backed securities抵押支持证券(MBS)
The largest category of instrument created by securitization are MBS证券化所创造的工具中最大的一种类型就是抵押支持证券，supported by United States Government agencies or Federally-sponsored companies and fall into the broad category of "government agency paper"抵押支持证券由美国政府机构或联邦赞助的公司支持并属于“政府机构票据”的广泛的范畴---a category of assets considered fairly close toTreasurysecurities in terms of credit risk, but with somewhat higher yields.”——一类就信用风险来讲与国库券相当接近，但具有稍高的收益的资产。
At the end of 1993 the outstanding stock of US agency MBS exceeded $ trillion and represented the second largest category of bonds in the United States after Treasury bonds.到1993年末美国的机构抵押支持证券的未清偿余额超过万亿美元并成为继国库券之后的美国第二大类型的债券。
Outstanding: 未清偿的
Historically, the housing market has been characterized by long-term fixed-rate mortgages with 30 years often the norm. Traditionally, mortgage finance was provided by depository institutions, . banks and savings and loan association (or "thrifts"). MBS issuance, which began in the early 1970s, was spurred by two important developments. First, increased interest rate volatility heightened therisk of maturity mismatches. Second, programmes were begun under which Federal agenciesguaranteed residential mortgages for fees and used the mortgages as collateral to supportsecurities which were sold to investors.
Historically, the United States housing market has been characterized by long-term fixed-rate mortgages with 30 years often the norm.在历史上，美国的住宅融资市场以长期固定利率抵押贷款为特征，期限通常是30年。Traditionally, mortgage finance was provided by depository institutions, . banks and savings and loan association (or "thrifts").传统上，抵押融资由存款机构，即商业银行以及储蓄与贷款协会或“非银行存款机构(节俭机构)”提供。MBS issuance, which began in the early 1970s, was spurred by two important developments. 开始于20世纪70年代初期的抵押支持证券的发行，主要受到两个重要因素的刺激而发展起来。
Spur: 刺激
First, increased interest rate volatility heightened therisk of maturity mismatches.首先是利率波动的不断加剧增大了期限错配风险。Second, programmes were begun under which Federal agenciesguaranteed residential mortgages for fees and used the mortgages as collateral to supportsecurities which were sold to investors.其次是一系列方案的出台，在这些方案中，联邦机构保证住宅抵押贷款的（偿还）并收取保证费用，然后利用抵押贷款作为担保品支持证券的发行，证券出售给投资者。
Three institutions are responsible formost mortgage-backed securitization: the GovernmentNational Mortgage Association (GNMA), which is a Federal agency; and the Federal HomeLoan Mortgage Corporation (FHLMC) and Federal National Mortgage Association (FNMA),which are government-sponsored agencies may purchase these mortgagesfrom the originating depository institutions (banks or thrifts) thereby removing them from thebalance sheets of the originators. MBS can also be originated by mortgage companies, a newerform of institution which specializes it mortgage origination for off-balance-sheet , the originating institution continues as "servicer" of the underlying loans. Some 55-60percent of total Unite States residential mortgages are now securitized.
Three institutions are responsible formost mortgage-backed securitization: 对大多数抵押支持证券化负有责任的有三家机构：the GovernmentNational Mortgage Association (GNMA), which is a Federal agency; 政府国民抵押协会(GNMA)，这是一家联邦机构；and the Federal HomeLoan Mortgage Corporation (FHLMC) and Federal National Mortgage Association (FNMA),联邦住宅贷款抵押公司和联邦全国抵押协会which are government-sponsored enterprises. 这是由政府赞助的企业。
The agencies may purchase these mortgagesfrom the originating depository institutions (banks or thrifts) thereby removing them from thebalance sheets of the originators.这些机构可以从作为发起人的存款机构(银行或“非银行存款机构”)手中购买抵押贷款，因而使这些抵押贷款从发起人的资产负债内脱离。
MBS can also be originated by mortgage companies,抵押支持证券也能由抵押公司发起，a newerform of institution抵押公司是一种较新的机构形式，which specializes it mortgage origination for off-balance-sheet operations.它专门从事表外业务的抵押贷款发起。Usually, the originating institution continues as "servicer" of the underlying loans. 通常，发起机构继续充当上述贷款的“服务人”。Some 55-60percent of total Unite States residential mortgages are now securitized.美国住宅抵押贷款的大约55 ％～60 ％目前已经证券化。
The simplest MBS is a "pass-through" security, which merely receives the fund paid to theservicer and transfers (of passes through) payments to investors. Because payments on thesesecurities reflect the cash flows from mortgages, the flows are significantly different from thoseon Treasuries--although the credit risk is considered similar Principal as well as interestpayments will be repaid over the life of the loan, wit principal repayments normally acceleratingover time. Moreover, since mortgages usually allow borrowers to prepay, there is considerablerisk of prepayment.
The simplest MBS is a "pass-through" security, 最简单的一种抵押支持证券是“转递”证券，which merely receives the fund paid to theservicer and transfers (of passes through) payments to investors.它仅仅接受付给服务人的资金并将这些偿付的现金转交(或转递)给投资者。
Because payments on thesesecurities reflect the cash flows from mortgages, 尽管对这些证券的偿付反映了来自抵押贷款的现金流量，the flows are significantly different from thoseon Treasuries这些现金流量却与来自国库券的现金流量有很大不同--although the credit risk is considered similar Principal as well as interest，考虑本金和利息偿还的信用风险是相似的，payments will be repaid over the life of the loan,——但对投资者的支付时间长于贷款本身的期限，wit principal repayments normally acceleratingover time.同时对本金的支付通常随着时间的推移而加速。
Repay: 偿还
Over:超过，多余
Moreover, since mortgages usually allow borrowers to prepay, there is considerablerisk of prepayment.此外，由于抵押贷款通常允许借款人提前偿还，因此存在相当大的提前偿付风险。
Mortgage Obligation
Much of the innovation in the MBS market has involved efforts to manage and the priceprepayment risk. A major innovation in mortgage-backed financing was the development ofCollateralised Mortgage Obligations (CMOs), first introduced in 1983, which gave investors animproved capacity to deal with the prepayment risk of pass-throughs, the CMOs market,pass-throughs are used as collateral to support "multi-class securities in which investors aregrouped into a number of classes which receive payment in predetermined order.
Collateralized Mortgage Obligations (CMOs)：担保抵押债务(CMOs)
Much of the innovation in the MBS market has involved efforts to manage and the priceprepayment risk. 抵押支持证券市场的大部分创新均涉及到管理和量化提前偿付风险的努力。
prepayment risk：提前偿付风险指债务人提前偿付债务或每月偿付额超过合同约定的偿付额，使证券的现金流量不确定，投资人预期的收益与实际收益不一致(减少)的风险
A major innovation in mortgage-backed financing was the development ofCollateralized Mortgage Obligations (CMOs),抵押支持融资的一个主要创新是担保抵押债务(CMOs)的开发， first introduced in 1983, 担保抵押债务首先出现于1983年，which gave investors animproved capacity to deal with the prepayment risk of pass-throughs, 它提高了投资者对转递证券的提前偿付风险的控制能力，the CMOs market,pass-throughs are used as collateral to support "multi-class securities in which investors aregrouped into a number of classes在CMOs市场上，转递证券被用作担保品支持“多级证券”，在多级证券的安排下，投资者被分成许多不同的等级，which receive payment in predetermined order.并按预定的次序接受证券的支付。
In the earlydays of the CMOs market, it was common to group the cash flows into different (A,B,C and Z)"sequential pay" tranches. All payments of principal (including prepayments) are initiallydirected to the A tranche and successively to the B and C tranches. The Z tranche receives nopayment until all earlier tranches are fully repaid.
这段话中的一个关键词汇 tranche, 意思是档次。IMF对普通贷款采取分档政策（Tranche Policies）
In the earlydays of the CMOs market, it was common to group the cash flows into different (A,B,C and Z)"sequential pay" tranches.早期的CMOs市场上，通常将现金流量分成不同的(A，B，c和z)“连续支付”档。All payments of principal (including prepayments) are initiallydirected to the A tranche and successively to the B and C tranches.所有本金(包括提前偿付)的偿还最先直接支付给A档，然后按顺序依次是B档和C档。The Z tranche receives nopayment until all earlier tranches are fully repaid.只有当其前面的所有优先档得到全部偿还后，Z档才开始得到偿还。
The CMOs structure enabled the investment community to restructure cash flows inintricate ways so as to match the maturity, liquidity and risk preferences of investors. The Atranche would often have an expected average life of one to three years while the Z tranchewould have an expected average life of fifteen to twenty years. Given the highly diversifiedgroup of investors in the , the varying repayment profiles allow a variety ofinvestors to choose a maturity position among the tranches.
The CMOs structure enabled the investment community to restructure cash flows inintricate ways so as to match the maturity, liquidity and risk preferences of investors. CMOs结构能使投资集团以复杂的方式重组现金流量的结构，目的是匹配投资者不同的期限、流动性和风险偏好。
The Atranche would often have an expected average life of one to three years while the Z tranchewould have an expected average life of fifteen to twenty years. A档预期的平均期限一般是1～3年，而z档为15~20年。
Given the highly diversifiedgroup of investors in the United States, the varying repayment profiles allow a variety ofinvestors to choose a maturity position among the tranches.对于高度分散化的美国投资者群体，不同的偿还选择方式允许各种投资者在各档之间选择自己满意的期限头寸。
Given：考虑到..
Allow sb to do sth: 允许某人做某事
maturity position：期限头寸。
Other transformations of cash flowscan be made, such as converting monthly receipts into quarterly payments, or creatinginterest-only or principal-only tranches. Many CMOs contain fixed as well as floating great majority of pass-throughs are now transformed using the CMOs mechanism. It wasmentioned that CMOs originally contained four tranches, but in the late 1980s the number andcomplexity oftranches increased sharply. By 1993, some CMOs were issued with more than 100tranches.
Other transformations of cash flowscan be made, such as converting monthly receipts into quarterly payments, or creatinginterest-only or principal-only tranches.也存在其他的现金流量转化形式，如将每月的接受改为每季支付，或创造只付利息(I／O)或只付本金(P／O)档。
Many CMOs contain fixed as well as floating tranches.许多CMOs既包含固定的档次，也有可浮动的档次。The great majority of pass-throughs are now transformed using the CMOs mechanism.转递证券的绝大多数目前已转而采用CMOs机制。It wasmentioned that CMOs originally contained four tranches, but in the late 1980s the number andcomplexity oftranches increased sharply. 应说明的是，CMOs最初仅包含四个档次，但在80年代后期和90年代初，档次的数量和复杂程度都急剧增加。By 1993, some CMOs were issued with more than 100tranches.到1993年，一些CMOs的发行超过了100档。
The turbulence in bond markets in the course of 1994 affected the MBS market in severalways. As interest rates began to rise in late 1993 and continued rising but at an unexpectedlyrapid pace in 1994, a decline in the rate of mortgage refinancing ensued, thus reducing theamount of total MBS origination. Moreover, unlike most debt securities which have fixedduration, the duration of most MBS is a function of the interest rate; it tends to increase asinterest rates rise. The lengthening duration of outstanding MBS has lengthened the duration ofall portfolios containing MBS.
The turbulence in bond markets in the course of 1994 affected the MBS market in severalways. 1994年间的债券市场的动荡以几种不同的方式影响了抵押支持证券市场。As interest rates began to rise in late 1993 由于1993年后期利率开始上升and continued rising but at an unexpectedlyrapid pace in 1994, 而且在1994年又继续以未预料到的速度迅速攀升，a decline in the rate of mortgage refinancing ensued, thus reducing theamount of total MBS origination.继而导致了抵押再融资比率的下降，并因此减少了抵押支持证券的发起总额。
Ensue：to happen after or as a result of something继而。
Moreover, unlike most debt securities which have fixedduration, the duration of most MBS is a function of the interest rate;此外，不像大多数具有固定期限的债务证券那样，抵押支持证券的期限是利率的函数；
Function：函数
it tends to increase asinterest rates rise.利率上升时，其期限增加。The lengthening duration of outstanding MBS has lengthened the duration ofall portfolios containing MBS.未清偿抵押支持证券的延长期限使得所有包含抵押支持证券的投资组合的期限的延长。
outstanding MBS 未清偿抵押支持证券
all portfolios containing MBS：包含抵押支持证券的投资组合
9
This has obliged investors to take offsetting action (either sales ofother bonds or activities in the derivatives market) to achieve their desired portfolio activity was particularly intense in 1994, since investors' desired duration shortened asinterest rates rose unexpectedly rapidly and as interest rate volatility increased. As a result ofthese developments, demand for complex tranches of CMOs has declined considerably, andmany "exotic" tranches have become illiquid. Thus, in 1994 new CMOs offerings tended towardfewer tranches and simpler structures.
This has obliged investors to take offsetting action (either sales ofother bonds or activities in the derivatives market) to achieve their desired portfolio duration.这从而迫使投资者采取对冲行为(或者卖掉其他债券或者在衍生市场采取行动)以达到他们满意的投资组合期限。Such activity was particularly intense in 1994,这类行动在1994年特别强烈， since investors' desired duration shortened asinterest rates rose unexpectedly rapidly and as interest rate volatility increased.因为由于利率超出预期的迅速上升以及利率的波动加剧导致了投资者满意期限的缩短。
As a result ofthese developments, demand for complex tranches of CMOs has declined considerably, andmany "exotic" tranches have become illiquid.作为上述发展的结果，对具有复杂档次的CMOs的需求急剧下降，而且许多“奇异”的档次不再有存在的必要。
Illiquid: 流动性差的，illiquid assets不能迅速转换成为现金（或接近市场价值）的资产或证券.
Thus, in 1994 new CMOs offerings tended towardfewer tranches and simpler structures.因此在1994年新发行的CMOs倾向于较少的档次分类和较为简单的结构。
So far, the discussion has only covered MBS with government guarantees or at least withstrong government support, and hence the question of credit risk was not considered , however, a large number ofprivate label CMOs" (. those without the support of aFederal agency) were issued. Originators of private label CMOs include banks, thrifts and , the question of credit risk became serious.
So far, the discussion has only covered MBS with government guarantees or at least withstrong government support, and hence the question of credit risk was not considered important.到目前为止，我们仅讨论了有政府担保或至少有政府强有力地支持的抵押支持证券，因而信用风险问题并不重要。
Eventually, however, a large number ofprivate label CMOs" (. those without the support of aFederal agency) were issued.然而实际上有大量的“私人标志的CMOs” (即没有联邦机构支持的)发行。Originators of private label CMOs include banks, thrifts and homebuilders.私人标志的CMOs的发起人包括银行、非银行存款机构和家庭住宅建筑商。Consequently, the question of credit risk became serious. 因而信用风险问题就显得非常重要。
Since the investor in amortgage-backed security has no recourse to the originator, it is important to be sure that: i) thereceivables are sufficient to generate the payments stipulated in the security; ii) some safeguardsare provided in case of shortfalls in revenue; and iii) the investor has a sufficiently clear legalclaim on income from the receivables and has adequate protection in case of delinquency. Inorder to assess and reduce credit risk, two major techniques were developed that have now cometo characterized not only the US market, but the entire international market in MBS and ABS,namely a) the use ofcredit enhancements" and b) a greatly enlarged role for the rating agencies.
Since the investor in amortgage-backed security has no recourse to the originator, it is important to be sure that:
由于抵押支持证券的投资者对发起人没有追索权，确保以下几点就很重要：i) thereceivables are sufficient to generate the payments stipulated in the security;应收款必须能产生足够的现金流量以满足抵押支持证券所要求的支付：
Receivable: 应收款
notes receivable应收票据
accounts receivable应收帐款
other recrivable: 其他应收款
有时企业出售带追索权的应收账款（sale of receivables with recourse）
Stipulate：if an agreement, law, or rule stipulates something, it must be done合同或法律规定的，必须做的。the payments stipulated in the security（意思是）抵押支持证券所要求的支付
ii) some safeguardsare provided in case of shortfalls in revenue;必须提供一些保护措施万一收入不足的话
shortfall: the difference between the amount you have and the amount you need or expect 实际拥有的和预期的数量的差异
shortfall in
shortfall in the budget预算方面的不足
shortfalls in revenue收入方面的不足
shortfall of
an estimated shortfall of about £1 million预计100万英镑的不足
and iii) the investor has a sufficiently clear legalclaim on income from the receivables and has adequate protection in case of delinquency.必须明确投资者对应收款所带来的收入有足够清楚的法律所有权，并对违约有足够的保护。
Claim：所有权 have a claim on sth: 对某事具有所有权
legalclaim：法律所有权
Delinquency illegal or immoral behaviour or actions, especially by young people. 非法行为，尤指年轻人，Juvinial delinquency: 青少年犯罪。
（在经济术语中指：A term describing the failure to meet required obligations according to schedule拖欠债务即未能按偿付时间表还本付息
Inorder to assess and reduce credit risk, two major techniques were developed that have now cometo characterized not only the US market, but the entire international market in MBS and ABS, .为评估和减少信用风险，开发了两个主要的技术，这两个技术目前不仅已成为美国市场而且成为了整个抵押支持证券和资产支持证券国际市场的特征，namely它们是：a) the use of"credit enhancements"“信用增强“的引入；and b) a greatly enlarged role for the rating agencies.评级机构的作用的巨大扩展。
Credit Enhancement
Concerning the innovation of credit enhancements, the investor seeks not only assurance ofrepayment by examining risks inherent in the underlying cash flows, but also additional enhancements can take several forms:
信用增强Credit enhancements
Concerning the innovation of credit enhancements, the investor seeks not only assurance ofrepayment by examining risks inherent in the underlying cash flows, but also additional support.投资者在考虑信用增强的创新时，不仅确保证券的偿付，通过检测上述现金流量固有的风险，而且还增加了对证券偿付的支持。Credit enhancements can take several forms:信用增强可能采取如下一些形式：
i) Third party enhancement--An external party, often an insurance company or a bank, provides a guarantee. A number of specialized companies called "monoline insurers" have emerged; their sole function is to offer credit enhancements for fees. The guarantee canbe for 100 per cent of payments (called "wraparound") or for some lesser amount.
Third party enhancement--An external party, often an insurance company or a bank, provides a guarantee.第三方增强——由证券化结构外的一方，通常是保险公司或一家银行，提供担保。A number of specialized companies called "monoline insurers"have emerged;目前出现了许多称为“单线保险人”的专业化的保险公司
monoline insurers单线保险人，单一险种保险人
their sole function is to offer credit enhancements for fees.它们的唯一职能就是提供信用增强并为此收取费用。Theguarantee canbe for 100 per cent of payments (called "wraparound") or for some lesser amount.它可以保证100 ％的支付(称为“全部包括”)或部分支付。
ii) Subordination--An alternative means of obtaining credit enhancement is to create a "senior/subordinated" structure, meaning that some creditors agree to grant priority to other (. senior) creditors in case of difficulties in payment in exchange for different rates of return. One possible structure is for the "originator" to retain a subordinated tranche, but such structures create legal and regulatory questions as to whether a "true sale" of the asset has occurred, and assets securitized in this way may not qualify for off-balance-sheet treatment.
Subordination--An alternative means of obtaining credit enhancement is to create a "senior/subordinated" structure, 次级担保——获得信用增强的另一种方式是创造一种“优先／次级”结构，meaning that some creditors agree to grant priority to other creditors in case of difficulties in payment in exchange for different rates of return. 它意味着一些债权人同意给予其他债权人优先权，当支付出现困难时，来换取相对应的是各级回报率的差异。
One possible structure is for the "originator" to retain a subordinated tranche, 一个可能的结构是由“发起人”保留一个次级分档， but such structures create legal questions as to whether a "true sale" of the asset has occurred, 但这种结构会引发法律上的问题，如：关于是否发生了证券化资产的“真实的出售”，and assets securitized in this way may not qualify for off-balance-sheet treatment.以这种方式证券化的资产可能达不到表外业务要求的标准。
In the , depository institutions donot normally retain subordinated tranches of receivables they originate. Subordinatedtranches will often be assigned lower credit ratings than senior tranches. In somecases, subordinated tranches of securities can be privately placed while the seniortranches are publicly offered.
In the , depository institutions do not normally retain subordinated tranches of receivables they originate. 在美国，存款机构通常不保留他们发起的应收款的次级分档。 Subordinated tranches will often be assigned lower credit ratings than senior tranches. 次级分档经常得到比优先级分档较低的信用级别。 In some cases, subordinated tranches of securities can be privately placed while the senior tranches are publicly offered.有时这些证券的次级分档由私人出售而优先级分档则公开发售。
iii) Overcollateralisation--The assets put into the pool can be of greater value than it needed to support the contractual payments, so that the investor is protected in the event of a shortfall in expected payments. The excess collateral is usually held in a subordinated tranche or a special account.
Overcollateralisation--The assets put into the pool can be of greater value than it needed to support the contractual payments, 超额担保——计入担保集合的资产的价值远大于支持合同支付所需要的数量，so that the investor is protected in the event of a shortfall in expected payments.以便当预期的支付出现短缺时投资者能受到保护。The excess collateral is usually held in a subordinated tranche or a special account.超额担保品通常由次级分档或一个专门账户持有保留。
iv)Cash collateral accounts--A cash deposit can be held in a special account which will allow for payments in case of shortfall of cash from the receivables. A slight variation is the "spread account", which represents the difference between the margin received by the originator and that of the investor: the originator will receive payment from the spread account only if other creditors are paid in full. Usually either cash collateral or spread accounts can be used in conjunction with a senior/subordinated structure.
Cash collateral accounts--A cash deposit can be held in a special account which will allow for payments in case of shortfall of cash from the receivables.现金担保账户——保留在一个专门账户中的一项现金存款，一旦应收款产生现金不足，它就用来支付投资者。A slight variation is the "spread account", which represents the difference between the margin received by the originator and that of the investor:一个稍微的变形是“差额账户”，它表示发起人与投资者收到的利差：
the originator will receive payment from the spread account only if other creditors are paid in full.只有当其他所有的贷款人得到其全部的支付后发起人才能从差额账户中得到支付。Usually either cash collateral orspread accounts can be used in conjunction with a senior/subordinated structure.通常现金担保或差额账户能与优先／次级结构结合使用。
Credit Rating Agencies
A central role has devolved to the credit rating agencies. Prior to issue, each security isexamined by one or more rating agencies. The agencies only provide ratings of credit risk, sothat the investor must devise other methods of assessing other risks, such as interest rate,exchange rate, volatility or prepayment risk. Since "structured financings" cannot be assessed onthe strength of the originating institution's credit ratings, each security's ratings must be made onthe basis of the risk in the cash flows, the collateral, and the enhancements. Moreover, sincemany of these financings are done in several tranches with varying degrees of seniority, differenttranches of the same facility will often be assigned different credit ratings.
Credit rating agencies信用评级机构
A central role has devolved to the credit rating agencies.证券化业务中，信用评级机构被赋予了中心作用。
Devolve: if you devolve responsibility, power etc to a person or group at a lower level, or if it devolves on them, it is given to them. 权利下放，赋予下一级某种权利。
* Devolve to…不用于被动语态。
Prior to issue, each security isexamined by one or more rating agencies.在发行之前，每种证券必须经一家或多家信用评级机构检查。The agencies only provide ratings of credit risk,评级机构仅提供信用风险的评级sothat the investor must devise other methods of assessing other risks, 因此投资者不得不运用其他方法去评估其他风险，such as interest rate,exchange rate, volatility or prepayment risk.如利率、汇率、市场波动或提前偿付风险。 Since "structured financings" cannot be assessed onthe strength of the originating institution's credit ratings, 由于“结构化融资”的信用级别不能根据发起机构的信用级别的高低来评估，each security's ratings must be made onthe basis of the risk in the cash flows, the collateral, and the enhancements.，每种证券的级别必须在对现金流量、担保品和信用增强的风险评估基础上评定。
Moreover, sincemany of these financings are done in several tranches with varying degrees of seniority,此外，由于许多融资方式以具有不同优先权的多级分档的形式进行，differenttranches of the same facility will often be assigned different credit ratings.因此同一证券的不同分档也要评定不同的信用级别。
The rating agency will examine the historical performance of the receivables and willsubject them to various "stress tests". Thus, the historical rates of delinquency on mortgages willbe analyzed and simulations will be made to identify the most unfavorable period for whichrecords exist, for example rates of mortgage delinquency in the Depression of the 1930s or thesharpest declines in property prices recorded in the twentieth century. On this basis, the agencywill indicate the amount of credit enhancement that is needed to achieve a desired rating.
The rating agency will examine the historical performance of the receivables and willsubject them to various "stress tests".评级机构将检查应收款的历史表现并把它们进行各种“压力测试”
stress tests：Simulative techniques used on asset and liability portfolios to determine their reactions to different financial stresses应用在资产负债组合的模拟技巧，衡量资产负债对不同财务压力的反应
Thus, the historical rates of delinquency on mortgages willbe analyzed and simulations will be made to identify the most unfavorable period for whichrecords exist,因此抵押贷款历史上的违约比率需要分析并进行模仿以测定有历史记录存在的最不利的时期的情况，
for example rates of mortgage delinquency in the Depression of the 1930s or thesharpest declines in property prices recorded in the twentieth century.比如20世纪30年代的大萧条时期的抵押违约比率或20世纪所记录的财产价格的剧烈下降。
Property: property 财产；物业；产权.
income from transfer of property 财产转让所得
property market 物业市场；地产市场
Intellectual Property：知识产权
On this basis, the agencywill indicate the amount of credit enhancement that is needed to achieve a desired rating.在此基础上，评级机构标明达到规定的信用评级所需的信用增强的额度。
a desired rating：规定的信用评级
Negotiations can take place between the investment bankers and rating agencies concerninghypothetical structures and rating. For instance, it could be decided that based upon historicalexperience, the receivables are 95 per cent sufficient to cover contractual payments, and anexternal enhancement of 5 per cent will be needed to obtain a desired rating. Alternatively, itcould be decided that a structure of 90 per cent senior debt and 10 per cent subordinated debt isrequired for the senior tranche to obtain a AAA rating.
Negotiations can take place between the investment bankers and rating agencies concerninghypothetical structures and rating.投资银行家与评级机构将对有关假设的结构与评级进行讨论。For instance, it could be decided that based upon historicalexperience,比如，根据历史表现可以决定： the receivables are 95 percent sufficient to cover contractual payments,应收款仅足以满足合同支付要求的95％， and anexternal enhancement of 5 per cent will be needed to obtain a desired rating.需要5％的外部信用增强以达到规定的信用评级。
external enhancement：外部信用增强
Alternatively, itcould be decided that a structure of 90 per cent senior debt and 10 per cent subordinated debt isrequired for the senior tranche to obtain a AAA rating.或者可以决定：为使优先档获得AAA级，需设计90％的优先债务和10％的次级债务的结构。
senior debt：优先债务
subordinated debt：次级债务
senior tranche：优先档
The rating agency will usually perform further analysis. If any transformation of paymentsis involved, it will also need to determine whether internal mechanisms are adequate---forexample, if a transformation from monthly to quarterly payments or prepayment risk issufficiently covered by swaps and/or cash accounts, The agency will also examine whether theservicer has information systems in place to track payments accurately and to identify and reportdelinquencies in and acceptable manner, as well as to deal with delinquent payments. Methodsfor dealing with possible delinquency must be examined in advance.
The rating agency will usually perform further analysis. 评级机构通常要作更深入地分析。If any transformation of paymentsis involved, 如果存在任何支付形式的转换，it will also need to determine whether internal mechanisms are adequate就需要决定内部机制是否足够---forexample, if a transformation from monthly to quarterly payments如将每月支付改为每季支付，or prepayment risk issufficiently covered by swaps and/or cash accounts,——或者提前偿付风险是否足以被互换或现金账户的信用增强措施涵盖(或抵消)。
Be covered by : 被涵盖或抵消
The agency will also examine whether theservicer has information systems in place to track payments accurately and to identify and reportdelinquencies in an acceptable manner, as well as to deal with delinquent payments.评级机构还要检查服务人是否有足够的信息体制确保有能力（处理下列情况）：精确地跟踪支付情况；以可接受的方式识别和报告违约情况；处理违约支付。Methodsfor dealing with possible delinquency must be examined in advance.处理可能的违约的方法必须提前得到验证。
The rating agency also examines external enhancements and usually applies the "weak link"principle, meaning that the rating of a security can be no higher than the rating of an extemalprovider of enhancements. Thus, if a security depends upon an enhancement from an institutionrated AA, the security can be rated no better than AA. As a result, a number of securities have been downgraded when an external provider of enhancements has been downgraded. The downgrading of other guarantors (particularly banks and insurance companies) has tended to strengthen the relative position of the "monoline insurers", who are all rated AAA, as well as other forms of enhancement.
The rating agency also examines external enhancements and usually applies the "weak link"principle, 评级机构还要检查外部信用增强并通常应用“薄弱环节”原则，meaning that the rating of a security can be no higher than the rating of an externalprovider of enhancements.即证券的评级不能高于外部信用增强的提供者的信用级别。
“weak link”，principle薄弱环节原则，指信用评级时，证券的评级不能高于外部信用增强的提供者的信用级别。
Thus, if a security depends upon an enhancement from an institutionrated AA, the security can be rated no better than AA.因此,如果一种证券依赖于AA级的机构的信用增强，证券的评级就不能高于AA级。As a result, a number of securities have been downgraded when an external provider of enhancements has been downgraded.结果是，许多证券被降低了级别,由于外部信用增强提供者的级别降低了。
The downgrading of other guarantors (particularly banks and insurance companies) has tended to strengthen the relative position of the "monoline insurers", who are all rated AAA, as well as other forms of enhancement.其他担保人(通常是银行和保险公司)的级别降低导致了“单线保险人”和其他形式的信用增强措施的地位的相对提高，“单线保险人”的级别均为AAA级。
In addition to examining the adequacy of cash flows and credit enhancements, the agencies seek to assure that the legal structure of the security affords adequate protection to investors. For example, in case of delinquency on receivables, the position of the investor with regard to other creditors must be clear and sufficiently strong to assure contractual payments. Due to their strong repayment histories and credit enhancements, the senior tranches of nearly all CMOs are rated either AAA or AA.
In addition to examining the adequacy of cash flows and credit enhancements, the agencies seek to assure that the legal structure of the security affords adequate protection to investors.除了检查现金流量和信用增强是否足够之外，评级机构还设法确保证券的法律结构对投资者提供足够的保护。（评级机构的作用）
For example, in case of delinquency on receivables, the position of the investor with regard to other creditors must be clear and sufficiently strong to assure contractual payments.比如，一旦应收款出现违约，必须明确投资者的地位，与其他贷款人相比，必须具有足够的优先权以确保合同的支付。Due to their strong repayment histories and credit enhancements, the senior tranches of nearly all CMOs are rated either AAA or AA.由于优先档的较好的历史表现以及强有力的信用增强措施，几乎所有CMOs的优先档都是AAA级或AA级。
Asset Backed Securities
In view of the success of the MBS market, market participants began experimenting with the securitization of other assets. Assets that are easiest to securities are those that occur in large pools for which past experience can be used to predict default rates and in which documentation is standardized, with the possibility of transfer claims. The most widely used collateral for ABS are credit card receivables, automobile loans, commercial mortgages (single property and "pools"), leases and home equity loans. In mid-1994 the outstanding volume ofpublicly traded ABS in the was estimated at some $200 billion.
资产支持证券Asset-backed securities
In view of the success of the MBS market, market participants began experimenting with the securitization of other assets.由于抵押支持证券市场的成功发展，市场参与者们开始尝试将证券化应用到其他资产。
Assets that are easiest to securities are those that occur in large pools for which past experience can be used to predict default rates and in which documentation is standardized, with the possibility of transfer claims.最容易进行证券化的资产是那些在大量的资产集群中，条件是：能够根据其历史表现来预测违约比率的资产；及有关合同文件是标准化的，存在转让权的资产。
The most widely used collateral for ABS are credit card receivables, automobile loans, commercial mortgages (single property and "pools"), leases and home equity loans.用作资产支持证券担保品的最广泛的资产是信用卡应收款、汽车贷款、商业抵押贷款(单一贷款和贷款组合)、租赁和家庭股权贷款
credit card receivables信用卡应收款
automobile loans,汽车贷款
commercial mortgages商业抵押贷款
Leases租赁
home equity loans家庭股权贷款
In 1994 the outstanding volume ofpublicly traded ABS in the United States was estimated at some $200 billion.在1994年美国公共交易的资产支持证券的发行在外的余额估计达2 000亿美元。
Outstanding发行在外
发行在外股本Outstanding capital stock
发行在外的普通股outstanding common stock
In most of the operations described thus far, the originator is a bank or other depositoryinstitution. By lowering the stock of assets while leaving capital unchanged, the capital/assetratio of the originating institution is strengthened. Reducing assets can also be an efficient wayto bring capital/assets ratios within regulatory norms. At the same time, the originator cancontinue to obtain earnings from the collateral by acting as a servicer.
In most of the operations described thus far, the originator is a bank or other depositoryinstitution.到目前为止，我们所讨论的证券化业务的发起人是银行或其他存款机构。
By lowering the stock of assets while leaving capital unchanged, the capital/assetratio of the originating institution is strengthened.通过降低资产存量而保持资本不变，发起机构能提高自己的资本／资产比率。Reducing assets can also be an efficient wayto bring capital/assets ratios within regulatory norms.减少资产存量也是有效的途径来达到监管规范要求的一种资本／资产比率。
At the same time, the originator cancontinue to obtain earnings from the collateral by acting as a servicer.同时，发起人能继续充当服务人并从担保品中获得服务费收入。
Moreover, theoriginating bank still can earn significant revenue on the interest margin from an asset that hasbeen sold. Thus, earnings on collateral such as credit card receivables may exceed costs offunding by a wide margin. Even if part of this margin is passed on to investors, the remainderis earned by the originator. Thus, many banks have often found that they can increase theirearnings on any given level of capital by securitising assets.
Thus, earnings on collateral such as credit card receivables may exceed costs offunding by a wide margin.因此由像信用卡应收款这样的担保品所获得的收入可能超过融资的成本，使发起人获得巨大的利润。
Moreover, theoriginating bank still can earn significant revenue on the interest margin from an asset that hasbeen sold. 此外，发起银行还能从所出售的资产上获得可观的利差收益。
margin利润
interest margin利差
Even if part of this margin is passed on to investors, the remainderis earned by the originator.即使这部分利润的一部分转移到了投资者手中，剩余的仍由发起人获得。
passed on to：转移
Thus, many banks have often found that they can increase theirearnings on any given level of capital by securitizing assets.因此，许多银行经常发现，通过证券化资产，他们能够在任何既定的资本水平上提高收入。
The examples cited thus far have involved depository institutions selling receivables tocreate an ABS. However, it is possible to create ABS originated by other kinds of non-bank financial companies (. finance or leasing companies) can sell receivablesdirectly to SPVs, as can banks. Non-financial companies can also utilize this technique. Forexample, retailers are a group of institutions with a kind of collateral that is rather easy to use increating ABS. Similarly, trade receivables or lease receivables can be used to back the receivables in question do not appear on a bank balance sheet, banks are oftensponsors of these facilities and often participate by offering credit enhancements and/or liquidityfacilities which allow them to earn fees without any capital charge. While the need toeconomize on capital is normally less of a motivation for non-bank originators than for banks, anABS issue may be a cheaper means of raising funds than straight corporate debt. In particular,companies with relatively low ratings can use high-quality receivables to issue relativelywell-rated securities.
The examples cited thus far have involved depository institutions selling receivables tocreate an ABS.目前所举的例子中所涉及是存款机构，他们通过出售应收款以创造资产支持证券。However, it is possible to create ABS originated by other kinds of institutions.然而由其他类型的机构发起资产支持证券也是可能的。Thus non-bank financial companies (. finance or leasing companies) can sell receivablesdirectly to SPVs, as can banks.因而，非银行金融公司(如财务或租赁公司)也能像银行那样把应收款直接出售给特定用途公司。
SPVs：Special Purpose Vehicle 特定用途公司
Non-financial companies can also utilize this technique. 非金融公司也可以应用此技术。Forexample, retailers are a group of institutions with a kind of collateral that is rather easy to use increating ABS. 比如，零售商们就是一组这样的机构，他们拥有一类担保品, 这种担保品能被相当容易的利用来创造资产支持证券。
Similarly, trade receivables or lease receivables can be used to back securities.类似的贸易应收款或租赁应收款也能用来支持证券的发行。Although the receivables in question do not appear on a bank balance sheet, banks are oftensponsors of these facilities and often participate by offering credit enhancements and/or liquidityfacilities尽管上述应收款不出现在银行的资产负债表上，银行也经常对这些证券提供赞助或参与提供信用增强和／或流动性增强措施，which allow them to earn fees without any capital charge.这样他们无须任何资本要求就可以获得费用收入。
Receivables in question: means the receivables that are being discussed now. 在这里指刚才谈到的应收款既是：trade receivables or lease receivables贸易应收款或租赁应收款也；不要理解为有问题的应收款。如：The goods in question had been stolen. 所谈论的货物已经被偷走了。
While the need toeconomize on capital is normally less of a motivation for non-bank originators than for banks,尽管对非银行发起者来说，经济有效地利用资本的动机通常不如银行强烈，anABS issue may be a cheaper means of raising funds than straight corporate debt.但借助资产支持证券的发行来融资可能比公司直接举债的成本更低。
：
economize：削减，减少，economize on +sth
eg: We cannot economize on capital for education, instead, we should increase it.
In particular,companies with relatively low ratings can use high-quality receivables to issue relativelywell-rated securities.特别是，信用级别相对较低的公司可以利用高质量的应收款发行相对较高级别的证券。
One of the major innovations of the past few years has been the development ofasset-backed commercial paper. Indeed, this product accounts for all net growth in thecommercial paper (CP) market of the since 1986. Under an asset-backed CPprogramme, receivables from some commercial activity (for example credit card receivables)stand as support to a CP facility, under which borrowers can have direct access to investors forshort-term funding, usually for no more than 270 days and with average lives of less than 90days. They are placed in a facility which may contain receivables from more than one originatoror from a single originator. Normally, new receivables enter the facility and other receivablesmature continually.
One of the major innovations of the past few years has been the development ofasset-backed commercial paper.过去的几年中主要的创新之一就是资产支持商业票据(ABCP)的发展。Indeed, this product accounts for all net growth in thecommercial paper (CP) market of the United States since 1986.实际上自1986年以来美国商业票据市场的所有净增长都因为此产品。
accounts for: 是…的原因。
Under an asset-backed CPprogramme, receivables from some commercial activity (for example credit card receivables)stand as a support to a CP facility, 在一项资产支持商业票据安排下，来自某些商业活动的应收款(如信用卡应收款)用作商业票据安排的支持，under which borrowers can have direct access to investors forshort-term funding, 借款人能直接向投资者进行短期融资，usually for no more than 270 days and with average lives of less than 90days.通常不超过270天，平均期限少于90天。
They are placed in a facility which may contain receivables from more than one originatoror from a single originator.在这样的便利安排下，应收款可能来自不止一个发起人或单一发起人。Normally, new receivables enter the facility and other receivablesmature continually.通常是，新的应收款不断加入此安排而其他应收款继续各自的正常期限安排。(一个个到期)
Although the issue of ABS (including asset-backed CP) that is originated by nonfinancialinstitutions can be seen as an instance of the banks' declining role in financial intermediation anda rise in the role of the capital market, it is also a development in which the banks have taken aleading role. In fact, banks were among the most aggressive institutions in developing themarket in ABS using credit card receivables as collateral. Similarly, banks have been importantin promoting asset-backed CP. More than half of all asset-backed CP programmes and about 80per cent of asset-backed CP outstandings in the are bank-advised. Many bankssee the issue of ABS as an effective means of earning fees while conserving capital.
Although the issue of ABS (including asset-backed CP) that is originated by nonfinancialinstitutions can be seen as an instance of the banks' declining role in financial intermediation anda rise in the role of the capital market, 尽管由非金融机构发起的资产支持证券(包括ABCP，资产支持票据)的发行可以看作是银行的金融中介地位的下降和资本市场地位的上升，it is also a development in which the banks have taken aleading role.但也可看作是银行逐渐占据主导作用的一种表现。
Instance：事件，例子，事例。
In fact, banks were among the most aggressive institutions in developing themarket in ABS using credit card receivables as collateral. 事实上，银行是最积极的机构，在所有利用信用卡应收款作为担保品开发资产支持证券市场的参与者中。
Similarly, banks have been importantin promoting asset-backed CP.同样，在促进ABCP的发展过程中银行也起着重要的作用。More than half of all asset-backed CP programmes and about 80per cent of asset-backed CP outstandings in the United States are bank-advised.美国超过半数的ABCP计划和大约80 ％的ABCP的未清偿余额是银行建议或发起的。
Many bankssee the issue of ABS as an effective means of earning fees while conserving capital许多银行把资产支持证券的发行当作一项有效的增加收入而保持资本不变的手段。
Conserve: to protect something and try to prevent it from changing or being damaged. 保持不变，或保护不受破坏
Banks alsoparticipate in asset-backed CP programmes by offering credit enhancements (usually in the formof letters of credit which may be for all or part of contractual payments) or liquidity many instances, banks advise their corporate customers to use an asset-backed CP programmerather than a bank loan as the most effective means of funding. Thus, the growth of theasset-backed CP market is both 1) an instance of disintermediation (meaning a replacement ofbank lending by the direct recourse of borrowers to the capital market), and 2) a shift in banks to off-balance-sheet activity as a means of increasing earnings, managing risk and utilizing bank more efficiently.
Banks alsoparticipate in asset-backed CP programmes by offering credit enhancements (usually in the formof letters of credit which may be for all or part of contractual payments) or liquidity facilities.银行也参与ABCP计划，通过提供信用增强或流动性便利安排 (通常以信用证的形式担保全部或部分的合同支付数额)。
In many instances, banks advise their corporate customers to use an asset-backed CP programmerather than a bank loan as the most effective means of funding. 在许多事例中，银行都建议他们的公司客户使用ABCP计划，而不是银行贷款，作为最有效的融资方式。
Thus, the growth of theasset-backed CP market is both：ABCP市场的扩张可看作是：1) an instance of disintermediation (meaning a replacement ofbank lending by the direct recourse of borrowers to the capital market)非中介化的证明(指借款人对资本市场拥有直接的追索权从而对银行贷款业务的取代)；2) a shift in banks tooff-balance-sheet activity as a means of increasing earnings, managing risk and utilizing bank more efficiently. 2)银行向表外业务的转变，把表外业务作为增加收入来源、管理风险及以更高的效率利用银行资本的手段。
The capacity of the investment community in the to construct newinstruments appears limitless. The discussion thus far has mainly emphasized the more commonly used forms of collateral, such as residential mortgages, consumer loans, credit card receivables, trade receivables, etc. However, many in the financial services community believe that a large untapped potential exists to create securities based on other forms of collateral. At this time, intermediaries are trying to securitize commercial mortgages and commercial loans. Consideration is also being given to the securitization of small business loans. Despite the problems in securitizing some kinds of assets, many analysts are convinced that ultimately, mostcategories of bank loans can be securitized.
The capacity of the investment community in the United States to construct newinstruments appears limitless.美国投资集团构造新证券的能力似乎是无限的。The discussion thus far has mainly emphasized the more commonly used forms of collateral, such as residential mortgages, consumer loans, credit card receivables, trade receivables, etc.目前所讨论的担保品集中于比较常见的一些类型，如住宅抵押贷款、消费者贷款、信用卡应收款、贸易应收款等。However, many in the financial services community believe that a large untapped potential exists to create securities based on other forms of collateral.然而许多金融服务团体认为还有大量潜在的、未开发的其他形式的担保品可用来创造证券。
Untapped：adj. 未开发的
Tap: v. （能源）开发。We have enormous reserves of oil waiting to be tapped. 我们有巨大的储量的石油等待开发。
At this time, intermediaries are trying to securitize commercial mortgages and commercial loans.现在，中介部门正尝试将商业抵押贷款和商业贷款证券化。Consideration is also being given to the securitization of small business loans. 也有人在考虑小型企业贷款的证券化。
Despite the problems in securitizing some kinds of assets, many analysts are convinced that ultimately, mostcategories of bank loans can be securitized.尽管将一些类型的资产证券化存在诸多问题，但许多分析家确信，最终，大多数类型的银行贷款能够被证券化。
Repacking Operation
Another major category of securitization activity is known as "repackaging"; in this case asecurity is created by purchasing an existing pool of securities or of loans and restructuring themso as to alter the payments and/or credit rating by adding seniority provisions or other some senses, the simplest repackaging operation is the "stripping" ofTreasury securities: an investment bank purchases Treasuries and sells the principal and interestpayments to different investors. The CMOs market also engages in the repackaging of cashflows in government-backed MBS.
Another major category of securitization activity is known as "repackaging";另一主要类型的证券化活动是“重新包装”in this case asecurity is created by purchasing an existing pool of securities or of loans and restructuring themso as to alter the payments and/or credit rating by adding seniority provisions or other creditenhancements.；在此业务中，通过购买现存的证券或贷款组合，然后将它们重新构造，并改变他们的偿还结构或／和信用评级，通过添加优先权规定或其他信用增强。
In some senses, the simplest repackaging operation is the "stripping" ofTreasury securities: an investment bank purchases Treasuries and sells the principal and interestpayments to different investors. 在一定意义上，最简单的重新包装业务是国库券的重新“拆离”：投资银行购买国库券并将本金和利息出售给不同的投资者。
The CMOs market also engages in the repackaging of cashflows in government-backed MBS. CMOs市场也在进行着政府支持的抵押支持证券的现金流量的重新包装。
In addition, the swap market may be used to transformsome of the characteristics of the assets, such as transforming fixed-rate debt into floating-ratedebt or swapping among currencies. (Such operations can be significant in helping investorswho are subject to limits on currency or interest-rate exposure to achieve diversification whileobserving prudential limits.)In addition to transforming cash flows, repackaging can be used tomodify credit risk and to create multiclass securities with different degrees of credit risk assumedby different investors.
In addition, the swap market may be used to transformsome of the characteristics of the assets, such as transforming fixed-rate debt into floating-ratedebt or swapping among currencies.另外，也可以利用互换市场改变某些资产的特征。如将固定利率债务转换为浮动利率债务或在不同货币之间转换。 (Such operations can be significant in helping investorswho are subject to limits on currency or interest-rate exposure to achieve diversification whileobserving prudential limits.) (这类活动能大大帮助那些受制于货币或利率风险的投资者，使他们在遵守谨慎的限制的同时，达到投资的多样化)。
Be subject to: 遭受。Be subject to limits:遭受某种限制。
Observe: 遵守
Prudential：adj=prudent 谨慎的，小心的
Prudence: n. 谨慎
In addition to transforming cash flows, 除了改变现金流量的特征以外，repackaging can be used tomodify credit risk and to create multiclass securities with different degrees of credit risk assumedby different investors.重新包装业务也能被用来调整信用风险并创造多级证券，这些证券具有不同程度的信用风险，以此适用于不同的投资者。
。
Structured finance operations known as collateralized loan obligations and collateralizedbond obligations consist of pools of speculative-grade loans or bonds. The debt of developingcountries is often "repackaged" in this way; thus, investment banks have discovered "excesscollateralization" in "Brady" bonds and resold the resulting cash flows. Cash flows can bedivided into a number of tranches with various degrees of seniority. All of the techniquesdeveloped in the MBS market to transform payments structures and credit risk can be used inrepackaging. For example, securities can be repackaged using currency swaps to meet theneeds of investors seeking assets in a given currency.
Structured finance operations known as collateralized loan obligations and collateralizedbond obligations consist of pools of speculative-grade loans or bonds.被称为担保贷款债务(CLOs)和担保债券债务(CBOs)的结构化融资活动由投机级别的贷款或债券的集合组成。
The debt of developingcountries is often "repackaged" in this way;发展中国家的债务经常以这种方式“重新包装”；thus, investment banks have discovered "excesscollateralization" in "Brady" bonds and resold the resulting cash flows.投资银行已经对“布雷迪”债券开发了“超值担保化”并将所产生的现金流量重新出售。Cash flows can bedivided into a number of tranches with various degrees of seniority.现金流量能被分成具有不同程度优先权的许多档。All of the techniquesdeveloped in the MBS market to transform payments structures and credit risk can be used inrepackaging.所有在抵押支持证券市场开发的用以转换支付结构和信用风险的技术都能应用于重新包装业务。For example, securities can be repackaged using currency swaps to meet theneeds of investors seeking assets in a given currency.比如，证券可以被重新包装，使用货币互换，以满足寻求既定货币资产的投资者的需要。
Securitization of Non-performing Asset
A major extension of the application of securitization has been the activity of the ResolutionTrust Company (RTC) formed in 1989 to deal with the problem of insolvent savings and loaninstitutions ("S&Ls" or "thrifts"). After using a variety of techniques to dispose of failedinstitutions, including sales of entire institutions and of individual securities (ranging fromTreasury paper to "junk bonds"), other assets were sold in "whole loan" form, . withoutconversion to a security or through a programme of "bulk sales" in which investors were offered"pools" of assets (usually real estate), some of which was performing and some non-performing,at estimated market value. The purchaser was often an investment bank or an investor whowanted to acquire managerial control over the asset, or a combination of these. At the sametime, the RTC found that many of the assets sold by either of these methods were eventuallysecuritized by "repackaging" operations undertaken by the purchasers.
Securitization of impaired assets不良资产的证券化
A major extension of the application of securitization has been the activity of the ResolutionTrust Company (RTC) formed in 1989 to deal with the problem of insolvent savingsand loaninstitutions ("S&Ls" or "thrifts").证券化应用的一个主要扩展就是：清算信托公司(RTc)在处理破产的储蓄与贷款机构(“储蓄与贷款协会”或“节俭机构(非银行存款机构)”的问题时的应用。清算信托公司(RTc)成立于1989年。
Insolvent：＝bankrupt 破产的，无偿付能力的
After using a variety of techniques to dispose of failedinstitutions, including sales of entire institutions and of individual securities (ranging fromTreasury paper to "junk bonds"), other assets were sold in "whole loan" form,在使用多种技术，包括出售整个机构和单一证券(从国库券到“垃圾债券”)，处理经营失败的机构后，其他资产是以“整个贷款”的形式出售的，
Dispose：to deal with something successfully. 成功的处理某事。
. withoutconversion to a security or through a programme of "bulk sales" in which investors were offered"pools" of assets (usually real estate), some of which was performing and some non-performing,at estimated market value. “整个贷款”方案是指不转换为一种证券或通过一项“批发销售”方案，(以估计的市场价格提供给投资者一些资产“集群”(通常是不动产)，其中一些能够进行支付的履约而有些不能履约)。
Performing履约
The purchaser was often an investment bank or an investor whowanted to acquire managerial control over the asset, or a combination of these.购买人通常是一家投资银行或有意对要出售的资产获得管理的控制权的投资者，有时则是不同投资者共同购买。
At the sametime, the RTC found that many of the assets sold by either of these methods were eventuallysecuritized by "repackaging" operations undertaken by the purchasers.同时，RTC发现应用上述方法出售的许多资产最终被购买人通过“重新包装”业务证券化。
After April 1992, direct securitization became the RTC's preferred method for disposing ofassets. Some mortgages were eligible for inclusion in GNMA and FNMA pools, but the largestshare of assets were sold under RTC "private label" CMOs for single-family mortgages. Thesesecurities received credit enhancement from subordination and Overcollateraliztion and throughreserve found which the RTC was pledged to maintain, provided losses remained below certainlevels. Consumer receivables were also relatively easy to securitize. A number of somewhatmore difficult claims were eventually securitized in large numbers, including single-familymortgages with high delinquency rates and pools of multi-unit residential securitizations of this kind have been rated AA or AAA.
After April 1992, direct securitization became the RTC's preferred method for disposing ofassets. 1992年4月之后，直接证券化成为RTC在处理资产时优先采取的方法。
Some mortgages were eligible for inclusion in GNMA and FNMA pools, but the largestshare of assets were sold under RTC "private label" CMOs for single-family mortgages.一些抵押贷款符合GNMA和FNMA资产集群的条件，而这些资产的最大份额是以由单一家庭抵押贷款支持的RTC“私人标志”CMOs的形式出售的。
Eligible: be eligible for 合格的，有资格做某事。
Thesesecurities received credit enhancement from subordination and Overcollateralization and throughreserve fund which the RTC was pledged to maintain, provided losses remained below certainlevels.这些证券接受次级担保和超额担保的信用增强，并且，假如损失在一定的标准以下时，由RTC保证维持的储蓄基金提供信用增强。
pledge
Consumer receivables were also relatively easy to securitize.消费者应收款的证券化相对也比较容易。 A number of somewhatmore difficult claims were eventually securitized in large numbers, including single-familymortgages with high delinquency rates and pools of multi-unit residential mortgages.许多稍微有些难度的财产最终也被大量证券化，包括具有高违约率的单一家庭抵押贷款和多单元住宅抵押贷款的集合。
MostRTC securitizations of this kind have been rated AA or 这一类的证券化大多数被评为AA级或AAA级。
Having disposed of easily saleable assets in this manner, it was necessary to turn to assetsthat were progressively harder to sell. In doing so, the RTC encountered problems similar tothose that have hampered the securitization of commercial mortgages, including the large size ofindividual loans, highly specific terms which limit homogeneity and transferability, problems indeveloping statistically credible payment histories, and difficulties in obtaining acceptablediversification. Nevertheless, the RTC was able to securitize pools of commercial mortgages withenhancement. The different tranches of these securities have been rated from AAA (the highestrating) to BBB (the lowest investment grade rating). Some have been done at fixed rates, andothers at floating rates.
Having disposed of easily saleable assets in this manner, it was necessary to turn to assetsthat were progressively harder to sell.在以上述方式解决了易出售的资产的问题后，有必要转向出售比较困难的资产的研究。
progressively比较
In doing so, the RTC encountered problems similar tothose that have hampered the securitization of commercial mortgages, 在解决后一类型的资产问题时，RTC遇到了与阻碍商业抵押贷款的证券化相类似的问题including the large size ofindividual loans, 这些问题包括：单一贷款的较大的规模，highly specific terms which limit homogeneity and transferability,限制同质性和可转让性的高度专业化的条款， problems indeveloping statistically credible payment histories,在统计和分析可靠偿付的历史数据时的困难， and difficulties in obtaining acceptablediversification.达到可接受的多元化投资组合时的困难。
hamper阻碍
homogeneity同质性
transferability可转让性的
Nevertheless, the RTC was able to securitize pools of commercial mortgages withenhancement.虽然如此，RTC还是能够在伴有信用增强措施的情况下将商业抵押贷款证券化。
The different tranches of these securities have been rated from AAA (the highestrating) to BBB (the lowest investment grade rating).这些不同档次的证券被评级为从AAA级(最高级别)到BBB级(最低的投资级)。Some have been done at fixed rates, andothers at floating rates.其中有的级别固定，而有些则不断浮动。
The RTC had to sell still less liquid assets. There was a large amount ofnonperforming or"underperforming" mortgages which required foreclosure and/or renegotiations of terms, as wellas real estate directly owned by the RTC as a result of foreclosures which were consolidated in"structured transactions". The property is sold at an estimated market value (but below bookvalue) and the investor assumes control in return for an asset with potential for appreciation,provide that the assets are managed properly. While the senior tranches, which were rated AAor AAA, were widely distributed, the "hard to sell" assets, particularly the subordinated tranches,were mainly sold to single investors who wished to maintain control over the properties.
The RTC had to sell still less liquid assets. RTC不得不卖掉流动性较差的资产。There was a large amount ofnonperforming or"underperforming" mortgages which required foreclosure and/or renegotiations of terms,其中有大量的不能履约或“履约困难”的抵押贷款，它们需要取消赎回权和／或重新谈判以修订原来的条款，as wellas real estate directly owned by the RTC as a result of foreclosures which were consolidated in"structured transactions".还有由RTC直接所有的不动产，它们由于被取消赎回权从而可以被合并进“结构化交易”中。
Foreclosure: 取消赎回权n．排斥，丧失抵押品赎回权
consolidate合并
The property is sold at an estimated market value (but below bookvalue) and the investor assumes control in return for an asset with potential for appreciation,provide that the assets are managed properly. 这些财产以估计的市场价格(但低于账面价格)出售，投资者承担了控制权，如果这些资产能被恰当地管理，投资者就可以获取由于这些资产潜在的升值可能带来的收益。While the senior tranches, which were rated AAor AAA, were widely distributed, the "hard to sell" assets, particularly the subordinated tranches,were mainly sold to single investors who wished to maintain control over the properties.尽管那些被评为AA级或AAA级的优先档已被广泛的分销，但对于那些“难于出售”的资产，特别是次级档，仍主要出售给特定的投资者，这些投资者一般是想获得对这些财产的控制权。
Distribute v. 分销
Distribution. N. 分销
The techniques developed by the RTC in liquidating failed thrifts may have widerapplicability. It was possible to sell large amounts of assets, many of which were not easilymarketable, in a comparatively short time. Many observers believe the prices received throughsecuritization compared favorably with those received from alternative methods. By sellingassets relatively quickly, the need for Federal support was limited. At the same time, the RTCretains a large interest in the reserve funds, as well as equity positions in the subordinatedtranches. Many agreements with their subordinated investors provide for a sharing of any gainson sale of the assets. Many of the deals were structured so as to provide investors withmanagerial control and strong incentives to maximize rates of recovery on assets.
The techniques developed by the RTC in liquidating failed thrifts may have widerapplicability. RTC在处理经营失败的非银行存款机构的债务清偿问题时所开发的技术具有较为广泛的适用性。
Liquidate: v. pay debts. 债务清偿
It was possible to sell large amounts of assets, many of which were not easilymarketable, in a comparatively short time.它使得在相对较短的时间内出售大量的资产成为可能，其中包括一些不容易流通的资产。
easilymarketable易流通
Many observers believe the prices received throughsecuritization compared favorably with those received from alternative methods.许多观察家认为通过证券化得到的价格与其他方式相比是乐观的。
By sellingassets relatively quickly, the need for Federal support was limited.通过相对较迅速地售出这些资产，对联邦支持的需求就很有限。At the same time, the RTCretains a large interest in the reserve funds, as well as equity positions in the subordinatedtranches.同时，RTC在储蓄基金中保留了很大的利益，在次级档证券中也保留了股权头寸。
Many agreements with their subordinated investors provide for a sharing of any gainson sale of the assets. 与次级投资者签订的许多协议提供了基于资产出售时获得的任何收益的分享条款。Many of the deals were structured so as to provide investors withmanagerial control and strong incentives to maximize rates of recovery on assets.许多交易被精心构造以便给投资者提供管理上的控制权以及强烈的激励，从而达到对这些资产的最大复原率。
Concluding Remarks
The ABS and MBS markets have shown remarkable adaptability. The techniques developedin the have enabled financial institutions to create securities supported by agrowing range of assets, and to enhance the control that investors and financial institutions exertover both cash flows attached to assets and credit risks.
Concluding remarks结论性的评论
The ABS and MBS markets have shown remarkable adaptability.资产支持证券和抵押支持证券市场表现出相当强的适应能力。The techniques developedin the United States have enabled financial institutions to create securities supported by agrowing range of assets, 这些在美国开发的技术使金融机构能够创造受范围不断扩大的资产支持的证券，and to enhance the control that investors and financial institutions exertover both cash flows attached to assets and credit risks.并加强了投资者和金融机构对与资产相关的现金流量和信用风险的控制能力。
Several factors have encouraged the growth of securitization in its various forms in theUnited States, support from the Federal Government was very important in theearlydevelopment of the MBS market. The large number of geographically dispersed banks mayhave given rise to a need for mechanisms to ease flows of resources among regions and reducegeographic risk concentration. The tradition of fixed-rate mortgages and the resulting risk oflarge asset/liability mismatches no doubt favoured securitization. The separation betweenbanking and securities has meant that there are alternative channels for financial intermediation;this can be contrasted to systems in which the commercial banks dominate most aspects offinancial intermediation.
Several factors have encouraged the growth of securitization in its various forms in theUnited States, 在美国，有多种因素促进了证券化以各自不同的形式的增长。support from the Federal Government was very important in the earlydevelopment of the MBS market.在早期的抵押支持证券市场的发展中，来自联邦政府的支持起了非常重要的作用。
The large number of geographically dispersed banks mayhave given rise to a need for mechanisms to ease flows of resources among regions and reducegeographic risk concentration.在地理上大量分散的银行产生了一种机制的需求，它能方便资源在地区间的流动并减少地域的风险集中。The tradition of fixed-rate mortgages and the resulting risk oflarge asset/liability mismatches no doubt favoured securitization.固定利率抵押贷款的传统及因而导致的大量的资产／负债间的错配风险的存在毫无疑问有利于证券化兴起。
The separation betweenbanking and securities has meant that there are alternative channels for financial intermediation;银行业与证券业的分离意味着存在可选择的金融中介渠道；this can be contrasted to systems in which the commercial banks dominate most aspects offinancial intermediation.这与那种商业银行统治大部分金融中介领域的体制形成鲜明对比。
It should be emphasized that, even in the case of the financialsystem where there is significant competition between banks and other financial institutions, theshift of intermediation from on-balance-sheet bank lending to capital market activities does notnecessarily exclude banks from participation in the intermediation process. Banks have shownconsiderable adaptability in moving from lending to off-balance-sheet fee-based business.
It should be emphasized that, 应当强调的是，even in the case of the US financialsystem where there is significant competition between banks and other financial institutions, 即使在美国这种银行与其他金融机构存在激烈竞争的金融体制下，theshift of intermediation from on-balance-sheet bank lending to capital market activities does notnecessarily exclude banks from participation in the intermediation process.中介活动由银行的表内贷款业务向资本市场业务的转移也并不能排除银行对中介过程的参与。
Banks have shownconsiderable adaptability in moving from lending to off-balance-sheet fee-based business.银行已经表现了相当强的适应性，在由贷款业务向以收取费用为基础的表外业务的转移方面。
Other important trends in the financial system probably further encouragedsecuritization. Different classes of institutions (banks, thrift institutions, securities houses, andinstitutional investors) often compete among themselves in devising new products. Aninstitutionalization of wealth has been occurring in the , creating a large and diversecommunity of institutional investors and an attendant demand for securities with differentliquidity and maturity preferences, and allowing a distribution of securities with multipletranches throughout the community. Finally, the legal, accounting, and tax systems as well as thebanking and securities supervisory authorities have generally been willing to acceptsecuritization.
Other important trends in the US financial system probably further encouragedsecuritization.美国金融体制中的其他重要的趋势可能进一步促进了证券化的发展。Different classes of institutions (banks, thrift institutions, securities houses, andinstitutional investors) often compete among themselves in devising new products.不同类型的机构(银行、储蓄机构、证券公司、机构投资者)在设计新产品方面经常展开竞争。
Aninstitutionalization of wealth has been occurring in the , creating a large and diversecommunity of institutional investors and an attendant demand for securities with differentliquidity and maturity preferences, and allowing a distribution of securities with multipletranches throughout the community.
Aninstitutionalization of wealth has been occurring in the United States, 在美国已经出现了财富的机构化（institution, institutionalize, institutionalization.）creating a large and diversecommunity of institutional investors and an attendant demand for securities with differentliquidity and maturity preferences, 创造了数量众多、各不相同的机构投资者团体和并且产生了对具有不同流动性偏好及期限偏好的证券的需求，and allowing a distribution of securities with multipletranches throughout the community.，并允许具有多级分档的证券在这些团体之间分销。
Finally, the legal, accounting, and tax systems as well as thebanking and securities supervisory authorities have generally been willing to acceptsecuritization.最后，法律、会计、税收以及银行业务和证券业务的监管当局也普遍愿意接受证券化。
Unit 12 Financial Markets
Function of Financial Markets
Function of Financial Markets金融市场的功能
Financial markets perform the essential economic function of channeling funds from people who have saved surplus funds by spending less than their income to people who have a shortage of funds because they wish to spend more than their income.
Channel: n. (首先，复习一下这个词我们已知的含义)
1.电台，电视台的频道；We watched the news on Channel 2. 我们看了第2频道的电视；
2. 海峡：the English Channel 英吉利海峡
v. to control or direct sth such as money or energy towards a particular purpose. 把钱或精力等导向某一个特定的目的，引导。
（在这篇文章中，channel 是一个动词，意思是引导，导向。这句话告诉我们金融市场履行的基本经济职能the essential economic function是channeling funds from people who have saved surplus funds从那些有赢余资金的人那里把资金引导到to people who have a shortage of funds资金短缺的人那里，那么有资金赢余的人是如何获得资金的呢by spending less than their income 通过支出少于收入；那么需要资金的人得到资金后做什么呢they wish to spend more than their income 他们希望支出的要比收入的要多些。）
金融市场履行的基本经济功能是，从那些由于支出少于收入而积蓄了盈余资金的人那里把资金引导到那些由于希望支出超过收入而资金短缺的人那里。
Those who have saved and are lending funds are called the lender-savers, and those who must borrow funds to finance their spending are called the borrower-spenders. The principal lender savers are households, but business enterprises and the government (particularly state and local government), as well as foreigners and their governments, sometimes also find themselves with excess funds and also lend them out. The most important borrower spenders are businesses and the government (particularly the federal government), but households and foreigners also borrow to finance their purchases of cars, furniture, and houses.
Those who have saved and are lending funds are called the lender-savers, and those who must borrow funds to finance their spending are called the borrower-spenders.那些有储蓄并贷放资金的人，被称为贷款—储蓄者，那些必须借取资金来支付其支出的人，被称为借款一支出者。The principal lender savers are households, but business enterprises and the government (particularly state and local government), as well as foreigners and their governments, sometimes also find themselves with excess funds and also lend them out.主要的贷款—储蓄者是居民户，但工商企业、政府(特别是州和地方政府)、外国人以及他们的政府，有时也会有资金剩余，因而也要把它们贷放出去。
The most important borrower spenders are businesses and the government (particularly the federal government), but households and foreigners also borrow to finance their purchases of cars, furniture, and houses.最重要的借款一支出者是工商企业和政府(特别是联邦政府)，但居民户和外国人也会借取资金来购买汽车、家具和住宅。
In direct finance, borrowers borrow funds directly from lenders in financial markets by selling them securities (also called financial instruments), which are claims on the borrower's future income or assets. Securities are assets for the person who buys them but liabilities (IOUs or debts) for the individual or firm that sells (issues) them. For example, if General Motors needs +to borrow funds to pay for a new factory to manufacture computerized car, it might borrow the funds from a saver by selling the saver a bond, a debt security that promises to make payments periodically for a specified period of time.
In direct finance, borrowers borrow funds directly from lenders in financial markets by selling them securities (also called financial instruments), which are claims on the borrower's future income or assets.在直接融资过程中，借款者在金融市场上直接向贷款者借取资金，通过向贷款者出售证券(也称为金融工具)的方式，这些证券形成对借款者未来收入或资产的要求权。be claims on:(对…的要求权)
Securities are assets for the person who buys them but liabilities (IOUs or debts) for the individual or firm that sells (issues) them.对于证券的购买者来说，证券是资产，但对于出售(发行)证券的个人或工商企业来说，它们是负债(IOU或债务)。
For example, if General Motors needs to borrow funds to pay for a new factory to manufacture computerized car, it might borrow the funds from a saver by selling the saver a bond, a debt security that promises to make payments periodically for a specified period of time.例如，如果通用汽车公司需要借钱来建造一家新厂来生产电脑化轿车，它可以向储蓄者筹集资金通过出售债券，（逗号后面的内容解释债券）是一种承诺在某一规定期间内按期偿付的债物证券。
Why is this channeling of funds from savers to spenders so important to the economy? The answer is that the people who save are frequently not the same people who have profitable investment opportunities available to them, the entrepreneurs. Let's first think about this on a personal level. Suppose that you have saved $1 000 this year, but no borrowing or lending is possible because there are no financial markets. If you do not have an investment opportunity that will permit you to earn income with your savings, you will just hold on to the $1 000 and will earn no interest.
Why is this channeling of funds from savers to spenders so important to the economy? 为什么这种将资金从储蓄者手中引导到支出者手中的融通对经济是如此重要呢?
The answer is that the people who save are frequently not the same people who have profitable investment opportunities available to them, the entrepreneurs.回答是：储蓄者常常并不是正拥有有利投资机会的人(企业家)。
Let's first think about this on a personal level.我们先从个人的角度来考察。
Suppose that you have saved $1 000 this year, but no borrowing or lending is possible because there are no financial markets. I假设今年你储蓄了1 000美元，但是由于没有金融市场，你可能既不借款也不贷款。If you do not have an investment opportunity that will permit you to earn income with your savings, you will just hold on to the $1 000 and will earn no interest.如果你没有用这些储蓄来赚取投资收益的机会，到头来，你仍然只有1 000美元而得不到利息。
However, Carl the Carpenter has a productive use for your $1 000: "He can use it to purchase a new tool that will shorten the time it takes him to build a house, thereby earning an extra $200 per year. If you could get in touch with Carl, you could lend him the $1 000 at a rental fee (interest) of $100 per year, and both of you would be better off. You would earn $100 per year on your $1 000, instead of the zero amount that you would earn otherwise, while Carl would earn $100 more income per year (the $200 extra earnings per year mines the $100 rental fee for the use of the funds).
However, Carl the Carpenter has a productive use for your $1 000: "He can use it to purchase a new tool that will shorten the time it takes him to build a house, thereby earning an extra $200 per year.然而，如果木匠卡尔把你的1 000美元用于生产，他可以把钱用来购买一件新式工具从而缩短建房工期，由此每年额外赚取200美元。
If you could get in touch with Carl, you could lend him the $1 000 at a rental fee (interest) of $100 per year, and both of you would be better off.如果你与卡尔取得联系，那么，你可以把1 000美元放贷给他，每年获取100美元的租费(利息)，这样，你们双方都能获利。
better off.:having more money than someone else or than you had before拥有比别人或以前更多的钱，获利She'll be about £ week better off.
反义词： worse off：1 if you are worse off, you have less money: 损失
The rent increases will leave us worse off.
You would earn $100 per year on your $1 000, instead of the zero amount that you would earn otherwise, while Carl would earn $100 more income per year (the $200 extra earnings per year miners the $100 rental fee for the use of the funds).你将从你的1 000美元每年赚得100美元，改变过去一无所获的状况，而卡尔也每年多赚100 美元(每年200美元额外收入减去使用这笔资金的租费100美元)。
In the absence of financial markets, you and Carl the Carpenter might never get together. Without financial markets, it is hard to transfer funds from a person who has no investment opportunities to one who has them, you would both be stuck with the status quo, and both of you would be worse off. Financial markets are thus essential to promoting economic efficiency.
In the absence of financial markets, you and Carl the Carpenter might never get together.如果没有金融市场，你与木匠卡尔可能永远不会合作。
Without financial markets, it is hard to transfer funds from a person who has no investment opportunities to one who has them, you would both be stuck with the status quo, and both of you would be worse off.不存在金融市场时，没有投资机会的人便很难把资金转移给有投资机会的人，你们双方都将维持现状，而且双方都有损失。
Be stuck with: （动词stick ：粘，贴）与…保持，维持一样
the status quo:（固定的短语）the state of a situation as it is ：现状
（常用短语有）maintain/preserve/defend /stick with the status quo (=not make any changes)
Financial markets are thus essential to promoting economic efficiency.由此可见,金融市场对于提高经济效益是非常必要的。
The existence of financial markets is also beneficial even if someone borrows for a purpose other than increasing production in a business. Say that you are recently married, have a good job, and want to buy a house. You earn a good salary, but because you have just started to work, you have not yet saved much. Over time you would have no problem saving enough to buy the house of your dreams, but by then you would be too old to get full enjoyment from it. Without financial markets, you are stuck; you cannot buy the house and will continue to live in your tiny apartment.
The existence of financial markets is also beneficial even if someone borrows for a purpose other than increasing production in a business.因此，即使人们借取资金的目的不是用于企业生产，金融市场的存在也是有益的。
Say that you are recently married, have a good job, and want to buy a house. You earn a good salary, but because you have just started to work, you have not yet saved much.比如，你新婚燕尔，有一份称心如意的工作，还想购置一套住宅，尽管你的薪水丰厚，但是因为你刚刚参加工作，所以积蓄甚微。
Over time you would have no problem saving enough to buy the house of your dreams, but by then you would be too old to get full enjoyment from it.毫无疑问，将来你会积蓄到足够多的钱来实现买房的梦想，但是，到那时你年老体衰，不能从中获取充分的享受。
Without financial markets, you are stuck; you cannot buy the house and will continue to live in your tiny apartment.没有金融市场，你会感到窘迫，无法购置住宅而只能继续住在狭小的公寓里。
If a financial market were set up so that people who had built up savingscould lend you the money to buy the house, you would be more than happy to pay them some interest in order to own a home while you are still young enough to enjoy it. Then, when you had saved up enough funds, you would pay back your loan. The overall outcome would be such that you would be better off, as would the persons who made you the loan. They would now earn some interest," whereas they would not if the financial market did not exist.
If a financial market were set up so that people who had built up savingscould lend you the money to buy the house, you would be more than happy to pay them some interest in order to own a home while you are still young enough to enjoy it.如果存在金融市场，使拥有储蓄的人得以把钱贷给你去购置住宅，那么，即使要支付一些利息，你还会为在青年时光就能享有一套住宅而感到十分高兴。
Then, when you had saved up enough funds, you would pay back your loan.这样，当你积蓄了足够多的资金时，就可以偿还贷款。
The overall outcome would be such that you would be better off, as would the persons who made you the loan.总的结果是，你的境况得到改善（just now we said, better off means to have more money than you have before, 所以在这里把他翻译为改善，好转），向你贷款的人们也得到了利益。They would now earn some interest,whereas they would not if the financial market did not exist.
（这句话中）They would now earn some interest现在他们赚了一笔利息，whereas they would not（earn some interest）不过他们便无利可图，if the financial market did not exist.倘若不存在金融市场，
Now we can see why "financial markets have such an' important function in the economy. They allow funds to move from people who lack productive investment opportunities to people who have such opportunities. By so doing, financial markets contribute to higher production and efficiency in the overall economy. They also directly improve the well-being of consumers by allowing them to time their purchases better. They provide funds to young people to buy what they need and can eventually afford without forcing them to wait until they have saved up the entire purchase price. Financial markets that are operating efficiently improve the economic welfareof everyone in the society.
Now we can see why "financial markets have such animportant function in the economy.现在我们可以看一看金融市场为何在经济中有如此重要的功能，
They allow funds to move from people who lack productive investment opportunities to people who have such opportunities.它们使资金从缺少生产性投资机会的人那里流向有这种机会的人那里。
By so doing, financial markets contribute to higher production and efficiency in the overall economy.正因为如此，金融市场为整个经济增加生产和提高效率做出了贡献。
They also directly improve the well-being of consumers by allowing them to time their purchases better.同样，金融市场直接提高了消费者的福利，通过使他们能更好地安排购买时机，（这个句子中有一个动词需要注意：time.）
Time: v. to arrange that something should happen at a particular time: 安排某事在一个特定的时间发生
time their purchases better.：更好的安排购买时机
I saw from the station clock that I had timed my arrival perfectly.
这个句子中time my arrival perfectly: 理解为：更好的安排我的到达的时间
They provide funds to young people to buy what they need and can eventually afford without forcing them to wait until they have saved up the entire purchase price.它们(指金融市场)向年轻人提供资金用于购置现在需要而以后也能负担得起的东西，使他们不至于苦等着积累足够的钱方能购置。
Financial markets that are operating efficiently improve the economic welfareof everyone in the society.有效运行的金融市场改善了社会上每个人的经济福利。
（好，以上部分的内容是从个人的角度来理解金融市场的功能，也就是金融市场的基本功能：它改善了社会上每个人的经济福利，下面我们来看金融市场的结构：）
Structure of Financial Markets
Now that we understand the basic function of financial markets, let's look at their structure. The following descriptions of several categorizations of financial markets illustrate essential features of these markets.
Structure of Financial Markets金融市场的结构
Now that we understand the basic function of financial markets, let's look at their structure.我们已经理解了金融市场的基本功能，下面来考察它们的结构。
The following descriptions of several categorizations of financial markets illustrate essential features of these markets.以下是对金融市场的若干不同分类，它们都说明了金融市场的基本特征。
Debt and Equity Markets
A firm or an individual can obtain funds in a financial market in two ways. The most common method is to issue a debt instrument, such as a bond or a mortgage, which is a contractual agreement by the borrower to pay the holder of the instrument fixed dollar amounts at regular intervals (interest and principal payments) until a specified date (the maturity date), when a final payment is made.
Debt and Equity Markets债务和股权市场
A firm or an individual can obtain funds in a financial market in two ways. 企业和个人在金融市场上取得资金的方法有两种。
The most common method is to issue a debt instrument, such as a bond or a mortgage, which is a contractual agreement by the borrower to pay the holder of the instrument fixed dollar amounts at regular intervals (interest and principal payments) until a specified date (the maturity date), when a final payment is made.
（这句话比较长，我们一句一句来看一下）
The most common method is to issue a debt instrument最普通的方法是发行一种债务工具，such as a bond or a mortgage例如债券或抵押票据。which is a contractual agreement这是一种契约协定，by the borrower to pay the holder of the instrument fixed dollar amountsat regular intervals借款者承诺按期向此项债务工具的持有者支付固定金额(interest and principal payments) (利息和本金支付)，until a specified date (the maturity date), when a final payment is made.
直至一个确定的日期(到期日)支付最后一笔金额。
The maturity of a debt instrument is the time'(term) to that instrument's expiration date. A debt instrument is short-term if its maturity is less than a year and long-term if its maturity is ten years or longer. Debt instruments with a maturity between one and ten years are said to be intermediate-term.
The maturity of a debt instrument is the time(term) to that instrument's expiration date.债务工具的到期日就是到该项工具最终偿还日的时间(期限)。
A debt instrument is short-term if its maturity is less than a year and long-term if its maturity is ten yearsor longer如果一种债务工具的期限是1年以下，它就是短期的；如果期限是10年或10年以上，它就是长期的；
Debt instruments with a maturity between one and ten years are said to be intermediate-term.
期限为1～10年之间的债务工具称为中期的。
The second method of raising funds is by issuing equities, such as common stock, which are claims to share in the net income (income after expenses and taxes) and the assets of a business. If you own one share of common stock in a company that has issued one million shares, you are entitled to 1 one-millionth of the firm' s net income and 1 one-millionth of the firm's assets. Equities usually make periodic payments (dividends) to their holders and are considered long-term securities because they have no maturity date.
The second method of raising funds is by issuing equities, such as common stock, which are claims to share in the net income (income after expenses and taxes) and the assets of a business.筹措资金的第二种方法是发行股票，例如普通股，这是分享一个工商企业的净收入(扣除费用和税款后的收人)和资产权益的凭证。
If you own one share of common stock in a company that has issued one million shares, you are entitled to 1 one-millionth of the firm' s net income and 1 one-millionth of the firm's assets.如果你在一家发行了100万股的公司中拥有l份普通股，那么，你就拥有该公司净收入的百万分之一和该公司资产的百万分之一。
Equities usually make periodic payments (dividends) to their holders and are considered long-term securities because they have no maturity date.股票通常可让他的持有者定期得到支付(红利)，并且由于它们没有到期期限，因而被看作是长期证券。
The main disadvantage of owning a corporation's equities rather than its debt is that an equity holder is a residual claimant; that is, the corporation must pay all its debt holders before it pays its equity holders. The advantage of holding equities is that equity holders benefit directly from any increases in the corporation's profitability or asset value because equities confer ownership rights on the equity holders. Debt holders do not share in this benefit because their dollar payments are fixed.
The main disadvantage of owning a corporation's equities rather than its debt is that an equity holder is a residual claimant;与拥有债务凭证相比，拥有一家公司股权的主要不利之处是，股权持有人是排在末尾的权益要求人。
Residual: (重音在第二个音节)剩余的，残余的，
residual income (=the money left from what you earn after you have paid your taxes)税后收入
that is, the corporation must pay all its debt holders before it pays its equity holders.也就是说，公司必须先向其全部的债务持有人进行支付后，才会向其股权持有人支付。
The advantage of holding equities is that equity holders benefit directly from any increases in the corporation's profitability or asset value because equities confer ownership rights on the equity holders.持有股权的有利之处是，股权持有人能够直接从公司的盈利或资产价值的任何增长中获益，因为股权使其持有人拥有所有权。
Confer: confer a title/degree/honour etc to officially give someone a title etc, especially as a reward for something they have achieved赋予某种头衔，学位，或荣誉。
Confer ownership rights: 赋予拥有权
Debt holders do not share in this benefit because their dollar payments are fixed. 债务持有人则不享有这一利益，因为对他们支付的金额是固定的。
The total value of equities in the has typically fluctuated between $1 and $10 trillion since the early 1970s, depending on the prices of shares. Although the average person is more aware of the stock market than any other financial market, the size of the debt market greatly exceeds that of the equities market. The value of debt instruments ( $15 trillion at the end of 1996) is more than 50 percent larger than the value of equities ( $10 trillion at the end of 1996).
The total value of equities in the United States has typicallyfluctuated between $1 and $10 trillion since the early 1970s, depending on the prices of shares.自从20世纪70年代初期以来，随着股权价格变动，美国股权总值通常在1万亿美元至10万亿美元之间波动。
Although the average person is more aware of the stock market than any other financial market, the size of the debt market greatly exceeds that of the equities market.尽管普通人了解股票市场甚于了解其他任何金融市场，但是债务市场的规模还是大大超过股权市场：
The value of debt instruments ( $15 trillion at the end of 1996) is more than 50 percent larger than the value of equities ( $10 trillion at the end of 1996).债务工具的价值(1996年底为15万亿美元)比股权的价值(1996年底为10万亿美元)高50％以上。
Primary and Second Markets
A primary market is a financial market in which new issues of a security, such as a bond or a stock, are sold to initial buyers by the corporation or government agency borrowing the funds. A secondary market is a financial market in which securities that have been previously issued (and are thus secondhand) can be resold.
Primary and Second Markets一级市场和二级市场
A primary market is a financial market in which new issues of a security, such as a bond or a stock, are sold to initial buyers by the corporation or government agency borrowing the funds.
（Well, this sentence tell us, A primary market is a financial market一级市场是金融市场那么在这个金融市场发生什么金融活动呢？in which new issues of a securitysuch as a bond or a stock, are sold to initial buyers,在一级市场上，新发行的证券，如：债券或股票，被出售给最初的购买者，by the corporation or government agency borrowing the funds. 告诉我们出售这些证券的卖者是：借款的公司或政府代理机构
（Well, let’s see the translation of this sentence）
译文：一级市场是借款的公司或政府代理机构向最初购买者出售新发行的债券和股票等证券的金融市场。
（ok, let’s see what is a secondary market）
A secondary market is a financial market in which securities that have been previously issued (and are thus secondhand) can be resold.二级市场是再出售过去发行的证券(也就是二手货)的金融市场。
The primary markets for securities are not well known to the public because the selling of securities to initial buyers takes place behind closed doors. An important financial institution that assists in the initial sale of securities in the primary market is the investment bank. It does this by underwriting securities it guarantees a price for a corporation’s securities and then sells them to the public.
The primary markets for securities are not well known to the public because the selling of securities to initial buyers takes place behind closed doors.
This sentence tell usThe primary markets for securities证券的一级市场are not well known to the public公众不太了解，因为向最初购买者出售证券是在内部进行的。because因为selling of securities to initial buyers takes place behind closed doors向最初购买者出售证券是在内部进行的
译文：公众不太了解证券的一级市场，因为向最初购买者出售证券是在内部进行的
An important financial institution that assists in the initial sale of securities in the primary market is the investment bank.（最重要的金融机构，在一级市场上协助销售证券，是投资银行，）
在一级市场上协助销售证券最重要的金融机构是投资银行，
It does this by underwriting securities， it guarantees a price for a corporation’s securities and then sells them to the public. 它们的做法是认购包销证券，也就是说，它们为公司证券的某一价格提供了保证，然后再向公众推销这些证券。
The New York and American stock exchanges, in which previously issued stocks are traded, are the best-known examples of secondary markets, although the bond markets, in which previously is sued bonds of major corporations and the U. S. government are bought and sold, actually have a larger trading volume. Other examples of secondary markets are foreign exchange markets, futures markets, and options markets. Securities brokers and dealers are crucial to a well functioning secondary market. Brokers are agents of investors who match buyers with sellers of securities, dealers link buyers and sellers by buying and selling securities at stated prices.
The and American stock exchanges, in which previously issued stocks are traded, are the best-known examples of secondary markets, although the bond markets, in which previously issued bonds of major corporations and the government are bought and sold, actually have a larger trading volume.
（Well, this sentence is a little longer, let’s see it sentence by sentence）
The New York and American stock exchanges, in which previously issued stocks are traded,纽约股票交易所和美国股票交易所，作为人们买卖过去发行的股票的场所are the best-known examples of secondary markets是最著名的二级市场的例子，although the bond markets,尽管债券市场in which previously issued bonds of major corporations and the government are bought and sold在债券市场里，大公司和美国政府买卖过去发行的债券actually have a larger trading volume.交易量更大。
译文：纽约股票交易所和美国股票交易所，作为人们买卖过去发行的股票的场所，是最著名的二级市场的例子，尽管债券市场(即大公司和美国政府过去发行债券的交易市场)交易量更大。
Other examples of secondary markets are foreign exchange markets, futures markets, and options markets. 其他二级市场还有外汇市场、期货市场以及期权市场等等。
Securities brokers and dealers are crucial to a well functioning secondary market. 对于一个运行良好的二级市场来说，证券经纪人和证券交易是十分重要的。
Crucial=essential
Brokers are agents of investors who match buyers with sellers of securities, dealers link buyers and sellers by buying and selling securities at stated prices.经纪人是投资者的代表，它们使证券的买者和卖者相配；交易商在一个公布的价格上买卖证券，从而使买卖双方联系起来。
Match: 把二者联系起来
State: v. 陈述，说明stated prices：已公布的价格
When an individual buys a security in the secondary market, the person who has sold the security receives money in exchange for the security，but the corporation that issued the security acquires no new funds．A corporation acquires new funds only when its securities are first sold in the primary market．Nonetheless，secondary markets serve two important functions．First，they make it easier to sell these financial instruments to raise cash；that is，they make the financial instruments more liquid．The increased liquidity of these instruments then makes them more desirable and thus easier for the issuing firm to sell in the primary market．
When an individual buys a security in the secondary market, the person who has sold the security receives money in exchange for the security，but the corporation that issued the security acquires no new funds．一个人从二级市场购进一张证券时，出售证券的人用证券换得了货币，但是发行这种证券的公司并没有获得新的资金。
A corporation acquires new funds only when its securities are first sold in the primary market．只有在一级市场上第一次出售证券时，公司才获取新的资金。
Nonetheless，secondary markets serve two important functions．二级市场发挥两种功能：
First，they make it easier to sell these financial instruments to raise cash；that is，they make the financial instruments more liquid．其一，它们能够使得为筹措现金而出售这些金融工具变得较为容易，也就是说，使金融工具更具有流动性。
The increased liquidity of these instruments then makes them more desirable and thus easier for the issuing firm to sell in the primary market．这些工具的流动性提高后，自身便更加受人欢迎，进而又促进了发行企业在一级市场的销售。
Desirable: something that is desirable is worth having or doing: 值得拥有的，值得做的，受欢迎的
a desirable neighborhood：受欢迎的邻居
Second，they determine the price of the security that the issuing firm sells in the primary market．The firms that buy securities in the primary market will pay the issuing corporation no more than the price that they think the secondary market will set for this security．The higher the security’s price in the secondary market，the higher will be the price that the issuing firm will receive for a new security in the primary market and hence the greater the amount of capital it can raise
．
Second，they determine the price of the security that the issuing firm sells in the primary market．其二，二级市场决定了发行企业在一级市场销售的证券价格。
The firms that buy securities in the primary market will pay the issuing corporation no more than the price that they think the secondary market will set for this security．在一级市场上购买证券的企业，愿意向发行公司支付的价格不会高于它们认为二级市场将为这种证券所定的价格。
The higher the security’s price in the secondary market，the higher will be the price that the issuing firm will receive for a new security in the primary market and hence the greater the amount of capital it can raise．Conditions in the secondary market are therefore the most relevant to corlmrations issuing securities.
This sentence tell us:The higher the security’s price in the secondary market二级市场上证券价格越高，the higher will be the price价格越高，（什么价格越高呢） that the issuing firm will receive for a new security in the primary market指发行企业在一级市场上出售证券的价格也就越高，hence the greater the amount of capital it can raise．从而它们能够筹措的资本量也就越大。Conditions in the secondary market are therefore the most relevant to corporations issuing securities.由此可见,二级市场的状况与发行证券公司的利益最为密切。
Exchanges and Over-the-Counter Markets交易所和场外市场
Secondary markets can be organized in two ways．One is to organize exchanges，where buyers and sellers of securities(or their agents or brokers)meet in one central location to conduct trades．The New York and American stock exchanges for stocks and the Chicago Board of Trade for commodities(wheat，corn，silver，and other raw materials)are examples of organized exchanges．
Secondary markets can be organized in two ways二级市场的组织形态有两种。
One is to organize exchanges，where buyers and sellers of securities(or their agents or brokers)meet in one central location to conduct trades．一种是有组织交易所，证券的买主和卖主(或他们的代理人或经纪人)在交易所的一个中心地点见面并进行交易。
The New York and American stock exchanges for stocks and the Chicago Board of Trade for commodities(wheat，corn，silver，and other raw materials)are examples of organized exchanges．
买卖股票的纽约股票交易所和美国股票交易所，以及买卖商品(小麦、玉米、白银等其他原材料)的芝加哥商品交易所都是有组织交易所的例子。
The other method of organizing a secondary market is to have an over the counter(OTC)market，in which dealers at different locations who have an inventory of securities stand ready to buy and sell Securities.“Verthe counter”to anyone who comes to them and．S willing to accept their prices·Because over-the-counter dealers are in computer contact and know the prices set by one another, the 0TC market is very competitive and not very different from a market with an organized exchange.
The other method of organizing a secondary market is to have an over the counter(OTC)market，in which dealers at different locations who have an inventory of securities stand ready to buy and sell Securities“over the counter”to anyone who comes to them and is willing to accept their prices.
The other method of organizing a secondary market is to have an over the counter(OTC)market，二级市场的另一种组织形式是场外(OTC)市场，in which dealers at different locations地处不同地区的交易商们who have an inventory of securities他们拥有证券存货stand ready to buy and sell securities“over the counter”随时准备好在柜台买卖证券，to anyone who comes to them and is willing to accept their prices.与和他们联系并愿意接受他们价格的任何人
二级市场的另一种组织形式是场外(OTC)市场，地处不同地区的拥有证券存货的交易商们随时向与他们联系并愿意接受他们价格的任何人在柜台上买卖证券。
Because over-the-counter dealers are in computer contact and know the prices set by one another, the OTC market is very competitive and not very different from a market with an organized exchange.由于场外交易商相互用电子计算机进行联系，并且掌握各他人出的价格，所以，场外市场的竞争性强，与有组织的交易所市场并无太大的差别。
Many common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the Stock Exchange. The government bond market, with a larger trading volume than the New York Stock Exchange, is set up as an over-the-counter market. Forty or so dealers establish a "market" in these securities by standing ready to buy and sell government bonds. Other over-the-counter markets include those that trade other types of "financial instruments such as negotiable certificates of deposit, federal funds, banker' s acceptances, and foreign exchange.
Many common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the Stock Exchange.许多普通股股票是在场外交易的，尽管最大公司的股票是在诸如纽约股票交易所那样的有组织股票交易所里交易的。
The government bond market, with a larger trading volume than the New York Stock Exchange, is set up as an over-the-counter market.美国政府债券市场，交易量超过纽约股票交易所，他就是一种场外市场。
Forty or so dealers establish a "market" in these securities by standing ready to buy and sell government 个左右的交易商建立了这些证券的“市场”，随时买进或卖出美国政府债券。
Other over-the-counter markets include those that trade other types of "financial instruments such as negotiable certificates of deposit, federal funds, banker' s acceptances, and foreign exchange.其他场外市场还包括那些交易其他类型的金融工具的市场如：可流通存款单、联邦基金、银行承兑票据以及外汇交易市场。
Money and Capital Markets
Another way of distinguishing between markets is on the basis of the maturity of the securities traded in each market. The money market is a financial market in which only short-term debt instruments (maturity of less than one year) are traded; the capital market is the market in which longer-term debt (maturity of one year or greater) and equity instruments are traded. Money market securities are usually more widely traded than longer-term securities and so tend to be more liquid. In addition, short-term securities have smaller fluctuations in prices than long-term securities, making them safer investments. As a result, corporations and banks actively use this market to earn interest on surplus funds that they expect to have only temporarily. Capital market securities, such as stocks and long-term bonds, are often held by financial intermediaries such as insurance companies and pension funds, which have little uncertain about the amount of funds they "will have available in the future.
Money and Capital Markets货币市场和资本市场
Another way of distinguishing between markets is on the basis of the maturity of the securities traded in each market.根据市场上交易的证券的期限长短，可以对市场作出另一种划分：
The money market is a financial market in which only short-term debt instruments (maturity of less than one year) are traded;货币市场是短期债务工具(期限为1年以下)交易的金融市场；
the capital market is the market in which longer-term debt (maturity of one year or greater) and equity instruments are traded.资本市场则是长期债务(期限在1年和年以上)和股权工具交易的市场。
资本市场是指：期限在一年或一年以上的中长期有价证券交易的市场，他包括股票市场(stock market), 抵押市场(mortgage market)，公司债券市场(corporate bond market), 联邦及州政府机构的证券市场（federal and state agency security market），消费信贷市场(consumer credit market)，商业信贷市场(commercial credit market)，欧洲债券市场(European bond market).
。
Money market securities are usually more widely traded than longer-term securities and so tend to be more liquid.货币市场证券比长期证券的交易更为广泛，因此，也更具有流动性。
In addition, short-term securities have smaller fluctuations in prices than long-term securities, making them safer investments.此外，我们看到，与长期证券相比，短期证券的价格波动较小，是一种较为安全的投资。
As a result, corporations and banks actively use this market to earn interest on surplus funds that they expect to have only temporarily.于是，公司和银行积极利用这一市场来使其盈余资金获利，that 引导定语从句告诉我们这些赢余资金是hey expect to have only temporarily临时性的
Capital market securities, such as stocks and long-term bonds, are often held by financial intermediaries such as insurance companies and pension funds, which have little uncertain about the amount of funds they "will have available in the future.资本市场证券，例如股票和长期债券，常常由保险公司和养老基金之类的金融中介机构持有，这些机构对将来能够得到的资金数额比较有把握。Uncertain:不确定的，little uncertain:双重否定表示肯定，意思是很确信，很有把握。
(上面是对资本市场和货币市场的介绍，下面我们用一个图表更加清晰的看一下货币市场与资本市场的分类)
Debt instrument Common stock and preferred stock
Maturity one year or less Maturity greater than one year
Money market capital market
Globalization of Financial Markets金融全球化
Globalization means the integration of financial markets throughout the world into aninternational financial market. Because of the globalization of financial markets, entities in anycountry seeking to raise funds need not be limited to their domestic financial market. Nor areinvestors in a country limited to the financial assets issued in their domestic factors that have led to the integration of financial markets are (1) deregulation orliberalization of markets and the activities of market participants in key financial centers of theworld; (2) technological advances for monitoring world markets, executing orders, and analyzing financial opportunities; and (3) increased institutionalization of financial markets. Thesefactors are not mutually exclusive.
Globalization means the integration of financial markets throughout the world into aninternational financial market.全球化意味着全世界的金融市场融合成为一个国际金融市场
Because of the globalization of financial markets, entities in anycountry seeking to raise funds need not be limited to their domestic financial market.因为金融市场的全球化，任何国家内寻求融资的经济实体都不必局限于国内的金融市场。Entities: 经济实体
Nor areinvestors in a country limited to the financial assets issued in their domestic market.
(投资者的投资活动也不受所在国国内金融市场发行的金融资产的限制
The factors that have led to the integration of financial markets are
引起金融市场一体化的因素有三个：
1) deregulation orliberalization of markets and the activities of market participants in key financial centers of theworld;世界主要金融中心in key financial centers of theworld对市场以及市场参与者行为markets and the activities of market participants放松管制或实行自由化deregulation orliberalization。
2) technological advances for monitoring world markets, executing orders, and analyzing financial opportunities;监管市场、执行指令和分析金融机会等方面的技术进步。
and (3) increased institutionalization of financial markets. 金融市场机构化的增加，即金融市场机构投资者的增加。
Thesefactors are not mutually exclusive这些因素不是互相排斥的。Exclusive: 排斥，不包括
Well, let’s analyze these three factors one by one.
Would you please Read following part:
Global competition has forced governments to deregulate or liberalize various aspects oftheir financial markets so that their financial enterprises can compete effectively around theworld. Technological advances have increased the integration and efficiency of the globalfinancial in telecommunication systems link market participants throughout the worldwith the result that orders can be executed within seconds. Advances in computertechnology, coupled with advanced telecommunication systems, allow the transmission ofreal-time information on security prices and other key information to many participants in manyplaces. Therefore, many investors can monitor global markets and simultaneously assess howthis information will impact the risk/reward profile of their portfolios. Significantly improvedcomputing power allows the instant manipulation of real-time market information so thatattractive investment opportunities can be identified. Once these opportunities are identified,telecommunication systems permit the rapid execution of orders to capture them.
This paragraph mainly talked about first two factors that lead to integration of financial markets:
这一段的内容主要讲述导致金融市场全球一体化的前两个因素。
Global competition has forced governments to deregulate or liberalize various aspects oftheir financial markets so that their financial enterprises can compete effectively around theworld.
The sentence tell us: Global competition has forced governments金融全球竞争已促使各国政府to deregulate or liberalize放松管制并实行自由化(对哪些方面呢)various aspects oftheir financial markets对金融市场各方面so that their financial enterprises can compete effectively around theworld. 从而使本国的金融企业能有效地在世界范围内参与竞争。
译文：.金融全球竞争已促使各国政府放松对金融市场各方面的管制并实行自由化，从而使本国的金融企业能有效地在世界范围内参与竞争。
Ok, this is the first factor 好这个是第一个因素。
Now let’s see the second one.
Technological advances have increased the integration and efficiency of the globalfinancial market. 技术进步增加了这种一体化程度并提高了全球金融市场的效率。
Advances in telecommunication systems link market participants throughout the worldwith the result that orders can be executed within seconds.
This sentence tell us:Advances in telecommunication systems电子通讯系统的进步link market participants throughout the world把世界范围的市场参与者联结起来，with the result that orders can be executed within seconds.而且交易指令也因此可以在几秒钟内得以执行。
Advances in computertechnology, coupled with advanced telecommunication systems, allow the transmission ofreal-time information on security prices and other key information to many participants in manyplaces.。
Advances in computertechnology电子计算机技术的进步，coupled with advanced telecommunication systems与先进的电子交换系统相伴，allow the transmission 允许传输ofreal-time information on security prices证券价格的即时信息and other key information和其他重要信息to many participants in manyplaces.能够在不同地方的许多参与者之间进行
译文：与先进的电子交换系统相伴的电子计算机技术的进步,使证券价格的即时信息和其他重要信息能够在不同地方的许多参与者之间进行传输。
Therefore, many investors can monitor global markets and simultaneously assess howthis information will impact the risk/reward profile of their portfolios.因此，许多投资者可以在全球金融市场控制信息并同时评估这些信息将如何影响他们的投资组合的风险或报酬情况。
Profile: 情况，概况
Significantly improvedcomputing power allows the instant manipulation of real-time market information so thatattractive investment opportunities can be identified，telecommunication systems permit the rapid execution of orders to capture them.
Significantly improvedcomputing power显著提高的计算能力allows允许the instant manipulation of real-time market information迅速的处理实时市场信息so thatattractive investment opportunities can be identified便于有吸引力的投资机遇可以被迅速的识别出来telecommunication systems permit the rapid execution of orders to capture them.电子通信系统就能迅速执行指令并抓住它们。instant manipulation：迅速的处理
译文：显著提高的计算能力大大加快了处理实时市场信息的能力，及时辨明了有吸引力的投资机遇。一旦确认这些机会，电子通信系统就能迅速执行指令并抓住它们。
Ok, that’s all for the previous two factors, now let’s come to third factor.
The shifting of the roles of the two types of investors, retail and institutional investors, infinancial markets is the third factor that has led to the integration of financial markets. The financial markets have shifted from being dominated by retail investors to being dominated byinstitutional investors. Retail investors are individuals, while institutional investors are financialinstitutions such as pension funds, insurance companies, investment companies, commercialbanks, and savings and loan associations.
The shifting of the roles of the two types of investors, retail and institutional investors, infinancial markets is the third factor that has led to the integration of financial markets.金融市场中两类投资者——个人和机构投资者——的作用的转换是导致金融市场全球一体化的第三个原因。
Retail investor: 个人投资者，散户投资者
Institutional investor: 机构投资者
The financial markets have shifted from being dominated by retail investors to being dominated byinstitutional investors.美国金融市场已由散户投资者占支配地位变为由机构投资起主导作用。
Retail investors are individuals, while institutional investors are financialinstitutions such as pension funds, insurance companies, investment companies, commercialbanks, and savings and loan associations.散户投资都是个人，而机构投资者多是金融机构，例如：养老基金、保险公司、投资公司、商业银行以及储蓄和贷款协会等。
The shifting of the financial markets in the and other major industrialized countriesfrom dominance by retail investors to institutional investors is referred to as theinstitutionalization of financial markets. Unlike retail investors, institutional investors have beenmore willing to transfer funds across national borders to improve the risk/reward opportunities ofa portfolio that includes financial assets of foreign issuers. The potential portfolio benefitsassociated with global investing have been documented in numerous studies, which haveheightened the awareness of investors about the virtues of global investing, Moreover,investors have not limited their participation in foreign markets to those of developed has been increased participation in the financial markets of developing economies,popularly referred to as emerging markets.
The shiftingof the financial markets in the and other major industrialized countriesfrom dominance by retail investors to institutional investors is referred to as theinstitutionalization of financial markets.美国金融市场和其他主要工业化国家的金融市场从由散户投资者控制到由机构投资者控制，控制的转变称作金融市场的机构化。（这个句子有点长，但是语法却很简单主体结构应该是：The shifting is referred to as….转变被称为…
Unlike retail investors, institutional investors have beenmore willing to transfer funds across national borders to improve the risk/reward opportunities ofa portfolio that includes financial assets of foreign issuers.与个人投资者不同，机构投资者更乐意跨越国界转移资金，以减少(或增加)包括外国金融资产在内投资组合的风险(或回报机会)。
The potential portfolio benefitsassociated with global investing have been documented in numerous studies, which haveheightened the awareness of investors about the virtues of global investing,与全球化投资相伴的潜在投资组合收益已为许多研究证实，这些研究也加强了投资者关于全球投资本质的认识。
Moreover,investors have not limited their participation in foreign markets to those of developed economies.此外，投资者不再将其对外国市场的参与局限于那些发达国家中。
There has been increased participation in the financial markets of developing economies,popularly referred to as emerging markets.（投资者）对于发展中国家金融市场参与程度也已有了显著增加，通常将这些市场称作新兴市场。
Well, that’s all for the introduction of Globalization of Financial Markets金融全球化就介绍到这里
In following part, let’s see the Classification of Global Financial Markets下面我们一起来看全球金融市场的分类：
Classification of Global Financial Markets
While there is no uniform system for classifying the global financial markets, Figure 19-3provides a schematic presentation of an appropriate classification system. From the perspectiveof a given country, financial markets can be classified as either internal or external. The internalmarket, also called the national market, it can be decomposed into two parts: the domesticmarket and the foreign market. The domestic market is where issuers domiciled in the countryissue securities and where those securities are subsequently traded.
Classification of Global Financial Markets全球金融市场的划分
While there is no uniform system for classifying the global financial markets, The following figure provides a schematic presentation of an appropriate classification system.虽然仍然没有划分全球金融市场的统一体系，下图提供了一种较为适当的全球金融市场分类体系。
插入一章图
From the perspectiveof a given country, financial markets can be classified as either internal or external从一特定国家的角度来说，金融市场可以划分为内部市场和外部市场。
The internalmarket, also called the national market, it can be decomposed into two parts: the domesticmarket and the foreign market.内部市场也称作本国市场，它又可分为两个部分：国内市场和外国市场，
Decompose：to divide into smaller parts分解，分开
The domestic market is where issuers domiciled in the countryissue securities and where those securities are subsequently traded.国内市场指居住于本国的发行人发行证券和交易证券的市场。
Be domiciled in: 居住于某地
issuers domiciled in the country：居住于本国的发行者
Intemal market (also called nationallmarket) [ External market (als~ called intemati~nalImarket, offshore market and Euromarket
I I
~ Domesticmarket I [ ForeignmarketI
Figurel9-3 Classification of Global Financial Markets
The foreign market of a country is where the securities of issuers not domiciled in thecountry are sold and traded. The rules governing the issuance of foreign securities are thoseimposed by regulatory authorities where the security is issued. For example, securities issuedby , corporations in the must comply with the regulations set forth in securities law. A non-Japanese corporation that seeks to offer securities in must complywith Japanese securities law and regulations imposed by the Japanese Ministry of have been used to describe the various foreign markets. For example, the foreignmarket in the is called the "Yankee market." The foreign market in is nicknamed the"Samurai market," in the the "Bulldog market," in the the"Rembrandt market," and in the "Matador market."
The foreign market of a country is where the securities of issuers not domiciled in thecountry are sold and traded.一国的外国市场指不居于本国的发行人发行证券和交易证券的市场。
The rules governing the issuance of foreign securities are thoseimposed by regulatory authorities where the security is issued. （这句话告诉我们监管外国证券发行的法令是由谁来颁布执行的法令）译文：监管外国证券发行的法令是证券发行所在国立法当局所颁布执行的法令。
Be imposed by:由…来颁布执行
For example, securities issuedby , corporations in the United States must comply with the regulations set forth in law.例如，非美国公司在美国发行的证券必须遵守美国证券法中的制定的规则。
Comply with: 遵守
set forth：规定，制订regulations set forth in law：美国证券法制定的规则
A non-Japanese corporation that seeks to offer securities in must complywith Japanese securities law and regulations imposed by the Japanese Ministry of Finance.而试图在日本发行证券的非日本公司必须遵守日本大藏省颂布的有关规定及日本的证券法。
Offer: 发行
the Japanese Ministry of Finance：日本的央行大藏省
Nicknames have been used to describe the various foreign markets.外国市场有许多绰号，
For example, the foreignmarket in the is called the "Yankee market."例如：美国的外国市场被称作“扬基市场”，The foreign market in is nicknamed the"Samurai market,"日本的外国市场被称作“武士市场”，in the the "Bulldog market,"英国的称作“猛犬市场”，in the the"Rembrandt market,"荷兰的称作“伦勃朗市场”
and in the "Matador market."，西班牙则称作“斗牛士市场”。
The external market, also called the international market, includes securities with thefollowing distinguishing features: at issuance they are offered simultaneously to invest
ors in anumber of countries; and they are issued outside the jurisdiction of any single country. Theexternal market is commonly referred to as the offshore market, or more popularly, theEuro market (even though this market is not limited to , it began there).
The external market, also called the international market, includes securities with thefollowing distinguishing features: at issuance they are offered simultaneously to investors in anumber of countries;外部金融市场也称作国际市场。这一市场上包括具有如下特征的证券：它们同时向多国投资者发行；
and they are issued outside the jurisdiction of any single country.它们不受任何国家法令的制约。
outside the jurisdiction: 不受法令限制
jurisdiction: 司法权，管辖权
Theexternal market is commonly referred to as the offshore market, or more popularly, theEuro market (even though this market is not limited to Europe, it began there).外部市场通常被称为离岸市场或欧洲市场,虽然这一市场并不仅局限于欧洲，但它却是从那里开始的。
好，以上为大家介绍的是金融市场的功能，结构以及 金融全球化的原因及全球金融市场的分类。
下面将为大家介绍，国际债券市场与外汇市场。
First let’s see International bond market.首先我们来看国际债券市场。
Introduction to the International Bond Markets国际债券市场简介
The international bond markets may be divided into two broad groups: foreign bonds andeurobonds. Foreign bonds are bonds that are issued by foreign borrowers in a nation's domesticcapital market and are denominated in the nation's domestic currency. What makes foreign bondsdifferent from ordinary domestic bonds is that countries typically make legal distinctions betweenbonds issues by domestic residents and bonds issued by foreigners.
The international bond markets may be divided into two broad groups: foreign bonds andeurobonds.国际债券市场可以粗略分为两类：外国债券和欧洲债券。
Foreign bonds are bonds that are issued by foreign borrowers in a nation's domesticcapital market and are denominated in the nation's domestic currency.外国债券指那些外国借款者在某国的国内资本市场上发行的并以该国国内货币作为债券标的货币的债券。
Denominate: 给某物命名，取名
Be denominated in…:以…为标的
What makes foreign bondsdifferent from ordinary domestic bonds is that countries typically make legal distinctions betweenbonds issues by domestic residents and bonds issued by foreigners.外国债券不同于普通国内债券的地方是各国对于本国居民发行的债券与外国借款者发行的债券执行差别的法律待遇。
These distinctions may includedifferent tax laws, different regulations on the timing or amount of bonds that may be issued, differentrequirements as to the type or amount of information that the borrower has to disclose prior to thebond issue, different registrationrequirements, and different restrictions on who can buy the bonds.
These distinctions may includedifferent tax laws,这些差别可能包括：不同的税收法律different regulations on the timing or amount of bonds that may be issued,可能的发行债券的期限和数额的不同规定differentrequirements as to the type or amount of information that the borrower has to discloseprior to thebond issue,债券发行前借款者必须披露的信息种类和数量的不同要求、different registrationrequirements,不同的登记要求different restrictions on who can buy the bonds.对购买债券者的不同限制等。
这些差别可能包括：不同的税收法律、可能的发行债券的期限和数额的不同规定、债券发行前借款者必须披露的信息种类和数量的不同要求、不同的登记要求、对购买债券者的不同限制等。
The most important foreign bond markets are in , , , Frankfurt,, and . Foreign bonds can also be takento include foreign-currency-denominated issues by foreigners in the domestic bond market, forexample, Yankee ECU bonds issued in .
The most important foreign bond markets are in , , , Frankfurt,, and .最主要的外国债券市场在苏黎世、纽约、东京、法兰克福、伦敦以及阿姆斯特丹。。
Foreign bonds can also be takento include foreign-currency-denominated issues by foreigners in the domestic bond market, forexample, Yankee ECU bonds issued in New York.外国债券也可包括外国人在本国债券市场上发行的以外币为标价货币的债券，例如在纽约发行扬基埃居债券。
Eurobonds differ from foreign bonds in that eurobonds denominated in a particular currencyare usually issued simultaneously in the capital markets of several nations. They differ from foreignbonds in that most nations do not have preoffering registration or disclosure requirements foreurobond issues. Neither do they have restrictions on the timing or amount of such issues if theissue is denominated in a foreign currency. Some countries-----such as , , and --will, however, regulate the timing or amount of a eurobond issue if the issue is denominated inthe country's domestic currency.
Eurobonds differ from foreign bonds in that eurobonds denominated in a particular currencyare usually issued simultaneously in the capital markets of several nations.欧洲债券不同于外国债券的地方是欧洲债券以某一特定货币作为标的货币但同时在许多国家的资本市场发行。
They differ from foreignbonds in that most nations do not have preoffering registration or disclosure requirements foreurobond issues.大多数国家对欧洲债券的发行没有发行前登记或披露要求，这一点也与外国债券不同。
Neither do they have restrictions on the timing or amount of such issues if theissue is denominated in a foreign currency.债券的发行如果是以外国货币为标的，则这样的债券发行既没有期限也没有数量的限制。
Some countries-----such as Germany, Japan, and France--will, however, regulate the timing or amount of a eurobond issue if the issue is denominated inthe country's domestic currency.有些国家——例如德国、日本和法国——将对这样的欧洲债券的发行实行数量和期限的管制，如果债券发行以本国货币为标价货币时，
The and , by contrast, do not make anyattempt to regulate the issuing of eurobonds denominated in, respectively, the . dollar or theCanadian dollar. The predominant currency used in the eurobond market is the . dollar, butthere are also smaller and important markets for eurobonds denominated in the deutschemark,European Currency Unit, British pound, Canadian dollar, and Dutch guilder. Financial deregulationin made the Japanese yen eurobond market the leading nondollar market.
The United States and Canada, by contrast, do not make anyattempt to regulate the issuing of eurobonds denominated in, respectively, the . dollar or theCanadian dollar.美国和加拿大对于以美元和加元为标的货币的欧洲债券的发行不实行任何管制，
The predominant currency used in the eurobond market is the . dollar, butthere are also smaller and important markets for eurobonds denominated in the deutschemark,European Currency Unit, British pound, Canadian dollar, and Dutch guilder.
The predominant currency used in the eurobond market is the . dollar,相反，在欧洲债券市场上占支配地位的货币是美元butthere are also smaller and important markets for eurobonds但也有数量相对较小但同样重要欧洲债券市场，denominated in the deutschemark,European Currency Unit, British pound, Canadian dollar, and Dutch guilder他们是以德国马克、欧洲货币单位、英镑、加元和荷兰盾为标的货币的
译文：相反，在欧洲债券市场上占支配地位的货币是美元，但也有数量相对较小但同样重要的德国马克、欧洲货币单位、英镑、加元和荷兰盾为标的货币的欧洲债券市场。
Financial deregulationin Japan made the Japanese yen eurobond market the leading nondollar market.日本1986年的金融管制放松使得日元欧洲债券市场成为主要的非美元市场。
Features of Eurobonds
Most eurobonds are bearer bonds. Your ownership of the bond is evidenced by the factthat you have the bond, just as your ownership of a . dollar bill is evidenced by the fact thatyou have the dollar bill in your pocket. Bearer bonds contrast with registered bonds. Registeredbonds have an ownership name assigned to the bond's serial number, and the bond can betransferred to a new owner only through a formal transfer of the registered name. For example,
Yankee bonds are registered. The fact that eurobonds are bearer bonds and not registered meansthat they are attractive investment assets for people who wish to remain anonymous—becausethey are avoiding taxes or for any other reason.
Features of Eurobonds欧洲债券的特征
Most eurobonds are bearer bonds. Your ownership of the bond is evidenced by the factthat you have the bond, just as your ownership of a . dollar bill is evidenced by the fact thatyou have the dollar bill in your pocket.大多数欧洲债券是持有者债券，即你对债券的所有权以你持有债券的事实为依据，正如你的兜中有美元的事实是你对美元的所有权的证明一样。
Bearer bonds: 持有者债券
Evidence: n. 证据，依据
By evidenced by: 以…为依据或证据
Bearer bonds contrast with registered have an ownership name assigned to the bond's serial number, and the bond can betransferred to a new owner only through a formal transfer of the registered name.持有者债券与注册债券相比，注册债券在债券的一系列数字后注有所有者的姓名，并且债券可以通过正式的注册姓名的转变而转移给一个新的所有者。
For example,Yankee bonds are registered. The fact that eurobonds are bearer bonds and not registered meansthat they are attractive investment assets for people who wish to remain anonymous—becausethey are avoiding taxes or for any other reason.例如，扬基债券是注册债券。欧洲债券是持有者债券而非登记债券的事实意味着该债券是有吸引力的投资资产，对于那些希望保持匿名的人们——因为他们希望避税和为了其他原因
Interest paid on eurobonds is usually free of all tax. In the event that a nation may imposewithholding taxes on the borrower's interest payments, bond convenants specify that the interestpayments must be increased enough that, after the tax is applied, the net interest payment is thesame as before. For example, if an interest coupon is $100 payable annually, and a 20 percentwithholding tax is imposed, the borrower has to pay coupons of $125. Thus the net payments tothe bondholder will be )<($125) = $100, the same as previously.
Interest paid on eurobonds is usually free of all tax.欧洲债券的利息支付通常免去一切税收。
In the event that a nation may imposewithholding taxes on the borrower's interest payments, bond convenants specify that the interestpayments must be increased enough that, after the tax is applied, the net interest payment is thesame as before.
In the event that a nation may imposewithholding taxes on the borrower's interest payments,当一国对借款者的利息支付收取持有税时bond convenants specify that the interestpayments must be increased enough that,债券条款就会规定利息支付也必须上升足够的数量，after the tax is applied, the net interest payment is thesame as before.从而在上缴税金后，净利息支付与没有税收时一样。
译文：当一国对借款者的利息支付收取持有税时，债券条款就会规定利息支付也必须上升足够的数量，从而在上缴税金后的净利息支付与没有税收时一样。
For example, if an interest coupon is $100 payable annually, and a 20 percentwithholding tax is imposed, the borrower has to pay coupons of $125.例如，如果一个息票为每年支付利息$100，并且征收20 ％的持有税，那么借款者必须支付$125的息票，
Thus the net payments tothe bondholder will be )<($125) = $100, the same as previously.对于债券持有人支付的净利息为：×($125) =$100，数量与没有税赋时一样。
Eurobonds differ from eurocredits in that buyers of the bonds do not get involved in thefinancial affairs of the borrower. In a eurocredit loan agreement, a borrower may commit itself tomaintain a certain capital/asset ratio or adhere to an IMF agreement, and if it does not do so, theborrower can be in technical default whether or not the borrower is still making payment on theloan. But with eurobonds, since investors don't have any say about how the borrower conductsits financial affairs, default clauses say default occurs only if there is nonpayment of interest or
principal.
Eurobonds differ from eurocredits in that buyers of the bonds do not get involved in thefinancial affairs of the borrower. 欧洲债券不同于欧洲贷款的地方是债券的购买者不介入借款者的财务事务当中。
In a eurocredit loan agreement在欧洲信贷的贷款协议中, a borrower may commit itself tomaintain a certain capital/asset ratio or adhere to an IMF agreement,借款者可以自己承诺保持一定的资本／资产比例，或者遵守IMF的协议and if it does not do so, theborrower can be in technical default whether or not the borrower is still making payment on theloan.，，如果借款者不这样做，其行为都能构成技术性违约，不论其是否仍然偿付贷款，。
But with eurobonds, since investors don't have any say about how the borrower conductsits financial affairs, default clauses say default occurs only if there is nonpayment of interest orprincipal. 但是在发行欧洲债券的情况下，由于投资者对于借款者的财务状况无任何发言权，所以违约条款中规定仅在借款者不支付本息时才构成违约。
This means, of course, that, investors will not buy the bonds of entities whose financialaffairs they worry about. Eurobond issues are thus limited to borrowers who are considered aslow credit risks. This simple fact of life can be seen in Table 20-2, showing international bondissues identified by the country location of the borrower. During 1989, for example, borrowers in
issued a total of $ billion in the international bond markets, while borrowersissued $23 billion. International organizations such as the World Bank borrowed $ contrast, the total amount of issues from developing countries was $ billion.
This means, of course, that, investors will not buy the bonds of entities whose financialaffairs they worry about. 这当然意味着，投资者不会购买他们认为财务状况有问题的企业发行的债券。
Eurobond issues are thus limited to borrowers who are considered aslow credit risks. .欧洲债券的发行者因而被限定在那些被认为信用风险较低的借款者。
It is reported that during 1989, for example, borrowers in issued a total of $ billion in the international bond markets, while borrowersissued $23 billion. International organizations such as the World Bank borrowed $ billion.据报道，在1989年，日本的借款者在国际债券市场发行了总值为967亿美元的债券，而同年英国借款者发行了230亿美元的债券。国际组织(如世界银行)发行了亿美元。
By contrast, the total amount of issues from developing countries was $ billion.相比之下，发展中国家发行的总额才为26亿美元。
Briefly, there may be several stages to the process of issuing new eurobonds. The borrower,after negotiation, sells its bonds to a group of managing banks. Managing banks in turn sell thebonds to other banks, who are divided into underwriters and sellers. The underwriting sellingbanks in turn sell the bonds to dealers and final investors. Underwriting banks are distinguishedfrom ordinary sellers in that they are committed to buy the bond a preagreed minimum priceeven if the bonds cannot be sold at a higher price on market. The managing banks themselvesalso act as underwriters and sellers.
Briefly, there may be several stages to the process of issuing new eurobonds.简而言之，发行新的欧洲债券的过程有几个步骤。
The borrower,after negotiation, sells its bonds to a group of managing banks. 协商之后，借款者将其债券卖给一组经理银行。
Managing banks in turn sell thebonds to other banks, who are divided into underwriters and sellers.经理银行随后把债券出售给其他银行，这些银行分为承销商和销售商。
The underwriting and sellingbanks in turn sell the bonds to dealers and final investors. 承销和销售银行把债券再出售给债券分销商及最后投资者。
Underwriting banks are distinguishedfrom ordinary sellers in that they are committed to buy the bond a preagreed minimum priceeven if the bonds cannot be sold at a higher price on market. 承销银行区别于初始销售商的地方是它们以事先协定的最低价格自行购买债券，即使债券可能并不能够以更高的价格在市场上出售。
The managing banks themselvesalso act as underwriters and sellers.经理银行也可以自己充当承销商和销售商。
Eurobonds appear in a number of basic guises.欧洲债券有一系列衍生产品。
guises.: 衍生产品
Straight bonds pay a fixed interest rate atperiodic intervals, usually annually. 直接债券通常在存续期内按年支付固定利息。
The choice of annual payments opposed to the morecommon interval of six months in domestic issues, is a simple reaction to the higher cost ofdisbursing interest payments to investors around world.
The choice of annual payments欧洲债券选择了按年支付利息opposed to与…相反opposed to morecommon interval of six months in domestic issues,而不是像国内债券那样普遍采用半年支付一次利息is a simple reaction to the higher cost ofdisbursing interest paymentsto investors around world.
是一个向遍及世界的投资者支付利息的成本较高的回应。
译文：因向遍及世界的投资者支付利息的成本较高，所以欧洲债券选择了按年支付利息而不是像国内债券那样普遍采用半年支付一次利息。
Floating-rate notes (FRNs), by contrast, have more frequent payments-usually every sixmonths. The interest rate on floating-rates is stated in terms of a spread over some referencerate--usually LIBOR--appropriate for the currency. The rollover pricing feature of floating-ratenotes, of course, a reaction to interest rate uncertainty. The more frequently the interest rate isupdated, the more the interest payment the note will reflect current money market rates. The firstfloating-rate notes appear in 1969 and 1970, during a period of rising interest rates.
Floating-rate notes (FRNS), by contrast, have more frequent payments-usually every sixmonths. 相比较，浮动利率期票(FRNS)的利息支付更频繁.通常是6个月
The interest rate on floating-ratesis stated in terms of a spread over some referencerate--usually LIBOR--appropriate for the currency.，
Is stated in terms of : 以…方式予以规定
The interest rate on floating-rates浮动利率期票的利率Is stated in terms of : 以…方式予以规定
a spread over some referencerate--usually LIBOR通常幅差加上参考利率，通常是是LIBOR appropriate for the currency适用于不同货币
译文：浮动利率期票的利率以适用于不同货币的参考利率——通常是LIBOR——加上一定幅差的方式予以规定。
The rollover pricing feature of floating-ratenotes, of course, a reaction to interest rate uncertainty. 浮动利率期票的循环定价特征当然是利率不确定性的一个反映。
The more frequently the interest rate isupdated, the more the interest payment， the note will reflect current money market rates.利率更新越快，利率支付越频繁，债券的票面利率越能反映市场利率。
The firstfloating-rate notes appear in 1969 and 1970, during a period of rising interest rates.
最早的浮动利率债券出现在1969年和1970年——一个利率上升的时期。
Most FRNsare dollar- denominated: Japanese yen and German mark FRNs did not appear until 1985. Zero-coupon bonds is the curious name given to bonds that don't pay any coupons.(Treasury bills and commercial paper don't pay coupons either, but are not referred to as"zero-coupon.") These are pure discount securities that are either sold at a fraction of their facevalue and redeemed at face value, or sold at face value and redeemed at a premium. The return isthe difference between the purchase price and the repayment price. Zero-coupon bonds provedvery popular with Japanese investors, because the increase in the bond's price as the bondsmatured was treated in as capital gain and was not taxed.
.
Most FRNsare dollar- denominated: Japanese yen and German mark FRNs did not appear until 1985.大多数的FRNS是以美元为标的货币发行的，日元和德国马克的浮动利率债券直到1985年才出现。
Zero-coupon bonds is the curious name given to bonds that don't pay any coupons.(Treasury bills and commercial paper don't pay coupons either, but are not referred to as"zero-coupon.")
零息债券是赋予不支付息票的债券的常令人费解的名称(国库券和商业票据也没有息票，但没有称作“零息”)。
These are pure discount securities that are either sold at a fraction of their facevalue and redeemed at face value, or sold at face value and redeemed at a premium. 这是纯折让证券，要么以面值的一部分价值出售并以面值赎回，要么以面值出售并以一定溢价赎回。
at a fraction of their facevalue：意思是以面值的一部分价值，而不是全价出售。
at a premium：意思是以溢价，即高于票面价值的价值
The return isthe difference between the purchase price and the repayment price. 收益是购买价与偿付价的差额。
Zero-coupon bonds provedvery popular with Japanese investors, because the increase in the bond's price as the bondsmatured was treated in Japan as capital gain and was not taxed.零息债券深受日本投资者的欢迎，因为债券价格在到期日的上升在日本被看作是资本利得而不用纳税。
Convertible bonds are another fairly frequent type of bond offered in the eurobond companies in particular have issued a great many convertible . dollar eurobonds. Abond is convertible if, in addition to making the usual interest payments, the bond can beexchanged for some other type of asset. A common type of conversion feature is one that allowsthe bond to be exchanged at its face value for shares of common stock in the company issuingthe bonds. Most conversion features, of whatever type, can be considered as options, and theirvalue can be formally established in the same way we value foreign exchange or stock options.
Convertible bondsare another fairly frequent type of bond offered in the eurobond markets.可转换债券是欧洲债券市场上提供的另一种常见的债券种类。
Japanese companies in particular have issued a great many convertible . dollar eurobonds.尤其是日本的企业已发行了大量的可转换欧洲美元债券。
Abond is convertible if, in addition to making the usual interest payments, the bond can beexchanged for some other type of asset.债券是可转换的，.如果，除了获取通常的利息外，债券可以用于交换其他资产。
A common type of conversion feature is one that allowsthe bond to be exchanged at its face value for shares of common stock in the company issuingthe bonds.一种很常见的转换特征是允许债券按其面值转换成发行债券公司的普通股。
Most conversion features, of whatever type, can be considered as options, and theirvalue can be formally established in the same way we value foreign exchange or stock options.不论是哪一种转换特征，都可以看作是一种选择权，这种选择权的价值可以用我们为外汇或股票期权定价的相同方式进行确定。
A new and interesting guise in which eurobonds began appearing in 1984 was in the form ofmortgage-backed eurobonds. Such bonds are backed by a pool of mortgages, trust deeds, or otherbonds. Since mostly only borrowers perceived to have low credit risk have thus far beensuccessful in issuing eurobonds, certain institutions, such as regional thrift institutions, wouldnormally be excluded from the eurobond market. Mortgage-backed . dollar eurobonds are away in which some thrift institutions have created the equivalent of bonds guaranteed by the government.
A new and interesting guise in which eurobonds began appearing in 1984 was in the form ofmortgage-backed eurobonds. 1984年出现了一种欧洲债券的有争议的新衍生产品——抵押支持的欧洲债券。
Such bonds are backed by a pool of mortgages, trust deeds, or otherbonds. 这类债券由一些抵押品、信托工具或其他债券支持。
Since mostly only borrowers perceived to have low credit risk have thus far beensuccessful in issuing eurobonds, certain institutions, such as regional thrift institutions, wouldnormally be excluded from the eurobond market. 由于仅仅是那些被认为有较低信用风险的借款者在发行欧洲债券时才能取得成功，一些特定机构(如地方非银行金融机构)被排除在欧洲债券市场之外。
Mortgage-backed . dollar eurobonds are away in which some thrift institutions have created the equivalent of bonds guaranteed by the government.抵押支持的美元欧洲债券是美国一些非银行金融机构创造的一种新融资工具，它可与美国政府提供担保的证券等同。
外国债券，欧洲债券，欧洲债券的特征，及欧洲债券的发行的几个步骤，欧洲债券的种类：浮动利率债券，零息债券，可转换债券
Unit13 Foreign Exchange Market
the Definition of Foreign Exchange
Foreign exchange refers to currency and money claims, such asbank balances and bank drafts, which is expressed in the equivalentvalue in foreign money. Thus, a pound sterling note is money in, but is foreign exchange in the U. S. A deposit of$1 an American bank to the account of a French companyconstitutes that amount of foreign exchange in . The termforeign exchange is also used to refer to transactions involving theconversion of money of one country into that of another or to the international transfer of money and credit instruments.
Foreign Exchange外汇
Foreign exchange refers to currency and money claims, such asbank balances and bank drafts, which is expressed in the equivalentvalue in foreign money.
外汇是指货币以及货币债权，例如：银行往来余额，银行汇票。which is expressed in the equivalentvalue in foreign money.用等价的外国货币形式表现出来的。
Currency：货币
money claims：货币债权
bank balances：银行往来余额
bank drafts：银行汇票
equivalentvalue：价值相等的
译文：外汇是指用等价外国货币形式表现出来的货币和货币债权，如银行往来余额和银行汇票。
Thus, a pound sterling note is money in, but is foreign exchange in the 因此1英镑钞票在英国是货币，在美国就是外汇。
A deposit of$1 an American bank to the account of a French companyconstitutes that amount of foreign exchange in .存入美国银行的法国公司账户上的1 000美元就成了同样金额的法国外汇。
Deposit in the bank
Deposit to the account of sb:存入某帐户
The termforeign exchange is also used to refer to transactions involving theconversion of money of one country into that of another or to the international transfer of money and credit instruments.
What is the main structure of this sentence?
It is: The termforeign exchange is used to refer to transactions and the international transfer.
The sentence means that: 外汇一词同样指交易或者国际间的转换。
What kind of transactions? And what kind international transfer?
From sentence we can see: transctions involving theconversion of money of one country into that of another , in this sentence: converstion: means 转换 conversion…into…:把…转换为…so the sentence means 把一国的货币转换为另一国的货币，into 后面的that 指代money.
Then what kind of international transfer? The international transfer of money and credit instruments.意思是货币与信用票据的国际间的转换。
译文：外汇一词同样用来表示涉及货币从一国向另一国转换的交易或涉及国际间货币和信用票据的转换。
The use of foreign exchange arises because different nationshave different monetary units, and the currency of one country cannot be used for making payments in another country. Because oftrade, travel, and other transactions between individuals and business enterprises of different countries, it becomes necessary to convert money into the currency of other countries in order to pay forgoods or services in those countries. The transfer of money valuesfrom one country to another and the determination of the price atwhich the currency of one country will be surrendered for that of another constitute the main problems of foreign exchange.
The use of foreign exchange arises because different nationshave different monetary units, and the currency of one country cannot be used for making payments in another country.外汇之所以产生是因为不同国家采用不同货币单位，一个国家的货币不能用来在另一国家进行支付。
Arise: （intransitive verb 不及物动词）后面不能接宾语。出现，产生
Several important legal questions arose in the contract negotiations在合同谈判时出现了几个重要的法律问题
Arise from: 由…而产生Can we begin by discussing matters arising from the last meeting?我们首先来讨论一下上次会议出现的问题，好吗？
monetary units,货币单位
Because oftrade, travel, and other transactions between individuals and business enterprises of different countries, it becomes necessary to convert money into the currency of other countries in order to pay forgoods or services in those countries. 由于不同国家之间的私人和公司企业进行贸易、旅游和其他各种交易活动，有必要将一国的货币转换成别国货币以便支付这些国家所提供的商品或服务。
The transfer of money valuesfrom one country to another and the determination of the price atwhich the currency of one country will be surrendered for that of another constitute the main problems of foreign exchange.
The sentence tell us the what is the main problems of foreign exchange, 从句子我们可以看到由and 并列的前后两个问题构成了（constitute）外汇的主要问题，and 前面的内容比较好理解，意思是：一国的货币价值转换为另一国的货币价值，and 后面的内容大家也许会觉得很费解，一定是surrender这个单词，影响了大家对这句话的理解，right?
Surrender 本义是：give up.
the price at which the currency of one country will be surrendered" means "the price at which the currency...will be given up" or "the price at which the currency...will be sold
其实be surrendered在这里相当于be sold,只是要比be sold更多了感情色彩，因此：the price atwhich the currency of one country will be surrendered for that of another：就可以理解为：一个国家的货币被卖给另一个国家的货币的价格，再简洁一点就翻译为：一个国家购买另一个国家的货币的价格。The determination of price: 意思是价格的规定
国与国之间货币的价值转换和用一国货币购买另一国货币的价格的规定构成了外汇的主要问题。
Price Fluctuation
Foreign exchange is a commodity, and its price fluctuates in accordance with supply and demand; exchange rates are published daily in the principal newspapers of the world. Foreigners need dollar exchange to pay for goods imported from the , for services supplied by the Americans, for interest and dividends earned byAmerican capital invested abroad, for the purchase of securities in the , and for other types of transactions. Americans buy foreign exchange for similar reasons. Payments for services that must be made by one nation to another include freight charges, insurance premiums, commissions, and travel expenses.
Price Fluctuation价格浮动
Foreign exchange is a commodity, and its price fluctuates in accordance with supply and demand; exchange rates are published daily in the principal newspapers of the world.
in accordance with：根据，依据
外汇是一种商品，它的价格根据供求关系变化而浮动，汇率每天都刊登在世界主要报纸上。
Foreigners need dollar exchange to pay for goods imported from the , for services supplied by the Americans, for interest and dividends earned byAmerican capital invested abroad, for the purchase of securities in the , and for other types of transactions.
The sentence tell us why people need dollar exchange, 这句话告诉我们外国人为什么需要美圆外汇，总的来说，需要美圆外汇dollar exchange是为了支付make payments, 那么都需要支付哪些费用呢？大家数一下有几个介词for? 一共是5个，每一个for 的后面都告诉了我们用dollar exchange 需要支付的项目：let’s see it one by one. pay for goods imported from the 支付从美国进口的商品for services supplied by the Americans,由美国人提供的服务、for interest and dividends earned byAmerican capital invested abroad支付美国资本在国外投资的利息、股利和for the purchase of securities in the , and for other types of transactions.
在美国购买的证券以及for other types of transactions.支付其他各种交易
译文：外国人需要美元外汇来支付从美国进口的商品，由美国人提供的服务、支付美国资本在国外投资的利息、股利和在美国购买的证券以及支付其他各种交易。
Americans buy foreign exchange for similar reasons. Payments for services that must be made by one nation to another includefreight charges, insurance premiums, commissions, and travel expenses.
Ok, this sentence tell us : Americans buy foreign exchange for similar reasons.美国人也因同样的原因要购买外汇. Payments for services that must be made by one nation to another includefreight charges, insurance premiums, commissions, and travel expenses.
这个句子的主语大家来找一下，Payments for services，谓语 include, 因此这句话要告诉我们需要支付的服务费包括哪些：freight charges海运费insurance premiums,保险费commissions佣金, and travel expenses旅行费.
大家可以看到同样是费用，但是在英语中不同的费用却用了不同的单词表示，这就需要发家把这些短语当作固定搭配来记忆了。
译文：美国人也因同样的原因要购买外汇。一国必须向另一国支付的服务费用，包括海运费、保险费、佣金和旅行费等。
merchants importing goods from buy drafts on from their banks. These drafts, or bills of exchange, create a supply of dollars and a demand for pounds. At the same time, other American merchants sell goods to persons in and receive drafts payable in pounds that they desire to convert into dollars. The foreign exchange banker buys the pounds from the American exporters and sells them to the importers who need pounds in exchange for their dollars.
merchants importing goods from buy drafts on from their drafts, or bills of exchange, create a supply of dollars and a demand for pounds.
进口英国商品的纽约商人通过本国银行购买可以在伦敦提取的汇票，这些汇票或外汇券导致对美元的供给和对英镑的需求。
At the same time, other American merchants sell goods to persons in and receive drafts payable in pounds that they desire to convert into dollars.同时，其他美国商人向英国人出售商品，得到了以英镑支付的汇票，而他们希望将这些汇票兑换成美元。
The foreign exchange banker buys the pounds from the American exporters and sells them to the importers who need pounds in exchange for their dollars. 外汇银行从美国出口商手里购进英镑，将其卖给需要用美元兑换成英镑的美国进口商。
Now, let’s see a figure to show the process of international payment (插入一个图表)
（20．30．988插入语音及图表）
Ordinarily, and without government restrictions, the rate of exchange, or the price of the currency of one country in terms of that of another, will depend on overall supply and demand and on the relative purchasing power of the two currencies, that is, on thecompetitive position of the two countries in world markets. Gold and wealth tend to flow from countries that buy more than they sell abroad. Since 1973 major currencies have fluctuated in importance,but those of West Germany :(now part of the unitedFederal Republic of Germany), Switzerland, and Japan have remained fairly strong.
Ordinarily, and without government restrictions, the rate of exchange, or the price of the currency of one country in terms of that of another, will depend on overall supply and demand and on the relative purchasing power of the two currencies,
One currency in terms of another currency: 一国的货币与另一国的货币的兑换
一般来说，在没有政府管制的情况下，汇率或一国货币转换成另一国货币的价格取决于供应和需求，以及两种货币的相对购买力。
that is, on thecompetitive position of the two countries in world markets. 也就是说，取决于两国在世界市场的竞争地位。
Gold and wealth tend to flow from countries that buy more than they sell abroad.
countries that buy more than they sell abroad.（进口多于出口的国家）
黄金和财富势必从进口多于出口的国家流失。
Since 1973 major currencies have fluctuated in importance,but Germany，Switzerland, and Japan have remained fairly strong.
自1973年以来，主要货币汇率的浮动与货币重要性有关。但是德国、瑞士和日本的货币一直保持坚挺。
Remain strong: 保持坚挺
Government Control
When the foreign exchange needs of a country exceed total receipts from abroad, and it has little gold and is unable to receive foreign credits, the exchange value of the currency of the country tends to decline. Under these conditions, the government has the alternative of allowing freedom of transactions in foreign exchange and permitting its currency to depreciate, or of abandoning free transfer ofcurrency by the establishment of exchange Control政府调控
When the foreign exchange needs of a country exceed total receipts from abroad, and it has little gold and is unable to receive foreign credits, the exchange value of the currency of the country tends to decline. 当一个国家对外汇的需求大于外汇收入且既无足够黄金又无法接收外汇信贷时，该国的货币交换价值将下跌。
foreign credits外汇信贷
exchange value交换价值
Under these conditions, the government has the alternative of allowing freedom of transactions in foreign exchange and permitting its currency to depreciate, or of abandoning free transfer ofcurrency by the establishment of exchange control.
This sentence tells us: what the government can do to maintain a stable exchange rate: 这句话告诉我们为了维持稳定的汇率，政府可以采取哪些措施，the government has the alternative of allowing freedom of transactions in foreign exchange and permitting its currency to depreciate,政府可采取的措施有：允许外汇的自由交易，允许本国货币贬值or of abandoning free transfer ofcurrency by the establishment of exchange control.或者取消货币的自由转换，通过对外汇兑换的控制
译文：在这样的情况下，政府可采取的措施有：允许外汇的自由交易，允许本国货币贬值；或者通过对外汇兑换的控制达到取消货币的自由转换。
The aim of suchcontrol is to limit the demand for and to increase the supply of foreign exchange in order to maintain a stable exchange rate. Controlusually provides for allocating foreign exchange only for approvedimports and requires that all or part of the foreign exchange derivedfrom exports or other sources be given to the central bank in exchange for local currency. Since the worldwide depression of the early 1930s, many countries, particularly the developing ones with limited exchange reserves, have periodically instituted foreign exchangecontrols.
The aim of suchcontrol is to limit the demand for and to increase the supply of foreign exchange in order to maintain a stable exchange rate.
这个句子中and 并列两个内容说明了the purpose of the government control. 政府控制的目的：一个是limit the demand forforeign exchange限制外汇的需求与increase the supply of foreign exchange增加外汇供给，最终呢来保持汇率的稳定
译文：调控的目的是限制外汇需求和增加外汇供给以便,保持稳定的汇率。
Controlusually provides for allocating foreign exchange only for approvedimports and requires that all or part of the foreign exchange derivedfrom exports or other sources be given to the central bank in exchange for local currency.
This sentence tells us : usually how the control is carring on: 这个句子告诉我们通常政府的调空是如何规定的：
Controlusually provides for allocating foreign exchange only for approvedimports。这个句子中approvedimports有许可的进口allocating：分配这个句子告诉我们调控一般规定为有许可的进口分配外汇 and requires that all or part of the foreign exchange derivedfrom exports or other sources并且要求出口和其他方面所得外汇（derived from: 由…而来的）be given to the central bank in exchange for local currency.交中央银行换取当地货币。
译文：调控一般规定为有许可的进口分配外汇并要求出口和其他方面所得外汇交中央银行换取当地货币。
Since the worldwide depression of the early 1930s, many countries, particularly the developing ones with limited exchange reserves, have periodicallyinstituted foreign exchangecontrols. 自20世纪30年代初世界性大萧条以后，许多国家，尤其是外汇储备较少的发展中国家都定期实施外汇管制。
exchange reserves外汇储备
periodically：定期
institute: v. introduce or start a system. 实施或启动instituted foreign exchangecontrols实施外汇控制
To help resolve the unbalanced international payments situation after World War II, the United Nations established in 1946the International Monetary Fund and the International Bank for Reconstruction and Development. The fund promotes currency stability and removal of foreign exchange restrictions by granting member nations foreign exchange loans to cover temporary deficits in their international accounts. The bank grants long-term foreign currencyloans to member countries for specific projects.
To help resolve the unbalanced international payments situation after World War II, the United Nations established in 1946the International Monetary Fund and the International Bank for Reconstruction and Development.为了解决二战后国际间的不平衡支付问题，联合国于1946年成立了国际货币基金组织、国际复兴开发银行。
The fund promotes currency stability and removal of foreign exchange restrictions by granting member nations foreign exchange loans to cover temporary deficits in their international fund=International Monetary Fund国际货币基金组织巩固了货币的稳定性，并减少了外汇限制, 通过对成员国借贷外汇来支付他们国际账户的暂时赤字，
grant loans: 发放贷款。
Deficits：赤字
The bank grants long-term foreign currencyloans to member countries for specific projects.世界The bank=the International Bank for Reconstruction and Development.银行对成员国的特殊项目实行长期外汇贷款。
The changes that took place in the world market in the 1970s,such as the tremendous rise in the price of oil, altered the roles thatmajor currencies played as foreign exchange reserve units for mosttrading countries. The U. S. dollar, in particular, underwent wideswings in value. In the 1970s it was considered a weakened currencyin international markets, but by the early 1980s the value of the dollar had risen to a new high against all major foreign currencies. In1985 the and its main trading partners began takingsteps to better align their currencies, and by 1987 the dollar hadweakened considerably.
The changes that took place in the world market in the 1970s,such as the tremendous rise in the price of oil, altered the roles thatmajor currencies played as foreign exchange reserve units for mosttrading countries. 20世纪70年代世界市场发生的变化，如石油价格的大幅度上升，改变了大多数贸易国家用作外汇储备单位的主要外国货币的作用。
The U. S. dollar, in particular, underwent wideswings in value.
Underwent: 原形 undergo: 经历
Wide swings: 大的幅度，或者大起大落
因此，此句的含义是：尤其是美元，经历了价值的大起大落。
In the 1970s it was considered a weakened currencyin international markets, but by the early 1980s the value of the dollar had risen to a new high against all major foreign currencies. 70年代，它在世界市场上被视为贬值的货币，但到80年代初，美元的价值上升到了一个新的高度并超过了所有的主要外汇。
a weakened currency：被贬值的货币，或者被削弱的货币
In1985 the and its main trading partners began takingsteps to better align their currencies, and by 1987 the dollar hadweakened considerably. 1985年美国和它的主要贸易伙伴开始采取措施，加强他们的货币联盟，而到了1987年，美元又被大大削弱。
takingsteps采取措施
(definition of foreign, and the price of foreign exchange, and government control of the foreign currency)
the Basics of Foreign Exchang Market
The trading of currencies takes place in foreign exchange markets whose major function is to facilitate international trade and investment. Foreign exchange markets, however, are shrouded inmystery. One reason for this is that a considerable amount of foreignexchange market activity does not appear to be related directly to theneeds of international trade and investment.
Basics of Foreign Exchange Markets外汇市场基本知识
The trading of currencies takes place in foreign exchange markets whose major function is to facilitate international trade and investment. 在外汇市场上进行着货币间交易，外汇市场的主要功能是为国际贸易和国际投资提供方便。Facilitate：促进…的运做或为…提供便利
Foreign exchange markets, however, are shrouded inmystery.但外汇市场总笼罩在一片神秘中.
Shrind:
One reason for this is that a considerable amount of foreignexchange market activity does not appear to be related directly to theneeds of international trade and investment.造成这种印象的一个原因是：相当大量的外汇市场交易活动似乎与国际贸易和国际投资的需要没有直接关系。
Spot, forward, bid, ask prices:
There is an almost bewildering variety of foreign exchange markets abound in a number of currencies. In addition, there are diverseprices for these every major newspaper, such as THE WALLSTREET JOURNAL or THE LONI3ON FINANCIAL TIMES,prints a daily list of exchange rates. These are expressed either asthe number of units of a particular currency that exchange for oneU. S. dollar or as the number of U. S. dollars that exchange forone unit of a particular currency. Sometimes both are listed side byside.
Spot, forward, bid, ask prices:即期、远期、买入和卖出价格：
There is an almost bewildering variety of foreign exchange markets abound in a number of currencies. In addition, there are diverseprices for these currencies.对于许多货币来说，各种各样的外汇市场几乎令人眼花缭乱，而且这些货币还有许多不同的价格。
Abound:
Virtually every major newspaper, such as THE WALLSTREET JOURNAL or THE FINANCIAL TIMES,prints a daily list of exchange rates. 几乎每一份主要报纸，如华尔街日报或者伦敦金融时报，都刊登着当天的汇率表。
These are expressed either asthe number of units of a particular currency that exchange for oneU. S. dollar or as the number of U. S. dollars that exchange forone unit of a particular currency. Sometimes both are listed side byside.
这句话告诉我们汇率是如何表示的：句子中的either or短语告诉我们汇率有两种表示方式：一种：表示兑换一美元所需要的某种货币的数量，另外一种是：一个单位的某种货币可以兑换的美元的数量，Sometimes both are listed side byside.有时这两种汇率并排列出。
For major currencies，up to four different prices typically willbe quoted. One is the "spot" price. The others may be "30 days forward", "90 days forward", and "180 days forward". These may beexpressed either in "European terms" (such as the number of U. per British Poundsterling) or in "American terms" (such asnumber of British Poundsterling per U. S. dollar).
For major currencies ， up to four different prices typically willbe quoted. One is the "spot" price. The others may be "30 days forward", "90 days forward", and "180 days forward".
This sentence tells us: how many prices will be quoted for a major currency: 这句话告诉我们对于主要货币，一般会表出哪几种价格。up to four different prices typically willbe quoted.这个句子中up to意思是一共。一般会标出4种不同的价格，One is the "spot" price.一种是“即期”价格，The others may be "30 days forward"另外几种可能是“30天远期”、"90 days forward"“90天远期”和"180 days forward".“180天远期”。
These may beexpressed either in "European terms" (such as the number of U. per British Poundsterling) or in "American terms" (such asnumber of British Poundsterling per U. S. dollar).这些汇率可以用“欧洲标价法”表示(例如，一个英镑可以兑换的美元数量)，也可以用“美国标价法”表示(例如，一个美元可以兑换的英镑数量)。
The spot price is what you must pay to buy currencies for immediate delivery (two working days in the interbank market; over the counter, if you buy bank notes or travellers checks). The forward prices for each currency are what you will have to pay if you sign a contract today to buy that currency on a specific future date (30 days from now, and so on). In this market, you pay for the currency when the contract matures.
The spot price is what you must pay to buy currencies for immediate delivery (two working days in the interbank market; over the counter, if you buy bank notes or travellers checks).
即期汇价是购买货币并且立即交割的价格 (银行同业市场上，需要两个工作日；如界你购买银行券或者旅行支票，则在柜台上当时就可以得到)。
The forward pricesfor each currency are what you will have to pay if you sign a contract today to buy that currency on a specific future date (30 days from now, and so on). 一种货币的远期汇价是你将来必须要支付的价格，如果你今天签署一份合约在未来某一日期上(如，30天期，等等)购买该种货币的。
In this market, you pay for the currency when the contract matures.在远期市场上，只是合约到期时才需要支付。
Why would anyone buy and sell foreign currency forward? There are some major advantages from having such opportunites available. For example, an exporter who has receipts of foreign currency due at some future date can sell those funds forward now, thereby avoiding all riskes associated with subsequent adverse exchange-rate changes. Similarly, an importer who will have to pay for a shipment of goods in foreign currency in, say, three monthes can buy the foreign exchange forward and , again, avoid having to bear the exchange-rate risk.
Why would anyone buy and sell foreign currency forward?为什么会有人买卖远期外汇呢?There are some major advantages from having such opportunites available.因为它有这样一些优点：an exporter who has receipts of foreign currency due at some future date can sell those funds forward now,例如，一位出口商有一笔在未来某一日期到期的外币收入，他可以售出这些资金的远期，thereby avoiding all riskes associated with subsequent adverse exchange-rate changes.以避免此后汇率不利变动造成的风险。Similarly, an importer who will have to pay for a shipment of goods in foreign currencyin,say, three monthes同样。一位进口商将在3个月时支付一批货物的外币货款， can buy the foreign exchange forward and , again, avoid having to bear the exchange-rate risk 他可以买入这种外汇远期，用以避免汇率风险。
Theexchange rates quoted in the financial press are not the ones individuals would get at a local bank. Unless otherwise specified, the published prices refer to those quoted by banks to other banks for currency deals in excess of $1 million. Even these prices will vary somewhat depending upon whether the bank buys or difference between the buying and selling price is known as the"bid/ask spread". The spread partly reflects the banks' costs andprofit margins in transactions; however, major banks make theirprofits more from capital gains than from the spread.
Theexchange rates quoted in the financial press are not the ones individuals would get at a local bank. 金融报纸上公布的外汇标价并不是一个人可以在当地银行得到的汇率。
Press:
financial press金融报纸
Unless otherwise specified, the published prices refer to those quoted by banks to other banks for currency deals in excess of $1 million.
This sentence tells us: what does the published prices refer to? 这句话告诉我们，公布的汇率是什么？the published prices refer to those quoted by banks to other banks for currency deals公布的汇率是指那些银行间外币交易汇率
除非另有明文规定，公布的汇率是指那些银行间超出100万美元的外币交易中所采用的汇率。
in excess of: 超出
Even these prices will vary somewhat depending upon whether the bank buys or sells.
甚至这些价格也会变动，depending upon whether the bank buys or sells.根据银行是买进和卖出外汇。
The difference between the buying and selling price is known as the"bid/ask spread".银行的买进和卖出的价格上的差异被称作：买卖差价(bid／ask spread)。
The spread partly reflects the banks' costs andprofit margins in transactions; however, major banks make theirprofits more from capital gains than from the spread.这个差价部分地反映了银行在交易中的费用和利润，但是银行的利润主要来自资本利得，而不是这种买卖差价。
The market for bank notes and the travellers checks is quiteseparate from the interbank foreign exchange market. For smallercurrency exchanges, such as an individual going on vocation abroadmight make, the spread is greater than in the interbank presumably reflects the larger average cost & including the exchange-rate risks that banks face by holding bank notes in denominations too small to be sold in the interbank market-associated with these smaller exchanges. As a result, individuals generally pay ahigher price for foreign exchange than those quoted in the newspapers.
The market for bank notes and the travellers checks is quiteseparate from the interbank foreign exchange market. 银行券和旅行支票市场与银行间的外汇市场基本上是分离的。
For smallercurrency exchanges, such as an individual going on vocation abroadmight make, the spread is greater than in the interbank market.对于小额的外汇兑换，比如一个人到国外旅游要兑换外币，买卖差价要大于银行间市场的买卖差价。
smallercurrency exchanges小额的外汇兑换
This presumably reflects the larger average cost其中的差距大致反映了小额外汇交易较高的平均成本
As a result, individuals generally pay ahigher price for foreign exchange than those quoted in the newspapers.因而个人购买外汇支付的价格通常高于报纸上公布的汇率。
How does the Foreign Exchang Market Operate?
It is generally not possible to get into a specific building and"see" the market where prices of foreign exchange are few exceptions, the vast bulk of foreign exchange business isdone over the telephone between specialist divisions of major exchange dealers in each bank usually operate from oneroom; each dealer has several telephones and is surrounded by videoscreen and video tapes. Typically, each dealer specializes in one or asmall number of markets (such as sterling/dollar). Trades are conducted with other dealers who represent banks around the dealers typically deal regularly with one another and are thusable to make firm commitments by word of mouth.
How does the foreign exchange market operate?外汇市场如何运行?
It is generally not possible to get into a specific building and"see" the market where prices of foreign exchange are determined.通常不可能进入某座建筑物里去“看”外汇市场，价格是如何确定的。
With few exceptions, the vast bulk of foreign exchange business isdone over the telephone between specialist divisions of major banks.除少数例外情况，绝大部分外汇交易是主要银行的专业部门之间通过电话进行的。
Foreign exchange dealers in each bank usually operate from oneroom; each dealer has several telephones and is surrounded by videoscreen and video tapes. 每家银行的经纪人通常在一个房间里操作，每个经纪人都使用几部电话，周围摆满了录像屏幕和录像带。
Typically, each dealer specializes in one or asmall number of markets (such as sterling/dollar).
一般每个经纪人专门从事一个或者几个市场的操作(如英镑对美元，
Trades are conducted with other dealers who represent banks around the world.外汇交易通过世界各地银行的外汇经纪人来进行。
These dealers typically deal regularly with one another and are thusable to make firm commitments by word of mouth..这些经纪人通常相互之间固定进行交易，因此在他们之间建立了一诺千金的信用。
Only the head or regional officers Of the larger banks activelydeal in foreign exchange. The largest of these banks are known as"market makers", since they stand ready to buy or sell any of themajor currencies on a more or less continuous basis. Usually largetransactions, however, will only be accommodated by market makers on more favorable terms. In such cases, foreign exchange brokers may be used as middlemen to find a taker or takers for the do not trade on their own account, but specialized in settingup large foreign exchange transactions in return for a commission(typically cents or less on the sterling spread).
Only the head or regional officers of the larger banks activelydeal in foreign exchange. 只有大银行总部或者地区分部经常从事外汇交易。
The largest of these banks are known as"market makers", since they stand ready to buy or sell any of themajor currencies 其中最大的银行随时准备持续地买入和售出任何主要货币，因而被称为“做市商”。
Usually largetransactions, however, will only be accommodated by market makers on more favorable terms. 通常较大的交易只有造市者银行才能以比较优惠的条件来承担。
On favorable terms: 以比较优惠的条件
In such cases, foreign exchange brokers may be used as middlemen to find a taker or takers for the deal.在这种情况下，外汇经纪方只是充当中间人寻找交易的接受方。
Brokers do not trade on their own account, but specialized in settingup large foreign exchange transactions in return for a commission(typically cents or less on the sterling spread).经纪商自己不为自己交易，专门操作一些大的外汇交易赚取佣金(通常为英镑利润幅度的0．03美分，或者更少)。
Most small banks and local offices of major banks do not dealdirectly in the interbank foreign exchange market. Rather, theytypically will have a credit line with a large bank or their head offiae. Transactions will thus involve an extra step. The customerdeals with a local bank, which in turn deals with a major bank orhead office. The interbank foreign exchange market exists betweenthe major banks either directly or indirectly via a broker.
Most small banks and local offices of major banks do not dealdirectly in the interbank foreign exchange market. 大部分小银行和主要银行的地方机构不直接参与银行同业外汇市场。
Rather, theytypically will have a credit line with a large bank or their head office.通常他们从主要银行或者他们的总部获得信贷额度，
Transactions will thus involve an extra step.这样交易就又多了个步骤。
The customerdeals with a local bank, which in turn deals with a major bank orhead office. 也就是说，顾客同本地银行交易，本地银行同主要银行或者总部交易.
The interbank foreign exchange market exists betweenthe major banks either directly or indirectly via a broker.主要银行在同业外汇市场上直接交易或者通过经纪公司间接交易。
Just now we talked about the foreign exchange market: we introduce some basic information: what is spot price, forward price, bid, price and ask price, and spead. Then we distinguish the foreign exchange published in newspapers and the foreign exchange for individual users. the published prices refer to those quoted by banks to other banks for currency deals in excess of $1 we talked about how the foreign exchange market operate.
Unit14 Stock Market
the Processes of Investing Money in the Stock Market
In the largest" city in many countries around the world, youmay want to visit the stock exchange. There are stock exchanges in, , , , andmany other places. One ofthe largest, most famous and most important stock exchanges inthe world is located in . The market, as a stock exchange is sometimes called, is important to many people becausethey make money by investing in it. In this essay, the stock exchange itself will be explained, and the process of investing moneyin the stock market will be described.
Stock Market证券市场
In the largest city in many countries around the world, youmay want to visit the stock exchange.在世界上许多国家的大城市中，你可能想去参观一下证券交易所。
There are stock exchanges in, , , , andmany other places.巴黎、伦敦、东京、多伦多和其他许多城市都有证券交易所。
One ofthe largest, most famous and most important stock exchanges inthe world is located in .世界上最大的、最著名的和最重要的证券交易所之一设在纽约市。
The market, as a stock exchange is sometimes called, is important to many people becausethey make money by investing in it.证券市场，有时被称为股票交易所，对许多想通过投资股市而赚钱的人们来说是非常重要的。
In this essay, the stock exchange itself will be explained, and the process of investing moneyin the stock market will be described.在这篇文章中，我们将向你解释股票交易的定义和股票交易的过程。
Perhaps you can guess what happens at a stock market from itsname. It is called a market because it is a place where some peoplesell things and others buy things. An exchange of things takesplace. The things that are exchanged at the stock market are shares
of stock in businesses or companies. The shares represent a partialownership of the words, if you buy shares ofstock in a business, you become a partial owner of the business. Thestock market or stock exchange, then, is a place where people canbuy or sell shares in a particular company or business.
Perhaps you can guess what happens at a stock market from itsname.或许，你能从证券市场的名称猜出其中发生的一切。
It is called a market because it is a place where some peoplesell things and others buy exchange of things takesplace.证券市场之所以被称之为市场，是因为它是一些人们买卖东西的地方，交易在此进行。
The things that are exchanged at the stock market are sharesof stock in businesses or companies.证券市场所交易的东西是企业或公司的股票，The shares represent a partialownership of the company.股票代表着该公司的部分所有权。
Inother words, if you buy shares ofstock in a business, you become a partial owner of the business.换言之，如果你买进某一企业的股票，你就成为该企业的部分所有者。
Partial: a partial success
The patient mayonly make a partial recovery. 那病人或许只能部分
Thestock market or stock exchange, then, is a place where people canbuy or sell shares in a particular company or business.证券市场或者证券交易所就是人们买卖某一特定公司或企业的股票的场所。
Many different kinds of people buy shares of stock in the stockmarket. Some of these people are very wealthy. They have a lot ofmoney; they have much more money than they really need for everyday living expenses. They buy shares of stock in hopes of gettingmore money than they have. Other people are not very rich, butthey buy stock anyway. They may buy it to try to become rich. Orthey may buy it as part of a plan to save money. There are manyother reasons why people buy and sell stock. In general, everyonewho buys or sells stock hopes to make money. All the people whobuy stock are investing money in a company or business. They arecalled investors.
Many different kinds of people buy shares of stock in the stockmarket.各种各样的人们都在证券市场购买股票。
Some of these people are very wealthy. They have a lot ofmoney; they have much more money than they really need for everyday living buy shares of stock in hopes of gettingmore money than they have.他们其中有些人非常富有，很有钱，远远超出他们的日常生活费用所需，他们买股票是希望赚更多的钱。
Living expenses: 生活费
Other people are not very rich, butthey buy stock may buy it to try to become rich. Orthey may buy it as part of a plan to save money..另一些人并非富有，但是他们也买股票，他们买股票是想发财致富，或者作为储蓄计划的一部分。
There are manyother reasons why people buy and sell stock人们买卖股票的原因很多，In general, everyonewho buys or sells stock hopes to make money.总而言之，每一个买卖股票的人都希望赚钱。
All the people whobuy stock are investing money in a company or business. They arecalled investors.所有股票购买者都是对某公司或企业进行投资，他们被称为投资者。
Ok, this paragraph tell us: Both people who are rich and who are not rich would like to buy stock, their purpose is the same: to get more money than they have. These people are called investors.
Why does a company want to share its money with other people? There are several reasons. :First, the company may be doingvery well. It may need money to expand. By selling shares of stock,the company can get the money it needs. Sometimes, it is advantageous for the company to "go public" for tax reasons. Because of thetax laws, the company may save money on taxes by selling shares onthe stock exchange. Sometimes, a company may owe a lot of moneyto banks. By selling shares of stock, it may be able to pay thebanks. Many companies sell stock for this reason. However, thereasons why companies sell their stock on the stock exchange are often complex. In general, all companies that sell shares of stock onthe stock exchange needto raise money for one reason or another.
Why does a company want to share its money with other people?公司为什么愿与他人分享其资金呢?There are several reasons. :有以下几个原因：
First, the company may be doingvery may need money to expand. By selling shares of stock,the company can get the money it needs.该公司可能目前经营情况良好，需要资金扩大业务，通过出售股票，该公司能得到所需资金；
the company may be doingvery well: 公司可能目前经营情况良好
(大家还记得在口语中我们问候对方时常说：how are you doing? 对方会回答：I am doing very well. 这两句子中的do well 意思是一样的，都表示，干的好，一切进行非常顺利。)
do well：干的好，一切进行非常顺利
Sometimes, it is advantageous for the company to "go public" for tax reasons.有时由于税收原因，“发行股票”对公司会非常有利，
Because of thetax laws, the company may save money on taxes by selling shares onthe stock exchange.因为税法规定公司在证券交易所出售股票可以减免税收；
save money on taxes减免税收
Sometimes, a company may owe a lot of moneyto banks. By selling shares of stock, it may be able to pay thebanks.还有的时候，公司拖欠银行巨款，可以通过出售股票获得资金偿还银行款项，Many companies sell stock for this reason.许多公司都是因为这个原因而出售股票的。
However, thereasons why companies sell their stock on the stock exchange are often complex.尽管如此，公司在证券交易所出售股票的原因通常是非常复杂的。
In general, all companies that sell shares of stock onthe stock exchange needto raise money for one reason or another.一般而言，无论出于什么原因，所有在证券交易所出售股票的公司都是为了聚集资金。
Investors who buy shares of stock in a company may makemoney in two ways: They may begin to make money right that a person invests in a company, and the company makes money. The company shares this money with the investor. Thismoney that is shared is called a dividend. Dividends are usually sentto investors once every three months while they own the stock. Asecond way that investors may make money is to sell the stock at ahigher price than they paid when they bought it. The price of eachshare of stock goes up if thecompany does very well. It may also goup for many other reasons. But when it does go up, a person maysell it arid make a profit.
Investors who buy shares of stock in a company may makemoney in two ways: They may begin to make money right away.购买公司股票的投资者可以用两种方式赚到钱，并且可以立即赚到钱。
Suppose that a person invests in a company, and the company makes company shares this money with the that is shared is called a dividend.假设：某人向某公司投资，而该公司盈利了，该公司则与这位投资者分享利润，分到的钱称为股利。
Dividends are usually sentto investors once every three months while they own the stock.通常，股利每3个月一次分派给持股的投资者。
Asecond way that investors may make money is to sell the stock at ahigher price than they paid when they bought it.第二种办法是投资者以高出买入价的价格售出股票：
The price of eachshare of stock goes up if thecompany does very well.如果该公司经营状况良好；股票价格就会上涨，
It may also goup for many other reasons. 股价也会因其他诸多原因上升。
But when it does go up, a person maysell it and make a profit.当股票价格确实上涨时，投资者卖出股票就可获得利润。
Investing money in the stock market is not the safest way in theworld to make more money. There is no guarantee, that the company will do well, and that the stock will go up, the company may dobadly. Then the stock will go down, and the investors will losemoney. The stock may go up or down for a number of very complexreasons. Everyone wants the stock market to go up, but sometimeseven when a company does well the stock may go down. This isusually true for all stocks.
Investing money in the stock market is not the safest way in theworld to make more money.投资于股市不是世界上最保险的赚钱方法。
There is no guarantee, that the company will do well, and that the stock will go up.
This sentence tells us why it is not the safest way. Because: One is there is no guarantee, that the company will do well公司经营一直保持良好是无法保障的。The other is there is no guarantee that the stock will go up,股票价格上涨也是没有保障的.
The company may the stock will go down, and the investors will losemoney.公司若经营不好，股票价格将会下跌，投资者就会赔钱。
The company does well
The company does badly.
The stock may go up or down for a number of very complexreasons.股票价格会因为许多非常复杂的原因而涨跌。
Everyone wants the stock market to go up, but sometimeseven when a company does well the stock may go down. This isusually true for all stocks.每个人都希望股市上涨，但是有时甚至公司经营良好时，股票价格也可能下跌，这对所有股票来说都是常见的。
Investing money in the stock market is a gamble. Everyonehopes to make money by investing. Companies that need money areglad that many people are willing to gamble in order to make money. The stock market is a very interesting and complex part of thebusiness world.
Investing money in the stock market is a gamble. Everyonehopes to make money by investing.股票投资是一种(赌博)投机，人人都希望投资获利，
Companies that need money areglad that many people are willing to gamble in order to make money.需要资金的公司愿意看到有很多人为了赚钱而去投机。
The stock market is a very interesting and complex part of thebusiness world.总之，证券市场是商业世界中非常有趣又十分复杂的一部分。
the American Stock Market
The American stock market is the most closely watched of themarkets around the world. There are several reasons for this. TheAmerican stock market reflects the economic outlook of most Americans. It also reflects the state of American business in general. The
New York Stock Exchange often has an effect on stock markets inother countries. The stock market is also watched for reactions in the to international and national news of these aspects of the stock market is quite complex.
Stock Market证券市场
The American stock market is the most closely watched of themarkets around the world.美国的证券市场在世界上是最受关注的证券市场。
the most closely watched: 倍受关注的
There are several reasons for this. TheAmerican stock market reflects the economic outlook of most also reflects the state of American business in general.这是因为以下几个原因：美国的证券市场不仅反映出大多数美国人对经济前景的预估，也反映出美国企业的大体状况；
TheNew York Stock Exchange often has an effect on stock markets inother countries.纽约证券交易所经常对其他国家的证券市场产生影响；
The stock market is also watchedfor reactions in the to international and national news developments.人们还会因为美国对国际和国内新闻发展趋向所作出的反应而关注到证券市场。
Each of these aspects of the stock market is quite complex.证券市场的每一方面都是相当复杂的。
The way in which the stock market is watched and studied is importantand interesting. The American stock market is usually reported to be up or down as compared to the previous day's up or down position of the market is calculated by taking an average of the price changes of a few important stocks. In fact, threeaverages are calculated. These are called the Dow Jones Averages.
The way in which the stock market is watched and studied is importantand interesting.观察和研究证券市场的方法既重要又很有趣。
The American stock market is usually reported to be up or down as compared to the previous day's business.美国的证券市场通常与前一天的交易比较而报告股市涨落的情况。
The up or down position of the market is calculated by taking an average of the price changes of a few important stocks.股市行情的高低是根据一些重要股票价格变化的平均数计算出来的。
is calculated by：由…计算得来的
In fact, threeaverages are calculated. These are called the Dow Jones Averages.实际上，它是根据3种平均指数计算的。这些平均指数称为道．琼斯指数，
These are averages of thirty industrial stocks, twenty railroadstocks, and fifteen utility stocks. The averages of these groups ofstocks show what is happening in the market generally. Several other averages similar to these are also used. The New York Stock Exchange has its own average of stock prices. In general, if the Dow Jones Averages (sometimes called the "Dow") are up, then moststocks are probably up. If the averages are down (or "off", as theyare sometimes said to be), then most stocks are probably down inprice compared to the previous day. And whether the Americanstock markets are up or down in these ways may tell you quite a lotabout the general economic outlook.
These are averages of thirty industrial stocks, twenty railroadstocks, and fifteen utility stocks.道．琼斯指数，是30只工业股票、20只铁路股票和15只公用事业股票价格的平均数，
The averages of these groups ofstocks show what is happening in the market generally.这几组股票的平均数大体上反映出股市的行情。
Several other averages similar to these are also used.其他几种类似的平均指数也被采用。The New York Stock Exchange has its own average of stock prices.纽约证券交易所有它自己的股票价格指数。
In general, if the Dow Jones Averages (sometimes called the "Dow") are up, then moststocks are probably up.一般情况下，道·琼斯指数(有时称为“道”)上升，则大多数股票价格可能上涨。
If the averages are down (or "off", as theyare sometimes said to be), then most stocks are probably down inprice compared to the previous day.如果道·琼斯指数下降(或有时被称为“下跌”)，则大多数股票价格较之前一天可能回落。
And whether the Americanstock markets are up or down in these ways may tell you quite a lotabout the general economic outlook.因此，美国证券市场的近期涨落情况能向人们充分说明总的经济前景。
The American stock market reflects the economic outlook ofmost Americans. Many of the people who invest in the stock marketare small investors. They do not have very much money invested instocks. Usually, these people buy stock for two reasons. First, ifthey have extra money which they would like to invest, they arelikely to put it into the stock market. Second, when the market isgoing up, an investor can make money by investing. When economic times are good in the , many people may buy smallamounts of stock. All of this buying may cause the market to go up,reflecting good times and confidence in the American times are bad and people are short of money, they are likelyto hold on to their money. They may also decide to sell stock theyalready own. Both actions give people more money for their ownuse. In either ease, the market will generally go down as a result,reflecting the economic outlook of investors.
The American stock market reflects the economic outlook ofmost Americans.美国的证券市场反映出多数美国人对经济前景的展望。
Many of the people who invest in the stock marketare small investors.许多投资证券市场的人都是小投资商，
They do not have very much money invested , these people buy stock for two reasons.他们没有太多的钱去投资股票。通常，这些人购买股票出于两种原因：
First, ifthey have extra money which they would like to invest, they arelikely to put it into the stock market.第一，如果他们想用多余的．钱去投资，他们有可能将这笔钱投资于证券市场；
Second, when the market isgoing up, an investor can make money by investing.第二，当股市上涨时，投资者可以通过投资获利。
When economic times are good in the , many people may buy smallamounts of stock.当美国的经济状况良好时，很多人有可能买进少量股票，
All of this buying may cause the market to go up,reflecting good times and confidence in the American economy.所有这些购买行为可以造成股市上扬，从而反映出美国经济的好年景和人们对它的信心。
When times are bad and people are short of money, they are likelyto hold on to their money. They may also decide to sell stock theyalready own.当时局不好和人们缺少资金时，他们可能摁住钱不动，也可能决定卖掉他们拥有的股票。
Both actions give people more money for their ownuse. In either ease, the market will generally go down as a result,reflecting the economic outlook of investors.两种举动都可以给他们更多的钱以支配使用，在任何一种情况下，其结果都会使股市普遍下降，从而反映出投资者的经济前景。
The American stock market is also an index of American business. Many of the same things that cause individual investors to buyor sell stock also cause businesses to buy or sell. If times are goodand businesses have money, they also may invest in the stock mar -ket. In this way, the stock market shows whether the whole economy is doing welt or not. Large companies may own large, amounts ofstock. If a large company buys or sells many shares of a majorstock, this may affect the stock of other companies in related fields.
The American stock market is also an index of American business.美国的证券市场也是美国企业的表征。
Many of the same things that cause individual investors to buyor sell stock also cause businesses to buy or sell.影响个人投资者买卖股票的诸多因素也同样影响着美国企业买卖股票。
If times are goodand businesses have money, they also may invest in the stock this way, the stock market shows whether the whole economy is doing well or not.如果时局好并且企业有资金，企业也会投资证券市场，这样，股市就可以反映整个经济的运行状况。
Large company may own large amount of stock. 大公司可以拥有大量的股票。
If a large company buys or sells many shares of a majorstock, this may affect the stock of other companies in related fields.如果某一大公司买进或卖出某一重要股票的大宗股份，这有可能影响到相关领域的其他公司的股票。
A decision to buy or sell stock by one or a few of these large companies may have a very important effect on the market as a whole.由一家或几家这样的大公司所作出的买卖某种股票的决定，可以对整个股市产生非常重要的影响。
The American stock market has a strong effect on other stock exchanges. There are stock exchanges in many major cities around the world. All of these stock exchanges watch the activity of the two American exchanges. This is because each business all over the world is affected by all other business. It is also because the two American stock exchanges---the New York Stock Exchange and the American Stock Exchange--are two of the largest in the world. Developments on the American exchanges have an effect on developments on other exchanges around the world.
The American stock market has a strong effect on other stock exchanges.美国的证券市场对其他证券交易所有很大的影响。
There are stock exchanges in many major cities around the world.全世界许多大城市都有证券交易所，All of these stock exchanges watch the activity of the two American exchanges.所有这些证券交易所都在注视着美国两大证券交易所的动态。
This is because each business all over the world is affected by all other business.这是因为世界上每一个企业都会受到其相关所有的企业的影响。
It is also because the two American stock exchanges---the New York Stock Exchange and the American Stock Exchange--are two of the largest in the world.还因为这两大美国证券交易所——纽约证券交易所和美国证券交易所——是世界上最大的两个证券交易所。
Developments on the American exchanges have an effect on developments on other exchanges around the world.美国证券交易所的发展对世界各国交易所的发展都有影响。
Finally, the stock market is an index of reaction to developments in the news. In the stock exchange in New' , there are special news screens from the international news wire services.
Finally, the stock market is an index of reaction to developments in the news最后，证券市场是反映新闻传播的表征。
an index of reaction to:
In the stock exchange in New' York, there are special news screens from the international news wire services.纽约的证券交易所都有发自国际新闻通讯社的专用新闻屏幕。
When they look at these screens, all the people at the stock exchange know about important news developments. The same news is flashed on screens in brokersoffices. If your broker knows that a newdevelopment will influence your stock, he may quickly tell you to buy or sell. People who invest money in the stock market seem to be affected by major news developments. International crises of any kind will usually cause people to sell stock. Usually, the market will go down if many people want to sell their stock. Good business developments which may make business prosper are usually received favorably on the stock market. Good news of this kind encourages people to buy stock. Such developments will usually make the stock market go up.
When they look at these screens, all the people at the stock exchange know about important news developments.当证券交易所里的人们观看这些屏幕时，他们就能知道重大新闻的发展。
The same news is flashed on screens in brokersoffices.同样的新闻也会在经纪人办公室的电视屏幕上播出。
If your broker knows that a newdevelopment will influence your stock, he may quickly tell you to buy or sell.如果你的经纪人知道某项新闻将会影响你的股票，他会立即告诉你买进或卖出。
People who invest money in the stock market seem to be affected by major news developments.投资证券的人们似乎容易受到重大新闻发展的影响。
Good news of this kind encourages people to buy stock. International crises of any kind will usually cause people to sell stock.一般说来，好的新闻会鼓励人们去购买股票，任何一种国际危机都会造成人们抛售股票。
Usually, the market will go down if many people want to sell their stock.通常情况下，如果许多人都想出售他们的股票，股市将会下跌。
Good business developments which may make business prosper are usually received favorably on the stock market.能使企业兴隆的良好发展动态通常会受到证券市场的优先接纳，
Good news of this kind encourages people to buy stock. Such developments will usually make the stock market go up.这种好消息鼓励人们购买股票，而如此良好的发展通常将使股市上涨。
The stock market activity is important to many people. Every hour of a business day, the radio news will include a report on the stock market. Usually, the Dow Jones Averages are given, and the stock market is said to be up or down compared to the previous developments are important to everyone from the individualinvestor tomajor American and international businesses. It is notsurprising that the American stock market is a closely watched economic barometer.
The stock market activity is important to many people.证券市场的动态对许多人来讲都是非常重要的。
Every hour of a business day, the radio news will include a report on the stock market.营业日的每一小时，广播新闻都有股市行情的报告。
Usually, the Dow Jones Averages are given, and the stock market is said to be up or down compared to the previous day.一般情况下，道·琼斯指数一经给出，股市较之前一天的涨落就可以确定。
These developments are important to everyone from the individualinvestor tomajor American and international businesses.这些发展动态对任何投资者，无论是个人投资者还是美国国内和国际上各大企业来说，都是非常重要的。
It is notsurprising that the American stock market is a closely watched economic barometer.毫不奇怪，美国的证券市场是被人们密切注视的经济晴雨表。
barometer.气压计，晴雨表
Exercises of Stock Market 1
Read the following text and then decide whether the statements following are TRUE or FALSE:
The act of issuing shares (GB) or stocks () - . offering them for sale to the public - for the firsttime, is known as floating a company or making a flotation. Companies generally use a bank tounderwrite the issue. In return for a fee, the bank guarantees to purchase the security issue at an agreedprice on a certain day, althoughit hopes to sell it to the public(2). Successfulcompanies can apply to have their shares traded on the major stock exchanges, but in order to bequoted (GB) or listed (US) there, they have to fulfill a large number of requirements. One of these isto send their shareholders independently-audited annual reports, including the year's trading results（年度交易情况）and a statement of the company's financial position（公司财务状况报告）.Buying a share gives its holder part of the ownership of a company. Shares generally entitle theirowners to vote at companies' General Meetings（股东大会）, to elect company directors（董事）, and to receive aproportion of distributed profits（一部分分配的利益） in the form of a dividend（股利） (or to receive part of the company's residualvalue if it goes into bankruptcy)（如果公司破产，会获得公司的残余的价值（剩余价值））. Shareholders can sell their shares at any time on the secondarymarket, but the market price of a share -which reflects how well or badly the company is doing - may differ radically from its nominal, face, orpar value.（面值）
At the London Stock Exchange, share transactions do not have to be settled until the account day orsettlement day（结算日） at the end of a two-week accounting period（会计期间）. （在伦敦股票交易所，股票交易的结算一般是在为期两周的会计期结束时的交易日才进行结算的）This allows speculators to buy shareshoping to resell them at a higher price before they actually pay for them, 这就使得购买股票的投机者在实际结算时，能以更高的价格再次买掉股票or to sell shares, hoping tobuy them back at a lower price（或者呢，使得卖出股票的投机者能以更底的价格将股票买回）.If a company wishes to raise more money for expansion（扩大经营） it can issue new shares. These are frequentlyoffered to existing shareholders at less than their market price（增发的新股通常会以低于市价的价格向现有股东发售: this is known as a rights issue.通常把这种股叫做（优惠股）Companies may also turn part of their profit into capital by issuing new shares to shareholders insteadof paying dividends. （公司也可以通过给股东发行新股把部分的利润转换为资本This is known as a bonus issue or scrip issue or capitalization issue in Britain（在英国，这种股票称为：红利股）（新发行的股票按持股比例向现有股东分发）, andas a stock dividend or stock split in the US. American corporations are also permitted to reduce theamount of their capital by buying back their own shares（美国的公司也被允许通过买回自己公司的股票的方式来减少资本量, which are then known as treasury stock（库藏股）; inBritain this is generally not allowed（在英国公司是不允许这样做的, in order to protect companies' creditors为了保护公司债权人的利益. If a company sells sharesat above their par value, this amount is recorded in financial statements（财务报表） as share premium (GB) orpaid-in surplus (US).（股票溢价）（如果公司股票的价格以高于其票面价格出售，那么这个在财务报表中记录的几个就是股票溢价，英国的称呼和美国不一样。
。
The Financial Times-Stock Exchange (FT-SE) 100 Share Index (known as the "Footsie") records theaverage value of the 100 leading British shares, and is updated every minute during trading.
英国金融时报 100指数（富时100 指数）：是伦敦证券交易所的基准股价指数，英文简称：the Footsie”, 该指数的成分为英国市值最大的100只股票，占股市成交量的70%。该指数是按股票市值加权的股价指数，是伦敦国际金融期货交易所的指数期货和期权合约的标的指数
1. A company can only be floated once. TRUE/FALSE
2. Banks underwrite share issues when they want to buy the shares. TRUE/FALSE
It is false because Banksthey want to sell the shares to the public .
3. The market price of a share is never the same as its nominal value. TRUE/FALSE
4. On the London Stock Exchange it is possible to make a profit TRUE/FALSE
without ever paying anyone any money. (this one could be a little bit difficult, think it carefully, please, 在伦敦股票交易所你很有可能获得利润而不需要给任何人付钱
5. If a company issues new shares, it has to offer them to existing TRUE/FALSE
shareholders at a reduced price.
Change into: at less than their market price
6. A scrip issue can be an alternative to paying a dividend. TRUE/FALSE
a bonus issue or scrip issue or capitalizationissue (红利股) 可以是支付股利的一种替代模式
7. American corporations with large amounts of cash can spend it TRUE/FALSE
by buying their own shares.
拥有大量现金的美国公司可以通过回购自己公司的股票减少资本量
8. Companies do not have to sell their shares at their nominal value. TRUE/FALSE
Exercises of Stock Market 2
Add appropriate words from the text to these sentences:
1. Offering shares to the public for the first time is called floating_ a company.
2. A company offering shares usually uses a merchant bank tounderwrite_the issue.
3. The major British companies arequoted_ on the London Stock Exchange.
4. In , share transactions haveto be settled_ every two weeks.
在伦敦股票交易必须每隔2周结算一次。
5. The value written on a share is itsnominal, face or par value___
写在股票上的价值是他的面值
已发行证券的明确价值，这个价值长期维持固定，相对于随着市场波动的市场价值
债券工具上列明的本金额
纸币或硬币上印明的价值
The value listed in the newspapers is itsmarket price_____
Complete the sentences using these words:
arbitrageurs bears bulls insiders
market-makers shareholders stags stockbrokers
1. People who buy stocks and shares are calledshareholders_in and stockholders in the (although most of the shares of all leading companies are held by institutional investors such as pension funds and insurance companies).
2. People who buy securities expecting their price to rise so they can resell them before the next settlement day are known as bulls__多头，做多者
3. People who sell shares hoping to buy them back at a lower price before the next settlement day are calledbears_空头，做空者
4. People who buy new share issues, hoping to resell them at a profit (if the issue is over-subscribed) are known as_____ stags____新股套利者
5. Shareholders place their orders with, and sometimes seek advice from __stockbrokers________ who are members of the Stock Exchange, but who can work anywhere with a telephone and a computer screen connected to the Stock Exchange.股东向股票经济人下单，并且有时向他们咨询建议，股票经济人是交易所的成员，他们可以在任何地方工作，用一部电话和一台与股票交易所相连的电脑。
6. Brokers in turn buy shares from and sell them to market-makers_______, who are wholesalers in stocks and shares, and who guarantee to make a market at all times with brokers.
经纪人再和做市商买卖股票，做市商是指股票批发赏，他们保证在任何时候和经纪商做市（近一步解释：做市商有专家总结出NASDAQ成功的因素包括三个：做市商制度、严格监管和诚实的上市公司，而最重要的是采用了做市商制度。传统交易是由一个专家处理几百家上市公司股票交易，而做市商制度是多对一的关系，即一组做市商为一个上市公司服务。更重要的是做市商为交易提供了资金，在交易中做市商先要用自己的资金买进股票，然后再卖出。这些做法使得市场的流通性大大增强，增加了交易的深度和广度。
7 _Insiders_______ are people who occupy a position of trust within an organization and possess information not known to the public; buying or selling shares when in possession of such information that affects their price is illegal.内幕人员指在公司内部掌握公众未掌握的内幕信息的人，内幕人员买卖股票被称做 insider trading 内幕交易，是违法的
我国的证券法对于内幕人员是这样界定的：指证券交易内幕信息知情人员。具体包括：公司董事、监事、经理、副经理及有关的高级管理人员；持有公司5%以上股份的股东；发行股票的控股公司的高级管理人员；由于所任公司职务可以获取公司有关证券交易信息的人员；证券监管人员以及中介机构人员；最后，为做到万无一失，又有一个弹性条款，即国务院证券监督管理机构规定的其他人员；此外，在70条还规定了“非法获取内幕信息的其他人员”。
Types of Shares Exercises
Complete the following using the phrases in the box:
barometer stocks blue chips defensive stock
deferred shares equities growth stock
mutual fund ordinary shares participation certificates
1. Another name for stocks and shares is_ equities, because all the stocks or shares of a company
- or all those of a particular category - have an equal nominal value.
2 __ordinary shares (US: common stock) are often the only kind of shares with voting rights.
普通股是指在公司的经营管理和盈利及财产的分配上享有普通权利的股份，代表满足所有债权偿付要求及优先股东的收益权与求偿权要求后对企业盈利和剩余财产的索取权。它构成公司资本的基础，是股票的一种基本形式，也是发行量最大、最为重要的股票。目前在上海和深圳证券交易所上市交易的股票，都是普通股。普通股股票持有者按其所持有股份比例享有以下基本权利： (l)公司决策参与权。普通股股东有权参与股东大会，并有建议权、表决权和选举权，也可以委托他人代表其行使其股东权利。 (2)利润分配权。普通股股东有权从公司利润分配中得到股息。普通股的股息是不固定的，由公司赢利状况及其分配政策决定。普通股股东必须在优先股股东取得固定股息之后才有权享受股息分配权。 (3)优先认股权。如果公司需要扩张而增发普通股股票时，现有普通股股东有权按其持股比例，以低于市价的某一特定价格优先购买一定数量的新发行股票，从而保持其对企业所有权的原有比例。 (4)剩余资产分配权。当公司破产或清算时，若公司的资产在偿还欠债后还有剩余，其剩余部分按先优先股股东、后普通股股东的顺序进行分配。back
3. Some companies issue ___participation certificates which, like shares, grant their holders part of the ownership of a company, but usually without voting rights.（参与证书）（在美国，这些证书代表在抵押贷款中的权益。证书的买方，是所有者，但卖方仍然是记录中的受抵押人。在瑞士，参与证书指由瑞士的发行公司发行的没有表决权的股票。
4 ___preference shares or preferred stock ______, as their name suggests, usually receive a fixed dividend, which must be paid in full before any dividend is paid on other shares.（优先股）：①优先股有固定的股息，不随公司业绩好坏而波动，并且可以先于普通股股东领取股息；②当公司破产进行财产清算时，优先股股东对公司剩余财产有先于普通股股东的要求权。但优先股一般不参加公司的红利分配，持股人亦无表决权，不能借助表决权参加公司的经营管理。因此，优先股与普通股相比较，虽然收益和决策参与权有限，但风险较小。
5___ deferred shares_____ (or stock)（延期付息股份）;, again as the name suggests, do not receive a dividend until other categories of shares have had a dividend paid on them, but might earn a higher dividend if the company does well.延期付息股份是在其他种类的股票都分享完股利后才支付股利的股票，但是如果公司经营的好，会获得更高的股利
6. Securities in companies that are considered to be without risk are known as blue chips__蓝酬股那些几乎没有风险的公司股票被称为：蓝筹股
在海外股票市场上，投资者把那些在其所属行业内占有重要支配性地位、业绩优良、成交活跃、红利优厚的大公司股票称为蓝筹股。“蓝筹”一词源于西方赌场。在西方赌场中，有三种颜色的筹码，其中蓝色筹码最为值钱，红色筹码次之，白色筹码最差。投资者把这些行话套用到股票上。美国通用汽车公司、埃克森石油公司和杜邦化学公司等股票，都属于“蓝筹股”。 蓝筹股并非一成不变。随着公司经营状况的改变及经济地位的升降，蓝筹股的排名也会变更。据美国著名的《福布斯》杂志统计，1917年的 lOO家最大公司中，目前只有43家公司股票仍在蓝筹股之列，而当初“最蓝”、行业最兴旺的铁路股票，如今完全丧失了入选蓝筹股的资格和实力。 在香港股市中，最有名的蓝筹股当属全球最大商业银行之一的“汇丰控股”。有华资背景的“长江实业”和中资背景的“中信泰富”等，也属蓝筹股之列。中国大陆的股票市场虽然历史较短，但发展十分迅速，也逐渐出现了一些蓝筹股。
7. Widely-held stocks (. blue chips or 20-year Treasury Bonds) that can be considered as indicators（指示物） of present and future market performance, are known as barometer stocks__ (GB) or bellwether stocks (us).晴雨表股票或指标股票
8. A growthstock or share is one that is expected to appreciate in capital value;成长股票
9. A defensive stock______or income stock or share is one that offers a good yield but only a limited chance of a rise or decline in price (in an industry that is not much affected by cyclical trends).防御型股票能产生很好的收益但是价格的上下浮动空间有限
10. A way of spreading risks is to invest in a unit trust (in ) or a mutual fund_____ (in the ),
Market Price Idiom Exercises
Classify the following expressions according to whether you think they mean:
(a) the price rose a little
(b) the price rose a lot
(c) the price fell a little
(d) the price fell a lot
(e) the price was almost unchanged.
1. After early losses, the Dow Jones rallied to finish ten points up. (a) 道琼斯工业指数在开始下跌后，收盘时上升了10点
rally = fight back after an early loss or become stronger again after a period of weakness or defeat在受挫后重新振奋，恢复 =recover
2. Boeing shares plummeted after a door fell off a 747 taking off from and landed in the White House garden.(d)达拉斯国际机场
Plummet: to suddenly and quickly decrease in value or amount [=to fall suddenly= plunge]急剧下降
3. Chrysler continued to drift, finishing 75 cents down at 45 and a half. (c)
drift: move slowly克莱斯勒汽车
Chrisler的股价缓慢下降，收盘时下降了75美分，收于 美圆
4. CIBA-Geigy shares rocketed after the company announced the discovery of a drug that will cure people of wanting to make a fortune on the stock market. (b)瑞士的汽巴(Ciba);嘉基(Geigy);公司的股票价格飚升当公司宣布他们发明一种新药，此药可以帮助那些想要在股市发财的人
Rocket: if a price or amount rockets, it increases quickly and suddenly= to rise suddenly—like a rocket
5. Compaq stock suffered a small setback, losing $.(c)
Setback: a problem that delays or prevents progress, or makes things worse than they were阻碍事物发展的事物，挫折
Compaq：康柏股票受挫下跌：$
6. EuroDisney shares sank again to after Mickey got caught in a mousetrap.(d)
欧洲迪斯尼
Sink: to go down in amount or value
7. Eurotunnel shares went through the floor, finishing at .(d)
Go /fall through the floor: if a price, amount etc goes through the floor, it becomes very low
Eurotunnel: 欧洲隧道公司
欧洲隧道公司的股票降到了很底的水平，收盘于
8. Gold slipped back a little to $. (fell a little) (c)
Slip: =fell slip back a little: fell a little.
9. Hill-Lewis shares took a knock, after the news that company chairman Stuart Tipping had resigned.(c or d) (fell a little or a lot)
take a knock mean ‘to take a beating/ to suffer from some impact or blow.受到打击，受挫（so from take a knock we can’t see
10. IBM stocks suffered a drop after disappointing quarterly results were released.(c or d)
quarterly results:季度报告在令人失望的季度报告公布出来后，IBM 股票价格有所下跌
11. In , the DAX index failed to halt its slide, finishing 6 points down.(c)
德国法兰克福DAX指数没有能阻止其下滑即：下跌 fell 收盘下跌6点
failed to: 没有能… halt: 阻止 slide: 下滑
12. In , shares were slightly weaker in light trading.(c or e)
里斯本(Lisbon)是葡萄牙共和国的首都和葡萄牙最大的海港城市
light trading: 交易清淡在里斯本，交易清淡时股票价格稍有下降，（下降幅度很小，几乎不变）
13. In , shares eased slightly in subdued trading.(c or e)
subdued trading：相对平静的交易中
在米兰，股票价格在相对平静的交易中略为降调
subdue：制伏；使屈服，而形容詞subdued則可用来形容「柔和的；不強烈的」光线，声音，这个句子中表「不活跃的」意思。
14. In , the Japanese yen slumped to 123 to the dollar.(d)
日圆暴跌至1美圆换123日圆
15. In , the CAC-40 recovered slightly, finishing up by %.(a)
法国巴黎CAC-40指数稍微回弹（回调），收盘上升%
16. In the , shares took a tumble, with the Manila Composite Index closing at .(d)
Philippines Manila Composite Index:菲律宾马尼拉综合指数
Tumble: v. to fall down quickly and suddenly, especially with a rolling movement快速下跌
Take a tumble: =tumble=slump
17. In , shares rebounded, the Nikkei closing at . (b)
东经：股价有所反弹，日经指数收盘于20677. 83
18. In , the Hang Seng Index plunged to .(d)
the Hang Seng Index：恒生综合指数暴跌至
20. Philip Morris also dipped, down 75 cents to $.(c)
烟草业和食品业巨人Philip Morris公司，（fell a little）
Dip:to move down, or to make something move down, usually for just a short time:下跌
21. Shares fell sharplyacross the board in this morning.(d)今天早晨印尼首都雅加达股票全面下挫
across the board：全面一致；全盘的.
Jakarka: 雅加达印尼首都
HSI plummeted across the board today. 香港恒生指数今天全面下挫。
fell sharply=plummet
全面调整关税税率（across-the-board tariff change）
22. Shares of Tottenham Hotspur Football Club crashedto a record low of 16p after the team lost their home game on Saturday. (d)
Tottenham Hotspur Football Club托特纳姆热刺足球俱乐部，英格兰超级联赛的球队之一，简称Spurs热刺.
16p=16penny or pence.
100pence=1 pound
home game：当一个球队在自己的主场上比赛通常就称为 home game，像这种比赛观众当然都是一面倒地为自己的球队加油，所以我们常说一个队伍在自己的主场上打球有所谓的“主场优势”，用英文讲就是 home advantage。例如，Germany has home advantage against its components. (德国和对手比赛有主场优势。) 既然是在自己家里比赛，“主场队”就叫做home team。去别人家里比赛，“客场队”就叫做visiting team或者away team（因为他们都是要走的嘛！）。
。
23. Silver was steady at six hundred and thirty-five cents anounce.(e)
Steady =unchanged如果股市表现平平，以“平盘”收尾，我们就说unchanged/Steady，表示没什么变化，或者用flat来表示“差价不大”。
24. The dollar jumped after the weekend's election results. (b)
Jump=rise a lot
25. The dollar was slightly stronger in active trading yesterday.
(a)
active trading交易活跃
26. The Dutch guilder leapt to an all-time high after gold was discovered in the mountains outside
. (b)
Leap all-time high 上升，打破新记录，创造历史最高点
荷兰盾的价格上升到历史新高，在…发现黄金后
27．News of 911 attacks casued the markets to collapse. 911攻击事件造成股市崩盘。
（请不要下面这句话）
股市上还会有涨跌互见的现象，可以用mixed这个词表示“涨跌互见”这个意义。如果上下起伏激烈，可以用roller coaster ride形容指数上上下下好像“搭云霄飞车”投机的短线投资人，也就是speculative day trader，狠狠地赚一笔就杀出，所以净是投资一些“高风险的股票”high-risk，新兴“网络股” dot-com stock和“高科技股”high-tech stock，而忽略了“绩优股”blue-chip。结果那些股票很快就变成了“低价股”penny stock，所以如果你也有朋友在炒股的话，可以用下面的这些话劝劝他。You'd lose your shirt investing in penny stocks.投资那些低价股会让你输得精光。You should hold on to those blue-chip stocks even if the market is going down. 就算股市下滑，你也应该继续持有那些绩优股。Don't put all your eggs in one basket. 别把全部的鸡蛋放在同一个篮子里。就是说不要把钱全部投到一支股票上
"Rise,Arise,Raise"Exercises
下面这个练习来练习一下，rise, arise, raise 这几个单词的用法。
As well as the verb rise, English also has the verbs raise and arise.
Rise is an irregular, intransitive verb: rise - rose - risen. Things can rise, but you cannot rise something.
Raise is a regular, transitive verb: raise - raised - raised. People raise things. As well as to increase – tocause to rise - raise has lots of other meanings, including to collect capital, to bring up children, etc.
Arise is an irregular, intransitive verb: arise, arose - arisen. It means to happen or occur, or to come intoexistence. Problems arose soon after the new chairman took office.
EXERCISE 2
Complete the following sentences with the appropriate form of rise, raise, or arise:
1. A cash-flow crisis hasarisen
2. Prices have already risen ____ 4% since January, and I think they're going to at the same rate until the end of the year.价格从一月份开始已经上升了4%，我认为到年终的时候会依然保持这个水平
3. Retail pricesrose___ by 7% last year.零售价去年上升了7%
4. She _raised_______ her children all on her own while working part-time.
5. The Federal Reserve will probably raise_ interest rates by %.
6. The problem __arose or arises from the lack of quality control.
7. We didn't expect those difficulties to arise_with the new product.
Unit15 Exchange Rate Determination
Law of One Price
Like the price of any goods or assets in a free market, exchange rates are determined by the interaction of supply and simplify our analysis of exchange rates in a free market, we divide it into two , we examine how exchange rates are determined in the long run;then we use our knowledge of the long-run determinants of the exchange rate to help us understand how they are determined in the short run.
The starting point for understanding how exchange rates are determined is a simple idea called the law of one price: If two countries produce identical goods, the price of the goods should be the same throughout the world no matter which country produces it.
Suppose that American steel costs $100 per ton and identical Japanese steel costs 10 000 yen per ton. The law of one price suggests that the exchange rate between the yen and the dollar must be
100 yen per dollar ( $ per yen) in order for one ton of American steel to sell for 10 000 yen in Japan (the price of Japanese steel) and one ton of Japanese steel to sell for $ the United States (the price of steel). Law of One Price一价定律
The starting point for understanding how exchange rates are determined is a simple idea called the law of one price:理解汇率决定的起点是一种很简单的思想，即一价定律：
If two countries produce identical goods, the price of the goods should be the same throughout the world no matter which country produces it.如果两个国家都生产某种完全相同的商品，则无论哪国生产，该商品在世界范围内的价格都应相同。
Suppose that American steel costs $100 per ton and identical Japanese steel costs 10 000 yen per ton. 假设美国钢铁的价格为每吨100美元，而同种日本钢铁价格为每吨10，000日元。
The law of one price suggests that the exchange rate between the yen and the dollar must be
100 yen per dollar ( $ per yen) in order for one ton of American steel to sell for 10 000 yen in Japan (the price of Japanese steel) and one ton of Japanese steel to sell for $ the United States (the price of U. S. steel). 一价定律表明，为使一吨美国钢铁在日本的售价为10 000日元(等于日本钢铁的价格)，一吨日本钢铁在美国的售价为100美元，日元和美元间的汇率必为1美元兑100日元(即1日元兑美元)。
the exchange rate between the yen and the dollar is 100 yen per dollar (100JPY=1USD)
the exchange rate between the dollar and the yen is dollar per yen (=1JPY)
the present exchange rate between the yen and the dollar is 116 yen per dollar (116JPY=1USD)
the present exchange rate between the RMB and the dollar is yuan per dollar(=1USD)
汇率的网站：
If the exchange rate were 200 yen to the dollar, Japanese steel would sell for $50 per ton in the United States or half the price of American steel, and American steel would sell for 20 000 yen per ton in Japan, twice the price of Japanese steel. Because American steel would be more expensive than Japanese steel in both countries and is: identical to Japanese steel, the demand for American steel would go to zero. Given a fixed dollar price for American steel, the resulting excess supplyof American steel will be eliminated only if the exchange rate falls to 100 yen per dollar, making the price of American steel and Japanese steel the same in both countries.
If the exchange rate were200 yen to the dollar, Japanese steel would sell for $50 per ton in the or half the price of American steel, and American steel would sell for 20 000 yen per ton in , twice the price of Japanese steel.如果汇率为1美元兑200日元，则日本钢铁在美国的售价为每吨50美元，相当于美国钢铁价格的一半，同时美国钢铁在日本的售价为每吨20 000日元，比日本钢铁价格高出一倍。
Because American steel would be more expensive than Japanese steel in both countries and is: identical to Japanese steel, the demand for American steel would go to zero.因为在两个国家里，美国的钢铁价格都高于日本的钢铁，而美国钢铁与日本钢铁同质，所以对美国钢铁的需求量将趋于零。
Given a fixed dollar price for American steel, the resulting excess supplyof American steel will be eliminated only if the exchange rate falls to 100 yen per dollar, making the price of American steel and Japanese steel the same in both countries.假定美国钢铁的美元价格不变，只有当汇率降至1美元兑100日元，从而在两个国家里美国钢铁的价格与日本钢铁的价格都相同时，美国钢铁的超额供给才将得以消除。
the Theory of Purchasing Power Parity
One of the most prominent theories of how exchange rates aredetermined is the theory of purchasing power parity (PPP). Itstates that exchange rates between any two currencies will adjust toreflect changes in the price levels of the two countries. The theory ofPPP is simply an application of the law of one price to national pricelevels rather than to individual prices. Suppose that the yen price ofJapanese steel rises 10 percent (to 11 000 yen) relative to the dollarprice of American steel (unchanged at $100). For the law of oneprice td hold, the exchange rate must rise to 110 yen to the dollar, a10 percent appreciation of the dollar. Applying the law of one priceto the price levels in the two countries produces the theory of purchasing power parity, which maintains that if the Japanese price level rises 10 percent relative to the price level, the dollar willappreciate by 10 percent.
Theory of Purchasing Power Parity购买力平价理论(PPP理论)
One of the most prominent theories of how exchange rates aredetermined is the theory of purchasing power parity (PPP). 购买力平价理论(PPP)是最有名的汇率决定理论之一。
Itstates that exchange rates between any two currencies will adjust toreflect changes in the price levels of the two countries. 该理论认为，任何两种货币之间的汇率会调整到能反映这两个国家之间价格水平的变动。
The theory ofPPP is simply an application of the law of one price to national pricelevels rather than to individual prices. PPP理论仅仅是一价定律在一国价格水平而非个别价格水平上的应用。
Suppose that the yen price ofJapanese steel rises 10 percent (to 11 000 yen) relative to the dollarprice of American steel (unchanged at $100). 假定日本钢铁的日元价格相对于美国钢铁的美元价格(固定为100美元)上升了10 ％(达11 000日元)，
For the law of oneprice to hold, the exchange rate must rise to 110 yen to the dollar, a10 percent appreciation of the dollar.根据一价定律，汇率需升至1美元兑110日元，即美元升值10 ％。
美元升值10 ％: a10 percent appreciation of the dollar.
美元贬值10 ％: a10 percent depreciationof the dollar.
在今年的，新加坡联合早报刊登我国国信证券的高级官员的话说：予计未来5年，人民币升值将达到18%。英语中，我们就可以这样表达： In the coming five years, there will be a 18% appreciation of the RMB.
Applying the law of one priceto the price levels in the two countries produces the theory of purchasing power parity, which maintains that if the Japanese price level rises 10 percent relative to the price level, the dollar willappreciate by 10 percent.将一价定律应用于两个国家的价格水平，就形成了购买力平价理论，该理论认为如果日本价格水平相对于美国价格水平上升10 ％，则美元将升值10 ％。
Maintain =state
It maintains that…
It states that…
The dollar willappreciate by 10 percent美元将升值10 ％。
In the coming five years, the RMB will appreciateby 18%予计未来5年，人民币升值将达到18%。
the Factors to Affect the Exchange Rate in the Long Run
Our analysis indicates that relative price levels and additionalfactors affect the exchange rate. In the long run, there are four major ones: relative price levels, tariffs and quotas, preferences for domestic versus foreign goods,: and productivity. We examine how each of these factors affects the exchange rate while holding the others constant.
Factors That Affect Exchange Rates in the Long Run长期中影响汇率的因素
Our analysis indicates that relative price levels and additionalfactors affect the exchange rate.我们的分析表明，相对价格水平和其他一些因素都会对汇率产生影响。
In the long run, there are four major ones: relative price levels, tariffs and quotas, preferences for domestic versus foreign goods, and productivity.在长期中，影响汇率的主要因素有4个，即相对价格水平、关税和配额、对本国商品相对于外国商品的偏好、生产率。
We examine how each of these factors affects the exchange rate while holding the others constant.我们分别考察在其他因素不变的情况下，上述各因素变动对汇率的影响。
The basicreasoning proceeds along the following lines: Anything that increases the demand for domestic goods relative toforeign goods tends to appreciate the domestic currency because domestic goods will continue to sell well even when the value of the domestic currency is higher. Similarly, anything that increases the demand for foreign goods relative to domestic goods tends to depreciate the domestic currency because domestic goods will continue to sell well only if the value of the domestic currency is lower.
The basicreasoning proceeds along the following lines: Anything that increases the demand for domestic goods relative toforeign goods tends to appreciate the domestic currency because domestic goods will continue to sell well even when the value of the domestic currency is higher. .基本的论证步骤如下：任何能使本国产品相对于外国产品需求增加的因素，都有使本国货币升值的倾向，因为即使本币价值升高，本国产品仍会继续畅销。
Similarly, anything that increases the demand for foreign goods relative to domestic goods tends to depreciate the domestic currency because domestic goods will continue to sell well only if the value of the domestic currency is lower类似地，任何导致本国产品相对于外国产品需求减少的因素，都使本币贬值，因为只有本币价值降低，本国商品才能继续畅销。
Relative Price Levels.
In line with PPP theory, when prices of American goods rise (holding prices of'foreign goods constant), thedemand for American goods falls and the dollar tends to depreciate so that American goods can still sell well. By contrast, if prices of Japanese goods rise so that the relative prices of American goods fall, the demand for American goods increases, and the dollar tends to appreciate because American goods will continue to sell well even with a higher value of the domestic currency. In the long run, a rise in a country's price level (relative to the foreign price level) causes its currency to depreciate, and a fall in the country's relative price level causes its currency to appreciate.
Relative Price Levels. 相对价格水平。
In line with PPP theory, when prices of American goods rise (holding prices of'foreign goods constant), thedemand for American goods falls and the dollar tends to depreciate so that American goods can still sell well. 根据PPP理论，当美国商品价格上升时(外国商品价格不变)，则对美国商品的需求下降且美元趋于贬值，以使美国商品继续畅销。
By contrast, if prices of Japanese goods rise so that the relative prices of American goods fall, the demand for American goods increases, and the dollar tends to appreciate because American goods will continue to sell well even with a higher value of the domestic currency. 相反，如果日本商品价格上升，从而美国商品的相对价格下跌时，对美国商品的需求增加，美元趋于升值，因为即使本币升值，美国商品仍然畅销。
In the long run, a rise in a country's price level (relative to the foreign price level) causes its currency to depreciate, and a fall in the country's relative price level causes its currency to appreciate.长期里，一国价格水平相对于外国价格水平的上升，将导致该国货币贬值；而一国相对价格水平的下降，将导致该国货币升值。
Tariffs and Quotas. Barriers to free trade such as tariffs (taxes on imported goods) and quotas (restrictions on the quantity of foreign goods that can be imported) can affect the exchange rate. Suppose that the imposes a tariffor a quota on Japanese steel, These trade barriers increase the demand for American steel, and the dollar tends to appreciate because American steel will still sell well even with a higher value of the dollar. Tariffs and quotas cause a country's currency to appreciate in the long run.
Tariffs and Quotas. 关税和配额。
Barriers to free trade such as tariffs (taxes on imported goods) and quotas (restrictions on the quantity of foreign goods that can be imported) can affect the exchange rate.自由贸易的壁垒，例如关税(对进口商品征收的税)和配额(对可以进口的外国商品的数量限制)这些，也对汇率产生影响。
Suppose that the imposes a tariffor a quota on Japanese steel, these trade barriers increase the demand for American steel, and the dollar tends to appreciate because American steel will still sell well even with a higher value of the dollar. 假设美国对日本的钢铁征收关税或实施配额，这些贸易壁垒增加了对美国钢铁的需求，使美元趋于升值，因为即使美元升值，美国的钢铁仍将继续畅销。
impose a tariff : 征收关税
impose a quota：实施配额
Tariffs andquotas cause a country's currency to appreciate in the long run.关税和配额使得一国货币在长期中趋于升值。
Preferences for Domestic Versus Foreign Goods. If the Japanese develop an appetite for American goods---say, for oranges and American movies--the increased demand for American goods (exports) tends to appreciate the dollar because the American goods will continue to sell well even at a higher value for the dollar. Likewise, if Americans decide that they prefer Japanese cars to American cars, the increased demand for Japanese goods (imports) tends to depreciate thedollar. Increased demand for a country's exports causes its currency to appreciate in the long run; conversely, increased demand for imports causes the domestic currency to depreciate.
Preferences for Domestic Versus Foreign Goods. 对本国商品相对于外国商品的偏好。
If the Japanese develop an appetite for American goods---say, for oranges and American movies--the increased demand for American goods (exports) tends to appreciate the dollar because the American goods will continue to sell well even at a higher value for the dollar.如果日本人增加了对美国商品例如佛罗里达的柑橘和美国电影的需求，则对美国商品(出E1)的需求增加使美元趋于升值，因为即使美元价值增大，美国商品仍将继续畅销。
develop an appetite for：产生了对..的需求
Likewise, if Americans decide that they prefer Japanese cars to American cars, the increased demand for Japanese goods (imports) tends to depreciate thedollar. 与此类似，如果美国人喜欢日本汽车甚于美国汽车，则对日本商品(进口)需求的增加使美元趋于贬值。
Increased demand for a country's exports causes its currency to appreciate in the long run; 对一国出口商品需求的增加导致该国货币升值；
conversely, increased demand for imports causes the domestic currency to depreciate.长期来说，相反，对进口产品需求的增加导致该国货币贬值。
Productivity. If one country becomes more productive thanother countries, businesses in that country can lower the prices ofdomestic goods relative to foreign goods and still earn a profit. As aresult, the demand for domestic goods rises, and the domestic currency tends to appreciate because domestic goods will continue to sellwell at a higher value for the currency. If, however, its productivitylags behind that of other countries, "its goods become relatively moreexpensive, and the currency tends to depreciate. In the long run, asa country becomes more productive relative to other countries, itscurrency appreciates.
Productivity. 生产率。
If one country becomes more productive thanother countries, businesses in that country can lower the prices ofdomestic goods relative to foreign goods and still earn a profit. 如果一国的生产率高于其他国家的生产率，则该国的工商企业可以在降低本国商品相对外国商品价格的情况下仍能获利。
As aresult, the demand for domestic goods rises, and the domestic currency tends to appreciate because domestic goods will continue to sellwell at a higher value for the currency. 结果，对本国商品的需求增加，本国货币趋于升值，因为即使本币升值，本国商品仍然畅销。
If, however, its productivitylags behind that of other countries, "its goods become relatively moreexpensive, and the currency tends to depreciate. 不过，如果本国的生产率低于其他国家，则它的商品价格变得相对昂贵，本国货币趋于贬值。
In the long run, asa country becomes more productive relative to other countries, itscurrency appreciates.长期来讲，如果一国生产率较其他国家提高，则这国货币趋于升值。
In the long run, a rise in a country's price level (relative to the foreign price level) causes its currency to depreciate, and a fall in the country's relative price level causes its currency to appreciate.长期里，一国价格水平相对于外国价格水平的上升，将导致该国货币贬值；而一国相对价格水平的下降，将导致该国货币升值。
Tariffs andquotas cause a country's currency to appreciate in the long run.关税和配额使得一国货币在长期中趋于升值。
Preference for commodities in country A to that in country B cause country A’ currency to appreciate. 对A国的产品相对于B国产品的喜好，使得A国的货币在长期中趋于升值。
In the long run, asa country becomes more productive relative to other countries, itscurrency appreciates.长期来讲，如果一国生产率较其他国家提高，则这国货币趋于升值。
Currency Exchange
Companies operate and expect to be paid in the currency of the countries in which they're located. That means anyone wanting to buy from a firm in another country has to acquire some of that country' s currency first. For example, if a company that operates department stores wants to buy expensive wool sweaters from a British manufacturer, it has to pay the bill in British pounds, not the U. S. the American firm has only dollars, not pounds. Clearly, tomake the purchase, it has to exchange some dollars for pounds. Wealso say the firm buys pounds with dollars.
Currency Exchange
Companies operate and expect to be paid in the currency of the countries in which they're located. 公司在运作中都希望交易者用公司所在国的货币付款.
That means anyone wanting to buy from a firm in another country has to acquire some of that country' s currency first.这就意味着任何希望从他国某家公司购物的人都必须首先获得一些该国货币
For example, if a company that operates department stores wants to buy expensive wool sweaters from a British manufacturer, it has to pay the bill in British pounds, not the U. S. dollars.
例如，一家经营百货商店的美国公司打算从英国生产商那里购买昂贵的羊毛衫，他必须用英镑而不是用美元付款。
But the American firm has only dollars, not pounds. Clearly, tomake the purchase, it has to exchange some dollars for pounds.但美国公司只有美元，没有英镑。显然，为了购物，他只好用一些美元去兑换英镑。
Wealso say the firm buys pounds with dollars.我们也可以说该公司用美元购买英镑。
The purchase is accomplished in the foreign exchange market,which is organized the purchase of exchanging currencies. Theforeign exchange market operates much like other financial markets,but isn't located in a specific place like a stock exchange. Rather,it's a network of brokers and banks based infinancial centers aroundthe world. Most commercial banks are able to access the market andprovide exchange services to their clients.
The purchase is accomplished in the foreign exchange market,which is organized for the purchase of exchanging currencies.购买英镑是在外汇市场完成的。外汇市场是专门用来购买所需兑换货币的地方。
Theforeign exchange market operates much like other financial markets,but isn't located in a specific place like a stock exchange. Rather,it's a network of brokers and banks based infinancial centers aroundthe world.外汇市场的经营类似于其他金融市场，但它不像证券交易所那样有一个特定的场所，它只是一个由位于世界各地金融中心的银行和经纪人组成的网络。
Most commercial banks are able to access the market andprovide exchange services to their clients.大多数商业银行能够进人外汇市场，并向客户提供兑换业务。
Currencies are traded at an exchange rate, which, in effect, isthe price of each currency in terms of the other. In our illustration,the American firm needs to know how many pounds can be purchased for a dollar. That lets it calculate how many dollars it willneed to pay the British firm's price in pounds.
Currencies are traded at an exchange rate, which, in effect, isthe price of each currency in terms of the other. 货币按汇率进行交易。实际上，汇率是一种货币兑换其他货币的价格。
In our illustration,the American firm needs to know how many pounds can be purchased for a dollar.在我们上述的例子中，美国公司需要知道一美元可以购买多少英镑，
That lets it calculate how many dollars it willneed to pay the British firm's price in pounds.这使它计算出需要多少美元来购买英镑来支付英国公司。
Suppose the American company in our example wants to import500 sweaters that cost a total of 35 000 pounds, written as ￡35 000. The exchange rate table indicates that one pound is worth $1. 633 0, so the American firm willhave to exchange
￡35 000*$ 0/￡= $57 155
to pay for the sweaters.
Alternatively, the ￡35 000 could be divided by 0. 6124 pound per dollar to reach the same result.
Suppose the American company in our example wants to import500 sweaters that cost a total of 35 000 pounds, written as ￡35 000
假设例子中的美国公司要进口总额为35 000英镑的500套羊毛衫，即￡35 000
The exchange rate table indicates that one pound is worth $1. 633 0, so the American firm willhave to exchange
￡35 000*$ 0/￡= $57 155
to pay for the sweaters. In other words, the cost of the purchase isexpected to be $57 155. 汇率表上显示￡值$ 0，因此美国公司必须兑换$57 155去支付这些羊毛衫。
Alternatively, the ￡35 000 could be divided by 0. 6124 pound per dollar to reach the same result.另外，用￡35 000除以 4也可以得出这个结果。
It's important to notice that the exchange rate is part of thecost of product to a firm importing foreign goods. To illustrate it,let's continue the sweater example. The expected cost per sweaterat the time of ordering is
$57 155÷500 = $
plus shipping and handling. Hence, a reasonable retail price wouldprobably be about $230.
It's important to notice that the exchange rate is part of thecost of product to a firm importing foreign goods. 重要的是要注意，汇率是进口外国货物的产品成本之一。
To illustrate it,let's continue the sweater example. 为了说明，让我们继续采用羊毛衫这个例子。
The expected cost per sweaterat the time of ordering is
$57 155÷500 = $
plus shipping and handling.订货时每件羊毛衫的成本是$加上运输和处理费用。
Hence, a reasonable retail price wouldprobably be about $230.结果，每件羊毛衫的合理零售价格大约为230美元。
But what would happen if the exchange rate was less favorable?Suppose, for example, the direct quote is $ per pound. Thenthe expected cost of the shipment would be￡35 000 × $ $68 single Sweater would cost
68 250÷500=$
and a reasonable retail price might be about $273.
But what would happen if the exchange rate was less favorable?但是，如果汇率不那么有利，会怎么样呢?
Suppose, for example, the direct quote is $ per pound. 例如，假设直接标价是1英镑兑换美元。
Thenthe expected cost would be￡35 000 × $ $68 250成本可能是￡35 000 × $ $68 250，
A single Sweater would cost 68 250÷500=$ and a reasonable retail price might be about $273.
每件羊毛衫的成本就可能是68 250÷500=$，其合理零售价格大概为273美元。
In other words, the exchange rate has an influence on the domestic prices of imported goods. The more a foreign currency costs,the more expensive that nation's products are when offered toAmerican buyers regardless of their cost in the country of origin.
In other words, the exchange rate has an influence on the domestic prices of imported goods.换句话说，汇率对进口货物的国内价格有影响。
The more a foreign currency costs,the more expensive that nation's products are when offered toAmerican buyers regardless of their cost in the country of origin.某外币的价格越高，如果不考虑该国产品在其生产国的价格，在出售给美国买方时的价格就越高。
It's an economic fundamental that when a product is more expensive, people buy less of it. For foreign goods that means higherprices due to less favorable exchange rate lead to decreased our illustration, the $ per pound implies a $43 higher retailprice for a sweater. The American importer might well feel that theproduct won't sell at such a price and may order fewer than 500 orforgo the order entirely. Conversely, a more favorable exchange ratemakes foreign products cheaper in the United States, causing largerquantities to be demanded leading to more imports.
It's an economic fundamental that when a product is more expensive, people buy less of it.产品越贵，人们买得就越少，这是基本的经济原则。
For foreign goods that means higherprices due to less favorable exchange rate lead to decreased imports.对于外国商品，不利汇率引起的高昂价格会导致进口量的减少。
favorable exchange rate有利汇率
In our illustration, the $ per pound implies a $43 higher retailprice for a sweater. 在我们的例子中，1英镑兑换美元的汇率意味着一件羊毛衫的零售价格要多出43美元。
The American importer might well feel that theproduct won't sell at such a price and may order fewer than 500 orforgo the order entirely. 美国进口商一定会觉得这种产品不能按这个价格出售，因此订购的数量会少于500件或完全放弃这个订单。
Forgo or forego: 放弃，抛弃
Conversely, a more favorable exchange ratemakes foreign products cheaper in the United States, causing largerquantities to be demanded leading to more imports.相反，较有利的汇率使在美国出售的外国产品比较便宜，需求量增大，较大的需求量就会导致更多的进口。
That’s all for the introduction of currency exchange: from this part, we know how the exchange rate can influence the domestic prices of imported other words, unfavorable exchange rate can lead to decreased imports. That’s all for this part, thank you for your attention.
Unit16 Risk Management
Principles of Credit Risk Management 1
Adverse selection in loan markets occurs because bad credit risks (those most likely to default on their loans) are the ones who usually line up for loans; in other words, those who are most likely to produce an adverse outcome are the most likely to be selected. Borrowers with very risky investment projects have much to gain if their projects are successful; and so they are the most eager to obtain loans. Clearly, however, they are the least desirable borrowers because of the greater possibility that they will be unable to pay back their loans.
Adverse selection in loan markets occurs because bad credit risks (those most likely to default on their loans) are the ones who usually line up for loans;在信贷市场上所以发生逆向选择问题，是因为高信贷风险者(那些最有可能在贷款上违约的人们)常常就是那些排着队申请贷款的人。
in other words, those who are most likely to produce an adverse outcome are the most likely to be selected.换言之，那些最有可能造成“逆向”结果的人，常常就是那些被选中得到贷款的人。
Borrowers with very risky investment projects have much to gain if their projects are successful; and so they are the most eager to obtain loans.如果项目成功，那些有着巨大风险投资项目的借款人将大有好处，因而这些人最急于得到贷款。
Clearly, however, they are the least desirable borrowers because of the greater possibility that they will be unable to pay back their loans.然而，由于他们极有可能难以偿还贷款，他们显然是最不合意的借款人。
Moral hazard exists in loan markets because borrowers may have incentives to engage in activities that are undesirable from the lender's point of view. In such situations, it is more likely that the lender will be subjected to the hazard of default. Once borrowers have obtained a loan, they are more likely to invest in high-risk investment projects---projects that pay high returns to the borrowers if successful. The high risk, however, makes it less likely that they will be able to pay the loan back.
Moral hazard exists in loan markets because borrowers may have incentives to engage in activities that are undesirable from the lender's point of view.贷款市场上所以存在道德风险，是因为借款人可能有积极性去从事那些被贷款人认为不合意的活动。In such situations, it is more likely that the lender will be subjected to the hazard of default.在这种情况下，贷款人将可能遇到违约的“风险”。
Once borrowers have obtained a loan, they are more likely to invest in high-risk investment projects---projects that pay high returns to the borrowers if successful.一旦借款人得到贷款，他们可能进行高风险项目的投资，即一旦成功将给借款人带来很高收益的投资项目。
The high risk, however, makes it less likely that they will be able to pay the loan back.
然而，高风险使得他们更有可能难以偿还贷款。
To be profitable, financial institutions must overcome the adverse selection and moral hazard problems that make loan defaults more likely. The attempts of financial institutions to solve these problems help explain a number of principles for managing credit risk: screening and monitoring, establishment of long-term customer relationships, loan commitments, collateral, compensating balance requirements, and credit rationing.
To be profitable, financial institutions must overcome the adverse selection and moral hazard problems that make loan defaults more likely.为了能赚取利润，金融机构必须解决那些可能导致贷款违约的逆向选择和道德风险问题。
The attempts of financial institutions to solve these problems help explain a number of principles for managing credit risk: screening and monitoring, establishment of long-term customer relationships, loan commitments, collateral, compensating balance requirements, and credit rationing.银行解决这些问题的尝试，有助于解释它们管理信贷风险的一系列原则，如：筛选和监控、与客户建立长期联系、贷款承诺、抵押物、补偿余额要求和信用配给等。
1． Screening and Monitoring
Asymmetric information is present in loan markets because lenders have less information about the investment opportunities and activities of borrowers than borrowers do. This situation leads to two information-producing activities by banks and other financial institutions, screening and monitoring. Indeed, Walter Wriston, a former head of Citicorp, the largest bank corporation in the , was often quoted as stating that the business of banking is the production of information.
Screening and Monitoring筛选和监控
Asymmetric information is present in loan markets because lenders have less information about the investment opportunities and activities of borrowers than borrowers do. 信息不对称问题所以在贷款市场上出现，是因为与借款者相比，贷款人对于投资机会和借款人的活动所知较少。
This situation leads to two information-producing activities by banks and other financial institutions, screening and monitoring.这种状况导致银行和其他金融机构发展出两种生产信息的活动：筛选和监控。
Indeed, Walter Wriston, a former head of Citicorp, the largest bank corporation in the United States, was often quoted as stating that the business of banking is the production of information.的确，美国花旗银行的前负责人沃尔特·里斯顿的这段话是经常被引用的：银行业的工作就是生产信息。
Screening Adverse selection in loan markets requires that lenders screen out the bad credit risks from the good ones so that loans are profitable to them. To accomplish effective screening,lenders must collect reliable information from prospective borrowers. Effective screening and information collection together form an important principle of credit risk management.
Screening： Adverse selection in loan markets requires that lenders screen out the bad credit risks from the good ones so that loans are profitable to them.筛选。贷款市场上存在着逆向选择问题，要求银行将风险大的贷款从风险小的贷款中筛选出来，从而使银行从其贷款中获利。
To accomplish effective screening,lenders must collect reliable information from prospective borrowers.为了进行有效的筛选，银行必须从每一位借款人那里收集到可靠的信息。
Effective screening and information collection together form an important principle of credit risk management. 有效地筛选和收集信息，构成信用风险管理的一项重要原则。
When you apply for a consumer loan (such as a car loan or a mortgage to purchase a house), the first thing you are asked to do is to fill out forms that elicit a great deal of information about your personal finances. You are asked about your salary, bank accounts, other assets (such as car, insurance policies, and furnishings), and outstanding loans, your record of loan, credit card, and charge account repayments; the number of years you've worked and who your employers have been. You also are asked personal questions such as your age, marital status, and number of children. The lender uses this information to evaluate how good a credit risk you are by calculating your- "credit score", a statistical measure derived from your answers that predicts whether you are likely to have trouble making your loan payments. Deciding on how good a risk you are cannot be entirely scientific, so the lender must also use judgment. The loan officer, whose job is to decide whether you should be given the loan, might call your employer or talk to some of the personal references you supplied. The officer might even make a judgment based on your demeanor or your appearance. (This is why most people dress neatly and conservatively when they go to a bank to apply for a loan)
When you apply for a consumer loan (such as a car loan or a mortgage to purchase a house), the first thing you are asked to do is to fill out forms that elicit a great deal of information about your personal finances.当你进入一家银行去申请一项消费者贷款时(如汽车贷款或购房抵押贷款)，你被要求做的第一件事就是填写一些披露大量个人财务信息的表格。
You are asked about your salary, bank accounts, other assets (such as car, insurance policies, and furnishings), and outstanding loans, your record of loan, credit card, and charge account repayments;the number of years you've worked and who your employers have been.你将被问及工薪、银行账户、其他资产(如汽车、保险单和家具)以及未清偿贷款，你的贷款记录、信用卡、应付账单，你工作的年限以及雇主都是何人等等。
You also are asked personal questions such as your age, marital status, and number of children.你还将被问及一些个人问题，如年龄、婚姻状况以及子女数。
The lender uses this information to evaluatehow good a credit risk you are by calculating your- "credit score", a statistical measure derived from your answers that predicts whether you are likely to have trouble making your loan payments.银行运用这些信息来评估你的信用状况，算出你的“信用分值”(这是一种根据你的回答得到的统计量度，它将指示出你是否会在偿还贷款方面有问题)。
how good a credit risk you are：你的信用状况如何
Deciding on how good a risk you are cannot be entirely scientific, so the lender must also use judgment. 另外，确定你的风险状况不可能完全是科学的事，因而银行还需要进行判断。
The loan officer, whose job is to decide whether you should be given the loan, might call your employer or talk to some of the personal references you supplied.作为决定是否向你提供贷款的银行官员，信贷员可能会给你的雇主打电话，或者同你提供的有关人士谈话。
The officer might even make a judgment based on your demeanor or your appearance. (This is why most people dress neatly and conservatively when they go to a bank to apply for a loan)信贷员们甚至根据你的举止和外表来进行判断(这就是大多数人到银行去申请贷款时，总是穿着整洁和规规矩矩的原因)。
The process of screening and collecting information is similar when a financial institution makes a business loan. It collects information about the company's profits and losses (income) and about its assets and liabilities. The lender also has to evaluate the likely future success of the business. So in addition to obtaining information on such items as sales figures, a loan officer might ask question about the company's future plans, how the loan will be used, and the competition in the industry. The officer may even visit the company to obtain a firsthand look at its operations.
The process of screening and collecting information is similar when a financial institution makes a business loan.当金融机构进行商业贷款时，其筛选和收集信息的过程大致与上相同。
It collects information about the company's profits and losses (income) and about its assets and liabilities.它们收集有关企业损益(收入)以及资产和负债的信息，
The lender also has to evaluate the likely future success of the business.它们还需估量该企业成功的可能性。
So in addition to obtaining information on such items as sales figures, a loan officer might ask question about the company's future plans, how the loan will be used, and the competition in the industry. 因此，除了收集诸如销售款之类的信息之外，银行信贷员还会询问诸如企业未来计划、如何使用贷款以及行业竞争之类的情况。
The officer may even visit the company to obtain a firsthand look at its operations.信贷员甚至会访问你的公司，以便掌握第一手材料。
。
Specialization in Lending. One puzzling feature of bank lending is that a bank often specializes in lending to local firms or to firms in particular industries, such as energy. In one sense, this behavior seems surprising because it means that the bank is not diversifying its portfolio of loans and thus is exposing itself to more risk.
But from another perspective such specialization makes perfect sense. The adverse selection problem requires that the bank screen out bad credit risks. It is easier for the bank to collect information about local firms and determine their creditworthiness than to collect comparable information on firms that are far away. Similarly, by concentrating its lending on firms in specific industries, the bank be comes more knowledgeable "about these industries and is therefore better able to predict which firms will be able to make timely payments on their debt.
Specialization in Lending. One puzzling feature of bank lending is that a bank often specializes in lending to local firms or to firms in particular industries, such as energy.贷款专业化。银行贷款令人迷惑的特征之一就是，一些银行常常专事对当地企业或诸如能源之类的特定行业发放贷款。
In one sense, this behavior seems surprising because it means that the bank is not diversifying its portfolio of loans and thus is exposing itself to more risk.从某种角度来说，这种行为看起来是令人意外的，因为这意味着银行没有把它们的贷款组合分散化，因而使自己面临更多的风险。
But from another perspective such specialization makes perfect sense. 然而，从另一角度来看，这样专业化又是非常有道理的。
The adverse selection problem requires that the bank screen out bad credit risks.由于存在着逆向选择问题，要求银行筛选出高风险贷款。
It is easier for the bank to collect information about local firms and determine their creditworthiness than to collect comparable information on firms that are far away.对于银行来说，收集当地企业的信息并确定它们的信用度，较之对一家遥远的企业收集信息事要容易得多。
Similarly, by concentrating its lending on firms in specific industries, the bank be comes more knowledgeable about these industries and is therefore better able to predict which firms will be able to make timely payments on their debt.同样，将自己的贷款集中于特定的行业，银行对这些企业会拥有更多的了解，从而更容易判断哪些企业具有按时偿还贷款能力。
Monitoring and Enforcement of Restrictive Covenants. Once a loan has been made, the borrower has an incentive to engage in risky activities that make it leas likely that the loan will be paid off. To reduce this moral hazard, financial institutions must adhere to the principle for managing credit risk that a lender should write provisions (restrictive covenants) into loan contracts borrowers from engaging in risky activities. By monitoring borrowers' activities to see whether they are complying with the restrictive covenants andby enforcing the covenants if they are not, lenders can make sure that borrowers are not taking risks at their expense. The need for banks and other financial institutions to engage in screening and monitoring explains why they spend so much money on auditing and information-collecting activities.
Monitoring and Enforcement of Restrictive Covenants.监控和限制性契约。
Once a loan has been made, the borrower has an incentive to engage in risky activities that make it lease likely that the loan will be paid off.一旦贷款发出，借款者就有从事那些可能会使贷款难以偿还的风险活动的动力。
To reduce this moral hazard, financial institutions must adhere to the principle for managing credit risk that a lender should write provisions (restrictive covenants) into loan contracts borrowers from engaging in risky activities.为了减少这种道德风险，银行必须坚持风险管理的原则，在贷款合约中写入限制借款者从事风险活动的条款(限制性契约)。
By monitoring borrowers' activities to see whether they are complying with the restrictive covenants andby enforcing the covenants if they are not, lenders can make sure that borrowers are not taking risks at their expense.通过对借款者从事的活动进行监控来审视借款者是否遵守限制性契约，一旦它们不遵守则强制它们执行，这样，银行能保证借款者不从事那些从银行角度来看有损于银行利益的风险活动。The need for banks and other financial institutions to engage in screening and monitoring explains why they spend so much money on auditing and information-collecting activities.银行和其他的金融机构对贷款实行筛选和监控的需求，解释了他们为什么要在审计和收集信息活动上花那么多钱，
Principles of Credit Risk Manangement 2
If a prospective borrower has had a checking or savings account or other loans with a bank' over a long period of time, a loan officer can look at past activity on the accounts and learn quite a bit about the borrower. The balances in the checking and savings accounts tell the banker how liquid the potential borrower is and at what time of year the borrower has a strong need for cash. A review of the checks the borrower has written reveals the borrower's suppliers. If the borrower has borrowed previously from the bank, the bank has a record of the loan payments. Thus long-term customer relationships reduce the costs of information collection and make it easier to screen out bad credit risks.
If a prospective borrower has had a checking or savings account or other loans with a bank over a long period of time, a loan officer can look at past activity on the accounts and learn quite a bit about the borrower.如果一位可能的借款者在一家银行长期保有支票账户或储蓄账户，或者曾借过其他贷款，信贷员就能从账户上观察客户的活动，并对借款者有所了解。
The balances in the checking and savings accounts tell the banker how liquid the potential borrower is and at what time of year the borrower has a strong need for cash.在支票存款和储蓄账户上的余额可以告诉银行家，这位可能的借款者掌握的资金流动状况以及在一年中的什么时候对现金有着最强烈的需求。
A review of the checks the borrower has written reveals the borrower's suppliers.复审这位借款者过去签发的支票，能了解他的供应者是谁。
If the borrower has borrowed previously from the bank, the bank has a record of the loan payments. 如果借款者过去在银行借过款，银行就有其偿还贷款的记录。
Thus long-term customer relationships reduce the costs of information collection and make it easier to screen out bad credit risks.可见，与客户的长期联系减少了收集信息的成本，并使筛选高信用风险更容易。
The need for monitoring by lenders adds to the importance of long-term customer relationships. If the borrower has borrowed from the bank before, the bank has already established procedures for monitoring that customer. Therefore, the costs of monitoring long-term customers are lower than those for new customers.
The need for monitoring by lenders adds to the importance of long-term customer relationships. 银行监控的需要，使得与客户的长期联系多了一层重要性。
If the borrower has borrowed from the bank before, the bank has already established procedures for monitoring that customer.
如果借款者过去在银行借过钱，银行就已经建立过对他的监控程序。
Therefore, the costs of monitoring long-term customers are lower than those for new customers.因此，监控长期客户的成本就比监控新客户的成本低得多。
Long-term relationships benefit the customers as well as the bank. A firm with a previous relationship will find it easier to obtain a loan at a low interest rate because the bank has an easier time determining if the prospective borrower is a good credit risk and incurs fewer costs in monitoring the borrower.
Long-term relationships benefit the customers as well as the bank.长期联系既使客户受惠，也使银行受惠。
A firm with a previous relationship will find it easier to obtain a loan at a low interest rate because the bank has an easier time determining if the prospective borrower is a good credit risk and incurs fewer costs in monitoring the borrower.一家过去与银行有联系的企业将发现，它们能以低利率取得贷款，因为银行能很容易地确定借款者的风险状况，而且在监控上也将少花很多钱。
Incur: 招惹
A long-term customer relationship has another advantage for the bank. No bank can think of every contingency when it writes a restrictive covenant into a loan contract; there will always be risky borrower activities that are not ruled out. However, what if a borrower wants to preserve a long-term relationship with a bank because it will be easier to get future loans at low interest rates? The borrower then has the incentive to avoid risky activities that would upset the bank, even if restrictions on these risky activities are not specified in the loan contract. Indeed, if a bank doesn't like what a borrower is doing even when the borrower isn' t violating any restrictive covenants, it has some power to discourage the borrower from such activity: The bank can threaten not to let the borrower have new loans in the future. Long-term customer relationships therefore enable banks to deal with even unanticipated moral hazard contingencies.
A long-term customer relationship has another advantage for the bank.对于银行来说，与长期客户的联系还有另一项好处。
No bank can think of every contingency when it writes a restrictive covenant into a loan contract; there will always be risky borrower activities that are not ruled out.当银行将限制性契约写进贷款合约时，它们不可能设想到所有的可能，依然会有借款者的风险活动未被排除在外。
However, what if a borrower wants to preserve a long-term relationship with a bank because it will be easier to get future loans at low interest rates?然而，如果一名借款者想同一家银行保持长期联系，以便其在未来较容易地以低利率取得借款，他将怎样行事?
The borrower then has the incentive to avoid risky activities that would upset the bank, even if restrictions on these risky activities are not specified in the loan contract.这位借款者就会有积极性去规避那些会惹恼银行的风险活动，即便在贷款合约中并未对这些风险活动有所约束。
Indeed, if a bank doesn't like what a borrower is doing even when the borrower isn' t violating any restrictive covenants, it has some power to discourage the borrower from such activity:的确，如果银行不喜欢借款者的所作所为，即便借款者没有违反任何限制性契约，它也有能力阻止借款者去从事这些活动，The bank can threaten not to let the borrower have new loans in the future.如银行可以用未来不再提供新贷款来威胁借款者。
Long-term customer relationships therefore enable banks to deal with even unanticipated moral hazard contingencies. 这样，与客户的长期联系甚至可以使银行防范那些未预见到的道德风险。
The advantages of establishing long-term customer relationship suggest that closer ties between corporations and banks might be beneficial to both. One way to create these ties is for banks to hold equity stakes in companies they lend to and for banks to have members on the boards of directors of these companies.
The advantages of establishing long-term customer relationship suggest that closer ties between corporations and banks might be beneficial to both.与客户建立长期联系的好处告诉我们，公司和银行之间的密切联系可能使双方受益。
One way to create these ties is for banks to hold equity stakes in companies they lend to and for banks to have members on the boards of directors of these companies. 建立这种联系的途径之一，就是由银行持有其贷款企业的股份，并派员参加这些企业的董事会。
Managing Credit Risk 1
Loan Commitments
Banks also create long-term relationships and gather information by issuing loan commitments to commercial customers. A loan commitment is a bank's commitment (for a specified future period of time) to provide a firm with loans up to a given amount at an interest rate that is tied to some market interest rate. The majority of commercial and industrial loans are made under the loan commitment arrangement. The advantage for the firm is that it has a source of credit when it needs it. The advantage for the bank is that the loan commitment promotes a long-term relationship, which in turn facilitates information collection. In addition, provisions in the loan commitment agreement require that the firm continually supply the bank with information about the firm's income, asset and liability position, business activities, and so on. A loan commitment arrangement is a powerful method for reducing the bank's costs for screening and information collection.
Loan Commitments 贷款承诺
Banks also create long-term relationships and gather information by issuing loan commitments to commercial customers.银行还通过向商业客户提供贷款承诺来创造长期联系和收集信息。
A loan commitment is a bank's commitment (for a specified future period of time) to provide a firm with loans up to a given amount at an interest rate that is tied to some market interest rate.所谓贷款承诺，就是银行同意在未来某一时期中以某种与市场利率相关联的利率向企业提供某一限额之内贷款的承诺。
The majority of commercial and industrial loans are made under the loan commitment arrangement.大部分工商业贷款都是在贷款承诺安排下发放的。
The advantage for the firm is that it has a source of credit when it needs it. 这样做对企业的好处就是当它需要贷款时便能得到。
The advantage for the bank is that the loan commitment promotes a long-term relationship, which in turn facilitates information collection.对银行的好处则在于贷款承诺促进了长期联系，反过来便利了信息收集工作。
In addition, provisions in the loan commitment agreement require that the firm continually supply the bank with information about the firm's income, asset and liability position, business activities, and so on.此外，提供贷款承诺，银行会要求企业连续不断地提供其收入、资产和负债状况、经营活动等等的信息，A loan commitment arrangement is a powerful method for reducing the bank's costs for screening and information因此，贷款承诺安排是一种减少银行筛选和收集信息成本的有力手段。
Collateral and Compensating Balances
Collateral requirements for loans are important credit risk management tools. Collateral, which is property promised to the lender as compensation if the borrower defaults, lessens the consequences of adverse selection because it reduces the lender's losses in the case of a loan default. If a borrower defaults on a loan, the lender can sell the collateral and use the proceeds to make up for its losses on the loan. One particular form of collateral required when a bank makes commercial loans is called compensating balances: A firm receiving a loan must keep a required minimum amount of funds in a checking account at the bank. For example, a business getting a $10 million loan may be required to keep compensating balances of at least $1million in its checking account at the bank. This $1 million in compensating balances can then be taken by the bank to make up some of the losses on the loan if the borrower defaults.
Collateral and Compensating Balances抵押和补偿余额．
Collateral requirements for loans are important credit risk management tools.对于贷款来说，抵押要求是信用风险管理的重要工具。
Collateral, which is property promised to the lender as compensation if the borrower defaults, lessens the consequences of adverse selection because it reduces the lender's losses in the case of a loan default.抵押物是借款者允诺一旦发生违约便提供给贷款者作为赔偿的财产，它弱化了逆向选择的后果，因为，倘若贷款违约，它可使贷款者减少损失。
If a borrower defaults on a loan, the lender can sell the collateral and use the proceeds to make up for its losses on the loan. 一旦借款者在贷款上发生了违约，贷款者可以出售这些抵押物并用之弥补贷款损失。
Proceeds:the money that is obtained from doing something or selling something通过出售某物或做某事来获得的钱。
We sold the business and bought a villa in with the proceeds
One particular form of collateral required when a bank makes commercial loans is called compensating balances: A firm receiving a loan must keep a required minimum amount of funds in a checking account at the bank.银行在发放工商业贷款时所要求的一种特殊的抵押物做补偿余额，即取得贷款的企业必须在其银行支票存款账户上保留某一最低规模的资金。
For example, a business getting a $10 million loan may be required to keep compensating balances of at least $1million in its checking account at the bank.
例如，一家得到1 000万美元贷款的企业可能被要求在其银行支票账户上至少保留100万美元的补偿余额。
This $1 million in compensating balances can then be taken by the bank to make up some of the losses on the loan if the borrower defaults.一旦企业违约，银行可用这100万美元补偿余额来弥补部分贷款损失。
Besides serving as collateral, compensating balances help increase the likelihood that a loan will be paid off. They do this by helping the bank monitor the borrower and consequently reduce moral hazard. Specifically, by requiring the borrower to use a checking account at the bank, the bank can observe the firm' s check payment practices, which may yield a great deal of information about the borrower's financial condition. For example, a sustained drop in the borrower's checking account balance may signal that the borrower is having financial trouble, or account activity may suggest that the borrower is engaging in risky activities; perhaps a change in suppliers means that the borrower is pursuing new lines of business. Any significant change in the borrower's payment procedures is a signal to the bank that it should make inquiries. Compensating balances therefore make it easier for banks to monitor borrowers more effectively and are another important credit risk management tool.
Besides serving as collateral, compensating balances help increase the likelihood that a loan will be paid off.除了发挥抵押功能之外，补偿余额还将提高贷款偿还的可能性，
They do this by helping the bank monitor the borrower and consequently reduce moral hazard.因为它有助于银行进行监控，从而使道德风险降至最低。
Specifically, by requiring the borrower to use a checking account at the bank, the bank can observe the firm' s check payment practices, which may yield a great deal of information about the borrower's financial condition.特别是，要求借款者使用其在该银行的支票账户，这家银行便可以观察企业的支票支付活动，由此可以得到大量有关借款者财务状况的信息。
For example, a sustained drop in the borrower's checking account balance may signal that the borrower is having financial trouble, or account activity may suggest that the borrower is engaging in risky activities;例如，借款者支票账户余额的持续减少，可能说明它在财务上遇到了麻烦，其账户发生的变化可能说明借款者正在从事高风险活动。
perhaps a change in suppliers means that the borrower is pursuing new lines of business.或者，供应商的变化意味着借款者正在从事一项新的经营活动。
Any significant change in the borrower's payment procedures is a signal to the bank that it should make inquiries.对银行来说，借款者支付过程的任何重要变化都提供了一个信号，促其进行调查。
Compensating balances therefore make it easier for banks to monitor borrowers more effectively and are another important credit risk management tool.
所以，补偿余额安排使得银行能更容易地对借款者进行有效监控，因而它是信用风险管理的另一重要工具。
Managing Credit Risk 2
Credit Rationing
Another way in which financial institutions deal with adveselection and moral hazard is through credit rationing: Lenders refuse to make loans even though borrowers are willing to pay the stated interest rate or even a higher rate. Credit rationing takes two forms. The first occurs when a lender refuses to make a loan of any amount to a borrower, even if the borrower is willing to pay a higher interest rate. The second occurs when a lender is willing to make a loan but restricts the size of the loan to less than the borrower would like.
Credit Rationing信用配给
Another way in which financial institutions deal with adverse selection and moral hazard is through credit rationing: Lenders refuse to make loans even though borrowers are willing to pay the stated interest rate or even a higher rate.金融机构对付逆向选择和道德风险的另一途径是进行信用配给，即贷款者拒绝提供贷款，
哪怕借款者愿意按照公布的利率甚至比之更高的利率来支付利息。
Credit rationing takes two forms. The first occurs when a lender refuses to make a loan of any amount to a borrower, even if the borrower is willing to pay a higher interest rate.信用配给有两种情况：第一种情况是，银行拒绝发放任何数额的贷款，哪怕借款者愿意支付较高的利率；
The second occurs when a lender is willing to make a loan but restricts the size of the loan to less than the borrower would like.第二种情况是，银行愿意发放贷款，但数额低于借款者的要求。
At first you might be puzzled by the first type of credit rationing. After all, even if the potential borrower is a credit risk, why doesn't the lender just extend the loan but at a higher interest rate? The answer is that adverse selection prevents this solution. Individuals and firms with the riskiest investment projects are exactly those that are willing to pay the highest interest rates. If a borrower took on a high-risk investment and succeeded, the borrower would become extremely rich. But a lender wouldn't want to make such a loan precisely because the investment risk is high; the likely outcome is that the borrower will not succeed and the lender will not be paid back. Charging a higher interest rate just makes adverse selection worse for the lender; that is, it increases the likelihood that the lender is lending to a bad credit risk. The lender would therefore rather not make any loans at a higher interest rate; instead, it would engage in the first type of credit rationing and would turn down loans.
At first you might be puzzled by the first type of credit rationing.首先你可能会对第一种信用配给感到困惑。
After all, even if the potential borrower is a credit risk, why doesn't the lender just extend the loan but at a higher interest rate?不管怎么说，即便要借款的是一个高风险者，为什么银行不以高利率来向他提供贷款呢?
The answer is that adverse selection prevents this solution. 答案很简单，逆向选择阻碍银行这样去做。
Individuals and firms with the riskiest investment projects are exactly those that are willing to pay the highest interest rates.那些拥有高风险投资项目的个人和企业，正是愿意支付最高利率的人。
If a borrower took on a high-risk investment and succeeded, the borrower would become extremely rich.一旦借款者进行一项高风险投资并且取得成功，他将变为巨富。
But a lender wouldn't want to make such a loan precisely because the investment risk is high;银行不愿发放此类贷款，正因为投资的风险太大，
the likely outcome is that the borrower will not succeed and the lender will not be paid back. 极可能发生的结果是：借款者投资失败，而银行贷款得不到偿还。
Charging a higher interest rate just makes adverse selection worse for the lender; that is, it increases the likelihood that the lender is lending to a bad credit risk.
对于银行来说，正是高利率使得逆向选择问题更加恶化，就是说，它使得银行向高风险者贷款的可能性增大了。
The lender would therefore rather not make any loans at a higher interest rate; instead, it would engage in the first type of credit rationing and would turn down loans.因而，银行宁愿不发放任何高利率贷款而进行第一种信用配给，即拒绝发放贷款。
Financial institutions engage in the second type of credit rationing to guard against moral hazard. They grant loans to borrowers, but not loans as large as the borrowers want such credit rationing is necessary because the larger the loan, the greater the benefits from moral hazard. If a bank gives you a $1 000 loan, for example, you are likely to take actions that enable you to pay it back because you don' t want to hurt your credit rating for the more borrowers repay their loans if the loan amounts are small, financial institutions ration credit by providing borrowers with smaller loans than they seek.
Financial institutions engage in the second type of credit rationing to guard against moral hazard.银行从事第二种信用配给以防范道德风险：
They grant loans to borrowers, but not loans as large as the borrowers want such credit rationing is necessary because the larger the loan, the greater the benefits from moral hazard.向借款者提供贷款，但提供的贷款低于借款者要求的规模。这种信用配给是必要的，这是因为，贷款规模越大，道德风险活动所产生的利益越大。
Since more borrowers repay their loans if the loan amounts are small, financial institutions ration credit by providing borrowers with smaller loans than they seek.
由于小额借款者大都能偿还借款，银行就通过提供的贷款低于借款者要求的规模的方式来配给信用。
Unit17 Money Management Business
Money Management
Banking, stockbroking, and fund management are converging. For investment banking houses, money management business is not a question of whether to enter, but rather to "buy" or to "build". In 1970, only 7 of top 15 underwriters had affiliations with units that ran money. By 2003, nearly all major investment banks had drifted into fund management. Several factors have contributed to the growing importance of money management operations within investment banking business umbrella.
Money management business资金管理行业
Banking, stockbroking, and fund management are converging.银行业、证券经纪业和资金管理业正逐渐趋同。
Converge: to come from different directions and meet at the same point to become one thing [≠ diverge]:
For investment banking houses, money management business is not a question of whether to enter, but rather to "buy" or to "build. ".对投资银行来说，资金管理行业不是什么是否进入的问题，而是要去“买”还是去“新建”的问题。
In 1970, only 7 of top 15 underwriters had affiliations with units that ran money
1970年，顶级的15家承销商中只有7家拥有运营资金的附属机构。
By 2003, nearly all major investment banks had drifted into fund management. 2003年，几乎所有顶级的投资银行都介入了资金管理业务。
Drift: to move slowly
Drift into sth: to move, change, or do something without realizing it. 不知不觉的开始做某个事情
She was just drifting into sleep when her boss is coming in. 当她迷迷糊糊刚要睡着的时候，经理近来了。
（在这个句子中，nearly all major investment banks had drifted into fund management.表达的意思是：几乎所有的顶级的投资银行都在不知不觉中介入了资金管理业务。）
Several factors have contributed to the growing importance of money management operations within investment banking business umbrella.
A Contribute to B : A 导致 B 的发生，A是B的原因
Several factors have contributed to the growing importance of money management operations
有几个因素导致了资金管理业务的重要性，或者说有几个因素是资金管理变的越来越重要的原因。
（好，我们再来看一下这句话中umbrella的意思，umbrella 本意是伞，在这里把investment banking比做一个大伞，在这个大伞下经营着很多的业务，money management就是其中之一.
译文：资金管理业务作为投资银行业务的一个分支，其重要性正日益增强。导致这一现象的原因有以下几点：
First, it is to keep up with competition by providing a one-stop financial store. Running affiliated funds expands the range of products and services investment banks offer to clients. Second, it helps balance out banks' volatile income streams with a relatively stable .source of income. Affiliated funds provide support for Wall Street parents' underwriting business as well. Investment banks take in revenues to underwrite securities is sues and fee income with the help of fund management operations. It is one of the most attractive segments of the financial services industry. The total industry net assets have grown from $135 billion in 1980 to ,$ trillion by December 1997. By the end of 2003, the assets of the ' s mutual funds grew to nearly $7 trillion.
First, it is to keep up with competition by providing a one-stop financial store.首先是出于通过提供一步到位式金融服务(one- stop financial store，或称全方位金融服务) 从而保持自己竞争力的需要。
Running affiliated funds expands the range of products and services investment banks offer to clients.运营附属基金可以扩大投资银行向客户提供的产品和服务的范围；
Second, it helps balance out banks’volatile income streams with a relatively stablesource of income.
Volatile: 动荡不定的
Balance out: if two or more things balance out, the final result is that they are equal in amount, importance, or effect:
译文：其二，资金管理可以带来相对稳定的收入流，从而有助于抵消银行收入流的不稳定；
Affiliated funds provide support for Wall Street parents' underwriting business as well.附属基金也为其华尔街上的母公司的承销业务提供了支持，
Investment banks take in revenues to underwrite securities issues and fee income with the help of fund management operations.投资银行可以从承销证券发行得到收益，并通过经营资金管理业务获取费用型收入。
It is one of the most attractive segments of the financial services industry.资金管理是金融服务行业中最具吸引力的业务之一，
The total industry net assets have grown from $135 billion in 1980 to ,$ trillion by December 1997.其行业的总净资产已经从1980年的1 350亿美元增加到了I 1997年12月的44 900亿美元。
By the end of 2003, the assets of the ' s mutual funds grew to nearly $7 trillion.到2003年年底，美国全国的共同基金资产已达到近7万亿美元。
Investment management business itself is undergoing radical reshaping. According to a widely read report from Goldman Sachs published in 1997, consolidation is the wave of the future. Within the next few years, the industry will emerge as a handful of dominant companies and some smaller niche players. To establish and secure a position in the marketplace quickly, Wall Street firms favor buying over the build-it-yourself approach.
Investment management business itself is undergoing radical reshaping.投资管理行业本身正在进行彻底的洗牌。
According to a widely read report from Goldman Sachs published in 1997, consolidation is the wave of the future.根据高盛公司1997年发布的一项读者面较广的报告，合并将在未来掀起高潮。
Within the next few years, the industry will emerge as a handful of dominant companies and some smaller niche players.在接下来的几年内，该行业将出现由少数几家占主导地位的公司和一些较小的专业公司组成的局面。
Niche来源于法语。法国人信奉天主教，在建造房屋时，常常在外墙上凿出一个不大的神龛，以供放圣母玛利亚。它虽然小，但边界清晰，洞里乾坤，因而后来被引来形容大市场中的缝隙市场。在英语里，它还有一个意思，是悬崖上的石缝，人们在登山时，常常要借助这些微小的缝隙作为支点，一点点向上攀登。
20世纪80年代，美国商学院的学者们开始将这一词引入市场营销领域。Niche Marketing—利基市场，是指在市场中通常被大企业所忽略的某些细分市场，但是很有发展潜力的市场。
Player: 在这里指公司。
To establish and secure a position in the marketplace quickly, Wall Street firms favor buying over the build-it-yourself approach.为迅速在华尔街上崛起并争得一席之地，华尔街上的公司更偏好买入(一家现成的投资管理公司)而不是采用自己新建(一家公司)的方法。
There are several important factors about the money management. First, the money management industry itself has been through restructuring in recent years. Second, commercial banks have been buying into asset management business as well. Third, investment banking houses are also in play.
There are several important factors about the money management. 在资金管理行业有几个重要的因素需要考虑：
First, the money management industry itself has been through restructuring in recent years.第一，资金管理行业本身近年来也一直在进行重组；
Second, commercial banks have been buying into asset management business as well.第二，商业银行也在通过收购进入资产管理行业；
Buy into: to buy part of a business or organization, especially because you want to control it. 收购
Third, investment banking houses are also in play.第三，投资银行业也已经参与进来。
Types of Money Management Operation
There are many types of investment management, including mutual funds, unit investment trusts, hedge funds, private client services businesses, leveraged buyout funds, and private equity funds. Private equity funds are funds that invest primarily in private equity such as venture capital. Leveraged buyout funds invest in corporate buyouts. Unit investment trust" is a registered investment company that buys and holds a relatively fixed portfolio of securities or assets. Units in the trust are sold to investors who receive a share of principal and interest or dividends. Unit investment trusts typically have a stated date for termination. Private client services business manages money for wealthy clients. Almost all investment commercial banks run private client services example, Goldman Sachs has some 365 brokers who specialize in money management for wealthy clients managing more than $200 billion of investor’s money.
Types of money management operations资金管理业务运营的类型
There are many types of investment management, including mutual funds, unit investment trusts, hedge funds, private client services businesses, leveraged buyout funds, and private equity funds.投资管理有许多类型，包括共同基金、单位投资信托、对冲基金、面向私人客户的服务行业、杠杆收购基金和私募股权基金。
Private equity funds are funds that invest primarily in private equity such as venture capital.私募股权基金是主要投资于私募股权的基金，如风险投资基金。
Leveraged buyout funds invest in corporate buyouts.杠杆收购基金投资于公司收购业务。
Unit investment trust" is a registered investment company that buys and holds a relatively fixed portfolio of securities or assets.单位投资信托是一家经登记的投资公司，它购买并持有相对较为固定的证券或资产组合。
Units in the trust are sold to investors who receive a share of principal and interest or dividends.该信托中的各单位被出售给投资者，投资者则拿到一份本金和利息凭证或股利凭证。
Unit investment trusts typically have a stated date for termination. 单位投资信托一般有一个规定的终止日。
Private client services business manages money for wealthy clients. Almost all investment and commercial banks run private client services businesses. 面向私人客户的服务行业是为富有的客户管理资金，几乎所有的投资银行和商业银行都经营私人客户的服务业务。
For example, Goldman Sachs has some 365 brokers who specialize in money management for wealthy clients managing more than $200 billion of investor’s money.
比如，高盛公司有大约365名经纪人，他们专门为富有的客户管理资金，其为投资者管理的资金超过了2 000亿美元。
Hedge funds are unregistered, private investment pools bound by the investment agreement investors sign with the sponsors of the hedge funds. With the exception of anti-fraud standards, they are exempt from SEC regulation. The sponsors of a hedge fund generally are not subject to any limitations in portfolio selection, and are not required to disclose information about the hedge fund’s holdings and performance, even though there has been drive for disclosure on strategies and portfolios. The typical fee structure for a hedge fund is that the hedge fund manager takes a fee of 1% -- 2 % of net assets, plus 20 % incentive fees. Some have front-end charges as well. Most hedge funds impose a high minimum investment; a minimum
investment of $250 000 or $500 000 is typical, though some have lower minimums and some have higher requirements.
Hedge funds are unregistered, private investment pools bound by the investment agreement investors sign with the sponsors of the hedge funds.对冲基金是一种无须登记的私募投资基金，它受投资者与对冲基金主办人之间签订的投资协议的约束。
Bound: be bound by a law, promise,agreement 意思是：受…的约束，负有…的义务
With the exception of anti-fraud standards, they are exempt from SEC regulation.除了必须受到反欺诈法的管辖外，它不受证券交易协会的监管。
Exempt免除，豁免
The sponsors of a hedge fund generally are not subject to any limitations in portfolio selection, and are not required to disclose information about the hedge fund’s holdings and performance, even though there has been drive for disclosure on strategies and portfolios.对冲基金的主办人在投资组合的方面一般不会受到任何限制，不必披露对冲基金的持仓情况和业绩表现方面的信息，尽管一直存在要求对冲基金披露策略和组合选择的倾向。
Disclose: =elicit 披露
The typical fee structure for a hedge fund is that the hedge fund manager takes a fee of 1% -- 2 % of net assets, plus 20 % incentive have front-end charges as well.对冲基金的典型费用结构是对冲基金管理人收取净资产的1％～2％左右的费用，再加上20％的激励费，还有些基金收取前端费用。
Most hedge funds impose a high minimum investment; a minimuminvestment of $250 000 or $500 000 is typical, though some have lower minimums and some have higher requirements.大多数对冲基金要求有较高的最低投资额，虽然这一要求有高有低，但通常的最低投资额是25万美元或50万美元。
Under the National Securities Markets Improvement Act of 1996, hedge funds can accept investment from an unlimited number of qualified individuals who hold at least $5 million in investments or institutions with $25 million in investments, in addition to its 100 or fewer other nonqualified investors. However, it is prohibitedfrom making a public offering of its securities. This is intended to limit participation in hedge funds and other types of high risk and high leverage pools to highly sophisticated investors.
Under the National Securities Markets Improvement Act of 1996, hedge funds can accept investmentfroman unlimited number of qualified individuals who hold at least $5 million in investments or institutionswith $25 million in investments, in addition to its 100 or fewer other nonqualified investors.根据1996年美国《全国证券市场改良法》，对冲基金除了可以从其100个或少于100个的非合格型投资者手中接收投资外，还可以从符合资格的个人或机构手中接收投资，其中对个人资格的要求是至少持有500万美元的投资额，对机构的要求是至少持有2 500万美元的投资额，而对这两种投资者的数量都不加限制。
However, it is prohibitedfrom making a public offering of its securities.然而，法规仍禁止对冲基金公开发行其证券。
This is intended to limit participation in hedge funds and other types of high risk and high leverage pools to highly sophisticated investors.这一规定旨在限制那些经验极其丰富、技术极其熟练的资深投资者对对冲基金和其他类型的高风险、高杠杆资产组合的参与。
Operation of Mutual Fund in
背景介绍
美国的共同基金是一种公司型开放式基金，而我国目前的基金类型全部为契约型封闭式基金，这与我国证券市场的发展程度有很大关系。随着我国证券市场的成熟与发达，共同基金将是我国基金的发展方向或样板。事实上，国际市场的基金类型也是以开放式为主的，因此，了解共同基金或开放式基金的具体运作是非常必要的。
Open-end investment companies are so called because of their fluctuating capitalization.
As investors deposit money to purchase mutual fund shares, the fund's transfer agent issues new shares at the current NAV plus a sales charge, if any. If shares are tendered for redemption, the transfer agent cancels them and pays their NAV to the shareholder. Thus, if investors buy more new shares than they redeem, the number of outstanding shares , whenredemptions exceed sales, outstanding shares decline in number.(Redemption at net asset value precludes the possibility of mutual funds selling at a discount, as their closed-end cousins sometimes do.) Consequently, the number of shares of the typical mutual fund fluctuatesfrequently, often daily. This constant flux in capitalization has led to the application of theterms open end to describemutual funds, and closed end to describe the type of Management Company that makes a one-time offering of shares.
Mutual Funds共同基金
Open-end investment companies are so called because of their fluctuating capitalization.开放式投资公司之所以这样命名是因为它们拥有波动的资本总额。
As investors deposit money to purchase mutual fund shares, the fund's transfer agent issues new shares at the current NAV plus a sales charge, if any.
transfer agent: 销售代理人
当投资者出资购买基金份额时，基金销售代理人出售新的份额，（at表示以什么样的价格出售）以当前净资产值(NAV: net asset value)加上一定的销售费用(如果存在的话)
译文：当投资者出资购买基金份额时，基金销售代理人就以当前净资产值(NAV)加上一定的销售费用(如果存在的话)出售新的份额。
If shares are tendered for redemption, the transfer agent cancels them and pays their NAV to the shareholder.如果基金份额被要求赎回，销售代理人就购回这部分份额并按其净资产值向股东支付现金。
Redemption n. redeem v. 赎回
Thus, if investors buy more new shares than they redeem, the number of outstanding shares rises.因此，如果投资者购买的新份额超过赎回的份额，基金的未清偿余额就增加。
Conversely, whenredemptions exceed sales, outstanding shares decline in number.相反，如果赎回超过销售，未清偿余额就减少。
Consequently, the number of shares of the typical mutual fund fluctuatesfrequently, often daily. 因此，典型的共同基金的份额数目总是频繁波动，经常每日如此。
This constant flux in capitalization has led to the application of theterms open end to describe mutual funds, and closed end to describe the type of Management Company that makes a one-time offering of shares.资本总额的这种固有的不断变动导致了应用术语“开放式”来描述共同基金的特性，而“封闭式”用来描述那种一次性出售基金份额的管理公司。
Flux: a situation in which things are changing a lot and you cannot be sure what will happen
Flux=fluctuation
Term: 术语
Mutual funds are offered to investors either at NAV or at NAV plus a sales charge, usuallycalled a load in industry usage. Those offered to investors at NAV are sold directly by thefund's distributor, often a captive organization of the management group that operates the groups have no commissioned salesforce and thus invest all of the money an investordeposits. They are called no-load funds and are growing rapidly in both numbers and in assetsunder management.
Mutual funds are offered to investors either at NAV or at NAV plus a sales charge, usuallycalled a load in industry usage. 共同基金或者以净资产值，或者以净资产值加销售费用——行业内部通常称为手续费，出售给投资者。
Those offered to investors at NAV are sold directly by thefund's distributor, often a captive organization of the management group that operates the fund.以净资产值向投资者出售的那些基金直接由基金的分销商出售，分销商通常是经营基金的管理集团控制下的一个组织。
Captive: 被监禁的，被关押的
a captive organization：被控制的组织
These groups have no commissioned salesforce and thus invest all of the money an investordeposits. 这些集团没有收取佣金的销售组织，因而投资者的出资全部用于基金投资。
They are called no-load funds and are growing rapidly in both numbers and in assetsunder management.它们被称为不收费基金，其数量和所管理的资产规模都在迅速增加。
Funds that charge a sales load are both more numerous and generally better known to theinvesting public. They are sold through commissioned salesforces, including those of majorbrokers and insurance companies. Advertising budgets of these organizations are oftensubstantial. More importantly, registered representatives of brokerage firms ordinarily do notget paid for selling no-load funds. Should an investor want to buy a mutual fund from a broker therefore, the chances of a recommendation featuring a no-load fund are rather small.
Funds that charge a sales load are both more numerous and generally better known to theinvesting public. 对投资公众来说，收取销售费用的基金不仅数量更多，也更为闻名。
They are sold through commissioned salesforces, including those of majorbrokers and insurance companies. 它们由收取佣金的销售组织出售，包括一些主要的经纪人和保险公司。
Advertising budgets of these organizations are oftensubstantial. 这些组织的广告预算经常相当可观。
More importantly, registered representatives of brokerage firms ordinarily do notget paid for selling no-load funds. 更重要的是，经注册的经纪公司的代表们一般对出售不收费基金不能收取佣金.
Should an investor want to buy a mutual fund from a broker therefore, the chances of a recommendation featuring a no-load fund are rather small.因此，如果投资者想从经纪人手中购买共同基金时，得到经纪人以不收费基金为主进行的推荐的机会就相当小。
The sales load can range from as little as 1% or 2% to as much as %. The latter percentage was the industry standard for many years, but has been shrinking under the pressure of more aggressive advertising by no-load competitors and the increasing financial sophistication of the average investor. A charge of % to 5% is probably the most widespread.
The sales load can range from as little as 1% or 2% to as much as %.销售费用的范围小到1 ％或2 ％，大到 ％。
The latterpercentage was the industry standard for many years, but has been shrinking under the pressure of more aggressive advertising by no-load competitors and the increasing financial sophistication of the average investor. 后一百分比在过去的许多年曾经是该行业的标准，但后来日趋降低，这是由于来自不收费基金的更为进攻性的广告战和普通投资者的金融经验和技术逐渐成熟所带来的压力。
Shrink: to become smaller or to make sth to become smaller 缩水，收缩
(In this sentence, the percentage of the industry standard has been shrinking)
A charge of % to 5% is probably the most widespread.收取 ％到5 ％的费用可能较为普遍。
The load fund industry has responded to these pressures by increasing some fees that are perhaps less obvious than the up-front sales charge. A number of load funds have reduced the initial charge to something like 3% or 4%, but added a "back-end load" which might tack on an additional 4% if the investor liquidates within a given period, for example, 48 months, aider purchase.
The load fund industry has responded to these pressures by increasing some fees that are perhaps less obvious than the up-front sales charge. 收费基金行业为适应这些压力，增加了一些比前端销售费用可能更为隐蔽的费用。
A number of load funds have reduced the initial charge to something like 3% or 4%, but added a "back-end load" which might tack on an additional 4% if the investor liquidates within a given period,for example, 48 months, after purchase..大量的收费基金已经将首次收费降低到3 ％或4 ％，但同时增加了“后续费用”它是指如果投资者在一定期间内要求赎回，比如在购买后的48个月内，则要收取4 ％的附加费用。
Tack on: v. 增补；附加
Liquidate:v. 停业清算，偿还债务(在这里理解为“赎回”)
the Purchase Methods of Mutual Fund
Purchase Methods
Mutual funds can be bought through a variety of means. The most popular method with investors is to buy in dollar amounts, such as $5 000 worth. The fund's transfer agent can confirm the purchase of fractional shares, typically up to 3 decimal places. Shares are not commonly delivered to investors so that distributions may be reinvested in new shares to achieve a compounding effect. Although individual stocks may offer dividend reinvestment plans, the mutual fund offers it, in effect, on an entire portfolio.
Purchase Methods购买方法
Mutual funds can be bought through a variety of means. 可以通过许多方式购买共同基金。
The most popular method with investors is to buy in dollar amounts, such as $5 000 worth. 对投资者来说最常见的就是以美元整数额购买，如5 000美元。
Worth: 表示价值多少，$5 000 worth:价值5000美圆
The fund's transfer agent can confirm the purchase of fractional shares, typically up to 3 decimal places. 基金销售代理人能够接受零额购买，通常可达到小数点后三位。
Shares are not commonly delivered to investors so that distributions may be reinvested in new shares to achieve a compounding effect. (基金支持的) 股票通常并不移交给投资人，这样能使收益分配再投资于新的股票以取得复合效应。
Although individual stocks may offer dividend reinvestment plans, the mutual fund offers it, in effect, on an entire portfolio.尽管个股也可能提供股利再投资计划，但实际上共同基金是对整个投资组合提供这种计划。
Most load funds offer reduced sales charges to investors buying in dollar amounts above certain levels. The levels at which these charges come into effect are called breakpoints. If an investor makes a purchase at or over the breakpoint the reduced sales charge applies to the entire purchase, not just the portion in excess of the breakpoint. Some funds also offer rights of accumulation which allow the investor to count the current market value of his holdings toward satisfaction of a breakpoint. This feature offers a reward to the small investor who may be loyal to the fund but never invests enough to meet the reduced sales charge requirement. For example,suppose an investor has a current market value in XYZ fund shares of $8 700 and wants to invest another $1 500. If the fund has a breakpoint at $10 000, the entire investment is made at the lower charge, because when added to his current holdings, the new investment carries him overthe breakpoint. The investor does not receive any refund of previously paid charges, but allsubsequent investments are made at the new, lower level until the next breakpoint is reached,where the process starts anew.
Most load funds offer reduced sales charges to investors buying in dollar amounts above certain levels. 当投资者购买基金的美元总额超过一定标准时，大多数收费基金向投资者收取的销售费用会逐渐降低。
The levels at which these charges come into effect are called breakpoints.达到能使销售费用降低的投资额标准称为临界点。
If an investor makes a purchase at or over the breakpoint the reduced sales charge applies to the entire purchase, not just the portion in excess of the breakpoint. 如果投资者在临界点水平或超过此水平购买，则降低的销售费用就适用于全部投资而不仅仅适用于超过临界点水平的那部分投资。
Some funds also offer rights of accumulation which allow the investor to count the current market value of his holdings toward satisfaction of a breakpoint. 一些基金也提供积累的权利，它允许投资者依靠其持有的基金份额的当前市值总额达到临界点要求而享受费用降低的好处。
This feature offers a reward to the small investor who may be loyal to the fund but never invests enough to meet the reduced sales charge requirement.这种工具为那些可能对基金非常忠诚但其每次投资额从未达到可降低销售费用标准的小额投资者提供了一种回报。
For example,suppose an investor has a current market value in XYZ fund shares of $8 700 and wants to invest another $1 500.例如，假设一个投资者拥有当前市值为8,700美元的XYZ基金份额，并想追加投资1 500美元。
If the fund has a breakpoint at $10 000, the entire investment is made at thelower charge, because when added to his current holdings, the new investment carries him overthe breakpoint.如果该基金的临界点为l0 000美元，该投资者的投资就可以在较低的费用基础上进行，因为新的投资加入到他当前持有的总额中使得他的总投资超过了临界点。
The investor does not receive any refund of previously paid charges, but allsubsequent investments are made at the new, lower level until the next breakpoint is reached,where the process starts anew.对于以前已经支付的费用投资者不会获得任何补偿。但是所有随后的投资将在一个新的,较低的费用标准上进行，直到达到下一个临界点开始重新执行新的标准。
Most mutual funds can also be purchased in small amounts. Some funds require a minimumpurchase amounts like $1 000 or $2 500. Subsequent purchases, however, can often be made inmuch smaller amounts, like $50, or even less. Others have no minimum purchase requirement atall. Investors can usually open a voluntary accumulation plan or an open account. This allowstheinvestor to make purchases at any time merely by mailing in a check or having the paymentregularly deducted from a checking account. If pursued on a regular basis monthly, for instance~the investor can take advantage of dollar cost averaging. The advantage of this system is that isleads to establishing a holding with a lower averagecost per share than the average prices pershare on the purchase dates.
Most mutual funds can also be purchased in small amounts. 大多数基金也能以小额资金购买。
Some funds require a minimumpurchase amounts like $1 000 or $2 500. Subsequent purchases, however, can often be made inmuch smaller amounts, like $50, or even less. 有一些基金要求最低购买额，如1 000美元或2 500美元，然而随后的购买经常能在更小的金额基础上进行，如50美元甚至更少。
Others have no minimum purchase requirement atall. 有些基金根本就没有最低购买额要求。Investors can usually open a voluntary accumulation plan or an open account.投资者通常可开立自愿积累计划或一一开放账户。
This allowstheinvestor to make purchases at any time merely by mailing in a check or having the paymentregularly deducted from a checking account.它允许投资者随时购买基金而仅仅通过用支票寄款或定期地从支票账户上扣除的方式支付。
Deduct: to take away an amount or part from a total扣除，减少
If pursued on a regular basis monthly, for instance ---the investor can take advantage of dollar cost averaging. 如果在定期的基础上购买——比如每月一次——投资者可以利用美元成本平均法。
The advantage of this system is that it leads to establishing a holding with a lower averagecost per share than the average prices pershare on the purchase dates.这种方法的优点在于能以低于购买日每股平均价的每股平均成本建立持有的基金资产。
For example, suppose an investor buys $ fund shares on the first of each month.
Because the market price is bound to fluctuate, the payment will buy more shares when the priceis low and fewer shares when the price is high. Suppose further that the market prices per sharewere $10, $11, $12, and $8 on each of the first 4 months of the plan. The investor would havepurchased 10, , , and shares, respectively. In other words, a $400 investment bought
shares, an average cost of $ per share. The average price, on the other hand, was$. The plan works, however, only if the market continues its customary long-term advance,and if the investor continues to make payments during those inevitable periodic (and frightening)declines which may last months, or even years.
For example, suppose an investor buys $ fund shares on the first of each month.例如，假设一个投资者在每月的第一日买入100美元的基金份额。
Because the market price is bound to fluctuate, the payment will buy more shares when the priceis low and fewer shares when the price is high. 由于市场价格肯定处于波动之中，因此，当基金价格较低时，就能买入较多的份额，而价格较高时买入的份额就较少。
Suppose further that the market prices per sharewere $10, $11, $12, and $8 on each of the first 4 months of the plan. 进一步假设，在本计划的头四个月中每个月的每股市价分别是10、11、12和8美元。
The investor would havepurchased 10, , , and shares, respectively. In other words, a $400 investment shares, an average cost of $ per average price, on the other hand, was$. 投资者将分别买入10、、和份。换句话说，400美元共买入份基金，每股平均成本美元而平均价格是美元。
The plan works, however, only if the market continues its customary long-term advance,and if the investor continues to make payments during those inevitable periodic (and frightening)declines which may last months, or even years.然而仅仅当市场继续他的常规的长期发展，并且在那些不可避免的周期性的(令人恐惧的)可能持续数月甚至数年的市场下跌期间投资者仍继续地进行定期支付时，该计划才能奏效。
Investors should, however, be wary of the "contractual" of "periodic payment plan." In thistype of plan, the investor commits to a monthly payment of a set amount for a fixed period, for example, 120 payments spread over 10 years. Although if completed, such plans may produce beneficial results, their early cancellation often leads to a loss. This is because much of the sales charge for the entire plan (if completed) is deducted in the first few years. As much as 50% of the first year's payments can be deducted in sales charges, although 20% is probably more common.
The plans are often sold to inexperienced investors who are unaware that a voluntary plan with no prepaid sales charge is usually available from the same fund.
Investors should, however, be wary of the "contractual" of "periodic payment plan."然而，投资者应对“契约式”或“定期支付计划”持谨慎态度。
In thistype of plan, the investor commits to a monthly payment of a set amount for a fixed period, for example, 120 payments spread over 10 years.在这种类型的计划中，投资者承担了在固定时期内每月进行既定金额的支付的义务。例如，在10年内支付120次。
Although if completed, such plans may produce beneficial results, their early cancellation often leads to a loss. 尽管如果计划正常结束可能给投资者带来有益的结果，但一旦计划提前结束，就经常会导致损失。
This is because much of the sales charge for the entire plan (if completed) is deducted in the first few years.因为对于整个计划来说，大部分销售费用都已经在最初的几年内扣除了(如果计划完全执行的话)。
As much as 50% of the first year's payments can be deducted in sales charges, although 20% is probably more common.投资者第一年的支付中可能有50 ％被扣减以支付销售费用，尽管20 ％的比例更为常见。
The plans are often sold to inexperienced investors who are unaware that a voluntary plan with no prepaid sales charge is usually available from the same fund.这些计划通常出售给那些没有经验的投资者，因为他们并不知道可以由同一家基金得到无须提前支付销售费用的自愿性计划。
Prospectus Requirement
Mutual funds are constant offerings of new issues. The buyer of mutual fund shares isbuying directly from the issuer, not from a previous owner, such as an investor buying stock onthe NYSE. Consequently, all mutual fund purchases are new issues and receive the protection of the Securities Act of 1933. This means that all purchases (and solicitations to purchase) must be accompanied with a prospectus. Unfortunately, many investors do not take the time to read this informative document which gives the details of such considerations as sales charges, management fees, and investment policies. Those with established accounts receive a new prospectus annually, but anyone interested in making a purchase can receive one upon request. Closed-end funds, on the other hand, are traded in the secondary market like ordinary shares. The purchase of these shares is not accompanied by a prospectus unless the transaction involves the initial public offering.
Prospectus Requirements招股说明书要求
Mutual funds are constant offerings of new issues. 共同基金不断地发行新的基金证券。
The buyer of mutual fund shares isbuying directly from the issuer, not from a previous owner, such as an investor buying stock onthe NYSE. 共同基金份额的买方可以直接从发行人手中购买，而不像投资者在纽约股票交易所购买股票那样要从其前持有者手中购买。
Consequently, all mutual fund purchases are new issues and receive the protection of the Securities Act of 1933. 因而共同基金的所有购买行为都是证券的新发行行为，并受到1933年证券法的保护。
This means that all purchases must be accompanied with a prospectus. 这意味着对于所有的购买行为都应同时附有招股说明书。
Unfortunately, many investors do not take the time to read this informative document which gives the details of such considerations as sales charges, management fees, and investment policies. 令人遗憾的是，许多投资者并没有花费时间去阅读这份信息文件。它给出了像销售费用、管理费用和投资政策等方面的详细说明。
Those with established accounts receive a new prospectus annually, but anyone interested in making a purchase can receive one upon request.投资者和声誉良好的会计师每年都会收到一份新的招股说明书。但任何想购买基金的人一旦需要也能得到一份。
Closed-end funds, on the other hand, are traded in the secondary market like ordinary shares. The purchase of these shares is not accompanied by a prospectus unless the transaction involves the initial public offering.相反，由于封闭式基金在二级市场像普通股一样交易，这些基金的购买一般就不附有招股说明书，除非交易行为涉及基金份额的首次公开发行。
Distribution of Mutual Fund
All investment companies receive distributions when the securities in their portfolios make dividend or interest payments. Most (but not all) funds pay these distributions to their shareholders, after first deducting the operating expenses of the fund--primarily the management fee, but also including prospectus-related expenses, legal and accounting fees, and the likes. The fund itself pays no taxes as long as it distributes a minimum of 90% of net investment income to shareholders. Most funds pay all, or almost all, of net investment income to shareholders, who in turn incur the tax liabilities that were passed along by the fund.
All investment companies receive distributions when the securities in their portfolios make dividend or interest payments. 当基金资产组合中的证券得到股利或利息支付时，所有的投资公司也会获得分配的收益。
Most (but not all) funds pay these distributions to their shareholders, after first deducting the operating expenses of the fund--primarily the managementfee, but also including prospectus-related expenses, legal and accounting fees, and the likes.大多数(但不是全部)基金首先会扣除基金经营费用——主要是管理费，但也包括与招股说明书相关的费用、法律和会计费用以及类似的费用，之后会将这些收益分配给股东。
The fund itself pays no taxes as long as it distributes a minimum of 90% of net investment income to shareholders.只要将其净投资收入的至少90 ％分配给股东，基金本身就无需为收入纳税。
Most funds pay all, or almost all, of net investment income to shareholders, who in turn incur the tax liabilities that were passed along by the fund.大多数基金将全部的或几乎是全部的净投资收入分配给股东，股东则担负有基金传递过来的对所得收入纳税的义务。
If the fund has realized net trading profits during the year, these too are passed on to shareholders. These capital gains distributions are either long or short-term based on the fund's holdingperiod of the securities sold, not the investor's holding period of the fund. Hence, an investor could receive a long-term capital gain on shares purchased last week. Mutual funds are not allowed to distribute net losses to shareholders, but may carry them forward to offset possible future profits.
If the fund has realized net trading profits during the year, these too are passed on to shareholders. 如果基金在该年度实现了净交易利润，这些利润也分配给股东。
These capital gains distributions are either long or short-term based on the fund's holdingperiod of the securities sold, not the investor's holding period of the fund. 这些资本利得的分配可能是短期也可能是长期的，这决定于基金持有已出售的证券的时间长短而不是投资者持有基金的时间的长短。
Hence, an investor could receive a long-term capital gain on shares purchased last week. 因此，投资者能够因刚刚在上周购买的基金份额而获得基金的长期资本利得的分配。
Mutual funds are not allowed to distributenet losses to shareholders, but may carry them forward to offset possible future profits.共同基金不允许将净损失向基金投资者摊销，但允许继续保留净损失以抵消可能的未来盈余。
Redemption of Mutual Fund
Mutual fund shareholders may liquidate their holdings by redeeming their shares through the fund's transfer agent, usually a bank specializing in such services.共同基金的股东可以通过要求基金的销售代理人赎回基金份额来变现其投资，通常是银行专门充当销售代理人的角色。
The investor mails the request to the transfer agent, enclosing a signed stock powerwith a signature guarantee provided by a bank, a brokerage firm, or certain other financial institutions.投资者将其赎回要求通知销售代理人，并附上一张由一家银行、经纪公司或某些其他金融机构具名担保的已签署生效的股票账户证明，
Upon receipt, the transferagent liquidates the shares at the net asset value established at the close of business on the NYSE that day.一旦收到通知和股票账户证明，销售代理人就按纽约证券交易所当天闭市时基金的净资产值变现这部分基金份额。
This is generally true even if the underlying securities are bonds or other securities not traded on the NYSE. 即使基金持有的证券是债券或不在纽约证券交易所交易的其他证券时通常也是如此。
By prior arrangement with the fund, shareholders may liquidate (and move to other funds within the same group) by telephone.通过与基金的事先约定，股东可用电话通知的方式赎回基金(或在同一集团内转而投资其他基金)。
One of the unfortunate side effects of this convenience is that it has spawned a new sub-industry of "market timers" who claim to be able to select the correct fund in which to be invested on a short-term trading basis. The provider of this advice usually sells a newsletter with a telephone "hotline" service. The process appears largely self-defeating because the investor is already paying the fund's manager a fee for investment selection. No convincing evidence has yet emerged to verify the claims of the "telephone switchers," and, indeed, it seems as unlikely to do so as similar claims made by other market technicians. Although trading securities aggressively is sometimes welcomed by brokers because of the increased commission revenues,it has infrequently been shown to benefit individual investors. Because mutual funds aredesigned to be "buy-and-hold" investments, there is little reason for shareholders to do otherwise.
One of the unfortunate side effects of this convenience is that it has spawned a new sub-industry of "market timers" who claim to be able to select the correct fund in which to be invested on a short-term trading basis.这种便捷所造成的不利效应之一就是它刺激产生了一种新的分支行业“市场即时热线”，他们声称能选择适合进行短期投资交易的基金。
The provider of this advice usually sells a newsletter with a telephone "hotline" service. 这种建议的提供者通常利用电话“热线”服务出售信息简报。
The process appears largely self-defeating because the investor is already paying the fund's manager a fee for investment selection.这种业务大部分最终自我失败，因为投资者已经通过向基金管理人付费的方式委托其进行投资选择。
No convincing evidence has yet emerged to verify the claims of the "telephone switchers,"没有令人信服的证据表明那些“市场即时热线”的选择是正确的。
And, indeed, it seems as unlikely to do so as similar claims made by other market technicians. 实际上，这种业务似乎不可能成功，因为类似的投资判断也可能由其他市场分析家作出。Although trading securitiesaggressively is sometimes welcomed by brokers because of the increased commission revenues,it has infrequently been shown to benefit individual investors.尽管大量而频繁的进行证券交易有时受到经纪人的欢迎，因为经纪人的佣金收入会增加，但这并不能表明对个人投资者有益。
Because mutual funds aredesigned to be "buy-and-hold" investments, there is little reason for shareholders to do otherwise.因为设计共同基金的目的就是“买入以及持有”式投资，几乎没有理由让投资者进行频繁地买进卖出。
Redemption can also be made with some funds through check-writing privileges. This is common, as noted earlier, with money market funds, but is sometimes offered by more conventional funds. Upon request, the shareholder receives a check book that allows shares to be redeemed by writing a check for the desired dollar amount. The transfer agent liquidates the correct number of shares and instructs the bank on which the check is drawn to honor the payment request.
Redemption can also be made with some funds through check-writing privileges. 有些基金也可以通过填写支票的特有方式进行赎回.
This is common, as noted earlier, with money market funds, but is sometimes offered by more conventional funds.正像前面所指出的，这常见于货币市场基金，但有时更多的普通基金也会利用此方式。
Upon request, the shareholder receives a check book that allows shares to be redeemed by writing a check for the desired dollar amount. 一旦发出赎回要求后，股东就会收到一个允许份额赎回的支票账簿。股东需填写所需的美元数额的支票。
The transfer agent liquidates the correct number of shares and instructs the bank on which the check is drawn to honor the payment request.销售代理人将核实变现后的正确的份额并指示支票账户所在的银行兑现支票以支付给投资者现金。
Some funds also have a rarely used redemption option called "redemption in kind." These funds, frequently the aggressive growth variety, tend to draw investors seeking quick of these investors jump from fund to fund in a chase after the best performance. If they invest large sums, a redemption request may force a fully invested portfolio manager to liquidate investments in order to realize cash. If large numbers of shareholders try this at the same time, the remaining shareholders may be disadvantaged as the fund might have to sell off some its best performing securities. In such cases, the fund may instead deliver to redeeming shareholders securities from the portfolio in the same dollar value as the cash that otherwise would have been paid.
Somefunds also have a rarely used redemption option called "redemption in kind."
These funds, frequently the aggressive growth variety, tend to draw investors seeking quick gains.
也有些基金有一种很少使用的赎回方式，称为“以实物赎回(以货代款，)”。这些基金大部分属于进取增长型基金，倾向于使投资者快速获利。
Some of these investors jump from fund to fund in a chase after the best performance. 一些投资者不停地从一家基金跳到另一家基金，不停地追逐业绩表现最好的基金。
If they invest large sums, a redemption request may force a fully invested portfolio manager to liquidate investments in order to realize cash.如果他们的投资额很大，一项赎回要求可能迫使一个已将资金全部投资的资产组合管理人变现投资以取得现金。
If large numbers of shareholders try this at the same time, the remaining shareholders may be disadvantaged as the fund might have to sell off some its best performing securities.如果有大量的股东同时提出赎回要求，其余的股东就会处于不利的地位，因为基金可能不得不卖掉其资产组合中一些业绩最好的证券。
In such cases, the fund may instead deliver to redeeming shareholders securities from the portfolio in the same dollar value as the cash that otherwise would have been paid.在这种情况下，基金可以向要求赎回的股东交付同样美元价值的基金资产组合中的证券，以代替要支付的现金。
Performance of Mutual Fund
The advantages of diversification are well explained by modem portfolio theory. For convenience and flexibility the mutual fund has no serious rivals in the investment field. Claims of superior performance resulting from professional management, however, are less convincing. Spectacular successful performance during the 1980s may obscure the fact that the typical managed portfolio has often underperformed theunmanaged indexes like the Standard & poor's 500. In short, the costs associated with portfoliomanagement may tip marginally superior performance to underperformance. For many investors, this may be a clue that the best advice is no advice. They should seek out funds with the demonstrably lowest costs, in particular the index funds which merely aim to replicateindexes-not outperform them. In the long run, such performance has been most attractive.
Performance业绩表现(业绩情况)
The advantages of diversification are well explained by modem portfolio theory. 多元化投资的优势已经被现代资产组合理论充分阐释。
For convenience and flexibility the mutual fund has no serious rivals in the investment field.就方便与灵活性而言，共同基金在投资领域没有有力的竞争对手。
Claims of superior performance resulting from professional management, however, are less convincing. 然而优良的业绩来源于专业化的管理的说法并不太令人信服。
Superior performance, superior performing, best performing: 优良的业绩
Spectacular successful performance during the 1980s may obscure the fact that the typical managed portfolio has often underperformed theunmanaged indexes like the Standard & poor's 500. 像20世纪80年代基金投机那样成功的表现可能掩盖了下列事实：即，典型的专业管理的证券组合的业绩表现经常低于无管理的指数如标准普尔500指数的表现。
Obscure: 掩盖，遮盖
In short, the costs associated with portfoliomanagement may tip marginally superior performance tounderperformance.简而言之，与资产组合管理有关的成本的存在可能使优良的业绩稍微向较差的业绩倾斜。
Tip: v. 倾斜，tip A to B: 使A向着B倾斜
For many investors, this may be a clue that the best advice is no advice. 对许多投资者来说，这可能是一种暗示：最好的建议等于没有建议。
They should seek out funds with thedemonstrably lowest costs, in particular the index funds which merely aim to replicateindexes-not outperform them. 他们应当选择显而易见的最低成本的基金，特别是指数基金，他们的目标仅在于与指数保持一致——而不是优于指数。
In the long run, such performance has been most attractive.从长期来看，此类基金的业绩表现最富于吸引力。
Replicate: 复制
That’s all for the introduction of Mutual Funds in the United States, We mainly talked about the fees, purchase method, prospectus requirements, distribution, performances of the fund. Thanks for your listening.
本章以共同基金为例对基金的费用、购买方式、招股说明书要求、收益分配、业绩表现。
Financial Instrument Exercises 1
Use the following terms to complete the sentences below:
certificates of deposit commercial paper currency swap
detachable warrants forward contract futures contract
interest-rate swap junk bonds off-balance-sheet transactions
participation certificates securitization zero coupon bonds
1__Commercial paper is short-term, discounted and unsecured corporate debt of large American banks and companies issued, usually for one to three months only, as a way of borrowing money.
商业票据是一种短期的，以贴现的方式表达的，无担保的的公司债务，作为一种融资手段，发行者通常是大型美国银行和公司，到期日通常是一到三个月。
2 _Zero coupon bonds_ pay no interest, but are sold at a large discount and ultimately redeemed at face value. They consequently yield capital gains. 零息债券指不支付利息的债券，发行是贴现发行，（即以低于面值的价格发行，到期时按面值还本），面值与发行价的差额既是投资人的资本利得。
3_Detachable warrants__ are sometimes issued with bonds, and give the buyer the right to buy the same firm's equities within a certain period. Unlike convertible bonds, the bond itself is not converted into shares.
分离式认股权证：发行债券或其他证券时所附送的，（但随后可分拆出来在二级市场独立交易的认股权证），授予持有人以约定的价格认购公司的新股或新债的权利。那么这种附有认股权证的的债券被称做：Warrant Bonds , 这种债券的票面利率通常低于不附有认股权证的同类债券。句子中还提到Unlike convertible bonds, the bond itself is not converted into shares.意思是与可转换债券不同，the bond附有认股权证的的债券本身是不能转换为股票的。Do you still remember what is a convertible bonds? As we mentioned before, “A common type of conversion feature is one that allowsthe bond to be exchanged at its face value for shares of common stock in the company issuingthe bonds.”一种很常见的转换特征是允许债券按其面值转换成发行债券公司的普通股。 So, the distinguishing feature between convertible bonds and Warrant bonds is that Warrant Bondscan not be converted into shares.
4__Securitization_is the process of selling packages of bank debts to third party investors as bonds. It shifts the risk of default from the bank to the new owners, and releases capital with which the bank can make new loans.资产证券化：指一组银行的债务组合起来作为证券出售给第三方投资者。证券化将银行的债务的违约风险转移给其新的拥有者，证券化产生新的资金可用于银行发放新的贷款。
5_Junk bonds are high-yielding bonds issued by less secure companies and by companies seeking to finance leveraged buy-outs.
垃圾债券是一种高收益债券，由一些刚营业不久，赢利记录和公司信誉还暂时不明朗的公司发行；有的垃圾债券是有一些想要为杠杆收购融资的公司发行的。
6. A borrower with a lot of floating loans can spread the risk via an interest-rate swap with a borrower of fixed rate loans.一个借了许多浮动利率贷款的借款者可以通过与一个借了许多固定利率的贷款者通过利率互换来分散风险。
7. An importer who will need foreign exchange in three or six months time can buy it in advance by way of a_ futures contract一个在3或6个月后需要外汇的进口方可以通过远期合约的方式提前购买。
8. Banks can convert large deposits that cannot be withdrawn on demandinto___ certificates of deposit： short-term, interest-bearing securities that can be traded like a share or bond.银行可以把大额的不能随时取出的存款转换为certificates of deposit存款单或存款证：这是一种短期的，有利息的证券，可以像股票或债券一样进行交易
9. Debt swaps, letters of credit, options, etc. are all forms of financial business that need not be registered as loans on a balance sheet. They are consequently known asoff-balance-sheet transactions__债务互换，信用证，期权等不同形式的金融业务不需要在资产负债表上登记，因此，他们被称为表外业务。
10. Futures markets deal in contracts for standardized quantities of commodities, currencies, etc. for specific time periods. Non-standardized deals can be negotiated in an over-the-counterforward contract _期货市场交易的合约承诺在将来的某个时间以当前约定的价格交易标准数量的商品、货币等等。期货合约必须是在期货交易所买卖的标准化合约。Non-standardized deals can be negotiated in an over-the-counterforward contract _非标准化交易可以通过场外交易的远期合约达成。This sentence tells us the difference between futures and forwards contract: Futures are always traded on an exchange, whereas forward contract always trade over-the-counter; Futures are highly standardized, whereas each forward contract is unique（每一个远期合约都是买卖双方量身定制的。
11. Issuing__ participation certificates ___which grant their holder part of the ownership of a company, but without voting rights - rather than shares, diminishes the risk of takeovers.参与证书
12. Two borrowers, each with a better credit rating in their own country, but also needing foreign
currency, can arrange a___currency swap两位借款者在各自的国家都有很好的信用等级，但是需要外汇，他们就可以安排一个货币互换。
Financial Instrument Exercises 2
Match up the following words (using them more than once if necessary) to make up at least ten
two-word nouns:
call contract financial forward futures
instrument market materials option price
primary product raw spot strike
call option, financial market, financial instrument, forward contract, forward market, futures market, market price, primary market, raw materials, spot market, spot price, strike price, etc.
EXERCISE 3
Match up the following words or expressions to make eight pairs of opposites:
call option discount drought exercise price
flood futures market hedging in-the-money
market price obligation out-of-the-money premium
put option right speculation spot market
call option-put option; discount-premium; drought-flood; exercise price-market price; futures market-spot market; hedging-speculation; in-the-money – out-of-the-money; obligation – right.
Add the words and expressions that complete the following sentences to the wordbox:
1. A () receives a dividend before the other classes of share.(preference share)
2. An () is one issued by a fairly new or small company, sold on a smaller stock exchange with fewer regulations than the big stock exchanges.(unlisted security)
3. A () is one of three names for new shares distributed to shareholders instead of a dividend.(bonus issue)
4. A () is sometimes issued with a bond, giving the holder the right to buy the same company's
shares at a certain price.(warrant)
5. A () is one that is considered risky, but which pays a high rate of interest.(junk bond)
6. A () pays no interest, but instead is issued at a discount (and of course redeemed at 100%).(zero coupon bond)
7. An () gives the right to buy or sell an asset at a certain price on a certain date.(option)
8. A () is the exchange of one security, currency, etc. for another.(swap)
9. A () is a bond issued by the British government(gilt)
10. A () is a short-term security issued by the Bank of England to regulate the money supply.(treasury bill)
11. An () is the most common type of equity.(ordinary shares)
12. A () is one whose owner is not registered with the issuing company.(bearer share)不记名股票，持有者股票
13. A () is one whose market price is expected to rise in the future.(growth stock)
14. A () is a loan to buy property, with the property (house, apartment, etc.) serving as a guarantee for the loan.(mortgage)
15. A () is a security in a large, safe, profitable company. (blue chip)
16. () is the American equivalent of ordinary shares in Britain.(common stock)
17. A () does not receive any dividend payment until after other categories of shares have received theirs.(deferred share)
18. A () is a bond issued by a company and secured by the company's assets.(debenture)信用债券
19. A () is a contract to deliver a commodity, security, currency, etc. at a pre-arranged date, with the price fixed when the contract is made.(future)
20. A () consists of new shares offered at below their nominal value to existing shareholders.(rights issue)（优惠股）
Financial Ratios
A ratio is the number obtained when one number is divided by another. Various financial ratios areused to measure profitability, solvency（清偿债物能力）, liquidity, efficiency, etc.
Match the explanations on this page with the ratios.
The current ratio (or working capital) measures liquidity - . having enough cash to meet short-termobligations. It shows if a business can pay its most urgent debts.流动比率
流动比率是衡量公司偿付短期债务能力的一项指标。
The quick ratio (or acid test ratio) provides a more accurate picture of short-term solvency byconsidering completely liquid assets.速动比率，有时也称为：酸性测试比率。更加准确的衡量公司偿付短期债务能力的一项指标
A company's profit margin or return on sales is the percentage difference between sales income andthe cost of sales.利润率有时也称销售收益或 return on capital (股本收益) 指：销售收入减销售成本或者指净利润占销售额或资本总额的百分比。
Productivity shows the amount of work or sales per employee.
Earnings per share relates the company's profits to the number of ordinary shares it has issued.
每股盈余：把公司的利润与发行的普通股的数量联系在一起
The price/earnings ratio (PER) reflects the market's opinion of a company's revenues, earnings anddividends: the higher it is, the more investors are optimistic about the company's future prospects.市盈率是衡量公司价值的指标，市盈率越高，投资者对于公司的未来越乐观。市场评定公司获利价值越高。
A company's debt/equity ratio, or gearing compares the amount of debt to the firm's own capital. Ahighly-geared company is one that has a lot of debt compared to equity.衡量公司债务水平的比率，由长期债务除以股东权益得出。负债权益比率
Interest cover or times interest earned shows whether funds are available to pay long-term debt costs.利息偿付倍数是指公司的总收益中可以用于支付多少倍的公司利息费用，
Dividend cover or the dividend payout ratio shows the percentage of income paid out to shareholders股息保障陪数：公司向股东支付股息能力的指标，由可派发股息的盈余（即股东应占溢利）除以股息得出。对于有稳定派息记录的公司来说，倍数越高，市场对其评价越高。
(or the number of times the net profits available for distribution exceed the dividend actually paid).
Return on equity shows profit compared to shareholders' capital.
股东权益收益率：是公司的利润与股东权益的比率，以百分比表示。该比率是最常用于衡量公司管理层运用股东资金状况的指标
Return on total assets shows profit compared to all of a company's capital, whether debt or equity.
总资产收益率：是指公司可分配的利润与同期总资产（债务或者是权益）的比率
Financial Ratios Exercises
What are the names of these ratios?
Dividend cover
股息保障陪数
common stock dividend/net income
Current ratio
流动比率
current assets/current liabilities
流动资产/流动负债
Earnings per share,
每股盈余
distributable profit/number of shares
（distributable profit=Net Income - Dividends on Preferred Stock）（净利润-优先股股息）
4. quick ratio or acid-test ratio 速动比率
liquid assets/current liabilities
（liquid assets= current assets- inventory）
debt/equity ratio
负债权益比率
(long-term) loan capital/shareholders' equity or net assets长期债务/股东权益
6. PER P/E Ratio
市盈率
market value of stock, per share/past year's earnings per share
每股的市价/每股的盈利
7. Interest cover
利息偿付倍数times interest earned
pre-tax profit/interest charges
8. Return on equity
股东权益收益率（股本回报率）
pre-tax profit/owners' equity
9. Profit margin or return on sales利润率有时也称销售收益
pre-tax profit/sales
on total assets
总资产收益率
pre-tax profit/total assets
11. productivity
sales volume/number (or wages) of employees
Current Asset and Current Liability
Current Assets
流动资产
资产负债表的一项，包括现金、应收账款、库存、可交易证券、预付开支及其他可在1年内转为现金的资产
流动资产
Current Assets
Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year.
Current Liabilities
流动负债
资产负债表的一项，包括应付账款、短期贷款、已引起但未付开支，预计其他在1年内到期的债务
流动负债
Current Liabilities
Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year.
Unit 18 Mergers and Acquisitions兼并与收购
Background
A Typical Leveraged Buyout—一个典型的杠杆收购案例
背景介绍
兼并与收购(M&A)无疑是资本市场上最惊心动魄、最易引发人的成就感的活动之一，每一次较大的兼并与收购活动都会引起市场各方的震动。特别是近十年来更是兼并与收购业务大行其道的时期。随着市场竞争的加剧，兼并与收购或被兼并与收购对公司来说都是可能的，有时它的成功并不完全取决于对等双方或各方的真正实力，技术因素往往起着关键的作用。
在当今市场上，投资银行已经成为兼并与收购活动的主要参与者之一。兼并与收购业务是投资银行收入的主要来源之一，也是投资银行提高自身竞争能力的主要途径，而投资银行参与兼并与收购活动的方式也日益多样化。
本章主要内容包括两部分：
第一部分是对兼并与收购业务的具体介绍与论述，包括：兼并与收购的基本业务类型，如：横向收购、纵向收购、混合收购、管理层收购(MBO)和杠杆收购(LBO)等；反收购措施(如“白衣骑士”、“毒丸”防御等)在敌意收购中的应用；并购融资来源以及各种可能情况下的利弊：投资银行在兼并与收购业务中的作用、费用结构和收入来源。 l
第二部分是一个典型的杠杆收购案例。正如文中所言“研究一个典型的杠杆收购的全过程是有指导意义的。我们所使用的例子是建立在假设基础上的，它并不说明任何特定的杠杆收购，而是旨在抓住典型的公司合并过程的本质。把握本质要求把问题做一些简化——_{旦不失其现实意义”。通过这个假设的但十分详细、具体的杠杆收购过程，读者能以最简单、最典型的方式把握兼并与收购业务中最本质的东西。
The 1980s was one of the most intense periods for M&A activity in Americans history .Theprime reasons for this were two fold: The Reagan administration encouraged the trend by notpursuing many potential infringement of the Sherman Anti-Trust Act and also helped itimmeasurably by passing indirectly to investors who became involved. The results helpedchange the face and history, of American finance and engendered some of the most emotionaldiscussion surrounding the investment banking industry since the 1930s.
The 1980s was one of the most intense periods for M&A activity in Americans history.在美国历史上，20世纪80年代是兼并和收购的一个高峰时期。
Theprime reasons for this were two fold: The Reagan administration encouraged the trend by notpursuing many potential infringement of the Sherman Anti-Trust Act and also helped itimmeasurably by passing indirectly to investors who became involved.其主要原因是：里根政府对破坏《谢尔曼反托拉斯法案》的活动不做深入追究，并且通过立法保证间接流向并购投资者的税收利益合法化，从而极大地推动了这一趋势的发展。
The results helpedchange the face and history of American finance and engendered some of the most emotionaldiscussion surrounding the investment banking industry since the 1930s.结果推动了美国金融业面貌和历史的改变，并酿成了30年代以来对投资银行业最为激烈的争论。
Prior to the 1980s, mergers and acquisitions simply meant that one company would attemptto take over another by gaining enough of its common stock to gain control. In the simplest sense, merger meant two companies becoming one with the acquirer being in the commanding position. The government only became involved if the deal was deemed inimical to competition or if thepotential acquirer was foreign, seeking control of a company or industry deemed vital to thenational defense.
Prior to the 1980s, mergers and acquisitions simply meant that one company would attemptto take over another by gaining enough of its common stock to gain control. 20世纪80年代以前，并购活动只意味着一家公司通过获取另一家公司足够的普通股来取得对该公司的控制权，最终实现接管。
In the simplest sense, merger meant two companies becoming one with the acquirer being in the commanding position.简单地说，兼并意味着两家公司合并为一体，并由收购方占据领导地位。
The government only became involved if the deal was deemed inimical to competition or if thepotential acquirer was foreign, seeking control of a company or industry deemed vital to thenational defense.只有在对竞争不利或是外国公司企图控制对国防至关重要的公司或行业时，政府才会进行干预。
Different Forms of Mergers
Mergers come in one of several distinct forms A horizontal merger brings together two companies in a similar industry--two steel companies for example. A vertical merger brings together two companies in related industries. A steel company taking over an energy producer such as a coal mine would be an example. An automobile producer taking over a parts manufacturer is another. In either case, the merger is designed to produce a synergy between the two companies that did not exist before. The horizontal merger should produce greater economies of scale while the vertical should produce greater quality and efficiency, avoiding duplication of products and production. Both bring together companies related either directly or indirectly.
Mergers come in one of several distinct forms.兼并有几种不同的形式
A horizontal merger brings together two companies in a similar industry--two steel companies for example.。横向兼并将两家相同行业的公司(例如两家钢铁公司)合为一体。
A vertical merger brings together two companies in related industries.纵向兼并是针对相关行业的两家公司而言的。
A steel company taking over an energy producer such as a coal mine would be an example.例如，一家钢铁公司兼并一个诸如煤矿之类的能源供应者就属于纵向兼并。
An automobile producer taking over a parts manufacturer is another.又如，一家汽车制造公司兼并一个零部件制造商。
In either case, the merger is designed to produce a synergy between the two companies that did not exist before. 无论哪种情形，兼并的目的都是希望能够产生出两个公司间以前并不存在的协同效应。
The horizontal merger should produce greater economies of scale while the vertical should produce greater quality and efficiency, avoiding duplication of products and production.横向兼并可以形成更大规模的经济实体，而纵向兼并可以产生更高的质量与效率，避免产品和生产的重复。
Both bring together companies related either directly or indirectly.
两种兼并都可以将直接或间接联系的公司组合到一起。
Another type of merger or takeover as the case may be, is the merger of two unrelatedcompanies. This is known as the conglomerate merger: a company purposely buying another notengaged in thesame business at all. This sort of merger and the companies it creates conglomerates--were originally conceived to serve as a hedge against changing economicclimates. The larger conglomerates shelter a multitude of unrelated companies under theircorporate umbrellas in much the same fashion that a diversified investor will amass a portfolio ofcommon stocks, assuming that diversification hedges against business risk. If parts of theenterprise fare poorly, others should behave counter-cyclically, helping to keep earnings on aneven keel. This assumes that the portfolio of companies was acquired with a specificdiversification model in the first place.
Another type of merger or takeover as the case may be, is the merger of two unrelatedcompanies. 另一类型的兼并，或事实上的接管案例，是两家没有联系的公司的结合。
This is known as the conglomerate merger: a company purposely buying another notengaged in thesame business at all. 这就是广为人知的混合兼并——一家公司有意地并购另一家完全不同行业的公司。
This sort of merger and the companies it creates conglomerates--were originally conceived to serve as a hedge against changing economicclimates. 这种兼并以及由此而产生的集团企业的目的是规避经济气候变化的风险。
The larger conglomeratessheltera multitude of unrelated companies under theircorporate umbrellasin much the same fashion that a diversified investor will amass a portfolio ofcommon stocks, assuming that diversification hedges against business risk.这种膨胀的集团公司将大量不相关行业的企业收罗于它的旗帜之下，其做法如同个体投资者积聚普通股的投资组合，以多样化来分散商业风险。
我们把巨型提炼一下：
The larger conglomerates do in the same fashion that a diversified investor does
A do in the same fashion that B do: A和B的做法是一样的。
Shelter….under one’s umbrellas:把…收罗于某人的旗帜之下
If parts of theenterprise fare poorly, others should behave counter-cyclically, helping to keep earnings on aneven keel. 如果一部分企业经营不良，而另一些企业则可能呈现相反情况，这样可以使收益保持平稳。
fare well/better： to be successful,
fare badly/poorly：unsuccessful
Although has fared better than some cities, unemployment remains a problem
Keel:on an even keel: steady, without any sudden changes
keep something/get something back on an even keel: 使某物保持平稳
This assumes that the portfolio of companies was acquired with a specificdiversification model in the first place.但这需要公司组合首先是一个特定的多样化模式。
Assume: 假定，假设；以…为先决条件 Assume that: Your theory assumes that we are willing to pay for services by taxation. 你的理论以我们愿意通过税收方式来支付服务费用为前提条件
As M&A activity has become more extensive and complicated, the terminology surroundingit has become equally complex. During the 1980s, the most common term used interchangeablywith merger was leveraged buyout or LBO. Although this type refers to a specific method ofacquiring a company, the term, implying extensive borrowing, became synonymous with thedecade of easy money and high leverage in general. Essentially, it means the purchase of onecompany by other using mainly borrowed funds. The sources of this borrowed money will bediscussed later.
As M&A activity has become more extensive and complicated, the terminology surroundingit has become equally complex. 随着并购活动目趋广泛与复杂，有关的专用术语也同样变得复杂起来。
During the 1980s, the most common term used interchangeablywith merger was leveraged buyout or LBO. 80年代最惯常的通用并购术语是杠杆收购。
Although this type refers to a specific method ofacquiring a company, the term, implying extensive borrowing, became synonymous with thedecade of easy money and high leverage in general. 虽然它专指一种并购公司的方式，但却被广义地借用，成为这一时期拆借活钱和高财务杠杆的代名词。
Essentially, it means the purchase of onecompany by other using mainly borrowed funds.
The sources of this borrowed money will bediscussed later.的基本含义是一家公司主要通过借入资金购买另一家公司。这种借款的来源将在以后讨论。
Generally, most M&A activity involves one company buying another, taking it out of thepublic marketplace. On occasion, the management of a company will itself tender for theoutstanding sharesof a company, accomplishing the same ends. This type of privatization isreferred to as a management buyout, or MBO. Usually, borrowed money again is the source offund for the buyout, usually coming from commercial banks rather than bond offerings. Onoccasion, a buyout originates from workers who buy their own company under the assumptionthat they can run it better than management or outsiders.
Generally, most M&A activity involves one company buying another, taking it out of thepublic marketplace. 总体上说，大多数并购活动都是一家公司对另一家公司进行购买，使后者从公共市场中脱离出来。
On occasion, the management of a company will itself tender for theoutstanding sharesof a company, accomplishing the same ends.一些情况下，公司的管理层会自行收购本公司发行在外的股票，以达成同样的结果。
This type of privatization isreferred to as a management buyout, or MBO. .这种私有化的形式被称为管理层收购。
Usually, borrowed money again is the source offund for the buyout, usually coming from commercial banks rather than bond offerings. 通常，借款仍是收购资金的来源。这些借款一般来自于商业银行而非发行债券。
Onoccasion, a buyout originates from workers who buy their own company under the assumptionthat they can run it better than management or outsiders有时接管也源于工人购买自己的公司，因为他们认为自己能比管理层或外人经营得更好。
Acquisitions are classified as either friendly or hostile, depending upon the reaction of thetarget company's directors to the proposed bid. If management remains opposed and attempts todissuade share-holders from accepting the offer of the acquirer, the proposed purchase price isknown as a hostile offer, as opposed to a friendly offer if they agree to the terms and conditions.
But it should not be assumed that all hostile bids will be successful. Target companies can mountexpensive defenses to ward off unwanted suitors, although the costs can be quite high. Some ofthose defenses are also products of the 1980s and are equally or more famous than some of thefinancial engineering techniques developed during the same period.
Acquisitions are classified as either friendly or hostile, depending upon the reaction of thetarget company's directors to the proposed bid. 根据被收购公司的董事们对收购方报价的不同反应，收购分为善意和敌意两类。
The reaction of A to B: A对于B 的反应
If management remains opposed and attempts todissuade share-holders from accepting the offer of the acquirer, the proposed purchase price isknown as a hostile offer, as opposed to a friendly offer if they agree to the terms and conditions.如果管理层坚持反对，并试图劝阻股东接受收购者的出价，这个报价就被认为是敌意的。它是相对于管理层同意交易条件的善意报价而言的。
Dissuade sb from doing sth: 劝阻某人做某事
But it should not be assumed that all hostile bids will be successful. 但并不能认为所有敌意的报价都可能获得成功。
Target companies can mountexpensive defenses to ward off unwanted suitors, although the costs can be quite high. 目标公司会不惜以极大代价着手防御，以赶走不受欢迎的求购者。
Mount: to increase gradually.
Ward sth off: to do sth to prevent something such as an illness, danger, or attack from harming you. 躲避，避开某种危险 ward off unwanted people: 避开不受欢迎的人
Suitors: 求购者=acquirer
Some ofthose defenses are also products of the 1980s and are equally or more famous than some of thefinancial engineering techniques developed during the same period.
这类保护措施中的一些是20世纪80年代的产品，比起这一时期金融工程技术的发展来的一些保护措施，其知名度很相似或者要要更有名一些（有过之而无不及）。
Companies not able to defend themselves from hostile suitors sometimes actively seek awhite knight to come to their rescue. The knight is a company or investor who will intervenewith a counter bid but who does not plan any drastic changes in the company's managementstructure. In some cases, the white knight is employed purely as a defense mechanism, notactually wishing to control the target company. If the deal does go though, it is referred to as awhite knight transaction. If, however, the target company wants no part of any sort of merger, itmay employ other types of defenses using capital markets instruments。
Companies not able to defend themselves from hostile suitors sometimes actively seek awhite knight to come to their rescue. 在敌意收购者面前不具备自我保护能力的公司，有时会主动地寻找白马王子来援救它们。
A white knight: 白马王子。指目标公司为对抗敌意收购而另外寻找的善意收购者
The knight is a company or investor who will intervenewith a counter bid but who does not plan any drastic changes in the company's managementstructure. 这个白马王子是愿以一个反报价的方式进行干预的公司或投资者，它不准备使该公司的管理层结构发生太大变化。
In some cases, the white knight is employed purely as a defense mechanism, notactually wishing to control the target company.在一些情况下，这些白马王子只被当作纯粹的“防御机制”，它并不是真正要控制目标公司。
If the deal does go though, it is referred to as awhite knight transaction. 假若这一办法的确被实施，就称之为白马王子交易。
If, however, the target company wants no part of any sort of merger, itmay employ other types of defenses using capital markets instruments.不过，如果目标公司丝毫也不愿接受任何形式的兼并，它可以利用资本市场工具采取另外形式的防卫。
Perhaps the best-known anti-takeover defense used during the 1980s was the poison pilldefense. A poison pill was a package of debt or preferred equity offerings that would be issuedimmediately if an unwanted suitor began accumulating the target company's stock. Theadditional burden that the debt and/or preferred would place on the company's earnings would intheory act as deterrent to an unwanted suitor because in would reduce the after-tax return byadding heavily to the companies debt-to-equity ratio.
Perhaps the best-known anti-takeover defense used during the 1980s was the poison 年代最为著名的反接管防御措施是毒丸防御。
A poison pill was a package of debt or preferred equity offerings that would be issuedimmediately if an unwanted suitor began accumulating the target company's stock. 这里的“毒丸”指，当不受欢迎的收购者开始收购目标公司的股票时，可以立即发行的一大堆债券或优先股。
Theadditional burden that the debt and/or preferred would place on the company's earnings would intheory act asdeterrent to an unwanted suitor because it would reduce the after-tax return byadding heavily to the companies debt-to-equity ratio.这些债券或优先股落到公司利润上作为新增的负担，理论上能起到阻止求购者的作用，因为公司的负债权益比率会因此大增，这样就会降低其税后利润。
Deterrent: 制止物，威慑物
Anyone accumulating more than 5 percent of a company's common stock must register theholding with the SEC, so it is unlikely that an unwanted suitor would remain anonymous for registrationscould be filed listing debt and preferred, only to be used if a takeover was detected by the targetcompany. Otherwise, they could conveniently remain on the shelf. Of course, actually mountinga poison pill can be very expensive and if successful can present the company with refinancingproblems after the fact as it attempts to restructure itself.
Anyone accumulating more than 5 percent of a company's common stock must register theholding with the SEC, so it is unlikely that an unwanted suitor would remain anonymous for long.任何人只要持有一家公司5％的普通股，就必须在证券交易委员会登记，所以收购者不可能长时间地隐藏自己。
Shelf registrationscould be filed listing debt and preferred, only to be used if a takeover was detected by the targetcompany. Otherwise, they could conveniently remain on the shelf.公司可以向证券交易委员会进行债券或优先股的预先注册。一旦目标公司发现接管迹象，就发行债券或优先股。平时可以把它束之高阁，
Of course, actually mountinga poison pill can be very expensive and if successful can present the company with refinancingproblems after the fact as it attempts to restructure itself.当然，真正实施毒丸防御的代价很大。即使成功，也会在公司重组时暴露出重新融资的困难。
Poison pills need to be used with care because they can be lethal for the company thatemploys them as a purgative as well as for the proposed acquirer. They also illustrate that not alltakeovers are necessarily accomplished by consensus and that they can be detrimental to thefinancial health of the acquirer and/or the acquired companies. Thus, there is an additionalelement of risk in the marketplace when takeovers are in the air that is not evident during morenormal periods.
Poison pills need to be used with care because they can be lethal for the company thatemploys them as a purgative as well as for the proposed acquirer.使用“毒丸”时要小心，因为对收购公司以及把它作为泻药而使用的目标公司来说，都可能是致命的。
Lethal: =fatal 致命的 be lethal to/for: 对…来说是致命的
Purgative: 泻药
They also illustrate that not alltakeovers are necessarily accomplished by consensus and that they can be detrimental to thefinancial health of the acquirer and/or the acquired companies. 它也表明，并不是所有的接管行为都是合作完成的，强制接管行为对求购者和被收购公司的财务健康都有损害。
Consensus: 共同意见，一致看法，共识
Thus, there is an additionalelement of risk in the marketplace when takeovers are in the air that is not evident during morenormal periods.
there is an additionalelement of risk in the marketplace市场存在了一个新增的风险因素
In the air: used to say that something has not been decided yet. 不确定的when takeovers are in the air当接管是不确定的，that is not evident during morenormal periods在近乎正常时期时，接管谣言是无法证实的
译文：这样，当处于接管谣言无法证实的近乎正常时期时，市场存在了一个新增的风险因素。
Merger activity is regulated by the Securities and Exchange Commission which derivesits authority from the Williams Act, passed by Congress in 1976. Specifically, the SEC hasauthority over tender offers made by a potential acquirer for the stock of a target company. For instance, a potential buyer of a company's stock must not purchase stock of the company in themarket while the tender period is valid. That period is 20 business days in which the acquirermust keep its offer open while also allowing shareholders tendering their shares to withdrawtheir shares if they wish.
Merger activity is regulated by the Securities and Exchange Commission which derivesits authority from the Williams Act, passed by Congress in 1976. 兼并行为受证券交易委员会的规范，这一授权源于国会在1976年通过的《威廉姆斯法案》。
Specifically, the SEC hasauthority over tender offers made by a potential acquirer for the stock of a target company.具体来说，证券交易委员会对潜在收购者向目标公司收购股票的要约收购具有权威。
Tender offer: 尝试收购一家公司的部分或全部股权的一种方式，公开邀请目标公司的鼓动按建议的收购价出售股票，建议收购价通常高于市场价格。
For instance, a potential buyer of a company's stock must not purchase stock of the company in themarket while the tender period is valid. 例如，在要约收购有效期内，一个潜在的股票购买者不能在市场上买进该公司的股票。
That period is 20 business days in which the acquirermust keep its offer open while also allowing shareholders tendering their shares to withdrawtheir shares if they wish.这个有效期为20个营业日。在这期间，收购者必须一直公开它的报价，并允许持股人在自愿的情况下接受报价撤回他们的股份，
Tender: 投标，接受要约收购，实物交割之通知
在不同的语境中有不同的含义，差异相当的大。在证券市场，该词指所有证券以同一价格配售，也可指接受收购要约而交出股票。在这里指接受报价交出股票，撤消股份。在货币市场，此词可以指出价购买国库券。在商品和期货市场，这个词指商品期货合约提出事物交割的意向通知。
Junk bond financings are an integral part of the merger trend, although certainly not in allcases. When a company borrows heavily on the bond market to finance part of its acquisition,it may lower its credit rating in the process. The additional interest payments may substantiallylower its debt ratios to the point where its continuing financial viability is seriouslyjeopardized, at least temporarily. Holders of the acquirer's debt, may find that the new debt has eroded the quality oftheir original holdings. The debt will be pricedby the market to yield the same as other junk bonds, presenting investors with substantiallosses. In order to prevent against sudden downgradings of this sort, many investors havepressed for redemptions to be written into their new bonds at new issue allowing for event risk is defined as additional default risk incurred by a company that borrows heavily tofinance an acquisition. If event risk occurs, investors want the right to redeem the bonds at apredetermined price to the issuing company.
Junk bond financings are an integral part of the merger trend, although certainly not in allcases. 虽然并非所有合并案例都使用垃圾债券融资，但它是兼并潮流中不可缺少的一部分。
When a company borrows heavily on the bond market to finance part of its acquisition,it may lower its credit rating in the process. 在一家公司为筹措部分收购资金而在债券市场上大举借款过程中，它的信用等级可能因此降低。
The additional interest payments may substantiallylower its debt ratios to the point where its continuing financial viability is seriouslyjeopardized, at least temporarily.附加的利息支付可能极大地降低其债务比率，以致达到其持续财务生存能力受到严重威胁的地步，至少暂时如此。
Viable: 切实可行的
Financial viability: 财务生存能力
Holders of the acquirer's debt, may find that the new debt has eroded the quality oftheir original holdings,收购者债务的持有者发现，新的债务已经损害了原来持有的债务的质量。
The debt will be pricedby the market to yield the same as other junk bonds, presenting investors with substantiallosses.这些债券会被市场定价，产生和其他垃圾债券同样的收益，而给投资者造成巨大的损失。
In order to prevent against sudden downgradings of this sort, many investors havepressed for redemptions to be written into their new bonds at new issue allowing for event risk.为防止这种债务评级的突降，很多投资者敦促在新发行的新债券里加入对事件风险的补偿担保·
Event risk is defined as additional default risk incurred by a company that borrows heavily tofinance an acquisition. 事件风险被定义为：因筹措收购资金而大举借款所招致的附加违约风险。
If event risk occurs, investors want the right to redeem the bonds at apredetermined price to the issuing company.如果事件风险发生，投资者保留要求债券发行公司按照约定价格赎回债券的权利。
How Investment bankers participate in M&A
The M&A trend had two distinct sides that proved profitable to investment banks. One side
had been the traditional bread and butter of the industry while the other was a relatively new arrivalon the profit center scene, the traditional financial advising is investment banking in its purest sense:advising on restructuring a company for a fee. The other area was helping to raise the financing forthe acquisitions, normally through the issue of junk bonds or, in some rarer cases, junk commercialpaper. Another aspect sometimes also present--taking an equity position in the takeoveritself.
How Investment bankers participate in M&A投资银行如何参与并购活动
The M&A trend had two distinct sides that proved profitable to investment banks.并购活动趋势的两个不同方面都被证明对投资银行有利可图。
One sidehad been the traditional bread and butter of the industry while the other was a relatively new arrivalon the profit center scene, 一个方面是该行业最基本的传统业务，另一个方面则是追求利润而带来的相对较新的业务。
the traditional financial advising is investment banking in its purest sense:advising on restructuring a company for a fee. 传统金融顾问就是纯粹意义上的投资银行业务，即为公司重组提供顾问而获取一定费用。
The other area was helping to raise the financing forthe acquisitions, normally through the issue of junk bonds or, in some rarer cases, junk commercialpaper.另一个方面的新业务则是协助公司筹措收购所需的资金，通常通过发行垃圾债券或垃圾商业票据(后一种情况较少)进行。
Another aspect sometimes also present--taking an equity position in the takeoveritself另一种情形有时也会出现，即投资银行自身在接管业务中占有股权。
Investment banking firms are active in mergers and acquisitions (M&A). Under M&Aactivity are also included leveraged buyouts (LBOs), restructuring and recapitalization ofcompanies, and reorganization of bankrupt and troubled companies. Investment bankers may participate in M&A activity in one of several ways: (1) finding M&Acandidates, (2) advising acquiring companies or target companies with respect to price and nonprice terms of an exchange, or helping target companies fend off an unfriendly takeover attempt,and (3) assisting acquiring companies in obtaining the necessary funds to finance a purchase.
Investment banking firms are active in mergers and acquisitions (M&A).投资银行在收购与兼并业务中十分活跃。
Under M&Aactivity are also included leveraged buyouts (LBOs), restructuring and recapitalization ofcompanies, and reorganization of bankrupt and troubled companies. M&A业务还包括杠杆收购、公司结构重组和资本重组、破产重组和有问题公司的重组。
Investment bankers may participate in M&A activity in one of several ways: 投资银行可以通过多种方式参与M&A业务：
(1) finding M&Acandidates,寻找M&A对象；
(2) advising acquiring companies or target companies with respect to price andnonprice terms of an exchange, or helping target companies fend off an unfriendly takeover attempt,向收购公司或目标公司提供交换的价格和非价格条件的咨询，或者帮助目标公司拒绝不友好的收购企图；
Fend off: defend yourself against someone who is attacking you [= fight somebody ↔off]:挡开某人的攻击
2. to defend yourself from something such as difficult questions, competition, or a situation you do not want to deal with: 回避
She uses her secretary to fend off unwanted phone calls.
and (3) assisting acquiring companies in obtaining the necessary funds to finance a purchase.
帮助收购公司获得必要的资金，为收购融资。
Fees charged by investment bankers in M&A work depend on the extent of their participation and the complexity of the activities they are asked to perform. An investment banker may simply receive an advisory fee or retainer. More likely, an investment banker will receive a fee based on a percentage of the selling price. The fee structure in this case can be of one of three types: (1)the percentage can decline, the higher the selling price; (2) the percentage can be the same regardless of the selling price; or (3) the percentage can be fixed with addition of an incentive fee if the price is better than a specified amount. An example of the first fee structure is what is called the -2-1 "Lehman formula." In this fee structure that somefirms have adopted, the fee would be 5% of the first $1 million, 4% of the second $1 million, 3%of the third $1 million, 2% of the fourth $1 million, and 1% for any excess amount. A typicalfiat percentage is 2% to 3% of the selling price.
Fees charged by investment bankers in M&A work depend on the extent of their participation and the complexity of the activities they are asked to perform. 投资银行在M&A活动收取的费用要看其参与的程度和从事业务的复杂程度，
An investment banker may simply receive an advisory fee or retainer.也许只收取顾问费和律师费
More likely, an investment banker will receive a fee based on a percentage of the selling price.。
一般地，投资银行按卖价的一定比例收费。
The fee structure in this case can be ofone of three types:这种情况下有三种费用结构：
(1)the percentage can decline, the higher the selling price; 卖价越高，百分比越低；
(2) the percentagecan be the same regardless of the selling price;无论卖价如何变动，百分比不变；
or (3) the percentage can be fixed with addition ofan incentive fee if the price is better than a specified amount. 百分比是固定的，但当价格高于特定数目是可以再加上鼓励费用。
An example of the first fee structure is what is called the -2-1 "Lehman formula." 第一种费用结构的例子称为“5-4-3-2-1莱曼公式”。
In this fee structure that somefirms have adopted, the fee would be 5% of the first $1 million, 4% of the second $1 million, 3%of the third $1 million, 2% of the fourth $1 million, and 1% for any excess amount. 采用这一费用结构，费用可能是对第一个100万收费5％，第二个收4％，第三个收3％，第四个收2％，剩下的l％。
A typicalflat percentage is 2% to 3% of the selling price.一般的比例是卖价的2％一3％。
Participating in an LBO can generate several fees. LBOs call for a firm to be acquired usingmostly debt funds and taken private. The debt raised is from one of two sources--senior bankdebt, and unsecured junior debt (called subordinated debt, or mezzanine financing). Aninvestment banking firm can earn fees from (1) proposing the acquisition, (2) arranging thefinancing, (3) arranging bridge financing (that is, temporary funds loaned until permanent debtfinancing is completed), and (4) other advisory fees.
Participating in an LBO can generate several fees. LBOs call for a firm to be acquired usingmostly debt funds and taken private.参与杠杆收购能带来许多费用收入，杠杆收购要求被收购公司主要使用债券资金并由私人收购。
The debt raised is from one of two sources--senior bankdebt, and unsecured junior debt (called subordinated debt,)资金来源有两方面：银行优先债务和未担保的次级债务。
Aninvestment banking firm can earn fees from投资银行可以从四方面赚取费用：
(1) proposing the acquisition,收购提议；
(2) arranging thefinancing, 融资安排；
(3) arranging bridge financing (that is, temporary funds loaned until permanent debtfinancing is completed), 过桥贷款安排；
and (4) other advisory fees.其他咨询费用
下面我们来看一个典型的杠杆收购案例。正如文中所言“研究一个典型的杠杆收购的全过程是有指导意义的。我们所使用的例子是建立在假设基础上的，它并不说明任何特定的杠杆收购，而是旨在抓住典型的公司合并过程的本质。把握本质要求把问题做一些简化——_{旦不失其现实意义”。通过这个假设的但十分详细、具体的杠杆收购过程，读者能以最简单、最典型的方式把握兼并与收购业务中最本质的东西
a Case of Leverage Acquisition
At the end of 1987, the balance sheet of XYZ Corporation showed current assets of $4million, depreciable fixed assets of $12 million, and nondepreciable fixed assets of $2 replacement cost of these assets was estimated at about $10 million. The firm had currentliabilities of $ million, long-term debt of $ million, and common stock equity (includingretained earnings) of $2 million. There were 1 million shares of common outstanding. Thebalance sheet is given in Figure 1.
At the end of 1987, the balance sheet of XYZ Corporation showed current assets of $4million, depreciable fixed assets of $12 million, and nondepreciable fixed assets of $2 million. 1987年末，XYZ公司的资产负债表表明：流动资产400万美元，可折旧固定资产1200万美元，非可折旧固定资产200万美元。
The replacement cost of these assets was estimated at about $10 million. 这些资产的重置成本估计为1 000万美元。
The firm had currentliabilities of $ million, long-term debt of $ million, and common stock equity (includingretained earnings) of $2 million. 该公司有流动负债150万美元，长期债务250万美元，普通股权益(包括留存收益)200万美元。
There were 1 million shares of common outstanding.另有发行在外的普通股股份100万。
Outstanding shares: 发行在外股份
Thebalance sheet is given in Figure1.该公司资产负债表如表1所示。
The firm's sales were very stable and its earnings had been very consistent. Given this,management suggested that the firm increase its use of debt and decrease its use of equity capital.
This was rejected by the firm's board on the grounds that the firm's shareholders were tooconservative to take kindly to a dramatic increase in leverage. At the time, the firm's short-termnotes had a cost of 10 percent, and its long-term debt had a cost of 12 percent. As a result,1987's interest expense was $ million. The firm's profit and loss statement for 1987appears as Figure 26-2.
The firm's sales were very stable and its earnings had been very consistent. 该公司的销售与收益都非常稳固。
Given this,management suggested that the firm increase its use of debt and decrease its use of equity capital.因此，管理层建议公司增加使用负债而减少对权益性资本的使用。
This was rejected by the firm's board on the grounds that the firm's shareholders were tooconservative to take kindly to a dramatic increase in leverage. 这一建议被公司的董事会拒绝，因为公司股东非常保守以至不愿杠杆作用有大幅上升。
At the time, the firm's short-termnotes had a cost of 10 percent, and its long-term debt had a cost of 12 percent. 与此同时，公司短期票据的成本是10％，其长期负债的利率是12％
As a result,1987's interest expense was $ million. 由此，1987年的利息费用是35万美元。
In 1987, the firm's earnings per share (EPS) was $ and the firm's stock was selling atabout $ share, or about times earnings. Management had long believed that it couldimprove the firm's performance if freed from the dictates of the overly conservative , management had been reluctant to attack the board's conservatism too aggressively outof fear of losing their jobs. In late 1987, partly in response to rumors that atakeover attempt by a rival firm was in the works, management secured the services of a leadinginvestment bank in the hopes of taking the firm private. On the advice of the investment bank,the management group set up a shell corporation to act as the legal entity making the acquisition.
This company was called XYZ Holdings.
In 1987, the firm's earnings per share (EPS) was $ and the firm's stock was selling atabout $ share, or about times earnings. 1987年，公司的每股收益(EPS)是0．69美元而公司股票的市场价格是每股8美元，或者说是EPS的11．6倍。
Management had long believed that it couldimprove the firm's performance if freed from the dictates of the overly conservative board.管理层一直相信如果摆脱过分保守的董事会它可以使公司表现更好。
Dictate: n.命令，指令
However, management had been reluctant to attack the board's conservatism too aggressively outof fear of losing their jobs. 然而，管理层又不愿过于严厉地攻击董事会的保守主义，因为他们害怕丢掉饭碗。
In late 1987, partly in response to rumors that atakeover attempt by a rival firm was in the works, management secured the services of a leadinginvestment bank in the hopes of taking the firm private. 1987年末，一方面为了打破竞争公司正着手于收购本公司的谣言，另一方面为了控制公司，管理层获得了一家可提供贷款的投资银行的支持。
On the advice of the investment bank,the management group set up a shell corporation to act as the legal entity making the acquisition.按投资银行的建议，管理层成立一家“壳公司”作为执行购并的法律实体。
This company was called XYZ Holdings.这家公司称作XYZ控股公司。
With the aid of its investment banker, XYZ Holdings made a tender offer at $ share ( earnings) for all the stock of XYZ Corporation. In the end, XYZ Holdings' bid was successful,and all the stock was purchased at $ share (deemed a fair value by the firm's investment bank).The two firms were then merged, with XYZ Holdings representing the surviving entity.
With the aid of its investment banker, XYZ Holdings made a tender offer at $ share ( earnings) for all the stock of XYZ Corporation. 在投资银行的帮助下，XYZ控股公司作出了以每股12美元(每股收益的17。4倍)收购XYZ公司全部股票的要约收购。
In the end, XYZ Holdings' bid was successful,and all the stock was purchased at $ share最后，XYZ控股公司的报价获得成功。所有股票以12美元的价格购入
The two firms were then merged, with XYZ Holdings representing the surviving entity.于是两家公司合并，由XYZ控股公司代表继续存在的企业。
The acquisition cost to XYZ Holdings was $12 million ($12 per share x 1 million shares).Of this, $5 million was raised with the aid of a secured bank-acquisition loan at a cost of 12percent, and $4 million was raised through the sale of bonds at a cost of 18 percent. Theinvestment bank took a 40 percent equity stake by putting up $ million of its own money andthe management group put up the remaining $ million. Management retained a buyoutoption with the investment bank to acquire the bank's equity after five years at a price whichwould afford the investment bank an annual compound return of about 40 percent. (Thistranslates to a price of about $ million.)Upon taking control, XYZ Holdings stepped up the depreciable basis of the acquired assetsto $10 million. The revised balance sheet is given in Figure3.
The acquisition cost to XYZ Holdings was $12 million ($12 per share x 1 million shares).XYZ控股公司的购置成本是1 200万美元(每股12美元×100万股)。
Of this, $5 million was raised with the aid of a secured bank-acquisition loan at a cost of 12percent, 这其中，500万美元由有保证的银行收购贷款筹得，成本是12％的利率；
and $4 million was raised through the sale of bonds at a cost of 18 percent. 另有400万美元通过以18％的成本发行债券的方式筹集。
Theinvestment bank took a 40 percent equity stake by putting up $ million of its own money andthe management group put up the remaining $ million. 投资银行通过投入120万美元自有资金而取得40％的股权，而管理集团则投入其余的180万美元。
Management retained a buyoutoption with the investment bank to acquire the bank's equity after five years at a price whichwould afford the investment bank an annual compound return of about 40 percent. (Thistranslates to a price of about $ million.)
Management retained a buyoutoption with the investment bank管理层保留买断投资银行股权的选择权to acquire the bank's equity after five years以获得银行控制的权益at a price whichwould afford the investment bank an annual compound return of about 40 percent.购买价格是保证投资银行取得每年大约40％的组合收益
译文：管理层保留买断投资银行股权的选择权以获得银行控制的权益，购买价格是保证投资银行取得每年大约40％的组合收益。(这意味着购买价格是645万美元)。
Upon taking control, XYZ Holdings stepped up the depreciable basis of the acquired assetsto $10 million. 取得控制权后，XYZ控股公司把获得的资产的可折旧基础增至l 000万美元。
The new owners immediately moved their offices to less expensive quarters and took other steps to reduce the firm's overhead expenses. The net effect was to reduce the firm's selling andadministrative expenses by $ million a year. Management was also in a position to recoup taxes paid in previous years by XYZ Corporation. A decision was made to depreciate the finn's depreciable assets using accelerated methods in order to enhance cash flow. The firm used all cash flow over the first four years to retire its debt. Its higher-cost bonds were retired first. A portion of the cash flow in the fifth year was used to retire debt, bringing it back to the level it stood at before the buyout. The earnings of XYZ Holdings over the next five years appear in Figure 26-4 together with the projections for the sixth year (1993). The sixth year's earnings were considered sustainable with an 80 percent dividend payout.
The new owners immediately moved their offices to less expensive quarters and took other steps to reduce the firm's overhead expenses. 公司的新所有者立即把办公室迁入较低廉的写字楼并为降低公司超额费用而采取了其他步骤。
The net effect was to reduce the firm's selling andadministrative expenses by $ million a year.这些行动的最终结果是把公司每年的销售和管理费用减少了150万美元。
Management was also in a position to recoup taxes paid in previous years by XYZ Corporation.管理层还补偿上年由XYZ公司支付的税金。
Recoup: to get back an amount of money you have lost or spent [= recover]:补偿 eg: Those conglomerates have managed to recoup some of the losses they made during the recession. 那些大的财团都设法挽回了经济衰退期间蒙受的损失
A decision was made to depreciate the firm'sdepreciable assets using accelerated methods in order to enhance cash flow. XYZ控股公司做出决定，折旧公司的可折旧固定资产, using accelerated methods以加快速度的方式，也就是说加快公司可折旧固定资产的折旧，in order to enhance cash flow.为了增加现金流量
译文：XYZ控股公司做出决定，为了增加现金流量要加快公司可折旧固定资产的折旧速度，
The firm used allcash flow over the first four years to retire its debt.公司用前4年所有的现金流偿付其债务。
Its higher-cost bonds were retired first. 公司中的高成本债券首先进行偿付。
Aportion of the cash flow in the fifth year was used to retire debt, bringing it back to the level itstood at before the buyout. 第五年现金流的一部分用偿债，it 指代debt使公司债务恢复到收购前的水平。
The sixth year's earnings wereconsidered sustainable with an 80 percent dividend payout.第六年的收入被认为可支付80％的股利。
At the end of five years, management exercised its right to buy out the investment bank'sequity interest in the firm at the agreed price of $ million. Management then took the firmpublic again in what is called a secondary initial public offering, or SIPO, and sold its equityinterest at 15 times projected 1993 earnings. This brought the management group $ before flotation costs and $ million afterward. After deducting the $ millionpaid to the investment banking partner, the management team was left with $ million on itsinitial investment of $ million. This translates to an average annual compound rate of returnof about 54 percent.
At the end of five years, management exercised its right to buy out the investment bank'sequity interest in the firm at the agreed price of $ million. 5年后，管理层行使其权利，用协议价645万美元购买投资银行在公司中权益利益。
Management then took the firmpublic again in what is called a secondary initial public offering, or SIPO, and sold its equityinterest at 15 times projected 1993 earnings. 管理层通过称作“二级首次公开发行”(SIPO)的方式使公司成为公众公司，并且以计划的93年税后利润的15倍出售了其权益利益。
This brought the management group $ before flotation costs and $ million afterward. 然后，这给管理层带来包括创办成本共2 385万美元，减成本后的净值为2 225万美元。
flotation cost创办成本。创办企业时发生的各项成本、费用总计。
After deducting the $ millionpaid to the investment banking partner, the management team was left with $ million on itsinitial investment of $ million. 在减去付给合伙投资银行的645万美元后，管理集团以最初的180万美元投资获得了l 580万美元。
This translates to an average annual compound rate of returnof about 54 percent.也就是说年平均综合回报率是54％。
Let's consider for a moment the sources of the gains generated by this LBO. First, therewere tax benefits from stepping up the acquired assets of the firm, from the deductibility of theinterest on the funds used to finance a large portion of the original purchase, and from thecarryback of'losses in 1988, 1989, and 1990. Second, there was a reduction in agency costs apparent from the cost cutting in 1988, when management gave up some of its perks (the fancyoffices and some fringe benefits). There were also the benefits afforded by the managementgroup's extensive use of leverage--which is not as high-risk as it might first seem if we take into consideration the stability of the Finn’s earnings and expenses.
Let's consider for a moment the sources of the gains generated by this LBO. 让我们考虑一下杠杆收购所产生的收益的来源。
First, therewere tax benefits from stepping up the acquired assets of the firm, from the deductibility of theinterest on the funds used to finance a large portion of the original purchase, and from thecarryback oflosses in 1988, 1989, and 1990. 首先，增加公司的要求资产数额有税收上的收益，为最初大部分收购活动融资的资金有利息扣除的收益，来自1988～1990年的亏损也有税收收益。
Second, there was a reduction in agency costs apparent from the cost cutting in 1988, when management gave up some of its perks (the fancyoffices and some fringe benefits). 其次，当管理层放弃了一部分额外利益时(豪华办公室和福利)办公成本有了减少，这从1988年的成本降低可明显看出。
There were also the benefits afforded by the managementgroup's extensive use of leverage--which is not as high-risk as it might first seem if we take into consideration the stability of the Finn’s earnings and expenses.也有一部分收益是由管理集团对杠杆的充分利用产生的——如果我们考虑公司收益和费用的稳定性的话，这些杠杆并不像最初认为的那样具有很多的风险。
The Investment Bank in the LBO
Notice in our hypothetical LBO described in the preceding section that it was not necessaryfor XYZ Holdings (the post-buyout firm) to exhibit a significant immediate improvement in earnings in order to produce great value for the buyout group. Indeed, the buyout actually resulted in a sharp deterioration in after-tax earnings for the first four years. The key to understanding the viability of a leveraged buyout is clearly not profit but, rather, cash flow. Cash flow is the sum of earnings after taxes and noncash expenses. (Noncash expenses include such things as depreciation, depletion, and the amortization of intangible assets.)
The Investment Bank in the LBO杠杆收购中的投资银行
Notice in our hypothetical LBO described in the preceding section that it was not necessaryfor XYZ Holdings (the post-buyout firm) to exhibit a significant immediate improvement in earnings in order to produce great value for the buyout group. 注意在我们上述一部分描述的假想的LBO中，XYZ控股公司并不是必须取得迅速的巨额收入增加来为收购集团带来巨大利润。
Indeed, the buyout actually resulted in a sharp deterioration in after-tax earnings for the first four years. 事实上，在最初的4年里，收购却真正导致了税后利润的大幅减少。
The key to understanding the viability of a leveraged buyout is clearly not profit but, rather, cash flow.理解杠杆收购的可行性的关键显然不是利润而是现金流。
Cash flow is the sum of earnings after taxes and noncash expenses. 现金流是税后收益的总额和非现金费用。
(Noncash expenses include such things as depreciation, depletion, and the amortization of intangible assets.) (非现金费用包括折旧、损耗和无形资产的摊销)
amortization of intangible assets无形资产摊销，指无形资产的价值在其有效期内逐步转移到受益期内产品的价值中去。
The investment banking team that does the preliminary analysis and that, in the end, structures the deal concentrates its energy on understanding the size, source, and stability of thetarget's cash flows. The cash flows will be used to reduce debt, acquire other assets (possibly other fins), and/or pay large cash dividends to the shareholder group. The team's job islargely one of analyzing the cash flows and structuring a deal that can best exploit them. Thisleads to such questions as the following:
The investment banking team that does the preliminary analysis and that, in the end, structures the deal concentrates its energy on understanding the size, source, and stability of thetarget's cash flows. 进行最初分析并在最后构造LBO交易的投资银行集中精力研究目标现金流量的规模、来源和稳定性。
The cash flows will be used to reduce debt, acquire other assets (possibly other firms), and/or pay large cash dividends to the shareholder group. 现金流将用于减少债务、获得其他资产(可能是其他公司)，和／或向股东集团支付大量现金股利。
The team's job islargely one of analyzing the cash flows and structuring a deal that can best exploit them. 投资银行的主要工作之一就是分析现金流并促成可以最好利用现金流量的交易。
Thisleads to such questions as the following:这引出了如下几个问题：
1. How sensitive are the cash flows to changes in the underlying assumptions (sales growth,
for example)?
2. How much can the buyout group pay for the firm and still hope to make their targetreturn?
3. What kinds of debt and how much debt can the finn support?
4. Should an ESOP structure be employed and, if so, how aggressively?
The leveraged buyout is a fascinating application of financial engineering as it bringstogether many elements of theory (the conceptual tools) and many of the new instruments (thephysical tools) developed over the last 15 years. It also demonstrates the importance of tax andaccounting rule changes as well as the influence of the regulatory environment in determiningthe shape and form of the end product.
1. How sensitive are the cash flows to changes in the underlying assumptions (sales growth,
for example)?现金流对于隐含假设发生变化的敏感性如何(例如销售增长)?
2. How much can the buyout group pay for the firm and still hope to make their targetreturn?收购集团能向公司支付多少金额并仍希望取得目标收益?
3. What kinds of debt and how much debt can the firm support?公司可以维持哪些债务以及维持多少债务?
4. Should an ESOP structure be employed and, if so, how aggressively?ESOP结构应否采用?如果可以，怎样采用?
The leveraged buyout is a fascinating application of financial engineering as it bringstogether many elements of theory (the conceptual tools) and many of the new instruments (thephysical tools) developed over the last 15 years. 杠杆收购是金融工程的一种富有吸引力的应用，因为它结合了最近15年发展起来的许多理论因素(概念性工具)以及许多新工具(实物工具)。
It also demonstrates the importance of tax andaccounting rule changes as well as the influence of the regulatory environment in determiningthe shape and form of the end product.它也说明了税收及会计规则的变化的重要性以及立法环境对决定最终产品形态和形式的影响。
N,F
deem v. ~, ~
inimical a. ~[~
depreciation n. ~[[t
一depletion ，z．折耗
ward off。躲开，避免
suitor ，z．请愿者，求婚者
deploy v展开，配置
jeopardize v危害
lavish 非常大方的，过分丰富的，浪费的
recoup v补偿，扣除
名词解释
Management Buyout管理层收购(MBO)。由管理层本身策动的收购：管理层利用企业
的资产作抵押，发行垃圾债券或向银行借入资金，然后发动收购。由于管理层对企业的资
产负债较为熟悉，因此容易对小股东造成不公。
【,everaged Buyout杠杆收购(LBO)。主要以银行贷款和发行债券方式融资进行的企业
收购。
Poison Bill毒丸防御。一种对抗敌意收购的方式，通常是被收购的企业(目标公司)
在面对收购而不可避免的情况下，大量增加本企业的负债(发行债券或优先股)，以降低本
公司的财务质量和被收购的吸引力。如文中所说，这种方式对收购与被收购双方都极为不
利。
White Knight白马王子。指目标公司为对抗敌意收购而另外寻找的善意收购者。
}lostile’Fakeovel’敌意接管，目标公司管理层不欢迎的收购。有时也称为未经同意的收
购。
earnings．per share(EPS)每股收益。普通股每股可分得的企业净利润。EPS=税后利
润／发行在外的普通股股份数。
To depreciate using accelerated methods加速折旧法。
。 cash flow现金流。指一个项目引起的企业现金支出与现金收入变动的数量。
secondary initial public offering二级首次公开发行，在二级市场上首次公开发行公司的
普通股股票，使公司成为公众(public)公司。
flotation cost创办成本。创办企业时发生的各项成本、费用总计。
amortization of intangible assets无形资产摊销，指无形资产的价值在其有效期内逐步
转移到受益期内产品的价值中去。
Unit 19 The world bank
世界银行
为什么企业应该了解世界银行组织的活动呢?其一，许多公司是世界银行集团融资项目中借款人的供货者，而这些借款人每年花费数十亿美元购买商品和服务；其二，由世界银行提供部分融资和技术援助的不发达国家的开发金融机构，是这些国家中购买商品和劳务的潜在资金来源。
Importance to Business
There are a number of reasons why business should be aware of the WorldBank Group's activities :
1. Many companies are suppliers to borrowers in group-financed projects,and these borrowers spend billions of dollars each year buying goods and
services from businesses.
2. The development finance institutions (discussed below) in LDCs,which are partly financed and technically assisted by the group, are potentialcapital sources for businesses selling or working in LDCs.
3. The World Bank's center for arbitration may be able to resolvedifficulties encountered by business in a foreign country.
4. Projects financed by the group tend to be mutually supportive (forexample, general benefits resulting from improved infrastructure, and bettereconomic resource inventories).
5. The information that the group gathers about a nation's or a project'sfinances, uses of funds, management abilities, and so forth tends to be morecomplete and accurate than the information likely to be available to a private,foreign business.
6. The Multilateral Investment Guarantee Agency (MIGA) was set up asa World Bank affiliate in 1988. Its insurance-type agreements will protectcompanies against expropriation, currency inconvertibility, wars, revolutionsor civil disturbances, and other noncommercial risks to their new investmentsin LDCs that are signatories to the MIGA charter. MIGA has $780 million insubscribed capital and began writing agreements in 1990.
The great majority of group loans or credits1- are made to LDCs.
In World Bank terminology, moneys lent by the bank are called loans, while those lent by the IDA are retorted to as credits.
Importance to Business对于企业的重要意义
There are a number of reasons why business should be aware of the WorldBank Group's activities :以下几个原因说明了为什么企业应当了解世界银行集团的业务活动：
1. Many companies are suppliers to borrowers in group-financed projects,and these borrowers spend billions of dollars each year buying goods and services from businesses.许多公司都是世界银行融资项目借款人的供应商，而这些借款人每年都要花费数以亿计的美元向企业购买商品和劳务。
2. The development finance institutions (discussed below) in LDCs,which are partly financed and technically assisted by the group, are potentialcapital sources for businesses selling or working in LDCs.欠发达国家的开发性金融机构向世界银行融通部分资金并接受世界银行的技术援助，它们是企业在欠发达国家销售商品或提供劳务的潜在的资本来源。
LDC: less developed countries 不发达国家
3. The World Bank's center for arbitration may be able to resolvedifficulties encountered by business in a foreign country.世界银行的仲裁中心会有助于企业解决在国外所面临的难题。
4. Projects financed by the group tend to be mutually supportive (forexample, general benefits resulting from improved infrastructure and bettereconomic resource inventories).世界银行融资的项目趋向于相互的支持性(例如，总体的获益来源于改善了的基础设施和优化了的经济资源条目)。
5. The information that the group gathers about a nation's or a project'sfinances, uses of funds, management abilities, and so forth tends to be morecomplete and accurate than the information likely to be available to a private,foreign business.世界银行所收集的有关一国或一个项目的财务状况、资金使用、经营能力等方面的信息，比起一个私营的外国企业可能得到的信息来，会更为完整和准确。
6. The Multilateral Investment Guarantee Agency (MIGA) was set up asa World Bank affiliate in 1988. 多边投资担保协会(MIGA)作为世界银行的一个附属机构于1988年成立。Its insurance-type agreements will protectcompanies againstexpropriation, currency inconvertibility, wars, revolutionsor civil disturbances, and other noncommercial risks to their new investmentsin LDCs that are signatories to the MIGA charter.
Expropriation：征用，没收他人财产
Signatories：签约国
In this sentence, Its insurance-type agreements是指多边投资担保协会(MIGA)的保险式的协议
will protectcompanies against能够保护公司免遭…的影响，expropriation强制征用currency inconvertibility货币不可兑换、wars战争、revolutions革命、civil disturbances,内乱other noncommercial risks等其他非经济风险。那么使得公司在哪的投资免遭影响呢？to their new investmentsin LDCs that are signatories to the MIGA charter.意思是说使得在那些与MIGA缔约的欠发达国家的新增投资
译文：其保险式的协议能够保护公司在那些与MIGA缔约的欠发达国家的新增投资免遭诸如强制征用、货币不可兑换、战争、革命、内乱等其他非经济风险的影响。
MIGA has $780 million insubscribed capital and began writing agreements in 1990.多边投资担保协会拥有7．8亿美元的注册资本，并从1990年开始签署保险合同。
Hard Loans Made by the World Bank
Hard Loans
The World Bank makes hard loans. This means its loans are at prevailingmarket interest rates and are granted only to sound borrowers for periods notexceeding 25 years. The Bank must make relatively safe loans with highassurance of repayment because its own funds are acquired through the sale ofsecurities offerings that must compete with government and private businessofferings of all sorts. Investors would not buy World Bank securities ateconomical interest rates if they felt that the Bank's loans were the Bank must repay the buyers of its securities out of proceeds andprofits on its loans.
Hard Loans硬贷款
The World Bank makes hard loans. 世界银行发放硬贷款This means its loans are at prevailingmarket interest rates and are granted only to sound borrowers for periods notexceeding 25 years.，指的是这种贷款使用普遍的市场利率，只授予信誉良好的借款人并且期限不超过25年。
The Bank must make relatively safe loans with highassurance of repayment because its own funds are acquired through the sale ofsecurities offerings that must compete with government and private businessofferings of all sorts.世界银行必须发放有高还款保证的相对安全的贷款，因为它是通过发行证券获得自有资金的，而其发行的证券又必须与各种政府和私人企业发行的证券相竞争。
Investors would not buy World Bank securities ateconomical interest rates if they felt that the Bank's loans were the Bank must repay the buyers of its securities out of proceeds andprofits on its loans.投资者如果感到世界银行的贷款不够安全，他们就不会以平均利率购买它的证券，这意味着世界银行必须向其证券的购买者偿还的金额超过了其发放贷款所能获得的本金与利息的总和。
To date, there have been no defaults on loans made by the World Bank,and its bonds carry the highest quality rating available, that is, AAA. TheWorld Bank has operated at a profit every year since 1947. That profit hasbeen used to make additional loans and to furnish funds for the IDA
To date, there have been no defaults on loans made by the World Bank,and its bonds carry the highest quality rating available, that is, AAA. 直至今日，世界银行所发放的贷款还没有出现过违约的情况，它的债券也一直拥有最高的质量等级——AAA级。
TheWorld Bank has operated at a profit every year since 1947. That profit hasbeen used to make additional loans and to furnish funds for the IDA,从1947年以来，世界银行每年的经营都有盈利，这部分利润用于发放更多的贷款以及充实国际开发协会的基金，
Although no World Bank loans have been officially declared to be indefault, some countries have been unable to make payments when called for bythe original loan terms. The Bank has rescheduled many of those loans, givingthe debtor countries more time to repay them; however, it is quite possible thatunless economic conditions improve for debtor LDCs, some World Bank loanswill have to be reorganizedas in default.
Although no World Bank loans have been officially declared to be indefault, some countries have been unable to make payments when called for bythe original loan terms. 尽管世界银行从未官方宣布过有哪一笔贷款陷入了有违约可能的境地，但一些国家也曾不能按照原始贷款条件还款，
The Bank has rescheduled many of those loans, givingthe debtor countries more time to repay them;世界银行重新划定了许多贷款的期限，给予借贷国家更多的时间偿还；
however, it is quite possible thatunless economic conditions improve for debtor LDCs, some World Bank loanswill have to be reorganized as in default.然而除非借贷的欠发达国家经济状况确实好转，否则世界银行的一些贷款最终很有可能不得不作为违约资产进行重组。
Business Opportunities and Information Sources
The billions of dollars and other currencies lent by the World Bank createmany opportunities for businesses to sell their products and services to theborrowers. International competitive bidding is a Bank requirement. However,although the Bank announces the signing of each loan, it does not invite bidsor tenders from potential suppliers to the financed projects. Such invitations arethe responsibility of the government or agency executing the project. Thus, acompany desiring to sell to a project must watch for the loan announcementsand then contact appropriate officials in the borrowing country or at thatcountry's embassy in its own country.
Business Opportunities and Information Sources业务机会和信息资源
The billions of dollars and other currencies lent by the World Bank createmany opportunities for businesses to sell their products and services to theborrowers.世界银行贷出的数以亿计的美元和其他货币为企业向借款人出售商品和劳务提供了大量机遇。
International competitive bidding is a Bank requirement. 国际竞标是世界银行所要求的一项条件
However,although the Bank announces the signing of each loan, it does not invite bidsor tenders from potential suppliers to the financed projects.然而，尽管它声明每笔贷款都有必要签署竞标协议，但它自己并不向潜在的供应商发出贷款项目的投标邀请
Such invitations arethe responsibility of the government or agency executing the project. 发出这样的邀请是执行该项目的政府或有关机构的责任。
Thus, acompany desiring to sell to a project must watch for the loan announcementsand then contact?appropriate officials in the borrowing country or at thatcountry's embassy in its own country.因此，一家公司如果想向某个项目销售产品，必须注意贷款声明，然后与借款国的相应官员或该国在公司本国的大使馆取得联系。
Quite evidently, that procedure poses difficulties for firms, particularlysmaller ones, which would like to sell their products or services to a Bank-financed project. In recognition of this, the UN began in 1978 to furnishprocurement information. The UN Center for Economic and Social Informationin publishes Development Forum Business Edition, a biweeklynewspaper that gives details of all major business opportunities opened byWorld Bank loans. The newspaper publishes requirements for each project andinstructions on how to bid for the business.
Quite evidently, that procedure poses difficulties for firms, particularlysmaller ones, which would like to sell their products or services to a Bank-financed project. 很明显，这一过程给那些想要向世界银行融资项目销售产品或劳务的公司，特别是小公司，提出了很多难题。
In recognition of this, the UN began in 1978 to furnishprocurement information.在认识到这一点之后，联合国从1978年开始提供采购信息
Furnish:提供
The UN Center for Economic and Social Informationin publishes Development Forum Business Edition, a biweeklynewspaper that gives details of all major business opportunities opened byWorld Bank loans. 设在日内瓦的联合国经济社会信息中心出版一份双周报——《发展论坛商业版》，提供由世界银行贷款带来的大型商业机会的具体细节，
The newspaper publishes requirements for each project andinstructions on how to bid for the business.，这份报纸刊登了每个项目的具体要求并指导企业如何竞标。
Among World Bank reports and publications that can be helpful tobusiness and students are its Annual Report, Statement of Loans (quarterly),Guidelines Relating to Procurement under World Bank Loans and IDA Credits,Uses of Consultants by the World Bank and Its Borrowers, and World BankAtlas of Per Capita Product and Population. Also available are reports of theWorld Bank's various General Survey Missions regarding certain countries orareas.
Among World Bank reports and publications that can be helpful tobusiness and students are its Annual Report, Statement of Loans (quarterly),Guidelines Relating to Procurement under World Bank Loans and IDA Credits,Uses of Consultants by the World Bank and Its Borrowers, and World BankAtlas of Per Capita Product and Population.在世界银行的报告和出版物中，可能对企业和学生们有所帮助的包括《年报》、《贷款报表》(季度)、《有关世界银行贷款和国际开发协会信贷相关采购项目的指导意见》、《世界银行及借款国参考方法》以及《世界银行人均产值和人口数量图表集》，
Also available are reports of theWorld Bank's various General Survey Missions regarding certain countries orareas.此外还有世界银行关于特定国家和地区的各种总体回顾报告。
International Finance Corporation(IFC)
The International Finance Corporation (IFC) is the World Bank Group'sinvestment banker. Its sphere is exclusively private risk ventures in the purpose of the IFC is to further economic development by encouraging thegrowth of productive enterprise in member-countries, thus supplementing theactivities of the World Bank.
International Finance Corporation(IFC)国际金融公司(IFC)
The International Finance Corporation (IFC) is the World Bank Group'sinvestment banker.
Its sphere is exclusively private risk ventures in the LDCs.国际金融公司(IFC)是世界银行集团中的投资银行，它的惟一业务就是投资于欠发达国家的私人风险企业。
The purpose of the IFC is to further economic development by encouraging thegrowth of productive enterprise in member-countries, thus supplementing theactivities of the World Bank.国际金融公司的目标是通过激励成员国产品生产企业的成长，促进其经济发展，从而对世界银行的业务活动加以补充。
Joint ventures favored.
The IFC's policy is to favor joint ventures thathave some local capital committed at the outset, or at least the probability oflocal capital involvement in the foreseeable future. This is not to say that theIFC will not cooperate with capital sources outside the host country (thecountry in which the investment is being made), and there are many examplesof such cooperation. Among the industries thus capitalized have beenfertilizers, synthetic fibers, tourism, paper, and cotton fabric. The outsidecapital sources, if in related lines of business, are usually internationalcompanies (ICs). A few ICs that have cooperated with the IFC have beenPhillips Petroleum, AKV Netherlands, ICI, Inter continental Hotels, andPechiney-Gobain.
Joint ventures favored. 受益的合资企业。
The IFC's policy is to favor joint ventures thathave some local capital committed at the outset, or at least the probability oflocal capital involvement in the foreseeable future.国际金融公司的政策就是帮助那些从一开始就有部分本国资本介入，或至少本国资本在可预见的未来有可能参与的合资企业。
This is not to say that theIFC will not cooperate with capital sources outside the host country (thecountry in which the investment is being made), and there are many examplesof such cooperation. 这并不是说国际金融公司不与源于东道国(投资所投向的国家)以外的资本合作，相反这种合作有很多实例。
Among the industries thus capitalized have beenfertilizers, synthetic fibers, tourism, paper, and cotton fabric. 目前已经投资的产业包括：化肥、合成纤维、旅游、造纸、棉纺。
The outsidecapital sources, if in related lines of business, are usually internationalcompanies (ICs). 相关行业的外部资本通常来源于跨国公司(ICs)
A few ICs that have cooperated with the IFC have beenPhillips Petroleum, AKV Netherlands, ICI, Inter continental Hotels, andPechiney-Gobain.，一些曾与国际金融公司合作过的跨国公司包括菲利普石油、荷兰AKV集团、帝国化学工业公司、洲际大酒店和佩琴内一戈班集团。
Creation of local capital markets.
In return for its investment in acompany, the IFC takes securities in the form of stock (equity ownership) orbonds (debt). One objective of the IFC is to sell its securities into a localcapital market. To do that, it will help create and nurture such a market. Forexample, the IFC extended a $ 5 million credit line to a syndicate of privateBrazilian investment banks to provide support for those banks' securitiesunderwriting activities. The banks work with Fondo do Desenvolvimento doMercado de Capitais, a revolving capital market development fund maintainedby the Brazilian central bank. The objectives are (1) to induce the investmentbanks to assume a greater role in underwriting Brazilian securities in ,(2) to improve the access of Brazilian companies to long-term domestic sourcecapital, and (3) to encourage Brazilians to invest in sound domestic securities.
Creation of local capital markets. 本地资本市场的建设。
In return for its investment in acompany, the IFC takes securities in the form of stock (equity ownership) orbonds (debt).作为投资于公司的回报，国际金融公司以股票 (产权所有权)或债券(企业债)的形式持有证券，
One objective of the IFC is to sell its securities into a localcapital market. 国际金融公司的一项任务就是把它的证券出售给本地的资本市场。
To do that, it will help create and nurture such a market. 为了做到这一点，它会帮助建立并培育这样一个市场。
Forexample, the IFC extended a $ 5 million credit line to a syndicate of privateBrazilian investment banks to provide support for those banks' securitiesunderwriting activities.例如，国际金融公司为一个巴西私人投资银行财团提供500万美元的贷款额度，为它们的证券承销业务提供支持，
Syndicate: 辛迪加，商业财团，企业联合组织
a syndicate of privateBrazilian investment banks一个巴西私人投资银行财团
The banks work witha revolving capital market development fund maintainedby the Brazilian central bank. 这些投资银行与一家由巴西中央银行经营的循环式资本市场发展基金合作。
The objectives are (1) to induce the investmentbanks to assume a greater role in underwriting Brazilian securities in Brazil,国际金融公司的任务是：引导投资银行在承销巴西本国证券中担当更重要的角色；
Induce：引导
(2) to improve the access of Brazilian companies to long-term domestic sourcecapital, 促进巴西公司获得本国的长期资本
and (3) to encourage Brazilians to invest in sound domestic securities.鼓励巴西投资者投资于信誉优良的本国证券。
Liaison with development finance companies.
The IFC is the liaisonwithin the World Bank Group for the numerous development finance companies(DFCs) --sometimes called development banks, as in --that havesprung up, primarily in the LDCs. Each DFC seeks potentially profitable ventures within itscountry and assists with feasibility studies. If a venture proceeds, the DFChelps along the way with advice on plant, property, financing, management,or equipment. Finally, the DFC attempts to establish or enlarge a domesticcapital market for securities of the venture.
Liaison with development finance companies. 与开发性金融公司的联络。
The IFC is the liaisonwithin the World Bank Group for the numerous development finance companies(DFCs) --sometimes called development banks, as in --that havesprung up, primarily in the LDCs. 国际金融公司是世界银行集团与众多主要在欠发达国家兴起的开发性金融公司(DFCs)——有时亦称作开发银行，如厄瓜多尔——间的联络机构。
Each DFC seeks potentially profitable ventures within itscountry and assists with feasibility studies. 每家开发性金融公司都在本国寻觅有潜在盈利能力的企业并协助进行可行性研究。If a venture proceeds, the DFChelps along the way with advice on plant, property, financing, management,or equipment. 如果企业能够维持下去，开发性金融公司会一直帮助在厂房、不动产、融资、管理或设备等方面提供建议。
Finally, the DFC attempts to establish or enlarge a domesticcapital market for securities of the venture.最后，开发性金融公司会努力建立或扩张本国资本市场以容纳该企业的证券。
Thanks to the IFC, investors from both poor and rich countries can nowbuy and sell securities (stocks and bonds) of companies operating in thedeveloping countries through funds traded on the or stockexchanges. In addition, stock markets are playing an increasing part insupplying and pricing fresh capital in emerging economies. During the 1980s,the combined capitalization of the 20 largest emerging markets grew the start of 1991, turnover in these markets was nearly 40 times the 1980figure. More telling, the average capitalization of these markets as a percentageof local GDP rose to 32 percent by 1990, compared to 6 percent in 1980.
Thanks to the IFC, investors from both poor and rich countries can nowbuy and sell securities (stocks and bonds) of companies operating in thedeveloping countries through funds traded on the or stockexchanges. 多亏有了国际金融公司，无论穷国还是富国的投资者才能通过在纽约或伦敦股票交易所交易的基金买卖那些在发展中国家开展经营活动的公司的证券(包括股票和债券)。
In addition, stock markets are playing an increasing part insupplying and pricingfresh capitalin emerging economies.此外，股票市场在对新兴经济地区新生资本的供给和定价方面正扮演着日益重要的角色。
During the 1980s,the combined capitalization of the 20 largest emerging markets grew sevenfold.在20世纪80年代间，20个最大的新兴市场的资本总额增长了7倍；
By the start of 1991, turnover in these markets was nearly 40 times the 1980figure. 截至1991年初，这些市场的交易总额几乎是1980年数字的40倍；
More telling, the average capitalization of these markets as a percentageof local GDP rose to 32 percent by 1990, compared to 6 percent in 1980.更显著的是，这些市场的平均资本总额占当地国内生产总值的百分比由1980年的6 ％上升到了1990年的32 ％。
The 's growing trend towards privatization will help its stockmarkets. As governments, especially in , trim back publicsectors, they will deepen their markets with extra stock and open them toforeign capital and liquidity.
The 's growing trend towards privatization will help its stockmarkets. 第三世界向着私有化发展的趋势会有助于其股票市场的成长。
As governments, especially in Latin America, trim back publicsectors, they will deepen their markets with extra stock and open them toforeign capital and liquidity.各国政府，特别是拉美国家的政府在改革公共部门的同时，会通过增发股票和向外国资本及流动资金开放国门的方式深化市场。
Trim: 修剪
Trim back: to make something shorter or smaller:缩减，缩少
trim back publicsectors：精减或改革公共部门
Like the World Bank, the IFC is reluctant to admit default of a loan orfailure of an investment and has rescheduled some loans. Unlike the WorldBank, however, the IFC has written off a few investments that it judged couldnot be revived.
Like the World Bank, the IFC is reluctant to admit default of a loan orfailure of an investment and has rescheduled some loans. 像世界银行一样，国际金融公司也不情愿承认贷款违约或投资失败，同样也对一些贷款进行了重议。
Unlike the WorldBank, however, the IFC has written off a few investments that it judged couldnot be revived.然而与世界银行不同的是，国际金融公司曾经注销过一些能够断定无法挽回的投资。
Write off: officially say that someone does not have to pay the debt. 注销债务
Revive: 使…苏醒，使…复员
International Development Association (IDA)
The IDA is the "soft" loan (or "credit", as an IDA loan is called)section of the World Bank. Although it shares the Bank's administrative staffand grants credits for projects covering the same sorts of projects in the LDCsas the Bank's loans, its soft loans differ from the "hard" loans of the bank inseveral important ways. They have up to 40-year maturities, compared to 15 and 25-year maturities of the Bank. The IDA may grant ]0-year grace periodsbefore repayment of principal or interest must begin, whereas the grace periodsof the World Bank usually do not exceed 5 years.
International Development Association (IDA)国际开发协会(IDA)
The IDA is the "soft" loan (or "credit", as an IDA loan is called)section of the World Bank. 国际开发协会是世界银行发放“软贷款”(国际开发协会贷款也称作“信贷，，)的部门，
Although it shares the Bank's administrative staffand grants credits for projects covering the same sorts of projects in the LDCsas the Bank's loans, its soft loans differ from the "hard" loans of the bank inseveral important ways. 虽然它与世界银行共用行政人员，其信贷投向的项目范围与世界银行投向欠发达国家的贷款项目种类相同，但它的软贷款与世界银行的硬贷款在某些重要的方面有所不同。
They have up to 40-year maturities, compared to 15 and 25-year maturities of the Bank. 其贷款期限可高达40年，而相比之下世界银行贷款只有15年与25年。
The IDA may grant 10-year grace periodsbefore repayment of principal or interest must begin, whereas the grace periodsof the World Bank usually do not exceed 5 years. 国际开发协会可以在本金或利息必须起付前给予10年的宽限期，而世界银行的宽限期通常不超过5年。
Grace periods: 宽限期
The IDA charges only threefourths of ] percent as a service charge on disbursed loan balances plus one halfof ] percent on undisbursed balances. As is evident from these differences,borrowers from the IDA are the poorest of the poor LDCs, which need creditfor development projects but cannot carry the burden on their economies orforeign exchange reserve positions that would result from normal commercialterm loans. Determination of which countries qualify as poor enough for IDAcredits is based on per capita incomes. The historic eligibility ceiling is $940,but scarcity of resources has long limited access to IDA funds to countries withper capita incomes less than $ 580. This is referred to as the "operationalcutoff" for IDA eligibility. To the maximum extent possible, the credits aremade in the currency of the borrowing member-country.
The IDA charges only threefourths of percent as a service charge on disbursed loan balances plusone halfof percent on undisbursed balances. 国际开发协会对已支出的贷款余额仅收3／4个百分点的服务费，而对未支出的贷款余额只收半个百分点。
Disburse: to pay out money, especially from a large sum that is available for a special purpose从一大笔专用资金中，拿出钱来支付
As is evident from these differences,borrowers from the IDA are the poorest of the poor LDCs, which need creditfor development projects but cannot carry the burden on their economies orforeign exchange reserve positions that would result from normal commercialterm loans.从这些区别中可以很明显地看出，向国际开发协会借款的都是欠发达国家中的尤其不发达者，它们急需信贷资金用于开发项目，而其经济状况或外汇储备又无法承担普通条款商业贷款赋予的重担。
Determination of which countries qualify as poor enough for IDAcredits is based on per capita incomes. 认定哪些国家足以贫穷到有资格获取国际开发协会的信贷取决于人均收入的多少The historic eligibility ceiling is $940,but scarcity of resources has long limited access to IDA funds to countries withper capita incomes less than $ 580.，历史上的最高合格线是940美元，但长期以来资金的匮乏将能够获得国际开发协会基金的国家的人均收入限制在了580美元以下，
This is referred to as the "operationalcutoff" for IDA eligibility.这便是常提及的国际开发协会合格标准的“操作上限”。
Eligible: 合格的，有资格的 Any one over the age of 18 is eligible to vote. 超过18岁就有了选举权
Eligibility: 合格标准
To the maximum extent possible, the credits aremade in the currency of the borrowing member-country.这种贷款在尽可能最大的程度上以借款成员国的本币形式发放。
IDA capital sources.
Unlike the World Bank, the IDA cannot raise capitalin competitive Capital markets and depends instead on subscriptions donated bythe DCs and some LDCs. Generally, the DC members make contributions inconvertible currencies; the LDC members donate their own currencies.
IDA capital sources. 国际开发协会的资本来源
Unlike the World Bank, the IDA cannot raise capitalin competitive Capital markets and depends instead on subscriptions donated bythe DCs and some LDCs. 不同于世界银行，国际开发协会无法从竞争的资本市场上筹集资金，取而代之它依靠的是发达国家和一些欠发达国家捐赠的资金。
Generally, the DC members make contributions inconvertible currencies; 总体上，发达的成员国以可兑换货币进行捐赠；
the LDC members donate their own currencies.欠发达的成员国以本币捐赠。
IDA resources are renewed periodically by a process called"replenishment", whereby supporting nations donate money. In 1990, theNinth Replenishment Agreement called for member donor contributions of SDR11. 68 billion ( $ billion at the July 15, ]991, exchange rate ) over thethree-year period of the 1991-1993 fiscal years.
IDA resources are renewed periodically by a process called"replenishment", whereby supporting nations donate money. 国际开发协会的资金通过一个名为“再充实”的过程定期更新，在此期间提供支援的国家纷纷捐赠资金。
In 1990, theNinth Replenishment Agreement called for member donor contributions of SDR11. 68 billion ( $ billion at the July 15, ]991, exchange rate ) over thethree-year period of the 1991-1993 fiscal 年，第9次再充实协议号召各捐赠国在1991。1993财政年度的3年时间里贡献出116．8亿个特别提款权(按的汇率相当于153亿美元)
a Piece of News about New
New Oriental Education and Technology Group Inc., the largest provider of private educational services in went public on Thursday in New York Stock Exchange. Its initial public offering of million American depositary shares was priced at $15 each, topping the expected pricing range of $11 to $13.
New Oriental soared 39 percent after their initial public offering, the biggest first-day gain for a new stock since April.
New Oriental has granted the underwriters a 30-day option to purchase up to an additional million ADSs.
Each ADS represents four common shares of New Oriental, and shares begin trading Thursday on the New York Stock Exchange under the ticker "EDU."
Credit Suisse Securities was the sole global coordinator and acted as joint book-runners with Goldman Sachs. Piper Jaffray & Co. acted as a co-manager for the offering.
New Oriental offers English and other foreign-language classes, test-preparation and online instruction. It runs 25 schools and more than 110 learning centers concentrated in the eastern provinces of .
Proceeds will be used to develop programs, acquire facilities and repay debt, according to the filing. New Oriental opened 10 schools in the fiscal year and plans to open six to eight more in fiscal 2007.
"Private education is just starting to take off in and we hope we can help 's growth,'' Chief Executive Officer Michael Ming Hou Yu said in an interview.
中国最大的民营教育服务机构新东方教育科技集团本周四在纽约股票交易所挂牌上市。新东方通过首次公开招股共发行750万股美国存托凭证，每股发行价为15美元，超过了此前预期的11至13美元。
新东方首日收盘价较之其发行价飙升了39％，是今年4月以来纽交所首日表现最好的新股票。
目前，新东方已赋予承销商一个30天的选择权，承销商在30天内还可另购113万股美国存托凭证。
每股美国存托凭证相当于四股新东方普通股，新东方在纽约股票交易所的交易代码为“EDU”。
瑞士信贷是新东方首次公开招股的唯一全球协调人，并与高盛投行一起担任此次招股的主承销商。Piper Jaffray &投行是此次公开招股的副承销商。
新东方的主要课程包括英语及其它外语类课程、备考类课程及在线教育课程。新东方在中国东部省份共开设了25所分校和110多个培训中心。
据资料显示，其收益主要用于开发新项目、购置设施及偿还贷款。新东方本财政年度共新开设10所分校，并计划在2007年财政年度再开设六至八所分校。
新东方总裁俞敏洪在接受采访时说：“民办教育在中国刚刚起步，希望我们能为中国的发展尽一份力。”
"The World Bank, designed to serve the nationalized industries and statesectors of developing nations, is being made obsolete by privatization in theThird World.-. Opportunities for loans to finance state enterprise, the reason forbeing of the World Bank and of other multilateral development banks, willbecome scarcer if developing nation governments continue to sell statecompanies. "
"The World Bank, designed to serve the nationalized industries and statesectors of developing nations, is being made obsolete by privatization in the. "将世界银行私有化”设计用来为发展中国家的国有产业和政府部门服务的世界银行，正在由于第三世界的私有化进程而愈发显得陈旧
Opportunities for loans to finance state enterprise, the reason forbeing of the World Bank and of other multilateral development banks, willbecome scarcer if developing nation governments continue to sell state companies……如果发展中国家的政府继续出售国有企业，则为国有企业融资的贷款机会，乃至世界银行以及其他多边开发银行继续存在的理由，将更加难以寻觅。”
State companies already sold or leased and now owned or operated byprivate enterprises include telephones, airports, bridges, highways, tunnels,ports, railroads, water systems, and many other assets and operations. Whilethe IFC efforts to aid private-sector companies have been generally successful,the Bank's efforts to direct its hard loans to private enterprise have created "arecord of decades of botched lending".
State companies already sold or leased and now owned or operated byprivate enterprises include telephones, airports, bridges, highways, tunnels,ports, railroads, water systems, and many other assets and operations. 已经出售或租赁现在已被私有企业拥有或运营的国有企业涵盖了电信、机场、桥梁、公路、隧道、港口、铁路、供水系统以及许多其他的资产和业务。
Whilethe IFC efforts to aid private-sector companies have been generally successful,the Bank's efforts to direct its hard loans to private enterprise have created "arecord of decades of botched lending".当国际金融公司帮助私营企业发展的努力已获得了全面成功的时候，世界银行向私有企业提供硬贷款的努力却招致了“大量贷款被糟踏的记录”。
This is largely because the Bank's charter permits it to lend only togovernments. To get around this, it has had to create lending intermediaries called development finance institutions (DFIs) run by local governments to relend World Bank funds to private borrowers. A Bank study found nearly 50 percent of those loans in arrears and said few DFIs have become financially viable.
This is largely because the Bank's charter permits it to lend only togovernments. 这在很大程度上是由于世界银行的宪章只允许它借钱给各国政府
To get around this, it has had to create lending intermediaries called development finance institutions (DFIs) run by local governments to relend World Bank funds to private borrowers.为了做到这一点，它不得不建立了一些称为开发性金融机构(DFIs)的借贷中介，由当地政府运营，把世界银行资金再贷给私人借款者。
A Bank study found nearly 50 percent of those loans in arrears and said few DFIs have become financially viable.世界银行的一篇研究报告指出这些贷款有近50 ％逾期，并称几乎没有几家开发性金融机构在财务上能养活自己。
The has been particularly insistent on the Bank routing more funds to the private sector. In return for the Bank's agreement to study a charter amendment that would permit it to lend directly to private companies, eliminating DFIs, the supported an increase in IFC capitalization. The increase of $1 billion brings IFC capital to $ billion.
The has been particularly insistent on the Bank routing more funds to the private sector. 联合国特别坚持要求世界银行为私有部门提供更多的资金。
In return for the Bank's agreement to study a charter amendment that would permit it to lend directly to private companies, eliminating DFIs, the supported an increase in IFC capitalization. 作为对世界银行同意研究修改宪章、允许直接向私营企业贷款、撤销开发性金融机构的回应，美国为国际金融公司的增资行动提供了大笔资金.
The increase of $1 billion brings IFC capital to $ billion.这次10亿美元的增资，使得国际金融公司的资本总额达到了23亿美元。
Unit 20 Financial Management
the Brief History of Financial Management Field
Introduction
Financial managers have the primary responsibility for acquiring funds (cash) needed by a firm and for directing these funds into projects that will maximize the value of the firm for its owners. The field of financial management is an exciting and challenging one. Any business has important financial concerns and its success or failure depends in a large part on the quality of its financial decisions. Every keydecision made by a firm's managers has important financial implications. Managers daily face questions like the following.
The Finance Function财务职能
Introduction引论
Financial managers have the primary responsibility for acquiring funds (cash) needed by a firm and for directing these funds into projects that will maximize the value of the firm for its owners. 财务经理的基本职责是获得公司所需要的资金并把资金投入到能使所有者财富最大化的项目中去。
The field of financial management is an exciting and challenging one.财务管理这一领域是很具有挑战性的。
Any business has important financial concerns and its success or failure depends in a large part on the quality of its financial decisions.公司的经营要重点考虑财务方面的问题并且其成败在很大程度上取决于其财务决策的质量。
Every keydecision made by a firm's managers has important financial implications. Managers daily face questions like the following.公司管理者做出的每一个关键决策都有重要的财务意义。经理们每天面对着以下这些问题：
Will a particular investment be profitable?
Where will the funds come from to finance the investment?
Does the firm have adequate cash or access to cash--through bank borrowing agreements, for example-to meet its daily operating needs?
Which customers should be offered credit, and how much should they be offered?
How many inventories should be held?
Is a merger or acquisition advisable?
How should profits be used or distributed? That is, what is the optimal dividend policy?
In trying to arrive at the best financial management decisions, how should risk andreturn be balanced?
How many inventories should be held?
Is a merger or acquisition advisable?
How should profits be used or distributed? That is, what is the optimal dividend policy?
In trying to arrive at the best financial management decisions, how should risk and return be balanced?
Will a particular investment be profitable?某项投资有利可图吗?
Where will the funds come from to finance the investment?投资所需的资金从哪里筹集?
Does the firm have adequate cash or access to cash--through bank borrowing agreements, for example-to meet its daily operating needs?公司有足够的现金或取得现金的渠道(如通过银行借款协议)去满足日常经营需要吗?
Which customers should be offered credit, and ho w much should they be offered?哪些顾客可以被给予信用?数额是多少?
How many inventories should be held?存货应该被保持在什么水平?
Is a merger or acquisition advisable?合并或者购并是可行的吗?
How should profits be used or distributed? That is, what is the optimal dividend policy?利润应该如何被使用或分配?也就是说最优秀的股利政策是什么?
In trying to arrive at the best financial management decisions, how should risk and return be balanced?在试图做出最佳的财务管理决策时，风险和收益的关系应该怎样平衡?
A Brief History of the Financial Management Field
Prior to the 1930s, the field of financial management basically was confined todescriptive discussions of the various financial markets and the securities traded in thosemarkets. Thus, the traditional finance management mainly focus on the debt and thestockholders interest of balance sheet and on the raising of capital.
Prior to the 1930s, the field of financial management basically was confined todescriptive discussions of the various financial markets and the securities traded in thosemarkets. 财务管理领域的简单回顾在20世纪30年代以前，财务管理基本上局限于对金融市场和在这些市场上交易的证券进行描述性的讨论。
Thus, the traditional finance management mainly focus on the debt and thestockholders interest of balance sheet and on the raising of capital.因此，传统的财务管理主要研究资产负债表的负债及股东权益和资金的筹集。
The field underwent a number of significant changes during the Great Depression,when it became more involved with legal matters of bankruptcy, reorganization, andgovernment regulation.
The field underwent a number of significant changes during the Great Depression,when it became more involved with legal matters of bankruptcy, reorganization, andgovernment regulation.
在经历了大萧条之后，这一领域发生显著的变化，更多地涉及了破产的法律事务、重组和政府调控。
During the 1950s, however, a number of significant changes took place in thefield. First, financial management was expanded to include the asset side of the balancesheet, or the investment of a firm's funds. In addition, the application of discounted cashflow techniques to the problems of capital expenditure analysis was being refined andperfected. Also, financial researchers were making significant breakthroughs in developingtechniques for measuring the cost of capital and valuing financial assets. Progress in theareas of both capitals budgeting and cost of capital has continued to the present day.
During the 1950s, however, a number of significant changes took place in thefield. 这个领域在20世纪50年代发生了许多重大的变化。
First, financial management was expanded to include the asset side of the balancesheet, or the investment of a firm's funds. 首先，财务管理包括了资产负债表中的资产方，或者说是公司资金的投资。
In addition, the application of discounted cashflow techniques to the problems of capital expenditure analysis was being refined andperfected. 此外，在资本支出分析问题中应用的折现技术被更新和优化。
Also, financial researchers were making significant breakthroughs in developingtechniques for measuring the cost of capital and valuing financial assets. 而且，财务研究人员在测定资本成本和评估资产的技术方面取得了重大的突破。
Progress in theareas of both capitals budgeting and cost of capital has continued to the present day.在资本和成本两个方面的进步一直持续到今天。
During the 1960s, mathematical models using statistical and optimization techniqueswere applied to the allocation of current assets, such as cash, accounts receivable andinventories, and fixed assets. Throughout the 1960s and 1970s, the trend continued toward a more quantitative and precise concept of financial management. Another important emphasis of the last two decades has been the integration of specific finance topics with a risk-adjusted model in an attempt to maximize the value of the firm and shareholder wealth.
During the 1960s, mathematical models using statistical and optimization techniqueswere applied to the allocation of current assets, such as cash, accounts receivable andinventories, and fixed assets. 在20世纪60年代，使用统计和最优化技术的数字模型被用于流动资产和固定资产的分配。
Throughout the 1960s and 1970s, the trend continued toward a more quantitative and precise concept of financial management. 流动资产包括现金、应收账款和存货等。在整个60年代和70年代，财务管理向着更为数量化和精确化的方向发展。
Another important emphasis of the last two decades has been the integration of specific finance topics with a risk-adjusted model in an attempt to maximize the value of the firm and shareholder wealth.在过去的20年里，另一个重点是把特殊的财务问题和风险调整模型结合起来以达到公司价值和股东财富最大化。
During the 1980s, there was an increasing emphasis on applying computer (and computer-related)technology to assist in financial decision making. In addition, financial managers have become more aggressive in managing the assets of the firm in response to an environment characterized by higher and more volatile interest rates.
During the 1980s, there was an increasing emphasis on applying computer (and computer-related)technology to assist in financial decision making. 在20世纪80年代，逐渐开始强调应用计算机(和计算机相关的)技术辅助财务决策。
In addition, financial managers have become more aggressive in managing the assets of the firm in response to an environment characterized by higher and more volatile interest rates.此外，财务经理在管理公司资产方面变得更加有所做为。这是由于更高的和波动性更大的利率所造成的。
In the late 1980s and into the 1990s, there has been a renewed focus on the goal of shareholder wealth maximization and the creation of organizational structures that will enhance the achievement of this goal. This renewed focus on value creation and managerial efficiency is evident in the debate over corporate takeovers and leveraged buyouts. Also, the decade of the 1980s has witnessed an explosion of new financial instruments, such as options and futures contracts, which can be used to manage risk.
In the late 1980s and into the 1990s, there has been a renewed focus on the goal of shareholder wealth maximization and the creation of organizational structures that will enhance the achievement of this goal. 在20世纪80年代晚期和20世纪90年代初，又开始重新强调股东财富最大化这一目标以及能够促进这一目标实现的组织结构创新。
This renewed focus on value creation and managerial efficiency is evident in the debate over corporate takeovers and leveraged buyouts.对价值创造和管理效率的强调体现了对于公司控制和杠杆收购的争论。
Also, the decade of the 1980s has witnessed an explosion of new financial instruments, such as options and futures contracts, which can be used to manage risk.而且，20世纪80年代出现了很多新的金融工具，如期权和期货合同。这些可以用来控制风险。
The Primary Goal: Maximizing Shareholder Wealth
Effective financial decision making requires an understanding of the goal (s)of the firm. What objective (s)should guide business decision making? That is, what should manager try to achieve for the owners of the firm? The most widely accepted objective of the firm is to maximize the value of the firm for its owners; that is, to maximize shareholder wealth. Shareholder wealth is represented by the market price of a firm's common stock..
The Primary Goal: Maximizing Shareholder Wealth基本目标：股东财富最大化
Effective financial decision making requires an understanding of the goal (s)of the firm.有效的财务决策需要理解公司的目标。
What objective (s)should guide business decision making?以什么样的目标来衡量经营决策呢?
That is, what should manager try to achieve for the owners of the firm?也就是说，管理者努力使公司所有者得到什么呢?
The most widely accepted objective of the firm is to maximize the value of the firm for its owners; that is, to maximize shareholder wealth.被普遍接受的目标是使公司所有者价值最大化，也就是使股东财富最大化。
Shareholder wealth is represented by the market price of a firm's common stock.股东财富是由公司普通股的市场价值来代表的。
The shareholder wealth maximization goal states that management should seek to maximize the present value of the expected future returns to the owners (that is, shareholders)of the firm. These returns can take the form of periodic dividend payments or proceeds form the sale of the common stock. Present value is defined as the value today of some future payment or stream of payments, evaluated at an appropriate discountrate. The discount rate takes into account the returns that are available from alternativeinvestment opportunities during a specific (future)time period. The longer it takes toreceive a benefit, such as a cash dividend or price appreciation, the lower the value aninvestor places on that benefit. In addition, the greater the risk associated with receiving afuture benefit, the lower the value an investor places on that benefit. Stock prices, themeasure of shareholder wealth, reflect the magnitude, timing, and risk associated withfuture benefits expected to be received by stockholders.
The shareholder wealth maximization goal states that management should seek to maximize the present value of the expected future returns to the owners (that is, shareholders)of the firm. 股东财富最大化的目标表明，管理者应该使得公司所有者(也就是股东)未来预期收益的现值最大化。
These returns can take the form of periodic dividend payments or proceeds form the sale of the common stock.这些收益包括定期支付的股利或出售普通股所得的收入。
Present value is defined as the value today of some future payment or stream of payments, evaluated at an appropriate discountrate. 现值是指根据一定的折现率把未来支付折合成的今天的价值。
The discount rate takes into account the returns that are available from alternativeinvestment opportunities during a specific (future)time period.折现率考虑到了在给定的未来时期内不同投资机会产生的收益。
returns that are available from alternativeinvestment opportunities不同投资机会产生的收益。
The longer it takes toreceive a benefit, such as a cash dividend or price appreciation, the lower the value aninvestor places on that benefit. 取得收益所需的时间越长，如现金股利或价值升值，投资者从中得到的价值就越少。
In addition, the greater the risk associated with receiving afuture benefit, the lower the value an investor places on that benefit. 此外，收到未来收益的风险越大，投资者从中得到的价值也就越少。
Stock prices, themeasure of shareholder wealth, reflect the magnitude, timing, and risk associated withfuture benefits expected to be received by stockholders.股票价格作为股东财富的衡量标准，反映了股东在未来预期要取得的收益的大小、时间和风险。
Magnitude: the greatness of size or importance; 巨大，重要性。
The degree of size or importance; 尺寸的大小
Shareholder wealth is measured by the market value of the shareholders' commonstock holdings. Market value is defined as the price at which the stock trades in themarketplace, such as on .the New York Stock Exchange. Thus, total shareholder wealthequals the number of shares outstanding times the market price per share.
Shareholder wealth is measured by the market value of the shareholders' commonstock holdings. 股东财富由股东所持的普通股的市场价值来衡量。
Market value is defined as the price at which the stock trades in themarketplace, such as on .the New York Stock Exchange.市场价值是指股票在市场上的交易价格，如在纽约股票交易所。
Thus, total shareholder wealthequals the number of shares outstanding times the market price per share.因此，总的股东财富等于发行在外的股票数乘以每股的市场价格。
The objective of shareholder wealth maximization has a number of distinctadvantages. First, this objective considers the timing and the risk of the benefits expectedto be received from stock ownership. Similarly, managers must consider the elements oftiming and risk as they make important financial decisions, In this way, managers canmake decisions that will contribute to increasing shareholder wealth.
The objective of shareholder wealth maximization has a number of distinctadvantages.股东财富最大化的目标有一些显著的优点。
First, this objective considers the timing and the risk of the benefits expectedto be received from stock ownership.首先，这个目标明确地考虑到了股票所有者未来预期的收益的时间性和风险性。
Similarly, managers must consider the elements oftiming and risk as they make important financial decisions, 同样的，管理者在做出重要财务决策时也要考虑时间和风险的因素。
In this way, managers canmake decisions that will contribute to increasing shareholder wealth.管理者以这种方式做出的决策有助于增加股东财富。
Second, it is conceptually possible to determine whether a particular financial decisionis consistent with this objective. If a decision made by a firm has the effect of increasing themarket price of the firm's stock, it is a good decision. If it appears that an action will notachieve this result, the action should not be taken.
Second, it is conceptually possible to determine whether a particular financial decisionis consistent with this objective. 第二，确定是否某一财务决策同目标保持一致在概念上是可能的。
If a decision made by a firm has the effect of increasing themarket price of the firm's stock, it is a good decision.如果公司做的决策使得公司股票的市场价格提高，那么这就是一个好的决策。 If it appears that an action will notachieve this result, the action should not be taken.如果决策达不到这样的效果，那么最好不实行这个决策。
Third, shareholder wealth maximization is an impersonal objective. Stockholders whoobject to a firm's policies are free to sell theirs under more favorable terms(that is, at a higher price)and invest their funds elsewhere. If an investor who has a consumption pattern or risk preference that is not accommodated by the investment, financing, and dividend decisions of that firm, the investor will be able to sell his or her shares in that firm at the best price and purchase shares in a company that more closely meets the investor's needs.
Third, shareholder wealth maximization is an impersonal objective.第三，股东财富最大化是一个客观的目标。
Stockholders whoobject to a firm's policies are free to sell theirs under more favorable terms(that is, at a higher price)and invest their funds elsewhere.反对公司政策的股东可以按照更为优惠的条件(即更高的价格)出售他们的股份并在别的地方投资。
If an investor who has a consumption pattern or risk preference that is not accommodated by the investment, financing, and dividend decisions of that firm, the investor will be able to sell his or her shares in that firm at the best price and purchase shares in a company that more closely meets the investor's needs.
如果一个投资者的消费模式或风险偏好与公司的投资、融资和股利决策不一致，这个投资者可以按最好的价格卖掉该公司的股票并购买与投资者需要更为一致的公司的股票。
For these reasons, the shareholder wealth maximization objective is the primary goal in ~ial management. Concerns for the social responsibilities of business, the existence of other objectives pursued by some managers, and problems that arise from agency relationships may cause some departures from pure wealth maximizing behavior by owners and managers. Nevertheless, the shareholder wealth maximization goal provides the standard against which actual decisions can be judged, as such, is the objective assumed in financial management analysis.
For these reasons, the shareholder wealth maximization objective is the primary goal in financial management.根据这些原因，股东财富最大化目标是财务管理的基本目标。
Concerns for the social responsibilities of business, the existence of other objectives pursued by some managers, and problems that arise from agency relationships may cause some departures from pure wealth maximizing behavior by owners and managers.基于对商业的社会责任的考虑，一些管理者追求的其他目标以及代理关系中所产生的问题都会使所有者和管理者的行为有些偏离股东财富最大化的目标。
Nevertheless, the shareholder wealth maximization goal provides the standard against which actual decisions can be judged, as such, is the objective assumed in financial management analysis.然而，股东财富最大化的目标是判断实际决策的标准并因此成为财务管理分析的目标。
Divergent Objectives
The goal of shareholder wealth maximization specifies how financial decisions should be made. It has been observed that, in practice, not all management decisions are consistent with this objective. For example, Bennett Stewart has developed an index of managerialperformance that measures the success of managers in achieving a goal of shareholder wealth maximization. Stewart's performance measure considers the differencebetween the return a firm earns on its invested capital and the cost of that capital. The"market value added"measure used by Stewart is equal to the difference between themarket value of a firm and the resources that had been historically invested in theenterprise. Using this standard, IBM, Merck, General Electric, Wal-Mart, and PhilipMorris top the list of firms creating the most value over original investment levels. Incontrast, General Motors, Ford, Chrysler, and Aluminum Company of haveconsistently lost value for their investors by failing to earn adequate returns relative tocapital costs. The poor performances of these firms may be attributable, in part, to a lackof attention of stockholders' interests and to the more attention of that of managers.
Divergent Objectives分歧目标
The goal of shareholder wealth maximization specifies how financial decisions should be made. 股东财富最大化目标明确了如何制定财务决策。
It has been observed that, in practice, not all management decisions are consistent with this objective. 在实际中可以观察到，并不是所有的管理决策都和这个目标相一致。
For example, Bennett Stewart has developed an index ofmanagerialperformance that measures the success of managers in achieving a goal of shareholder wealth maximization.例如，斯图尔德(Bennett Steward)开发了一个衡量管理者在实现股东财富最大化目标成功与否的管理绩效指数。
Stewart's performance measure considers the differencebetween the return a firm earns on its invested capital and the cost of that capital. 斯图尔德的绩效措施考虑了公司的投资收益和资本成本之间的差额。
The"market value added"measure used by Stewart is equal to the difference between themarket value of a firm and the resources that had been historically invested in theenterprise.他所使用的“市场附加值”等于公司的市场价值和历史上投入公司的资金之间的差额。
Using this standard, IBM, Merck, General Electric, Wal-Mart, and PhilipMorris top the list of firms creating the most value over original investment levels.根据这个标准，IBM、莫克(Merck)、通用电气(General Electric)、威尔玛(wal—mart)和菲利普·莫瑞斯(Philip Morris)等公司成为相对原始投资创造价值最多的公司。
Incontrast, General Motors, Ford, Chrysler, and Aluminum Company of haveconsistently lost value for their investors by failing to earn adequate returns relative tocapital costs.与此相反，通用汽车(General Motors)、福特(Ford)、克莱斯勒(Chrysler)和美洲铝公司(Aluminum Company of America)由于不能挣足够多的收益以弥补资本成本，使得这些公司的投资者不断遭受损失。
The poor performances of these firms may be attributable, in part, to a lackof attention of stockholders' interests and to the more attention of that of managers.这些公司糟糕的业绩在一定程度上是由于忽略了股东的利益和更多的管理者所追求的利益。
Be attributable to: = be caused by 由于…引起，原因是…
In other words, there often may be a divergence between the shareholder wealthmaximization goal and the actual goals pursued by management. What is the reason for thisdivergence? The primary reason has been attributed to separation of ownership and control(management)in corporations.
In other words, there often may be a divergence between the shareholder wealthmaximization goal and the actual goals pursued by management. 换句话说，管理者实际上所追求的目标和股东财富最大化目标是有分歧的。
What is the reason for thisdivergence? 是什么原因导致了这种分歧呢?
The primary reason has been attributed to separation of ownership and control(management)in corporations.基本的原因是公司所有权和控制权的分离。
Separation of ownership and control has permitted managers to pursue goals moreconsistent with their own self-interests, subject, of course, to the constraint that theysatisfy shareholders sufficiently to maintain control of the corporation. Instead of seekingto maximize some objective(such as shareholder wealth), manager is said toseek acceptable levels of performance, while maximizing their own welfare.
Separation of ownership and control has permitted managers to pursue goals moreconsistent with their own self-interests, subject, of course, to the constraint that theysatisfy shareholders sufficiently to maintain control of the corporation. 所有权和控制权的分离使得管理者能够追求和他们自身利益更一致的目标，当然前提是他们使股东足够满意以维持对公司的控制权。
Instead of seekingto maximize some objective(such as shareholder wealth), manager is said toseek acceptable levels of performance, while maximizing their own welfare.
管理者并没有努力去追求某些目标的最大化(例如股东财富)，而是使他们自己的福利最大化并使业绩可以接受的水平。
Maximization of their own personal welfare (or utility)may lead managers to beconcerned with long-run survival(job security). The concern for long-run survival may leadmanagement to minimize (or limit)the amount of risk incurred by the firm, sinceunfavorable outcomes can lead to their dismissal or possible bankruptcy for the firm. Likewise, the desire for job security is cited as one reason why manager often opposes takeovers offers (mergers)by other companies. Giving senior manager "golden parachute" contracts to compensate them if they lose their positions as the result of a merger is one approach designed to ensure that they will act in the interests of shareholders in merger decisions, rather than in their own interests. Other firms, such as Berkshire Hathaway, expect managers and directors to have significant ownership stake in the
firm. Many firms, including Walt Disney, Pepsi Co, and Anheuser Busch, provide to a wide range of key managers significant stock options that increase in value with improvements in the firm's performance in an attempt to align their interests more closely with those of shareholders.
Maximization of their own personal welfare (or utility)may lead managers to beconcerned with long-run survival(job security). 个人福利(或效用)最大化可以使管理者关心长期的生存问题(工作保证)。
The concern for long-run survival may leadmanagement to minimize (or limit)the amount of risk incurred by the firm, sinceunfavorable outcomes can lead to their dismissal or possible bankruptcy for the firm.对长期生存问题的关心可以使管理者把公司面临的风险降到最低点，这是因为不利的结果会导致他们被解雇或公司可能破产。
Dismissal: 解雇
Likewise, the desire for job security is cited as one reason why manager often opposes takeovers offers (mergers)by other companies. 同样地，对工作保证的需要也是管理者反对公司被其他公司接管或与其他公司合并的原因之一。
Giving senior manager "golden parachute" contracts to compensate them if they lose their positions as the result of a merger is one approach designed to ensure that they will act in the interests of shareholders in merger decisions, rather than in their own interests.
这句话比较长，我们首先找一下主语：Can you tell me what is the subject? Well, the subject should be the content before “is”, that is “Giving senior manager "golden parachute" contracts to compensate them if they lose their positions as the result of a merger”如果高级管理者因为合并而失去了职位，同他们签订“黄金降落伞”合同，他们就可以得到补偿。这个句子的谓语是is 因此宾语就是one approach designed to ensure that they will act in the interests of shareholders in merger decisions, rather than in their own interests.意思是一种确保他们在合并决策中为股东的利益而不是为他们自己的利益考虑的策略, 句子中的act in the interests of sb 意思是为了某人的利益而做事。下面我完整的把这个句子给大家翻译一下：如果高级管理者因为合并而失去了职位，同他们签订“黄金降落伞”合同，他们就可以得到补偿。这种措施可以确保他们在合并决策中为股东的利益而不是为他们自己的利益考虑。
Other firms, such as Berkshire Hathaway, expect managers and directors to have significant ownership stake in thefirm. 其他一些公司，如Berkshire Hathaway，要求经理和董事持有公司的大量股份。
Many firms, including Walt Disney, Pepsi Co, and Anheuser Busch, provide to a wide range of key managers significant stock options that increase in value with improvements in the firm's performance in an attempt toalign their interests more closely with those of shareholders.
(In this sentence, word) Align: to publicly support a political group, country, or person that you agree with支持，align…with:与…保持一致；与…结盟。align their interests more closely with those of shareholders. : 把他们的利益同股东的利益更紧密地联系在一起。
in an attempt to：目的是为了…
Many firms,许多公司including Walt Disney, Pepsi Co, and Anheuser Busch,包括Walt Disney、PepsiCo和Anheuser Busch在内provide to a wide range of key managers提供给许多关键的管理者significant stock options大量的股票期权that increase in value with improvements in the firm's performance（这个句子修饰stock option, 意思是：而期权的价值随着公司业绩的提高而提高in an attempt toalign their interests more closely with those of shareholders.目的是可以把他们的利益同股东的利益更紧密地联系在一起。
译文：包括Walt Disney、PepsiCo和Anheuser Busch在内的许多公司提供给许多关键的管理者大量的股票期权，而期权的价值随着公司业绩的提高而提高，这样就可以把他们的利益同股东的利益更紧密地联系在一起。
Agency Problems
The existence of divergent objectives between owners and managers is one example of a class of problems arising from agency relationships. Agency relationships occur when one or more individuals(the principals)hire another individual(the agent)to perform a service on behalf of the principals. In an agency relationship, decision-making authority is often delegated to agent from the principals. In the context of finance, two of the most important agency relationships are the relationship between stockholders (owners)andmanagers and the relationship between stockholders and creditors.
Agency Problems代理问题
The existence of divergent objectives between owners and managers is one example of a class of problems arising from agency relationships. 所有者和管理者之间存在分歧目标是由于代理关系而产生的众多问题中的一个。
A class of: 许多a class of problems: 许多问题a class of problems arising from agency relationships由于代理关系而产生的众多问题
Agency relationships occur when one or more individuals (the principals) hire another individual (the agent)to perform a service on behalf of the principals. 当一个或几个人(本人)雇用了另外的人(代理人)代表本人来行事，代理关系就产生了。
On behalf of: 代表
Principal: 本人
perform a service on behalf of the principals：代表本人来提供服务，或代表本人来行事。
In an agency relationship, decision-making authority is often delegated to agent from the principals.在代理关系中，决策权经常由本人授予代理人行使。
Delegate: n. 代表Around 350 delegates attended the conference大约350名代表出席了会议
Delegate v.: to give part of your power or work to someone in a lower position than you:授权
Be delegated to sb: 被授权给某人decision-making authority is often delegated to agent决策权被授予代理人行使 from the principle: 由本人授予
In the context of finance, two of the most important agency relationships are the relationship between stockholders (owners)andmanagers and the relationship between stockholders and creditors.就财务而言，股东(所有者)与管理者之间的关系和股东与债权人之间的关系是两种最重要的代理关系。
Stockholders and Managers
Inefficiencies that arise because of agency relationships have been called agency problems. These problems occur because each party to a transaction is assumed to act in a manner consistent with maximizing his or her own utility(welfare). The example cited earlier of the concern by manager for long-run survival (job security), rather thanshareholder wealth maximization, is an agency problem. Another example is the consumption of on-the-job perquisites(such as the use of company airplanes, limousines, and luxurious offices)by managers who have no(or only a partial)ownership interest in the firm.
Stockholders and Managers股东和管理者
Inefficiencies that arise because of agency relationships have been called agency problems.因为代理关系而产生的低效率被称为代理问题。
These problems occur because each party to a transaction is assumed to act in a manner consistent with maximizing his or her own utility(welfare).
Act in a manner: 以某种行为方式做事
Consistent with: 与…保持一致
译文：这个问题的产生是由于交易双方的行为方式总与自身效用(福利)最大化保持一致。
The example cited earlier of the concern by manager for long-run survival (job security), rather thanshareholder wealth maximization, is an agency problem.
(In this sentence)
The concern for sth: 对于某事的关心
the concern by manager for long-run survival (job security)：（意思是）管理者对于长期生存（工作机会）的关心
(我们可以看到这个句子的主语比较长，is 前面的内容全部是主语，所以这句话告诉我们我们前面引用的一个例子就是一个代理问题。是什么例子呢？the concern by manager for long-run survival (job security), rather thanshareholder wealth maximization,意思是：管理者以长期生存(工作保证)为目标，而不是以股东财富最大化作为目标。
译文：前面引用的例子就是一个代理的问题：管理者以长期生存(工作保证)为目标，而不是以股东财富最大化作为目标。
Another example is the consumption of on-the-job perquisites(such as the use of company airplanes, limousines, and luxurious offices)by managers who have no(or only a partial)ownership interest in the firm.
Perquisite: =previleges特权，优惠 on-the-job perquisites: 工作时享受到的一些权利
译文：另外一个例子是：对公司没有(或仅有一部分)所有权的管理者以工作名义进行高消费，如使用公司的飞机、高级轿车和豪华办公室。
Shirking by managers is also an agency-related problem. These agency problems give rise to a number of agency costs, which are incurred by shareholders to minimize agency problems of agency costs include:
Shirking by managers is also an agency-related problem. 管理者逃避义务是另一个与代理相关的难题。
Shirk: to deliberately avoid doing something you should do, because you are lazy.刻意的逃避
These agency problems give rise to a number of agency costs, which are incurred by shareholders to minimize agency problems，agency costs include:这些代理问题增加了很多代理成本。代理成本是由于股东试图把代理问题减到最少而产生的，主要包括以下几种情况：
1. Expenditures to structure the organization in such a way as to minimize the incentives for manager to take actions contrary to shareholder interests, such as providing a portion of manager's compensation in form of stock of the corporation.
2. Expenditures to monitor management's actions, such as paying for audits of managerial performance and internal audits of the firm's expenditures.
3. Bonding expenditures to protect the owners from managerial dishonesty.
4. The opportunity cost of lost profits arising from complex organizational structures that prevents management from making timely responses to opportunities.
1. Expendituresto structure the organization in such a way as to minimize the incentives for manager to take actions contrary to shareholder interests, such as providing a portion of manager's compensation in form of stock of the corporation.构建组织的费用：为了减少管理者违背股东利益行事的诱惑而开支的费用，如以公司股票的形式作为管理者的部分报酬。
2. Expenditures to monitor management's actions, such as paying for audits of managerial performance and internal audits of the firm's expenditures.
Audit: 审计
audits of managerial performance：管理绩效审计
internal audits of the firm：公司内部审计
译文：监督管理活动的支出，如为管理绩效审计支付的费用和公司内部审计的开支。
3. Bonding expenditures to protect the owners from managerial dishonesty.为防止所有者遭受管理欺诈而发生的联合支出。
4. The opportunity cost of lost profits arising from complex organizational structures that prevents management from making timely responses to opportunities.损失的利润所造成的机会成本：这种成本是由于复杂组织结构阻碍了管理者对机会做出及时反应而损失的利润而产生的机会成本。
Managerial motivations to act in the interests of stockholders include the structure of their compensation package, the threat of dismissal, and the threat of takeover by a new group of owners. Financial theory has shown those agency problems and their associated costs can be reduced greatly if the financial markets operate efficiently. Some agency problems can be reduced by the use of complex financial contracts. Remaining agency problems give rise to costs that show up as a reduction in the value of the firm's shares in the marketplace.
Managerial motivations to act in the interests of stockholders include the structure of their compensation package, the threat of dismissal, and the threat of takeover by a new group of owners. 使管理者为股东利益行事的管理措施包括报酬组合的结构、解雇的威胁和被新的所有者接管的威胁。
Financial theory has shown those agency problems and their associated costs can be reduced greatly if the financial markets operate efficiently. 财务理论表明，代理问题及其相关成本会大量减少，如果金融市场有效率地运作。
Some agency problems can be reduced by the use of complex financial contracts. 复杂财务合同的使用也能减少一些代理问题。
Remaining agency problems give rise to costs that show up as a reduction in the value of the firm's shares in the marketplace.剩下的代理问题使成本增加，从而减少了公司股票的市场价值。
Stockholders and Creditors
Another potential agency conflict arises from the relationship between a company's owners and its creditors. Creditors have a fixed financial claim on the company's resources in the form of long-term debt, bank loans, commercial paper, etc For example, owners may attempt to increase the risking of the company's investments in hopes of receiving greater returns. When this occurs, bondholders suffer because they do not have an opportunity to share in these higher returns. For example, when RJR Nabisco(RJR)was acquired by KKR, the debt of RJR increased from 38 percent of total capital to nearly 90percent of total capital. This unexpected increase in financial risk caused the value of RJR'sbonds to decline by nearly 20 percent. In response to this loss of value, Metropolitan LifeInsurance Company and other large bondholders sued RJR for violating the bondholders'rights and protections under the bond covenants. In early 1991, RJR and Metropolitansettled the suit to the benefit of Metropolitan. The issue of bondholder rights remainscontroversial, however.
Stockholders and Creditors股东和债权人
Another potential agency conflict arises from the relationship between a company's owners and its creditors. 另一个潜在的代理冲突是由公司所有者和债权人之间的关系造成的。
Creditors have a fixed financial claim on the company's resources in the form of long-term debt, bank loans, commercial paper, etc. 债权人对公司资源有着固定的要求权，通常的形式有长期借款、银行贷款、商业票据等。
For example, owners may attempt to increase the risking of the company's investments in hopes of receiving greater returns. 例如，公司所有者为了增加收益就可能增加投资的风险性。
When this occurs, bondholders suffer because they do not have an opportunity to share in these higher returns. 在这种情况下，债券持有人因为无法分享更高的收益而招致损失。
For example, when RJR Nabisco(RJR)was acquired by KKR, the debt of RJR increased from 38 percent of total capital to nearly 90percent of total capital. 例如，RJR Nabisco(RJR)被KKR收购后，RJR的负债从总资产的38％增加到将近90％。
This unexpected increase in financial risk caused the value of RJR'sbonds to decline by nearly 20 percent. 财务风险的突然增加使RJR的债券的价值下降了将近20％。
In response to this loss of value, Metropolitan LifeInsurance Company and other large bondholders sued RJR for violating the bondholders'rights and protections under the bond covenants.
遭受损失的Metropolitan生命保险公司和其他大的债券持有者对RJR侵犯债券持有人权利和违反债券契约保护提起诉讼。
In early 1991, RJR and Metropolitansettled the suit to the benefit of Metropolitan. The issue of bondholder rights remainscontroversial, however.
1991年初，RJR对Metropolitan解决了这场诉讼，维护了Metropolitan.的利益。然而尽管如此，债券持有人的权利仍然是一个有争议的问题。
In order to protect their interests, creditors often insist on certain protectivecovenants in a company's bond indentures. These covenants take many forms, such aslimitations on dividend payments, limitations on the type of investments(and divestitures)the company can undertake and limitations on the issuance of new debt. The constraints onthe owner-managers may reduce the potential market value of the firm. In addition to theseconstraints, bondholders also will demand a higher fixed return to compensate for risksnot adequately covered by bond indenture restrictions.
In order to protect their interests, creditors often insist on certain protectivecovenants in a company's bond indentures.为了保护自身利益，债权人经常坚持把某些保护条款写进公司债券契约中。
These covenants take many forms, such aslimitations on dividend payments, limitations on the type of investments(and divestitures)the company can undertake and limitations on the issuance of new debt.这些条款可以采用很多形式，如限制支付股利、限制公司所从事的投资(和撤资)类型和限制举借新债。
The constraints onthe owner-managers may reduce the potential market value of the firm. 这些对所有者和管理者的限制会减少公司潜在的市场价值。
In addition to theseconstraints, bondholders also will demand a higher fixed return to compensate for risksnot adequately covered by bond indenture restrictions.除了这些限制外，债券持有人也会要求一个较高的固定收益以补偿不足以被债券契约限制所抵消的风险。
Maximization of Shareholder Wealth: Managerial Strategies
If the managers of a firm accept the goal of maximizing shareholder wealth, howshould they achieve this objective? One might be tempted to argue that managers wouldmaximize shareholder wealth if they maximize the profits of the firm. After all, profitmaximization is the predominant objective that emerges from static microeconomic models of the firm. Unfortunately, the profit maximization objective has too many shortcomings to provide consistent guidance to the practicing manager.
Maximization of Shareholder Wealth:
Managerial Strategies股东财富最大化：管理策略
If the managers of a firm accept the goal of maximizing shareholder wealth, howshould they achieve this objective?如果一家公司的管理者以股东财富最大化为目标，他们应该怎样达到这个目标呢?
One might be tempted to argue that managers wouldmaximize shareholder wealth if they maximize the profits of the firm.也许有人会倾向于认为股东财富最大化可以通过公司利润最大化来实现。
After all, profitmaximization is the predominant objective that emerges from static microeconomic models of the firm.利润最大化毕竟是由公司静态微观经济模型所得出的主要目标。
Unfortunately, the profit maximization objective has too many shortcomings to provide consistent guidance to the practicing manager.令人遗憾的是，利润最大化目标的缺点太多以致于不能为管理者提供一贯的指导。practicing manager :实际进行管理的
Before discussing some of these shortcomings, it is useful to highlight one important managerial decision rule that emerges from the microeconomic profit maximization model. In order to maximize profits, we learned in microeconomics that a firm should expand output to the point where the marginaladditional)costMC)of the last unit produced and sold just equals the marginal revenue(MR)received. To move beyond that output level will result in greater additional costs than additional revenues and hence lower profits. To fail to produce up to the point where MC=MR results in a lower lever of total profits than is by following the rule. This fundamental rule, that an economic action should be continued up to the point where the marginal revenue(benefit)just equals the marginal cost, offers excellent guidance for financial managers dealing with a wide range of problems. For example, we shall see that the basic capital expenditure analysis model simply is an adaptation of the MC = MR rule. Other applications appear in the working capital management area and the capital structure area.
Before discussing some of these shortcomings, it is useful to highlight one important managerial decision rule that emerges from the microeconomic profit maximization model.在讨论这些缺点之前，有必要解释一条由微观利润最大化模型导出的重要管理决策规律。
In order to maximize profits, we learned in microeconomics that a firm should expand output to the point where the marginal (additional)cost (MC)of the last unit produced and sold just equals the marginal revenue(MR)received.为了使利润最大化，我们从微观经济学中得知应把产量增加到使生产销售的最后一个单位产品的边际(额外)成本(MC)等于所得的边际收入(MR)。
To move beyond that output level will result in greater additional coststhanadditional revenues and hence lower profits. 产量超过这个水平将会导致额外成本大于额外收入并因此降低利润。
To fail to produce up to the point where MC=MR results in a lower level of total profits than is by following the rule.
这句话的谓语动词应该是results in, 他前面的内容导致了后面的结果。主语To fail to produce up to the point where MC=MR意思是：产量没有能够达到MC=MR这一点，会产生什么结果呢：a lower level of total profits than is by following the rule. “the rule”应该指的是：MC=MR所以结果是总利润低于MC=MR时的利润
因此这句话完整的含义是：产量低于这个水平也会使总利润低于MC=MR时的利润。
This fundamental rule, that an economic action should be continued up to the point where the marginal revenue(benefit)just equals the marginal cost, offers excellent guidance for financial managers dealing with a wide range of problems.
这个句子中，两个逗号中间连接的是插入语，因此句子的主体结构应该是：This fundamental ruleoffers excellent guidance for financial managers dealing with a wide range of problems.这条基本的规律为财务管理者解决大量问题提供了极好的指导。插入语部分用来进一步解释说明这条规律的内容是：an economic action should be continued up to the point where the marginal revenue(benefit)just equals the marginal cost意思是：经济活动应该继续到使得边际收入等于边际成本的那一点，
译文：经济活动应该继续到使得边际收入等于边际成本的那一点，这条基本的规律为财务管理者解决大量问题提供了极好的指导。
For example, we shall see that the basic capital expenditure analysis model simply is an adaptation of the MC = MR rule.例如，我们将看到基本的资本支出分析模型只不过是MC=MR规律的调整。
Other applications appear in the working capital management area and the capital structure area.
其他的应用出现在营运资本管理和资本结构领域。
Despite the excellent insights it offers financial managers, the profit maximization model is not useful as the central decision-making model for the firm for several reasons. First, the standard microeconomic model of profit maximization is static; that is, it lacks a time dimension. Profit maximization as a goal offers on explicit basis for comparing long-term and short-term profits. Major decisions made by financial managers, however, must reflect the time dimension. For example, capital expenditure decisions, which are central to the finance function, have a long-term impact on the performance of the firm. Financialmanagers must make trade-offs between short-run and long- run returns in conjunction with capital investment decisions.
Despite the excellent insights it offers financial managers, the profit maximization model is not useful as the central decision-making model for the firm for several reasons.
句子中的it指代的是：利润最大化模型profit maximization model，因此逗号前面的内容：Despite the excellent insights it offers financial managers,尽管利润最大化模型给财务管理者提供了很好的帮助the profit maximization model is not useful as the central decision-making model for the firm for several reasons.但由于几点原因使其不能成为公司的中心决策模型。
First, the standard microeconomic model of profit maximization is static; that is, it lacks a time dimension. 首先，标准的利润最大化微观经济模型是静态的，也就是缺少时间因素。
Profit maximization as a goal offersnoexplicit basis for comparing long-term and short-term profits.利润最大化目标无法提供明确的基础以比较长期和短期利润。
Major decisions made by financial managers, however, must reflect the time dimension. 然而，财务经理的主要决策必须反映时间因素。
For example, capital expenditure decisions, which are central to the finance function, have a long-term impact on the performance of the firm. 例如，财务中很重要的资本支出决策对公司业绩有着长期的影响。
Financialmanagers must make trade-offs between short-run and long- run returns in conjunction with capital investment decisions.财务经理在做出资本投资决策时必须对长期收益和短期收益加以权衡。
Make trade-offs: 做出权衡
The second limitation has to do with the definition of profit. Generally accepted accounting principles result in literally hundreds of definitions of profit for a firm, because of the latitude permitted firms in recognizing and accounting for costs and revenues. For example, during 1990, Carolina Power & Light Company (CPL) was forced to reduce its earnings by $ million because of an unfavorable regulatory treatment of its Harris nuclear plant. To offset this impact on the firm's earnings, GPLchanged its method of accounting for revenues to accrue unbilled revenues as of the date service is rendered, rather than when billed. The net effect of this accounting change for 1990 is an increase in net income of $ 77 million, or $ 0. 92 per share". This arbitrary accounting change has no impact on the cash flows or economic well-being of CPL and hence has no impact on its value.
The second limitation has to do with the definition of profit.第二点限制同利润的定义有关。
Generally accepted accounting principles result in literally hundreds of definitions of profit for a firm, because of the latitude permitted firms in recognizing and accounting for costs and revenues.
Generally accepted公认的
accounting principle会计准则
latitude: freedom to choose what you do or say选择做或者说的自由
recognizing and accounting for costs and revenues.成本与收入的确认和记账
公认会计准则从理论上为公司利润给出了数百个定义，这是由于允许公司在成本与收入的确认和记账方面有较大的选择余地造成的。
For example, during 1990, Carolina Power & Light Company (CPL) was forced to reduce its earnings by $ million because of an unfavorable regulatory treatment of its Harris nuclear plant. 例如，卡罗莱纳州电力电灯公司(CPL)在1990年由于其Harris核工厂受到不利的限制而使利润减少了8 160万美元。
To offset this impact on the firm's earnings, GPL"changed its method of accounting for revenues to accrue unbilled revenues as of the date service is rendered, rather than when billed.
method of accounting：会计核算方法
accrue：在一段时间内慢慢的增加
bill: v.
render:
为了抵消这个影响，CPL“改变了收入的会计核算方法，在提供劳务时即确认收入，而以前则是在收到付款时才确认收入。
The net effect of this accounting change for 1990 is an increase in net income of $ 77 million, or $ 0. 92 per share".这一会计方法的改变使得1990年的年收入增加了7 700万美元，或者每股0．92美元”。
This arbitrary accounting change has no impact on the cash flows or economic well-being of CPL and hence has no impact on its value.这种人为的会计方法变更对CPL的现金流量和经济状况没有影响，因而对公司价值也就没有影响。
Even if we could agree on the appropriate accounting definition of profits, it is not clear whether a firm should attempt to maximize total profit, the rate of profit, or earnings per share(EPS).
Even if we could agree on the appropriate accounting definition of profits, it is not clear whether a firm should attempt to maximize total profit, the rate of profit, or earnings per share(EPS).既使我们能够在利润的会计定义上取得一致，我们也无法确认公司是否应该使其利润、利润率或者每股收益(EPS)最大化。
Consider Columbia BeveragesInc,a firm with 10 million shares outstanding that currentlyearns a profit of $10 million after the firm sells an additional 1 million shares of stock and invests the proceeds to earn $100 000 per year, the total profit of the firm will increase from $10 million to $10. 1million. however, are shareholders better off? Prior to the stock sale, earnings per share were $1($10 million profit divided by 10 million shares of stock). After the stock sale, earnings per share decline to $ 0. 92($10. 1 million in earnings divided by 11 million shares). Although total profit has increased, earnings per share have declined. Stockholders are not better off from this action.
Consider Beverages. Inc,a firm with 10 million shares outstanding that currentlyearns a profit of $10 million after tax.考虑一下哥伦比亚饮料公司(Columbia Beverages．Inc)，这家发行了1000万股股票的公司当期的税后利润是1 000万美元。
If the firm sells an additional 1 million shares of stock and invests the proceeds to earn $100 000 per year, the total profit of the firm will increase from $10 million to $10. 1million. 如果公司出售额外的100万股股票，然后把收入用于投资并获得每年10万美元的收益，那么这家公司的总利润将从1 000万美元增加到1 010万美元
。
However, are shareholders better off? Prior to the stock sale, earnings per share were $1($10 million profit divided by 10 million shares of stock). 然而，股东们会因此而受益吗?在出售新股之前，每股收益是1美元(1 000万美元的利润除以1 000万股股票)。After the stock sale, earnings per share decline to $ 0. 92($10. 1 million in earnings divided by 11 million shares). 出售新股之后，每股收益降到美元 (1 010万美元的利润除以1 100万股股票)。
Although total profit has increased, earnings per share have declined. Stockholders are not better off from this action.尽管总利润增增加了，每股收益却下降了。股东并没有从中得到任何的好处。
This example might lead one to conclude that managers should seek to maximize earnings per share(for a given number of shares outstanding). This, too, can result in misleading actions. For example, consider a firm with assets at the start of the year of $10 million. The firm is financed entirely with common equity (1 million sharesoutstanding). After-tax earnings are $10 million, and earnings per share are $1. The company decides to retain one-half of this year's earnings (increasing assets and common equity to $10. 5 million)and pay out the balance in common stock dividends. Next year the company's earnings total $ million, resulting in earnings per share of $1. 029. Are shareholders better off because of the decision by managers to reinvest $ 500 000 into the firm?
This example might lead one to conclude that managers should seek to maximize earnings per share(for a given number of shares outstanding). 这个例子可能会使人得出结论，在发行股份数量给定的情况下，管理者应该寻求每股收益的最大化。
This, too, can result in misleading actions. For example, consider a firm with assets at the start of the year of $10 million. 这也会导致一些误解。例如，考虑一家年初总资产为1 000万美元的公司。
The firm is financed entirely with common equity (1 million sharesoutstanding). 这家公司的全部资金来自于股东权益(发行100万股普通股)。
After-tax earnings are $10 million, and earnings per share are $1.税后利润是1 000万美元，得出普通股收益率是1美元。
The company decides to retain one-half of this year's earnings (increasing assets and common equity to $10. 5 million)and pay out the balance in common stock dividends.公司决定保留今年收益的二分之一(资产和股东权益增加到1 050万美元)并把剩余的收益做为股利支付给股东。
Next year the company's earnings total $ million, resulting in earnings per share of $1. 029. 公司第二年的总利润为万美元，每股收益是1．029美元。
Are shareholders better off because of the decision by managers to reinvest $ 500 000 into the firm?管理者把50万美元重新投入公司的决策使股东得到好处了吗?
In this example, a strong argument can be made that the position of shareholders has deteriorated. Although earnings per sharer have increased from $1 per share to$ per share, the realized return on common equity actually has declined, from 10percent to percent( million divided by $ million of common equity). Inessence, the company's managers have reinvested $ 500 000 of shareholders' money toearn a return of only percent( $ million of additional earnings divided by $ 0. 5million of additional investment). This type of investment is not likely to result inmaximum shareholder wealth. Shareholders could do better by investing in risk-free government bonds yielding more than percent.
In this example, a strong argument can be made that the position of shareholders has deteriorated.在这个例子里，有充分的证据表明，股东的利益受到了损害。
Although earnings per sharer have increased from $1 per share to$ per share, the realized return on common equity actually has declined, from 10percent to percent( million divided by $ million of common equity). 尽管每股收益从1美元增加到了1．029美元，普通股权益实现的收益实际上从10％下降到了9．8％(万美元除以1 050万美元普通股权益)。
Inessence, the company's managers have reinvested $ 500 000 of shareholders' money toearn a return of only percent( $ million of additional earnings divided by $ 0. 5million of additional investment).实际上，公司管理者把股东的50万美元进行再投资只获得了5．8%的收益率(2．9万美元除以50万美元额外投资)。
This type of investment is not likely to result inmaximum shareholder wealth. 这种类型的投资并不能使股东财富最大化。
Shareholders could do better by investing in risk-free government bonds yielding more than percent.股东可以通过投资收益率大于5．8％的无风险政府债券而获得更多的收益。
The third major problem associated with the profit maximization objective is that it provides no direct way for financial managers to consider the risk associated with alternative decisions. For example, two projects generating identical future expected cash flows and requiring identical outlays may be vastly different with respect to the risk of the expected cash flows. Similarly, it often is possible for a firm to increase its earnings per share by increasing the proportion of debt financing used in the firm's capital structure. The financial marketplace will recognize the increased risk of financial distress that accompanies increases in debt financing and will value the resulting EPS accordingly.
The third major problem associated with the profit maximization objective is that it provides no direct way for financial managers to consider the risk associated with alternative decisions.与利润最大化目标有关的第三个问题是，该目标不能为财务经理考虑不同决策的风险提供直接的方法。
For example, two projects generating identical future expected cash flows and requiring identical outlays may be vastly different with respect to the risk of the expected cash flows. 例如，两个项目有着同样的未来预期现金流量并且需要同样的支出，但这两个项目预期现金流量的风险可能大大不同。
Outlay: payment 支出
Similarly, it often is possible for a firm to increase its earnings per share by increasing the proportion of debt financing used in the firm's capital structure. 同样地，通过增加公司资本结构中的债务融资来提高每股收益是可能的。
The financial marketplace will recognize the increased risk of financial distress that accompanies increases in debt financing and will value the resulting EPS accordingly.金融市场会确认这种伴随债务融资增加而增加的财务风险并以此确定EPS的值。
financial distress: 财务困难
Determinants of Long Value
If the profit maximization objective does not provide the proper guidance to managers seeking to maximize shareholder wealth, what rules should these managers follow? First, it is important to recognize that the maximization of shareholder wealth is a market concept, not an accounting concept. Managers should attempt to maximize the market value of the company's shares, not the accounting or book value per share. The book value reflects the historic cost of assets, not the earning capacity of those assets. Also, the book value does not consider the risk associated with the assets.
Determinants of Value价值的确定
If the profit maximization objective does not provide the proper guidance to managers seeking to maximize shareholder wealth, what rules should these managers follow?如果说利润最大化目标不能为管理者提供寻求股东财富最大化的合理指导，那么这些管理者应该遵循什么规律呢?
First, it is important to recognize that the maximization of shareholder wealth is a market concept, not an accounting concept.首先，承认股东财富最大化是一个市场概念而不是一个会计概念是非常重要的。
Managers should attempt to maximize the market value of the company's shares, not the accounting or book value per share. 管理者应该努力使公司股份的市场价值最大化，而不是使每股会计或账面价值最大化。
Book value: 账面价值
The book value reflects the historic cost of assets, not the earning capacity of those assets.账面价值反映了资产的历史成本，而不是这些资产的盈利能力。
Also, the book value does not consider the risk associated with the assets.而且，账面价值没有考虑到与资产有关的风险。
What factors determine the market value of a company's shares of stock? There are three major {actors: the amount of the cash flows expected to be generated for the benefit of stockholders; the timing of these cash flows; and the risk of the cash flows. Consider first the focus on cash flow. Cash flow relates to the actual cash generated or paid by the firm. Only cash can be used to acquire assets, and only cash can be used to make valuable distributions to investors. In contrast, the accounting system focuses primarily on a matching over time of the historic, cost-based revenues and expenses of a company,resulting in a bottom-line earnings figure. But accounting earnings often are misleading because earnings do not reflect the actual cash inflows and outflows of the firm.
What factors determine the market value of a company's shares of stock? 什么因素决定公司股票的市场价值呢?
There are three major factors: the amount of the cash flows expected to be generated for the benefit of stockholders; the timing of these cash flows; and the risk of the cash flows.主要有三个因素, 股东们预期收到的现金流量的数量；现金流量的时间；现金流量的风险。
Consider first the focus on cash flow. Cash flow relates to the actual cash generated or paid by the firm. ：首先要重点考虑现金流量。现金流量是指公司的实际现金收入或支出。
Only cash can be used to acquire assets, and only cash can be used to make valuable distributions to investors. 仅有现金能够被用于获得资产，而且只有现金能被用于对投资者进行价值分配。In contrast, the accounting system focuses primarily on a matching over time of the historicrevenues and expenses of a company,resulting in a bottom-line earnings figure. 相反，会计系统主要强调一个公司历史上收入和费用在时间上的配比，这保证了一个最低的盈利数额。
But accounting earnings often are misleading because earnings do not reflect the actual cash inflows and outflows of the firm. 但是会计利润常常会让人误解，因为利润并不反映公司的实际现金流入和流出.
Inflow:留入
Outflow：留出
The market value of a share of stock is influenced not by the amount of the cash flowsit is expected to produce but also by the timing of those cash flows. If faced with the opportunity of receiving $100 today or $100 three years from today, you would surelychoose the $100 today, because you could invest that $100 for three years andaccumulate substantially more than $ three years. Thus, financial managers mustconsider both the magnitude of the cash flows they expect to generate and the timing ofthese cash flows because investors will reflect these dimensions of return in their valuationof the enterprise.
The market value of a share of stock is influenced not by the amount of the cash flowsit is expected to produce but also by the timing of those cash flows. 股票的市场价值不仅受预期产生的现金流量影响，而且受现金流量的发生时间影响。
If faced with the opportunity of receiving $100 today or $100 three years from today, you would surelychoose the $100 today, because you could invest that $100 for three years andaccumulate substantially more than $ three years.如果你有可能在今天收到100美元或者在三年后收到100美元，那么你将毫无疑问地选择今天收到100美元。这是因为你可以把得到的100美元进行投资，这样你三年后得到的钱会远远大于100美元。
Thus, financial managers mustconsider both the magnitude of the cash flows they expect to generate and the timing ofthese cash flows because investors will reflect these dimensions of return in their valuationof the enterprise.财务经理必须同时考虑所获现金流量的数额和现金流量的产生时间，因为投资者会在对公司估价时考虑这些因素。
Reflect: think carefully about something仔细的考虑
Finally, the market value of a share of stock is influenced by the perceived risk of thecash flows it is expected to generate. Most rational investors will demand a higher rate ofreturn on an investment when greater risk is associated with the expected returns fromthat investment. Thus, financial managers also must consider the risk of the cash flowsexpected to be generated by the firm because investors will reflect this risk in theirvaluation of the enterprise.
Finally, the market value of a share of stock is influenced by the perceived risk of thecash flows it is expected to generate.最后，股票价值还受预期现金流量所承担风险的影响。
Most rational investors will demand a higher rate ofreturn on an investment when greater risk is associated with the expected returns fromthat investment..当一项投资预期收益的风险较大时，理性的投资者通常会要求更高的投资回报率。
Thus, financial managers also must consider the risk of the cash flowsexpected to be generated by the firm because investors will reflect this risk in theirvaluation of the enterprise所以，财务经理也必须考虑公司预期现金流量的风险，因为投资者对公司估价时会考虑到风险因素。
Managerial Actions to Influence Value
How can managers influence the magnitude, timing, and risk of the cash flowsexpected to be generated by the firm in order to maximize shareholder wealth? Many factors ultimately influence the magnitude, timing, and risk of a firm's cash flows and thus the price of the firm's stock. Some of these factors are related to the external economic environment and largely are outside the direct control of managers. Other factors can be directly manipulated by the managers. The economic environment factors largely are outside the direct control of managers, but managers must be aware of how these factors affect the policy decisions under the control of management. Managers make choices regarding the products to be produced, the technology used to produce them, the marketing effort and distribution channels, and the selection of employees and their compensation. In addition,managersestablish investment policies, the ownership structure of the firm, the capital structure (use of debt)of the firm, working capital management policies, and dividend policies. The decisions made in these key policy areas determine the amount, timing, and risk of the firm's expected cash flows.
Managerial Actions to Influence Value影响价值的管理行为
How can managers influence the magnitude, timing, and risk of the cash flowsexpected to be generated by the firm in order to maximize shareholder wealth? 为了使股东财富最大化，管理者怎样才能对预期现金流量的数量、时间和风险产生影响呢?
Many factors ultimately influence the magnitude, timing, and risk of a firm's cash flows and thus the price of the firm's stock. 许多因素影响公司现金流量的数量、时间和风险以及公司股票的价值。
Some of these factors are related to the external economic environment and largely are outside the direct control of managers. 一部分因素同外界经济环境有关，无法为管理者所直接控制。
Other factors can be directly manipulated by the managers. 其他因素能够被管理者直接控制。
The economic environment factors largely are outside the direct control of managers, but managers must be aware of how these factors affect the policy decisions under the control of management. 经济环境因素基本上是管理者无法直接控制的，但管理者必须意识到这些因素怎样影响管理者所能控制的政策决策。
Managers make choices regarding the products to be produced, the technology used to produce them, the marketing effort and distribution channels, and the selection of employees and their compensation.管理者选定所生产的产品、生产技术、营销工作和分销渠道以及员工的选择及其报酬。
In addition,managersestablish investment policies, the ownership structure of the firm, the capital structure (use of debt)of the firm, working capital management policies, and dividend policies. 此外，管理者还要制定投资政策、营运资本管理政策和股利政策。
The decisions made in these key policy areas determine the amount, timing, and risk of the firm's expected cash flows.这些关键政策的制定决定了公司预期现金流量的数量、时间和风险。
Participants in the financial markets evaluate the cash flows expected by the firm in relation to alternative streams of cash flows expected from other firms and ultimately establish the price of the firm's stock. The value of a firm's stock is influenced at any point in time by general conditions in the financial markets, including the level of interest rates, anticipated inflation rates, and the level of investor optimism regarding the future. Financial market conditions also affect the major policy decisions made by management.
Participants in the financial markets evaluate the cash flows expected by the firm in relation to alternative streams of cash flows expected from other firms and ultimately establish the price of the firm's stock. 金融市场的参与者根据其他公司的现金流量情况估计公司预期现金流量并确定公司股票的价格。
The value of a firm's stock is influenced at any point in time by general conditions in the financial markets, including the level of interest rates, anticipated inflation rates, and the level of investor optimism regarding the future. 公司股票价值受每一时刻金融市场的总体状况影响，包括利率水平、预期通涨率和对未来所持的乐观态度。
Financial market conditions also affect the major policy decisions made by management.金融市场状况也影响主要的管理决策。
Organization of the Financial Management Function
Many firms divide the decision-making responsibilities of management among several differs, which often include those in manufacturing, marketing, finance, personnel, and engineering. The finance function usually is headed by a (senior)vice-president offinance or chief financial officer (CFO), who reports to the president. In addition tooverseeing the accounting, treasury, tax, and audit functions, today's CFO often hasresponsibility for strategic planning, monitoring and trading foreign currencies, managingthe risk from volatile interest rates and monitoring production and inventory levels. CFOsalso must be able to convince investors of the company's financial levels.
Organization of the Financial Management Function财务管理职能的组织
Many firms divide the decision-making responsibilities of management among several differs, which often include those in manufacturing, marketing, finance, personnel, and engineering.许多大股东把管理决策职责分给几个不同的管理者，这些职责包括制造、营销、财务、人事和工程。
The finance function usually is headed by a (senior)vice-president offinance or chief financial officer (CFO), who reports to the president. 财务职能通常由(高级)财务副总经理或首席财务官(CFO)执行，他们直接对总经理负责。
In addition tooverseeing the accounting, treasury, tax, and audit functions, today's CFO often hasresponsibility for strategic planning, monitoring and trading foreign currencies, managingthe risk from volatile interest rates and monitoring production and inventory levels.除了会计、库管、税务和审计职能外，今天的CFO常常要负责战略规划、监督和外汇交易、波动利率的风险管理以及生产和存货水平的监督。
CFOsalso must be able to convince investors of the company's financial levels. CFO也必须能使投资者相信公司的财务状况良好。
The CFO often distributes the financial management responsibilities between thecontroller and the treasurer. The controller normally has responsibility for all accounting related activities. These include such functions as:
The CFO often distributes the financial management responsibilities between thecontroller and the treasurer. 首席财务官常常把财务管理职责分配给主计长和财务长。
The controller normally has responsibility for all accounting related activities. These include such functions as:主计长通常负责与会计有关的所有活动。主要包括以下职责：
Financial Accounting 财务会计
This function involves the preparation of the financial statements for the firm, such as the balance sheet, income statement, and the statement of cash flows财务会计这个职能包括公司财务报表的准备如资产负债表、收益表和现金流量表。
Cost Accounting 成本会计
This department often has responsibility for preparing the firm's operating budgets and judging theachievements of the division of the firm. 成本会计这个部门经常负责准备公司的经营预算并监督公司内部各部门的业绩。
Taxes 税务
This unit prepares the reports that the company must file with the various government(local, state, and federal) agencies.税务这个单位准备公司需要提交各种政府机构(当地、州和联邦)的报告。
File: v. =submit 提交
Data Processing 数据处理
Given its responsibilities involving corporate accounting and payroll activities, the controller also may have management responsibility for the company's data processing operations.数据处理主会计长除对公司会计和支付活动负责外，还要对公司的数据处理活动负责。
The treasurer normally is concerned with the acquisition, custody, and expenditure of funds. These duties often include:财务长通常关心并购、托管和资金支出。这些职责经常包括：
Cash and Marketable Securities Management 现金和可变现证券的管理
This group monitors the firm's short-term finances-forecasting its cash needs, obtaining funds from bankers and other sources when needed, and investing any excess funds in short-term interest-earning securities.这个小组监督公司短期财务一预测现金需要，在需要的时候从银行和其他地方获得资金以及把多余的资金投资到短期证券上以获取利息。
Capital Budgeting Analysis 资本预算分析
This department is responsible for analyzing capital expenditures, that is, the purchase of long-term assets, such as new facilities and equipment.这个部门负责分析资本支出，也就是长期资产的购买，如购买新的仪器和设备。
Financial Planning 财务计划
This department is responsible for analyzing the alternative sources of long-term funds, such as the issuance of bonds or common stock that the firm will need to maintain and expand its operations.这个部门负责分析长期资金的各种来源，如发行债券或普通股。公司需要这些资金用于维持和扩展经营规模。
Credit Analysis 信用分析
Most companies have a department that is responsible for determining the amount of credit that the firm will extend to each of its customers.许多公司设有一个部门负责确定给予每位顾客的信用额度。
Although this group is responsible for performing financial analysis, it sometimes may be located in the marketing area of the firm because of its close relationship to sales.尽管这个部门负责财务分析，有时也因其与销售的密切关系而被归入营销领域。
Investor Relations投资者关系
Many large companies have a unit responsible for working with institutional investors(for example, mutual funds), bond rating agencies, stockholders,and the general financial community.许多大公司设有一个部门负责处理同机构投资者(如共同基金)、债券评级机构、股东和一般财务公众的关系。
Pension Fund Management养老金管理
The treasurer also may have responsibility for the investment of employee pension fund contributions.财务长也要对员工养老金的投资负责。
The investment analysis and portfoliomanagement functions may be performed either within the firm or through outside investment advisors．投资分析和证券管理职能可以通过公司或者外部投资顾问来执行。
It should be emphasized that the specific functions of the controller and treasurer are illustrative only and that the actual functions performed vary from company to company．
For example，in some companies，the treasurer may have responsibility for tax matters．Also，the board of directors of the company may establish a finance committee，consisting of a number of directors and officers of the firm with substantial financial expertise，to make recommendations on broad financial policy issues．
It should be emphasized that the specific functions of the controller and treasurer are illustrative only and that the actual functions performed vary from company to company．需要强调的是，所述的主会计长和财务长的职能仅仅是个说明而已，实际市场中的情况每个公司都不一样。
For example，in some companies，the treasurer may have responsibility for tax matters．例如在一些公司，财务长也许要对税务负责。
Also，the board of directors of the company may establish a finance committee，consisting of a number of directors and officers of the firm with substantial financial expertise，to make recommendations on broad financial policy issues．公司董事会也许会建立一个财务委员会。这个委员会包括一些董事和公司里精通财务的管理者，主要就广泛的财务政策问题提供建议。
Well, that’s all for the introduction of Financial Functions of Financial management
In the proceeding chapter, we notice that the primary objective of financialmanagement was identified as the maximization of shareholder wealth. Shareholderwealth is measured by the market value of a firm's common stock. The market valueof common stock is determined by the magnitude, timing, and risk of the cash flows expected to be produced in the course of doing business.
.在前面，我们介绍了财务管理的目标是股东财富最大化。股东财富用公司普通股的市场价值来衡量。而普通股的市场价值是由经营过程中预计产生的现金流量的大小、时间和风险决定的。
This article introduces four foundation concepts that are important to an understanding of the market valuation process and central to an understanding of the financial management decision process.本文将介绍四个基本概念，这些概念对理解市场价值评估过程和财务管理决策过程都是至关重要的。
The first one is aboutcash flow concept and establishes why cash flows are the relevant source of value, rather than alternative measures of firm performance, such as accounting net income.第一个主要部分定义了现金流量概念，阐述了为什么企业选择现金流量作为相关的价值源，而不是选择诸如会计净利润等衡量企业业绩的其他标准。
The second one isthe net present value rule of valuation其次，介绍了价值评估的净现值模型。
The net present value rule applied to cash flows is the central decision-making model used in the practice of financial management.适用于现金流量的净现值规则是财务管理实践中最重要的决策制定模型。
The third foundation concept is risk and the role it plays in the process of valuing projected future cash flow streams.第三个基本概念是风险及其在评估预计的未来现金流量过程中所起的作用。
The fourth foundation concept is marketefficiency. 第四个基本概念是市场效率。
The Cash Flow Concept
Part One
Section One The Cash Flow Concept
Chairman J. Richard Munro of Time, Inc. said to shareholders at an annual meeting:"when it comes to valuing media and entertainment companies like ours, what matters isnot profits but cash flow. " Charles Royce, president of the Pennsylvania Mutual Fund,has said that"cash flow can be a better measure of an operation than earnings. A companycan keep earnings up for a while by cutting back on spending. But there is nowhere to hidefrom careful cash flow analysis. "
Section One The Cash Flow Concept现金流量概念
Chairman J. Richard Munro of Time, Inc. said to shareholders at an annual meeting:"when it comes to valuing media and entertainment companies like ours, what matters isnot profits but cash flow. "时代公司董事长理查德(J．Richard Munro)在一次股东年会上对股东说：“在评估像我们公司这样的媒体和娱乐公司时，现金流量而不是利润，具有重大意义。”
Charles Royce, president of the Pennsylvania Mutual Fund,has said that"cash flow can be a better measure of an operation than earnings.宾夕法尼亚共同基金的总裁查尔斯（Charles Royce）也曾说：“现金流量比盈利水平能更好地衡量公司的运营情况。
A companycan keep earnings up for a while by cutting back on spending. But there is nowhere to hidefrom careful cash flow analysis. "一个公司能通过缩减支出在短时期内保持盈利水平，但这种作法通过细致的现金流量分析则很容易被察觉。”
In December 1987 the Financial Accounting Standards Board issued SFAS No. accounting standard, the culmination of intensive study by the accountingprofession, requires that firms provide"relevant information about the cash receipts andcash payments of an enterprise during a period. "This accounting profession recognition ofthe importance of cash flows reflects recognition by most financial professionals that thebest indications of a firm's value and its financial health are obtained by looking to thesource of value--cash flow.
In December 1987 the Financial Accounting Standards Board issued SFAS No. 95. 1987年12月，美国财务会计准则委员会颁布了第95号公告（SFAS ）。
This accounting standard, the culmination of intensive study by the accountingprofession, requires that firms providerelevant information about the cash receipts andcash payments of an enterprise during a period. 这句话中，两个逗号之间是插入语，进一步解释说明会计准则，句子主语是This accounting standard谓语动词是requires宾语是由that 引导的从句。意思是：会计准则要求…我们看一下从句的内容：firms providerelevant information公司提供相关的信息，about the cash receipts andcash payments of an enterprise现金收入和现金支出的相关信息 during a period 在一定时期内。
cash receipts =cash inflows现金收入
cash payments=cash outflows现金支出
我们再来看Culmination: especially something important, that happens at the end of a long period of effort or development. 长期努力的结果，或者结晶，或者到达极点
the culmination of intensive study by the accountingprofession：意思是：由一些会计专业人员深入研究所得出的结论
译文：这项会计准则，是会计专业人员经过深入研究制定出来的，它要求每个公司都提供某一时期内公司现金收入和现金支出的相关信息，
This accounting profession recognition ofthe importance of cash flows reflects recognition by most financial professionals that thebest indications of a firm's value and its financial health are obtained by looking to thesource of value--cash flow.
这个句子比较长，我们来一起分析一下：This accounting profession recognition ofthe importance of cash flows会计专业人士对于现金流量重要性的认同reflects recognition by most financial professionals反映出大多数财务人员的共识，前面的内容是这个句子的主句。that thebest indications of a firm's value and its financial health are obtained by looking to thesource of value--cash flow.这句话是定语从句来修饰recognition人们的共识，这个句子的谓语动词是Obtain 意思是获取，也就是说反映公司价值及其财务健康程度的最好指标是如何获取的呢？by looking to thesource of value--cash to：考察；所以说指标是通过考察现金流量这个价值源来获取。
译文：会计专业人士对于现金流量重要性的认同反映出大多数财务人员的共识，即通过考察现金流量这个价值源，我们可以获取反映公司价值及其财务健康程度的最好指标。
The concept of cash flow is one of the central elements of financial analysis, planning, and resource allocation decisions. Cash flows are important because the financial health of a firm depends on its ability to generate sufficient amounts of cash to pay its creditors, employees, suppliers, and owners. Only cash can be spent. You cannot spend accounting net income because net income does not reflect the actual cash inflows and outflows of the firm. For example, an accountant records depreciation expense on an asset each period over the depreciable life of that asset in an attempt to recognize the decline in value of the asset over its life. However, depreciation expense requires no cash outlay. The entire cash outflow related to a depreciable asset occurs at the time the asset is purchased.
The concept of cash flow is one of the central elements of financial analysis, planning, and resource allocation decisions.现金流量概念是进行财务分析、计划和资源分配决策的重要因素之一。
Cash flows are important because the financial health of a firm depends on its ability to generate sufficient amounts of cash to pay its creditors, employees, suppliers, and owners. Only cash can be spent. 这句话告诉我们现金流量之所以重要的原因是什么。because the financial health of a firm是因为财务的健康程度depends on its ability to generate sufficient amounts of cash取决于公司产生足够数额的现金to pay its creditors, employees, suppliers, and cash can be spent.只有现金能用于开支
是因为财务的健康程度取决于公司产生足够数额的现金用以支付债权人、雇员、供货商和公司所有者的能力。只有现金能用于开支。
You cannot spend accounting net income because net income does not reflect the actual cash inflows and outflows of the firm.公司不可能支出会计净利润，因为净利润并不能反映公司实际的现金流入和流出。
For example, an accountant records depreciation expense on an asset each period over the depreciable life o f that asset in an attempt to recognize the decline in value of the asset over its life.举例来说，会计会在资产可折旧期间内记录资产每一期的折旧费用，用以反映资产可使用期间内价值的减少。
However, depreciation expense requires no cash outlay. The entire cash outflow related to a depreciable asset occurs at the time the asset is purchased.但是，折旧费用并不需要现金支出，与折旧资产相关的全部现金流出发生在资产购买日。
The Cash Flow Generation Process
Financial managers are concerned primarily with raising funds(cash)for use by the firm and investing those funds in assets (both long-term and short-term)that can be converted into a stream of cash flows accruing to the firm and its owners. If the value today of the stream of cash flows generated by the assets of the firm exceeds the cost of those assets, the investments undertaken by the firm will add value to the firm. When financial managers perform this primary function of acquiring funds and directing the investment of these funds into value-maximizing projects, they must balance the risk(variability)and timing of the expected cash flow stream against the magnitude of the expected returns.
The Cash Flow Generation Process现金流量的产生过程
Financial managers are concerned primarily with raising funds(cash)for use by the firm and investing those funds in assets (both long-term and short-term)that can be converted into a stream of cash flows accruing to the firm and its owners.财务经理首要关注的是为公司筹集使用所需的资金(现金)，把这些资金投资于资产(包括长期资产和短期资产)，这些资产应该能转换为为公司和所有者所有的现金流量。
Accrue: 1. to come to someone or something as a gain, addition为某人所有的收益
stream of cash flows accruing to the firm and its owners为公司和所有者所有的现金流量
If the value today of the stream of cash flows generated by the assets of the firm exceeds the cost of those assets, the investments undertaken by the firm will add value to the firm. 如果公司资产产生的现金流的现值超过这些资产的成本，公司进行的该项投资将会增加公司的价值。
When financial managers perform this primary function of acquiring funds and directing the investment of these funds into value-maximizing projects, they must balance the risk(variability)and timing of the expected cash flow stream against the magnitude of the expected returns.
当财务经理执行这项基本职能，即筹资并引导资金投向价值最大化的项目时，他们必须权衡预期现金流的风险(变动性)和时间及预期回报的大小之间的关系。
Balance one thing against another thing: 在这个短语中，balance 意思是to consider the importance of one thing in relation to something else when you are making a decision 当你做出一个决定时，你必须仔细的考虑一件事情相对于另一件事的重要性。
Eg:The courts must balance liberty of the few against the security of the many法庭必须权衡少数人的自由和多数人安全之间的关系
A firm can raise funds by issuing many different types of financial securities, including common stock, preferred stock, notes, and bonds. Financing decisions such as these are summarized on the right-hand side of the balance sheet(liabilities and owners'equity). By changing the specific characteristics and mix of the securities being offered, it may be possible for the financial manager to impact the value of the firm. For example, some firms, such as a utility like Duke Power, may believe that the value-maximizingcapital structure is made up of approximately 50 percent common equity, 45 percent long-term debt, and 5 percent preferred stock.. In contrast, a commercial bank like WachoviaCorporation may believe that its value-maximizing capital structure consists of 90 percent debt and 10 percent common equity. In addition, some firms use"unique'forms of the basic sources of capital in an attempt to increase the value of the firm, For example, commonstock with 1 vote per share or common stock with 10 votes per share can be sold. Manydifferent types of bonds are sold.
A firm can raise funds by issuing many different types of financial securities, including common stock, preferred stock, notes, and bonds. 公司能通过发行多种有价证券来筹资，包括普通股、优先股、票据和债券。
Financing decisions such as these are summarized on the right-hand side of the balance sheet(liabilities and owners'equity). 这些融资决策反映在资产负债表的右栏中(负债和所有者权益)。
By changing the specific characteristics and mix of the securities being offered, it may be possible for the financial manager to impact the value of the firm.通过改变发行证券的具体特性和构成，财务经理有可能会影响公司的价值。
Mix: 指公司证券的资本结构构成。
Impact=affect=influence 影响
For example, some firms, such as a utility like Duke Power, may believe that the value-maximizingcapital structure is made up of approximately 50 percent common equity, 45 percent long-term debt, and 5 percent preferred stock.举例来说，一些公司，如Duke Power这种公用设备公司，认为价值最大化的资本结构由约50％的普通股权益、45％长期负债和5％优先股构成。
Utility:
In contrast, a commercial bank like WachoviaCorporation may believe that its value-maximizing capital structure consists of 90 percent debt and 10 percent common equity.
与此相反的是，Wachovia商业银行认为本企业的价值最大化资本结构由90％负债和10％普通股权益构成。
In addition, some firms use"unique”forms of the basic sources of capital in an attempt to increase the value of the firm,另外，有些公司还使用独特形式的资本的基本融资来源来增加公司的价值。
For example, commonstock with 1 vote per share or common stock with 10 votes per share can be sold. Manydifferent types of bonds are sold.例如，公司会发行每股带1个投票权的普通股或每股带10个投票权的普通股，也会发行多种类型的债券。
In addition to issuing securities, a firm can raise funds by borrowing from a bank,finance company, insurance company, or another lender. Funds also can be raised bygenerating cash flow internally. Internal cash flows include cash generated from operationsand cash generated by the liquidation of assets.
In addition to issuing securities, a firm can raise funds by borrowing from a bank,finance company, insurance company, or another lender.除了发行证券，公司还可以通过向银行、金融公司、保险公司或其他借款方借贷以筹资。
Funds also can be raised bygenerating cash flow internally. 公司内部产生现金流量也能起到筹资的作用。
Internal cash flows include cash generated from operationsand cash generated by the liquidation of assets.内部现金流包括经营产生的现金和资产清理产生的现金。
Once funds(cash)are available, a decision must be made to invest these funds in oneor more assets. The acquisition of the best long-term assets is crucial, because onceacquired, long-term assets impact the firm for a long time. Long-term assets can be sold ifnecessary but often only at a significant loss. Current assets, or working capital, such as cash, accounts receivable, and inventory, are held for operating purposes and generally offer little or no explicit return. If current asset balances are kept too high, shareholder wealth is sacrificed due to the opportunity cost of funds, that is, the returns that could be earned if these funds had been invested elsewhere. On the other hand, if current asset balances are too low, the risk of the firm increases because the firm may encounter difficulty in meeting its current financial obligations. In addition, low current asset balances (particularly inventories and accounts receivable)may prevent a firm from responding to the needs of prospective customers in a timely and profitable way.
Once funds(cash)are available, a decision must be made to invest these funds in oneor more assets. 一旦存在可用资金(现金)，公司就应作出将该笔资金投向一项或几项资产的决策。
The acquisition of the best long-term assets is crucial, because onceacquired, long-term assets impact the firm for a long time. 获取最佳长期资产是很重要的，因为长期资产一旦取得将长期影响公司运营。
Long-term assets can be sold ifnecessary but often only at a significant loss.必要时长期资产可以出售，但通常会产生巨大损失。
at a significant loss=at a substantial loss
Current assets, or working capital, such as cash, accounts receivable, and inventory, are held for operating purposes and generally offer little or no explicit return. 流动资产或营运资本，如现金、应收账款和存款，是出于经营性目的而持有的，通常只会带来很少甚至不能带来明显回报。If current asset balances are kept too high, shareholder wealth is sacrificed due to the opportunity cost of funds, that is, the returns that could be earned if these funds had been invested elsewhere. 如果流动资产余额的水平很高，股东财富会由于这些资金机会成本的存在而受损，因为将该笔资金投资到其他地方可能产生回报。
On the other hand, if current asset balances are too low, the risk of the firm increases because the firm may encounter difficulty in meeting its current financial obligations. 另一方面，如果流动资产数额过低，公司可能会在偿还短期债务方面遇到困难，导致风险增加。
In addition, low current asset balances (particularly inventories and accounts receivable)may prevent a firm fromresponding to the needs of prospective customers in a timely and profitable way.另外，低流动资产余额(尤其是存货和应收账款)可能导致公司不能及时响应潜在客户的需求并获取利润。
Eventually, all assets are transformed into a cash flow. Plant and equipment generate a product or service. Inventory is gradually sold and generates cash sales or accounts receivable. Cash flow is generated as accounts receivable are collected. The third concern of finance, converting assets into a cash flow, brings us full circle back to the first function. Converting assets into a cash flow provides an internal source of funds for the firm. This process is illustrated in Figure 2. 1.
Eventually, all assets are transformed into a cash flow. 全部资产最终都将转化为现金。
Plant and equipment generate a product or service. 车间和设备会产生产品或服务。
Inventory is gradually sold and generates cash sales or accounts receivable. 存货逐渐被出售带回现金销售或应收账款
Cash flow is generated as accounts receivable are collected.应收账款收回时即产生现金流。
Collect: 收回accounts receivable are collected应收账款被收回
The third concern of finance, converting assets into a cash flow, brings us full circle back to the first function. 财务管理的第三个着重点，即将资产转为现金的同时把我们带回到整个循环的第一个职能。
Converting assets into a cash flow provides an internal source of funds for the firm. This process is illustrated in Figure 2. 1.资产转为现金为公司提供了一个内部资金源。从图2—1中我们可以看到这个过程。
需要插入一个图：
Figure 2. 1 The Cash Flow Process for a Firm
Importance of Cash Flow: 现金流量重要性：
The value of common stock, bonds, and preferred stock is based upon the present value of the cash flows that these securities are expected to provide to investors. Similarly,the value to a firm of a capital expenditure is equal to the present value of the cash flowsthat the asset is expected to produce for the firm. In addition, cash flows are central to theprosperity and survival of a firm. For example, rapidly expanding firms often grow fasterthan their ability to generate internally the cash flows needed to meet operating andfinancial commitments.
As a result, these firms may be faced with difficult financialdecisions regarding the external sources of funds needed to sustain rapid growth. On theone hand, increases in debt to support expansion result in an increase in the firm'sfinancial risk. On the other hand, if new shares of common stock are sold, ownership inthe firm may be diluted more than is desired by the firm's controlling group ofowners. Therefore, it is important for managers to pay close attention to the projectedcash flows associated with investment and firm expansion strategies.
The value of common stock, bonds, and preferred stock is based upon the present value of the cash flows that these securities are expected to provide to investors.
普通股、债券和优先股的价值都基于这些证券预计提供给投资者的现金流量的现值。
Similarly,the value to a firm of a capital expenditure is equal to the present value of the cash flowsthat the asset is expected to produce for the firm. 与其类似的是，公司资本支出的价值是等于资产预计给公司带来现金流量的现值的。
In addition, cash flows are central to theprosperity and survival of a firm. 另外，现金流量对于公司的生存和繁荣也至关重要。For example, rapidly expanding firms often grow fasterthan their ability to generate internally the cash flows needed to meet operating andfinancial commitments.
例如，快速扩张的企业成长的速度往往超过它们内部产生现金流量用于满足经营和财务需要的速度
As a result, these firms may be faced with difficult financialdecisions regarding the external sources of funds needed to sustain rapid growth. 我们看一下这个句子的字面意思结果，these firms may be faced with difficult financialdecisions意思是：这些公司可能会面临比较难的财务决策，regarding the external sources of funds needed to sustain rapid growth这个句子中regarding 意思是有关，也就是说：从外部筹集资金以保持快速发展方面的财务决策。
好，那么这个句子的含义就是：结果，这些公司在作财务决策时，即从外部筹集资金以保持快速发展方面，可能会陷入困境。
On theone hand, increases in debt to support expansion result in an increase in the firm'sfinancial risk. 一方面，句子中的介词to意思表示目的，debt to support expansion意思是：用于扩张的负债，一次这个句子的含义是：用以支持扩张的负债的增加会加大公司的财务风险。
On the other hand, if new shares of common stock are sold, ownership inthe firm may be diluted more than is desired by the firm's controlling group ofowners. 另一方面，如果发行普通股新股，公司的所有权可能会被稀释到公司具有控制权的所有者不希望达到的程度。
Dilute: 冲淡，稀释
Therefore, it is important for managers to pay close attention to the projectedcash flows associated with investment and firm expansion strategies.。因此，非常重要的是，公司经理应密切关注与投资和公司扩张策略相关的预计现金流量问题。
Generally Accepted Accounting Principles(GAAP)provide considerable latitude in thedetermination of the net income for a firm. As a consequence, GAAP concepts of netincome do not provide a clear indication of the economic performance of a firm. Cash flowconcepts are unambiguous and provide the necessary insight for managers making a widerange of financial resource allocation decisions. Investors also find that cash flow conceptsprovide a clear measure of the performance of a firm. Accordingly, the concept of cashflow assumes great importance in the analysis of a firm's performance and the managementof its resources.
Generally Accepted Accounting Principles(GAAP)provide considerable latitude in thedetermination of the net income for a firm. 通用会计准则(GAAP)为公司净利润的决定提供了相当的自由。As a consequence, GAAP concepts of netincome do not provide a clear indication of the economic performance of a firm.结果，通用会计准则关于净利润的概念没有给公司的经济业绩提供一个清楚的指标。
Cash flowconcepts are unambiguous and provide the necessary insight for managers making a widerange of financial resource allocation decisions.这个句子中，unambiguous: 意思是：清楚的，不模糊的， Cash flowconcepts are unambiguous意思是：现金流量概念并不模糊，and provide the necessary insight for managers还为经理们提供了必要的观察角度,什么方面的观察角度呢？making a widerange of financial resource allocation decisions.这个句子中make a decision意思是：做出决定，a widerange of financial resource allocation广泛的财务资源分配，因此，这个句子的意思是：现金流量还为经理们制定广泛的财务资源分配决策提供了必要的观察角度。
Investors also find that cash flow conceptsprovide a clear measure of the performance of a firm. 投资者们也发现，现金流量概念提供了一个清楚的业绩评价方法。
Accordingly, the concept of cashflow assumes great importance in the analysis of a firm's performance and the managementof its resources.
这个句子的含义是：the concept of cashflow现金流概念assumes great importance: 扮演着重要的角色, in the analysis of在分析a firm's performance and the managementof its resources.公司的业绩和资源管理方面。
Cash Flow Definitions现金流量的定义
For financial analysis purposes, two important definitions of cash flows are used. Thetwo most common cash flow definitions are after-tax operating cash flow and free cashflow.
1. After-tax operating cash flow
The after-tax operating cash flow concept measures the cash flow generated from thenormal operating activities of a firm. After-tax operating cash flow considers salesrevenues, operating expenses other than depreciation (a noncash expense), and taxpayments. In addition, after-tax operating cash flow also considers changes in a firm'sinvestment in net working capital, defined as current assets minus current liabilities. Agrowing firm normally will have increasing working capital investment requirementsbecause of the need to maintain larger transaction balances of cash, additional accountsreceivable, and inventories. These current asset increases will be somewhat offset bygrowth in accounts payable, a current liability. In contrast, a firm whose growth hasstopped or reversed normally will find that it has additional operation cash flow arisingfrom a reduction of needed net working capital. Note that the operating cash flow conceptdoes not include financing expenses, such as interest payments, because these arefinancing rather than operating costs.
1．税后经营性现金流量
The after-tax operating cash flow concept measures the cash flow generated from thenormal operating activities of a firm. 税后经营性现金流量衡量了公司日常经营活动所产生的现金流量After-tax operating cash flow considers salesrevenues, operating expenses other than depreciation (a noncash expense), and taxpayments.，税后经营性现金流量考虑了销售收入，扣除折旧(非现金费用)后的经营费用和税收支付。In addition, after-tax operating cash flow also considers changes in a firm'sinvestment in net working capital, defined as current assets minus current liabilities. 另外，税后经营性现金流量也考虑了公司在净营运资本(定义为流动资产减流动负债)上投资的变化情况。Agrowing firm normally will have increasing working capital investment requirementsbecause of the need to maintain larger transaction balances of cash, additional accountsreceivable, and inventories. 成长中的公司通常会增加营运资本的投资需求由于需要维持较大的现金、额外应收账款和存货等交易余额。These current asset increases will be somewhat offset bygrowth in accounts payable, a current liability. 这些流动资产的增加在一定程度上会被应付账款这一流动负债的增加所抵销。In contrast, a firm whose growth hasstopped or reversed normally will find that it has additional operation cash flow arisingfrom a reduction of needed net working capital. 相反，停止增长或负增长的公司往往会发现由于净营运资本需求降低，额外的经营性现金流量增加。
Note that the operating cash flow conceptdoes not include financing expenses, such as interest payments, because these arefinancing rather than operating costs.值得注意的是，经营性现金流量概念中不包括财务费用，如利息费用，因为这些费用的产生是融资行为而不是经营行为。
The operating cash flow: 经营性现金流量
Thus, the after-tax operating cash flow(CF)produced during any period, such as ayear, is equal to在任一时期，如一年，产生的经营性现金流量(CF)定义如下：
CF=(R-O)*(l-T)+DEP*T-NWC ()
Where R is revenues, O is operating expenses other than depreciation, DEP is depreciation. NWC is the increase in net working capital, and T is the firm's marginal tax rate. An equivalent formula for computing operating cash flow is其中R为收入，O是不包括折旧的经营费用，DEP是折旧，NWC指净营运资本的增加值，T是公司的边际税率。计算经营性现金流量的一个类似公式是：
CF= (R-O-DEP) * (l-T) +DEP-NWC ()
The operating cash flow concept as defined in Equation forms the basis for the cash flow calculations used in the capital budgeting decisions. In a capital budgeting context, financial managers are interested in knowing how a proposed investment project increases or decreases a firm's CF.
The operating cash flow concept as defined in Equation forms the basis for the cash flow calculations used in the capital budgeting decisions.公式(2．2)中定义的经营性现金流量概念为资本预算决策提供了现金流量的计算基础。
In a capital budgeting context, financial managers are interested in knowing how a proposed investment project increases or decreases a firm's CF.制定资本预算决策时，财务经理很希望了解一项计划的投资将如何增加或减少公司的经营性现金流量。
2. Free cash flow自由现金流量
The free cash flow (FCF)concept is particularly important in long-term corporate financial planning and when evaluating the acquisition of a firm or a portion of a firm. FCF recognizes that part of the funds generated by an ongoing enterprise must be set aside for reinvestment in the firm. Therefore, these funds are not available for distribution to the firm's owners.
Free cash flow can be computed as
FCF=CF-I * (1-T)-DP-Pf-B-Y ()
The free cash flow (FCF)concept is particularly important in long-term corporate financial planning and when evaluating the acquisition of a firm or a portion of a firm.公司在制定长期融资计划和评估某公司全部或部分兼并的价值时，自由现金流量(FCF)概念显得尤其重要。
FCF recognizes that part of the funds generated by an ongoing enterprise must be set aside for reinvestment in the firm. FCF概念指出，持续经营的企业应将其产生的部分资金留作公司再投资之用。
Therefore, these funds are not available for distribution to the firm's owners.因此，这部分资金不可用于向公司的所有者进行分配。
Free cash flow can be computed as自由现金流量可由下式计算得出：
FCF=CF-I * (1-T)-Dp-Pf-B-Y ()
（这个公式大家看一下，简单了解一下每个字母代表的含义就可以了）
Where CF is the after-tax operating cash flow as defined in Equation , I is the before-tax interest payments, Dp is the preferred stock dividend payments, Pf is the required redemption of preferred stock, B is the required redemption of debt, and Y is the investment in property, plant, and equipment required to maintain cash flows at their current levels. (If a firm has interest income, this is netted out against interest expense. If interest income exceeds interest expense, FCF will increase by the amount of the net after-tax interest income. )FCF represents the portion of a firm's total cash flow available to service additional debt, to make dividend payments to common stockholders, and to invest in other projects.
Where CF is the after-tax operating cash flow as defined in Equation , I is the before-tax interest payments, DP is the preferred stock dividend payments, Pf is the required redemption of preferred stock, B is the required redemption of debt, and Y is the investment in property, plant, and equipment required to maintain cash flows at their current levels.
Where CF is the after-tax operating cash flow as defined in Equation ,其中．CF是公式(2．2)中定义的经营性现金流量，I is the before-tax interest payments, I是税前利息费用，DP is the preferred stock dividend payments, Dp是优先股股利，Pf is the required redemption of preferred stock, Pf是要求赎回的优先股，B is the required redemption of debt, B是要求清偿的债务，Y is the investment in property,plant, and equipment required to maintain cash flows at their current levels. Y代表在车间和设备上的投资, required to maintain cash flows at their current levels.用于维持现金流量于既定水平时,在车间和设备上的投资,
(If a firm has interest income, this is netted out against interest expense. If interest income exceeds interest expense, FCF will increase by the amount of the net after-tax interest income. ) (如果公司有利息收入，这将与利息费用相抵销。如果利息收入超过利息费用，FCF将会相应增加净税后利息收入这一数额。)
FCF represents the portion of a firm's total cash flow available to service additional debt, to make dividend payments to common stockholders, and to invest in other projects.
FCF represents the portion of a firm's total cash flowFCF代表了公司总现金流量中的一部分
Available to这个短语后面的内容告诉我们这部分现金流量的用途service additional debt,我们前面说过：偿还债务英文是：repay the debt, 所以在这里service the debt意思和repay the debt 意思是一样的都表示偿还债务，我们再来看这个句子：to make dividend payments to common stockholders,意思是支付普通股股东的股利。to invest in other projects.并且进行项目投资。
译文： FCF代表了公司总现金流量中的一部分。该部分可用于偿还额外负债，发放普通股股东的股利并且进行项目投资。
The FCF concept is useful particularly when evaluating a business enterprise for potential acquisition. When valuing a takeover prospect, it is important to recognize that explicit cash outlays normally are required to sustain or increase the current cash flows of the firm. For example, in considering the acquisition of an oil production company, it is not correct to project current cash flows into an indefinite future without explicitly recognizing that crude oil reserves are a depleting resource that require continual,significant investment to assure future cash flow streams.
The FCF concept is useful particularly when evaluating a business enterprise for potential acquisition. When valuing a takeover prospect, it is important to recognize that explicit cash outlays normally are required to sustain or increase the current cash flows of the firm. 在评估一个企业的潜在兼并行为时，自由现金流量显得更为重要。当评估兼并前景时，很重要的是，我们应认识到为了维持和提高公司目前的现金流量，需要有明显的现金开支。
It is important to recognize that…：我们应该认识到…
For example, in considering the acquisition of an oil production company, it is not correct toproject current cash flows into an indefinite future without explicitly recognizing that crude oil reserves are a depleting resource that require continual,significant investment to assure future cash flow streams.
It is not correct to do one thing （A）without doing another thing(B). : 在没有做某事B的情况下就做另外一件事A是不正确的。或者只有在做了B的情况下，做A才是正确的
Project…into…
我们来看一下这个句子：这个句子中A的内容应该是project current cash flows into an indefinite future预计从现在开始到未来的现金流量。B的内容是without 后面的内容，我们来看一下这部分内容的意思explicitly recognizing清楚地认识到crude oil reserves are a depleting resource 原油储备是可耗尽资源that require continual,significant investment需要持续的大量的投资to assure future cash flow streams来确保未来现金流量。
Ok, 下面我们完整的看一下这个句子的含义：举例说，如果打算兼并一个石油产品公司，我们必须清楚地认识到原油储备是一种可耗尽资源，它需要持续的大量的投资来确保未来现金流量，由此才能正确地预计从现在开始到未来的现金流量。
Cash Flows and Shareholder Wealth
In spite of the close tie between cash flow concepts and the objective of shareholder wealth maximization, many managers do not seem to place enough emphasis on this concept. Some managers focus on alternative performance measures, including accounting net income, accounting profit ratios(such as the return on equity or the return on assets), the sales growth rate, and market share. The focus on these accounting-based measures of performance may detract from the long-term performance of the company because performance measures that are not based on cash flows are subject to short-term manipulation by managers.
Cash Flows and Shareholder Wealth现金流量和股东财富
In spite of the close tie between cash flow concepts and the objective of shareholder wealth maximization, many managers do not seem to place enough emphasis on this concept. 尽管现金流量概念和股东财富最大化目标有密切联系，很多经理看来还没有足够重视这一概念。
Some managers focus on alternative performance measures, including accounting net income, accounting profit ratios(such as the return on equity or the return on assets), the sales growth rate, and market share. 一些经理强调其他的业绩衡量指标，如会计净利润、会计盈利比率(如权益收益率或资产收益率)、销售增长率和市场占有率。
The focus on these accounting-based measures of performance may detract from the long-term performance of the company because performance measures that are not based on cash flows are subject to short-term manipulation by managers.
Detract：to make sth seem less good than it really is: 贬损，损坏，破坏
常用的短语搭配是：
Detract from: A small mistake may detract from your achievement.一个很小的错误很可能会抹杀你的成就。
好，我们来看这个句子：The focus on these accounting-based measures of performance强调这些会计基础的业绩衡量指标may detract from the long-term performance of the company可能损坏公司的长期业绩，为什么呢？我们看一下because 原因从句中主语应该是：performance measures，后面that引导定语从句修饰谓语是are subject to宾语short-term manipulation by managers.意思是因为业绩衡量很容易在短期内被经理人员操纵。
好，我们完整的看一下这个句子的含义：强调这些会计基础的业绩衡量指标可能损坏公司的长期业绩，因为不以现金流量为基础的业绩衡量很容易在短期内被经理人员操纵。
By emphasizing cash flows rather than-accounting-based measures of performance when making decisions, a manager is more likely to achieve the objective of shareholder wealth maximization. A firm that takes actions to maximize the present value of expected future cash flows will achieve a record of financial performance that will be reflected both in the company's financial statements and the market value of its stock.
By emphasizing cash flows rather than-accounting-based measures of performance when making decisions, a manager is more likely to achieve the objective of shareholder wealth maximization. 通过强调现金流量而不是会计基础的业绩评价指标，经理人员制定决策时，更有可能达到股东财富最大化的目标。
A firm that takes actions to maximize the present value of expected future cash flows will achieve a record of financial performance that will be reflected both in the company's financial statements and the market value of its stock.
这个句子感觉也是一个比较复杂的句子：我们先来看一下这个句子的主题结构应该是：A firmwill achieve a record of financial performance公司将取得财务业绩，这样看这个句子就不复杂了，不过是：firm后面接一个定语从句，financial performance后面接一个定语从句，我们分别看这两个从句：A firm that takes actions to maximize the present value of expected future cash flows采取行动使预计未来的现金流量的现值达到最大化的公司financial performance that will be reflected both in the company's financial statements and the market value of its stock.
财务业绩会同时反映在公司的财务报表中和其股票的市场价值上。
下面我们完整的看这个句子的含义：当公司采取行动使预计未来的现金流量的现值达到最大化时，它所取得的财务业绩会同时反映在公司的财务报表中和其股票的市场价值上。
Section Two The Net Present Value Rule
To achieve the objective of shareholder wealth maximization, a set of appropriate decision rules must be specified. The decision rule of setting marginal cost equal tomarginal revenue(MC= MR)provides a framework for making many important resourceallocation decisions. The MC----MR rule is best suited for situations when the costs andbenefits occur at approximately the same time. Many financial decisions require that costsbe incurred immediately but result in a stream of benefits over several future timeperiods. In these cases, the net present value rule(NPV)provides appropriate guidance fordecision makers. Indeed, the NPV rule is central to the practice of financialmanagement. You will find this rule constantly applied throughout your study of finance.
Section Two The Net Present Value Rule第二节净现值原则
To achieve the objective of shareholder wealth maximization, a set of appropriate decision rules must be specified.为了达到股东财富最大化的目标，我们必须明确一套合适的决策规则。
The decision rule of setting marginal cost equal tomarginal revenue(MC= MR)provides a framework for making many important resourceallocation decisions. 边际成本等边际收入(MR=MC)的决策原则为制定许多重要的资源分配决策提供了一个框架。
The MC=MR rule is best suited for situations when the costs andbenefits occur at approximately the same time. MC=MR的原则最适用于成本和收益约在同一时间发生的情况。
Many financial decisions require that costsbe incurred immediately but result in a stream of benefits over several future timeperiods.很多财务决策要求成本立即发生，但结果是收益流发生在未来几段时期中。
In these cases, the net present value rule(NPV)provides appropriate guidance fordecision makers. 这种情况下，净现值原则(NPV)成为了决策制定者的适当的指导原则。
Indeed, the NPV rule is central to the practice of 原则确实对于财务管理的实践很重要。
You will find this rule constantly applied throughout your study of finance.你将发现这项原则将被不断运用于财务管理的学习过程中。
Determining the Net Present Value of an Investment决定一项投资的净现值
In order to understand the NPV rule, consider the following situation. You have justinherited $1 million. Your financial advisor has suggested that you use these funds topurchase a piece of land near a proposed new highway interchanges. Your advisor, who isalso a state road commissioner, is certain that the interchange will be built and that in 1year, the value of this land will increase to $ million. Hence, you believe initially thatthis is a riskless investment. At the end of one year, you plan to sell the land. You arebeing asked to invest $1 million today in the anticipation of receiving $ million a yearfrom today, or a profit of $ 200 000. You wonder whether this profit represents asufficient return on your investment.
Determining the Net Present Value of an Investment决定一项投资的净现值
In order to understand the NPV rule, consider the following situation. 为了理解净现值原则，我们先考虑以下这种情形。
You have justinherited $1 million. Your financial advisor has suggested that you use these funds topurchase a piece of land near a proposed new highway interchanges.你刚刚继承了100万美元的遗产，你的财务顾问建议你在即将新建的公路交换口附近购买一片土地。
Your advisor, who isalso a state road commissioner, is certain that the interchange will be built and that in 1year, the value of this land will increase to $ million. Hence, you believe initially thatthis is a riskless investment. 你的顾问是一名国家公路官员，他确信交叉口即将修建，1年后这块土地的价值会增加到120万美元，因此你初步相信这会是一项无风险的投资。
At the end of one year, you plan to sell the land. You arebeing asked to invest $1 million today in the anticipation of receiving $ million a yearfrom today, or a profit of $ 200 000. 你计划在一年后出售土地，目前要投资100万美元，并期望从该天起的一年后能收回120万美元，或者说赚取20万美元利润。
You wonder whether this profit represents asufficient return on your investment.你现在要考虑这笔利润是否足够代表这笔投资的收益。
You feel it is important to recognize that there is a 1-year difference between the timeyou make your outlay of $1 million and the time you receive $ million from the sale ofthe land. A cash flow of $ million received 1 year from today must be worth less than$ million today because you could invest your $1 million today to earn interest overthe coming year. A dollar received in the future is worth less than a dollar in hand todaybecause a dollar today can be invested to earn a return immediately. Therefore, to comparea dollar received in the future with a dollar in hand today, it is necessary to multiply thefuture dollar by a discount factor that reflects the alternative investment opportunities thatare available.
You feel it is important to recognize that there is a 1-year difference between the timeyou make your outlay of $1 million and the time you receive $ million from the sale ofthe land. 你认为重要的是要了解到在支出100万美元和出售土地收回120万美元之间有一年的差异。
A cash flow of $ million received 1 year from today must be worth less than$ million today because you could invest your $1 million today to earn interest overthe coming year. 从今天起的一年后，你收回120万美元的现金流量的价值肯定比今天的120万美元少，因为你可以投资100万并在来年中赚取利息。
A dollar received in the future is worth less than a dollar in hand todaybecause a dollar today can be invested to earn a return immediately. 未来收回的1美元的价值少于今天手中的1美元，因为今天的 1美元可以用于投资并立即赚取回报。
Therefore, to comparea dollar received in the future with a dollar in hand today, it is necessary to multiply thefuture dollar by a discount factor that reflects the alternative investment opportunities thatare available.因此，为了比较未来收回的1美元和今天手中的1美元，我们必须用未来金额乘以一个贴现率，该贴现率反映了可能存在的其他投资机会。
Instead of investing your $1 million in the land venture, you are aware that you alsocould invest in a government Treasury bill that currently offers a return of 9percent. The 9-percent return represents the return (the opportunity cost)foregone byinvesting in the land project. The 9-percent rate also can be thought of as the compensationto an investor who agrees to postpone receiving a cash return for one period. Theappropriate discount factor(PVIF), also called the present value interest factor, is equalto
PVIF=I /(1+i )
Instead of investing your $1 million in the land venture, you are aware that you alsocould invest in a government Treasury bill that currently offers a return of 9percent. 若不把100万美元投资于土地资产，你意识到也可以将其投资于美国国库券，
The 9-percent return represents the return (the opportunity cost)foregone byinvesting in the land project. 这个句子的谓语动词是represents代表，主语是The 9-percent return其目前的收益率是9%，那么这个收益率代表着什么呢？represents the return (the opportunity cost)foregone byinvesting in the land project.这代表了投资于土地项目而丧失的收益(机会成本)。
Forgone: 原形 forego: 摒弃，放弃，丧失
The 9-percent rate also can be thought of as the compensationto an investor who agrees to postpone receiving a cash return for one period. 由于投资者同意在某一时期推迟收回现金回报，因此9 ％也可以被看作是给投资者的补偿。
Theappropriate discount factor(PVIF), also called the present value interest factor, is equalto
PVIF=1 /(1+i )
适当的贴现率(PVIF)可以被称为净现值折现系数，可被定义为： PVIF=1／(1+i)
Where i is the compensation for postponing receipt of a cash return for one period? Thepresent value(PVo)of an amount received 1 year in the future(FV1)is equal to that amounttimes the discount factor, or
PV0 =FV1 * (PVIF)
Where i is the compensation for postponing receipt of a cash return for one period? 其中，i意为推迟在某时期收到现金回报所获的补偿。
Thepresent value(PVo)of an amount received 1 year in the future(FV1)is equal to that amounttimes the discount factor, 未来一年后收到的金额(FV1)的现值(PVo)等于该金额乘以贴现率，即 PVo =FV1 * (PVIF)
In the case of the land project, the present value of the promised $ millionexpected to be received in 1 year is equal to在土地项目中，预期1年后收回的120万美元的现值等于：
PVo= $120 million*[1/(1+)]= $1 100 917
If you invested $1 100 917 today to earn 9 percent for the coming year, you wouldhave $ million at the end of the year. You are clearly better off with the proposed landinvestment(assuming that it really is riskless like the Treasury bill investment). Howmuch better off are you?
In the case of the land project, the present value of the promised $ millionexpected to be received in 1 year is equal to
PV0= $120 million*[1/(1+)]= $1 100 917
If you invested $1, 100, 917 today to earn 9 percent for the coming year, you wouldhave $ million at the end of the year. 如果你现在投资1, 100, 917美元并在下一年赚取9％的收益，你将在年底拥有120万美元。
You are clearly better off with the proposed landinvestment(assuming that it really is riskless like the Treasury bill investment). Howmuch better off are you?你明显地受益于计划的土地投资(假设它真像国库券投资一样无风险)。你将获益多少呢?
The answer to this question is at the heart of NPV calculations. The land investmentproject is worth $1 100 917 today to an investor who demands a 9-percent return on thistype of investment. You, however, have been able to acquire this investment for only$1 000 000. By undertaking this investment, your present wealth has increased by$100 917($1 100 917 present value of the projected investment opportunity payoffsminus the required initial investment of $1 000 000). The net present value(NPV)of thisinvestment is $100 917. In general, the(NPV)of an investment is equal to
NPV=Present value of future cash flows minus initial outlay ()
The answer to this question is at the heart of NPV calculations.问题的答案是NPV计算的核心。 The land investmentproject is worth $1, 100 ,917 today to an investor who demands a 9-percent return on thistype of investment.土地项目的投资对于要求在同类项目上获取9％收益的投资者来说，在今天价值1, 100, 917美元。
You, however, have been able to acquire this investment for only$1, 000, 000. 然而，你仅仅凭借1 000 000美元获取了该项投资。
By undertaking this investment, your present wealth has increased by$100, 917($1 100 917 present value of the projected investment opportunity payoffsminus the required initial investment of $1 000 000).通过这项投资，你目前的财富将增加100, 917美元(即预计投资机会的现值1 100 917美元减去1, 000, 000美元的所要求的初始投资)
The net present value(NPV)of thisinvestment is $100 917. In general, the(NPV)of an investment is equal to，投资的净现值(NPV)是100 917美元。一般来说，投资的净现值(NPV)等于：
NPV=Present value of future cash flows minus initial outlay ()
NPV=未来现金流量的现值减去初始支出 (2·4)
This example was simplified by assuming that the cash flows from the investmentwere received exactly 1 year from the date of the initial outlay. The NPV rule can begeneralized to cover cash flows received over any number of future time periods.
This example was simplified by assuming that the cash flows from the investmentwere received exactly 1 year from the date of the initial outlay.前例假设投资带来的现金流量将于初始支出日整一年后收回，因此较为简化。
The NPV rule can begeneralized to cover cash flows received over any number of future time periods. NPV原则可以被拓展到涉及任何未来期间收回的现金流量的原则
the Relationship between the Net Present Value and Share Holder Wealth Maximization
The net present value of an investment made by a firm represents the contribution ofthat investment to the value of the firm and, accordingly, to the wealth of example, if General Electric builds a new regional parts distribution center that isexpected to have a net present value of $ 50 million, the value of the stock of GeneralElectric can be expected to increase by $ 50 million at the time the investment is made.
Net Present Value and Shareholder Wealth Maximization净现值和股东财富最大化
The net present value of an investment made by a firm represents the contribution ofthat investment to the value of the firm and, accordingly, to the wealth of shareholders.
The contribution of sth to sth: 某事为另一事所作的贡献
the contribution ofthat investment to the value of the firm：该项投资为企业价值所做出的贡献
the contribution ofthat investment to the wealth of shareholders：该项投资为股东财富所做出的贡献
那么这句话的含义就是：公司进行的一项投资的净现值代表了该项投资为企业价值所做出的贡献，也相应的代表为股东财富所做出的贡献。
For example, if General Electric builds a new regional parts distribution center that isexpected to have a net present value of $ 50 million, the value of the stock of GeneralElectric can be expected to increase by $ 50 million at the time the investment is made.
例如：如果通用电器公司建成了一个新的地区分销中心，其净现值是5000万美元，那么通用电器的股票价值，在做出投资的当天就会增加5000万美元
The net present value concept provides a framework for evaluating future cash flowsfrom an investment or a firm. Thus, the net present value concept can be viewed as thebridge between cash flows and the goal of shareholder wealth maximization.
The net present value concept provides a framework for evaluating future cash flowsfrom an investment or a firm. 净现值概念为评估一个公司或一项投资的未来现金流量提供了一个框架。
Thus, the net present value concept can be viewed as thebridge between cash flows and the goal of shareholder wealth maximization.因此，净现值概念可以看作是沟通现金流量和股东财富最大化的桥梁。
Risk and the NPV Rule风险和净现值原则
The land investment example assumed that the investment was riskless. Therefore,the rate of return used to compute the discount factor and the net present value was theriskless rate of return available on a government Treasury bill having a 1-yearmaturity. What if you do not believe your investment advisor who says that theconstruction of the new interchange is a certainty or you are not confident about youradvisor's estimate of the value of the land in 1 To compensate for the perceived riskof this investment, you decide to require a 19 percent rate of return on yourinvestment. Using a 19-percent required rate of return in calculating the discount factor,the present value of the expected $ million sales price of the land is $1 008 403[ $ times(I/)]. Thus, the NPV of this investment declines to $8 403. Theincrease in the perceived risk of the investment results in a dramatic decline in itsNPV. Because the NPV is still positive, however, the investment would still beundertaken.
Risk and the NPV Rule
The land investment example assumed that the investment was riskless. 前例子中土地投资项目假设投资无风险。
Therefore,the rate of return used to compute the discount factor and the net present value was theriskless rate of return available on a government Treasury bill having a 1-yearmaturity.
我们首先看一下这个句子的主体结构：the rate of return was the riskless rate of return. 意思是收益率是无风险收益率。我们再分别看一下修饰收益率和无风险收益率的定语。首先看the rate of return 的定语used to compute the discount factor and the net present value被用来计算折现率和净现值的收益率，再来看一下the riskless rate of return 的定语available on a U. S. government Treasury bill having a 1-yearmaturity.意思是：美国的一年到期的政府国库券的无风险收益率。
好，我们完整的看这个句子的含义：因此，用于计算折现率和净现值的收益率是美国的一年到期的政府国库券的无风险收益率。
What if you do not believe your investment advisor who says that theconstruction of the new interchange is a certainty or you are not confident about youradvisor's estimate of the value of the land in 1 year.
What if: 意思是如果…怎么办呢？
What if you do not believe your investment advisor who says that theconstruction of the new interchange is a certainty：意思是：如果你不相信你的投资顾问关于新交叉路口建设的说法
Or you are not confident about youradvisor's estimate of the value of the land in 1 year.或者你对于投资顾问一年后土地价值的估计没有信心。
好，那么这个句子的含义就是：如果你不相信你的投资顾问关于新交叉路口建设的说法或者你对于投资顾问一年后土地价值的估计没有信心的话，你该怎么办呢？
To compensate for the perceived riskof this investment, you decide to require a 19 percent rate of return on yourinvestment.
perceived risk：我们以前讲过意思是；投资预计的风险
这个句子意思是：为了补偿该项投资的预计的风险，你决定要求19％的报酬率。
Using a 19-percent required rate of return in calculating the discount factor,the present value of the expected $ million sales price of the land is $1 008 403[ $ times(I/)].
使用19％的要求收益率计算折现率，出售土地120万美元的现值是：1，008，403美元（120万美元×（1/））
Thus, the NPV of this investment declines to $8 403.
因此，投资的净现值减少到8403美元。
Theincrease in the perceived risk of the investment results in a dramatic decline in itsNPV.
投资预期风险的增加导致NPV的急剧下降。
Because the NPV is still positive, however, the investment would still beundertaken.
然而，因为净现值依然是正数，所以投资还是可以继续进行的。
A primary problem facing financial managers is the difficulty of evaluating the riskassociated with investments and then translating that risk into a discount rate that reflectsan adequate level of risk compensation. In the following sections, we discuss factors thataffect investment risk and influence the required rate of return on an investment.
A primary problem facing financial managers is the difficulty of evaluating the riskassociated with investments and then translating that risk into a discount rate that reflectsan adequate level of risk compensation.
财务经理面临的最主要困难就是评估与投资相关的风险，然后把风险转为折现率，以反应风险补偿的适当水平。
In the following sections, we discuss factors thataffect investment risk and influence the required rate of return on an investment.下面我们来看一下影响投资风险和投资要求报酬率的因素。
The Relationship Between Risk and Return
Understanding the trade-off between risk and required(and expected)rates of return is integral to effective financial decision making. For example, investors who purchase shares of common stock hope to receive returns that will exceed those that might be earned from alternative investments, such as a savings account, government bonds, or high-quality corporate bonds. Investors recognize that the expected return from common stock over the long run tends to be higher than the expected return from less risky investments.
To receive higher returns, however, investors must be prepared to accept a higher levelof risk.
The Relationship Between Risk and Return风险和报酬之间的关系
Understanding the trade-off between risk and required(and expected)rates of return is integral to effective financial decision making. For example, investors who purchase shares of common stock hope to receive returns that will exceed those that might be earned from alternative investments, such as a savings account, government bonds, or high-quality corporate bonds. Investors recognize that the expected return from common stock over the long run tends to be higher than the expected return from less risky receive higher returns, however, investors must be prepared to accept a higher levelof risk.
Understanding the trade-off between risk and required(and expected)rates of return is integral to effective financial decision making. 理解风险和要求(和期望)报酬率之间的补偿关系对制定有效的财务决策非常重要。
For example, investors who purchase shares of common stock hope to receive returns that will exceed those that might be earned from alternative investments, 例茹，购买普通股的投资者希望收到的回报超过从其他投资机会可能获取的回报，such as a savings account, government bonds, or high-quality corporate bonds.如存款、美国政府债券或高质量公司债券。
Investors recognize that the expected return from common stock over the long run tends to be higher than the expected return from less risky investments.投资者承认，普通股的长期预计收益高于较低风险投资的预计收益。
To receive higher returns, however, investors must be prepared to accept a higher levelof risk.
然而，为了获取较高回报，投资者必须准备好接受较高的风险水平。
the Definition of Holding Period Returns
Key Definitions关键术语
Before continuing the discussion of risk-return relationships, it is necessary to definesome important terms and concepts.
在探讨风险－报酬之间的关系之前，我们有必要定义一些重要的术语和概念。
1． Holding Period Returns持有期报酬率
The return from holding a security can be defined by the following equation:
证券持有期报酬率的定义如下：
Holding period return(%)=(Ending price - Beginning price+Distribution)/ Beginning price 100%
持有期报酬率（％）＝（期末价格－期处价格＋收益价格）/期初价格×100％()
Distributions are the interest on debt or the dividends on stock. To illustrate, supposeyou purchased 1 share of Hershey Foods Corporation common stock for $ year the year, you received $ dividends, and you now sell the share for $ 38. Your holding period return would be calculated as
Distributions are the interest on debt or the dividends on stock.收益分配是指债券利息或股票股利。To illustrate, supposeyou purchased 1 share of Hershey Foods Corporation common stock for $ year ago.为了便于解释，假设你一年前以28美元购进了Hershey 食品公司的 1股普通股。During the year, you received $ dividends, and you now sell the share for $ 38.当年你收到了美元的胜利，你现在可以38美元的价格出售该股票。Your holding period return would be calculated as
你所获得的持有期报酬率可以计算为：
Holding period return(%) =( $ 38-- $ 28+ $ 0. 90)/$ 28 × 100%=38. 9%
持有期报酬率＝( $ 38-- $ 28+ $ 0. 90)/$ 28 × 100%=38. 9%
Returns are expressed as a percentage or fraction and usually are quoted on an annualbasis. The return just computed is called a realized return. Realized returns differ fromexpected returns. Ending prices and distributions for expected returns are estimatedvalues, whereas ending prices and distributions for realized returns are actual values.
Returns are expressed as a percentage or fraction报酬率以百分比或小数方式表示，and usually are quoted on an annualbasis.而且通常以一年为基础。 The return just computed is called a realized return. 上面计算的报酬率可以成为已实现报酬率。Realized returns differ fromexpected returns.已实现报酬率与期望报酬率不同。 Ending prices and distributions for expected returns are estimatedvalues, 期望报酬率中期末价格和收益分配额都是估计值，whereas ending prices and distributions for realized returns are actual values.而以实现报酬率中期末价格和收益分配额是实际价值。
the Definition of Risk
Risk风险
The term risk is used in a broad sense to refer to deviations from expectations. Infinance, risk often is measured in terms of the variability of returns. Suppose, forexample, that you decide to deposit a sum of money in a savings account at an insuredcommercial bank that offers to pay an expected annual return of 5. 5percent. Because yourdeposit is insured by an agency of the government, deviations from your expected5. 5 percent return most probably would be zero. Thus, the risk associated with account isconsidered to be nearly zero.
Risk
The term risk is used in a broad sense to refer to deviations from expectations. 广义上讲，风险指背离期望值的偏差。Infinance, 从财务角度讲risk often is measured in terms of the variability of returns. 风险通常以报酬率的变动性来衡量。Suppose, forexample, that you decide to deposit a sum of money in a savings account at an insuredcommercial bank that offers to pay an expected annual return of 5. 5percent. 例如，你决定在一家保险商业银行存一笔钱，商业银行提供了5．5％的预计年报酬率。Because yourdeposit is insured by an agency of the government, 因为你的存款由一家美国政府机构保险，deviations from your expected5. 5 percent return most probably would be zero. 背离你期望的5．5％的报酬率的偏差很可能为零。Thus, the risk associated with account isconsidered to be nearly zero.因此与该账户相关的风险可以被认为几乎是零。
Now suppose you invest your money in common stock. You hope that the price of yourstock will increase, but you also recognize that the price may decrease. Deviations fromyour expectation of an increased price are likely to be high. Therefore, the risk associated with common stock investments is considered to be high.
Now suppose you invest your money in common stock. 现在假设你把该笔钱投资于普通股。You hope that the price of yourstock will increase, but you also recognize that the price may decrease. 你希望股价上涨，但你也知道股价可能下跌。Deviations fromyour expectation of an increased price are likely to be high.与你期望股价上涨背离的偏差可能很高， Therefore, the risk associated with common stock investments is considered to be high.因此，与普通股投资相关的风险被认为很高。
Expected Returns and Required Returns期望报酬率和要求报酬率
The concept of an expected return reflects the benefits (cash distributions and price appreciation) an investor anticipated receiving from an investment. In contrast, the concept of a required return reflects the return an investor demands as compensation for postponing consumption and assuming risk. Required returns are one of the two key determinants of the value of an investment, whether that investment is a physical asset or a financial security. The other key determinant of value is the anticipated cash flows from theinvestment.
The concept of an expected return reflects the benefits (cash distributions and price appreciation) an investor anticipated receiving from an investment. 期望报酬率的概念反映了投资者预期从一项投资收回的利益(分配的现金和价格升值)。the benefits an investor anticipated投资者的预期收益。
In contrast, the concept of a required return reflectsthe return an investor demands as compensation for postponing consumption and assuming risk.与此相反，要求报酬率的概念反映了投资者由于延期消费并承担风险所要求的补偿。the return an investor demands投资者要求的补偿
Required returns are one of the two key determinants of the value of an investment, whether that investment is a physical asset or a financial security. 无论是实物投资还是证券投资，要求报酬率都是投资价值决定的两个关键因素之一。
a physical asset：实物投资
a financial security.：证券投资
The other key determinant of value is the anticipated cash flows from theinvestment.另一个关键的价值决定因素是投资的预期现金流量。
The value of an investment is determined as investors compare the expected returnsfrom the investment with the return required on that investment, given its riskcharacteristics. When the expected return from an investment is greater than or equal tothe required return, an investor will find the investment attractive.
The value of an investment is determined as investors compare the expected returnsfrom the investment with the return required on that investment, given its riskcharacteristics. 这个句子告诉我们投资者如何决定其投资的价值呢？他们往往通过比较：句子中有个短语：compare…with …: 把某物与某物进行比较。因此这个句子的意思告诉我们：投资者通过比较投资的期望报酬率和要求报酬率可以决定投资价值，given its riskcharacteristics.意思是考虑风险水平后
When the expected return from an investment is greater than or equal tothe required return, an investor will find the investment attractive.当投资的期望报酬率高于或等于要求报酬率时，投资者会认为该投资项目很有吸引力。
Risk and Required Return风险和要求报酬率
The relationship between risk and required return can be defined as follows.
Required return=Risk free return+Risk premium ()
A risk premium is a potential "reward" that an investor expects to receive when making a risky investment. Investors generally are considered to be risk averse; that is, they expect, on average, to be compensated for the risk they assume when making an investment. Thus over the long-term expected returns and required returns from securities will tend to be equal.
The relationship between risk and required return can be defined as follows.险和要求报酬率的关系定义如下：
Required return=Risk free return+Risk premium ()
要求报酬率＝无风险收益率+风险溢酬
A risk premium is a potential "reward" that an investor expects to receive when making a risky investment.风险溢酬指投资者进行一项风险投资时期望收到的潜在报酬Investors generally are considered to be risk averse; 投资者一般来说是倾向逃避风险的，that is, they expect, on average, to be compensated for the risk they assume when making an investment. 也就是说，他们大多希望对于投资承担的风险获得补偿。Thus over the long-term expected returns and required returns from securities will tend to be equal.
因此，从长期角度看，证券的期望报酬率和要求报酬率会趋向一致。
Investors who buy bonds receive interest payments and a return of principal as compensation for postponing consumption and accepting risk. Similarly common stock investors expect to receive dividends and price appreciation from their stock. The rate of return required by these investors represents a cost of capital to the firm. This required rate of return is used by a firm's managers when computing the net present value of the cash flows expected to be generated from the company's investments. The required rate of return on a security also is an important determinant of the market value of financial securities, including common stock, preferred stock, and bonds.
Investors who buy bonds receive interest payments and a return of principal as compensation for postponing consumption and accepting risk. 由于推迟消费并承担风险，购买债券的投资者获得利息收入和本金返还作为补偿。
Similarly common stock investors expect to receive dividends and price appreciation from their stock. 同样的，普通股投资者希望从股票上收到股利和价格升值。
The rate of return required by these investors represents a cost of capital to the firm. 投资者所要求的报酬率代表着公司的资本成本。
This required rate of return is used by a firm's managers when computing the net present value of the cash flows expected to be generated from the company's investments.
这句话告诉我们要求报酬率什么时候会用到？公司经理在计算公司投资产生的现金流量的净现值时，要用到要求报酬率。
The required rate of return on a security also is an important determinant of the market value of financial securities, including common stock, preferred stock, and bonds.金融证券的要求报酬率也是一个决定其市场价值的重要因素，金融证券（包括普通股、优先股和债券)
The required rate of return on a financial security is determined in the financial marketplace and depends on the supply of loanable funds and the demand for these funds plus a premium to reflect the risk of a security's promised cash flows. In this section, we consider some of the important determinants of required rates of return on financial securities.
The required rate of return on a financial security is determined in the financial marketplace and depends on the supply of loanable funds and the demand for these funds plus a premium to reflect the risk of a security's promised cash flows. 金融证券的要求报酬率由以下因素决定：the financial marketplace金融市场、depends on the supply of loanable funds可贷放资金的供应量、the demand for these funds该资金的需求量以及a premium to reflect the risk of a security's promised cash flows.反映证券所保证带来现金流量的风险溢酬。
In this section, we consider some of the important determinants of required rates of return on financial securities.在本文中，我们将讨论一些有关金融证券要求报酬率的重要决定因素。
The Risk-free Rate of Return无风险要求报酬率
The concept of a risk-free rate of return refers to the return available on a security with no risk of default. In the case of debt securities, no default risk means that promised interest and principal payments are guaranteed to be made. The best examples of risk-free securities are government securities. There is no risk of default on these securities because the government always can print more money. Of course, if the government recklessly prints money to pay its obligations, the purchasing power of this money will decline. Nevertheless, the buyer of a government bond always is assured of receiving the promised dollar payments.
The Risk-free Rate of Return
The concept of a risk-free rate of return refers to the return available on a security with no risk of default. 无风险报酬率指无违约风险证券的报酬率。
In the case of debt securities, no default risk means that promised interest and principal payments are guaranteed to be made.以债券为例，无违约风险指应收利息和本金都被保证偿还。
The best examples of risk-free securities are government securities. 无风险证券的最好例子是美国政府债券。
There is no risk of default on these securities because the government always can print more money. 这些债券没有违约风险，因为美国政府总能印出更多的钞票来偿还负债。
Of course, if the government recklessly prints money to pay its obligations, the purchasing power of this money will decline.当然，如果美国政府一味地印钱去偿还负债，货币的购买力则会下降。
Nevertheless, the buyer of a government bond always is assured of receiving the promised dollar payments.总的来说，美国国债的购买者总能被保证收回应收的美元。
The risk-free rate of return is composed of two elements. The first, called a real rate of return is the return that investors would require from a security having no risk of default in a period of no expected inflation. It is the return necessary to convince investors to postpone current, real, consumption opportunities. The real rate of return is determined by the interaction of the supply of funds made available by savers and the demand for funds for investment. Historically, the real rate of return has been estimated to average in the range of 2 to 4 percent.
The risk-free rate of return is composed of two elements.无风险报酬率由两个因素构成。
The first, called a real rate of return is the return that investors would require from a security having no risk of default in a period of no expected inflation.其一是真实报酬率，is the return that investors would require即投资者要求获取的报酬率，from a security having no risk of default从无违约风险的证券中要求获取的报酬率，in a period of no expected inflation.在没有预期通货膨胀率期间。
译文：其一是真实报酬率投资者在没有预期通货膨胀率期间，从无违约风险的证券中要求获取的报酬率
It is the return necessary to convince investors to postpone current, realconsumption opportunities. 这就是使得投资者推迟目前“真实”的消费机会所必需的报酬率。
Thereal rate of return is determined by the interaction of the supply of funds made available by savers and the demand for funds for investment. 真实报酬率是由储蓄者的可用存款资金的供应情况和资金的投资需求情况而决定的。
Historically, the real rate of return has been estimated to average in the range of 2 to 4 percent.历史上，真实报酬率估计平均为2％－4％
The second component of the risk-free rate of return is inflation, or purchasing power loss premium. Investors require compensation for expected losses in purchasing power when they postpone current consumption and lend funds. Consequently, a premium for expected inflation is included in the required return on any security. For example, for the 10-year period from 1980 through 1989, the compound annual rate of return that investors would have achieved from holding short-term risk-free U. S. Treasury bills was percent. Over the same time, the average annual inflation rate was percent. Hence, over this time period, investors in U. S. Treasury bills actually received compensation for inflation plus a percent real rate of return.
The second component of the risk-free rate of return is inflation, or purchasing power loss premium. 无风险报酬率的第二个构成因素是通货膨胀或购买力下降溢酬。
Investors require compensation for expected losses in purchasing power when they postpone current consumption and lend funds.投资者要求对购买力预期的损失得到补偿。当他们在推迟目前消费和出借资金时，
Consequently, a premium for expected inflation is included in the required return on any security. 结果使得任何证券的要求报酬率中包括了预期通货膨胀的溢酬。
For example, for the 10-year period from 1980 through 1989, the compound annual rate of return that investors would have achieved from holding short-term risk-free Treasury bills was percent.以1980～1989年为例，投资者持有的短期无风险美国国库券的复利年报酬率为8．89％。
Over the same time, the average annual inflation rate was percent. 同一时期，年平均通货膨胀率为5．09％。
Hence, over this time period, investors in U. S. Treasury bills actually received compensation for inflation plus a percent real rate of return.由此，在该期间，美国国库券的投资者实际收到的是通货膨胀补偿加上3．8％的真实报酬率。
When considering return requirements on all types of securities, it is important to remember that increases in expected inflation rates normally lead to increases in the required rates of return on all securities.
When considering return requirements on all types of securities, it is important to remember that increases in expected inflation rates normally lead to increases in the required rates of return on all securities.在考虑各种证券的要求回报率时，应记住，预期通货膨胀率增加会导致全部证券的要求报酬率增加。
At any point in time, the required risk-free rate of return on any security can be estimated from the yields on short-term government securities, such as 90-dayTreasury bills.
在任一时刻，任何证券的无风险要求报酬率可以通过衡量短期美国政府债券(如90天国库券)的收益率而得到。
The Maturity Risk Premium
The return required on a security also is influenced by the maturity of thatsecurity. The term structure of interest rates is the pattern of interest rate yields(requiredreturns)for securities that differ only in the length of time to maturity. Plotting interestrate yields(percent)on the vertical axis and the length of time to maturity(years)on thehorizontal axis results in a yield curve. The yield curve for August 1981 is downwardsloping, indicating that the longer the time to maturity, the lower is the required returnon the security. The yield curve for October 1990 is upward sloping, indicating that thelonger the time to maturity the higher is the required return on the security.
The Maturity Risk Premium到期风险溢酬
The return required on a security also is influenced by the maturity of thatsecurity. 证券的要求收益率也受证券到期长短的影响。
The term structure of interest rates is the pattern of interest rate yields(requiredreturns)for securities that differ only in the length of time to maturity.
这个句子结构比较简单：主语＋系动词＋表语，主语是The term structure of interest rates期间利率结构系动词is表语the pattern of interest rate yieldsfor securities证券的利率收益模式， that 从句的内容告诉我们：这些证券只有到期时间长短不同的区别。
因此：这个句子的含义是：期间利率结构是指只有到期时间长短不同的证券的利率收益(要求报酬率)模式。
Plotting interestrate yields(percent)on the vertical axis and the length of time to maturity(years)on thehorizontal axis results ina yield curve.在竖轴上画出利率收益率(百分比)，在横轴上画出到期时间(年数)，可以得到收益曲线。
the vertical axis：竖轴thehorizontal axis横轴a yield curve：收益曲线
plot:=draw 描画
The yield curve for August 1981 is downwardsloping, indicating that the shorter the time to maturity, the lower is the required returnon the security. 1981年8月(美国)到期收益曲线向下倾斜，意为离到期日越近，证券的要求报酬率越低。
The yield curve for October 1990 is upward sloping, indicating that thelonger the time to maturity the higher is the required return on the security. 1990年10月的收益曲线向上倾斜，意为到期日越长，证券的要求报酬率越高。
In general, the yield curve has been upward sloping more often than it has beendownward sloping. For example, between 1987 and the end of 1990, the yield on 3-month government Treasury bills has averaged approximately 6. 9percent. In contrast, theyield on 10-year government bonds averaged 8. 6 percent, and the yield on 30-year government bonds averaged 8. 7percent.
In general, the yield curve has been upward sloping more often than it has beendownward sloping. 总的来说，收益率曲线的斜率向上倾斜的时候多于向下倾斜的时候。
For example, between 1987 and the end of 1990, the yield on 3-month government Treasury bills has averaged approximately 6. 9percent.例如，1987年到1990年底，3个月期美国国库券的收益率平均约为6．9％。
In contrast, theyield on 10-year government bonds averaged 8. 6 percent, and the yield on 30-yearU. S. government bonds averaged 8. 7percent.与此相对照，10年期美国公债平均收益率为8．6 9／6，30年期平均为8．7％。
A number of theories have been advanced to explain the shape of the yield curve. Yieldcurves can be viewed as reflecting an expectation regarding future interest rate levels. Iffuture short-term interest rates(and inflation rates)are expected to rise, the yield curvewill tend to be upward sloping. In contrast, a downward sloping yield curve reflects anexpectation of declining future short-term interest rates(and inflation rates).
A number of theories have been advanced to explain the shape of the yield curve. 有很多理论用于解释收益曲线的形状。
Yieldcurves can be viewed as reflecting an expectation regarding future interest rate levels.收益曲线可以看作是对未来利率水平的预期值。
Iffuture short-term interest rates(and inflation rates)are expected to rise, the yield curvewill tend to be upward sloping. 如果未来短期利率(及通货膨胀率)预计上涨，收益曲线将向上倾斜。
In contrast, a downward sloping yield curve reflects anexpectation of declining future short-term interest rates(and inflation rates).与之相反，向下倾斜的收益曲线反映出未来短期利率(及通货膨胀率)预计将下降。
The yield curve also reflects what is called a maturity premium. The maturitypremium(often called a liquidity premium)theory of the yield curve holds that requiredreturns on long-term securities tend to be greater the longer the time to maturity. Thematurity premium reflects a preference by many lenders for shorter maturities, becausethe interest rate risk associated with these securities is less than with longer-termsecurities. Thus, if interest rates rise, the holder of a long-term bond will find that thevalue of the investment has declined substantially more than that of the holder of a short-term bond. In addition, the short-term bond holder has the option of holding the bond forthe short-time remaining to maturity and then reinvesting the proceeds from that bond atthe new higher interest rate. The long-term bond holder must wait much longer before thisopportunity is available. Accordingly, it is argued that whatever the shape of the yield curves, a maturity or liquidity premium is reflected in it. The maturity premium is largerfor long-term bonds than for short-term bonds.
The yield curve also reflects what is called a maturity premium. 收益曲线也反映出到期溢酬的概念。
The maturitypremium(often called a liquidity premium)theory of the yield curve holds that requiredreturns on long-term securities tend to be greater the longer the time to maturity. 有关持有证券的收益曲线的到期溢酬(也叫清偿性溢酬)原理表明对于长期证券，到期日越长，要求报酬率就越高。
Thematurity premium reflects a preference by many lenders for shorter maturities, becausethe interest rate risk associated with these securities is less than with longer-termsecurities. 它也反映出大多数出借方偏好短期债券，因为这种证券的风险要小于长期证券。
Thus, if interest rates rise, the holder of a long-term bond will find that thevalue of the investment has declined substantially more than that of the holder of a short-term bond. 因此，当利率上升时，长期债券的持有者会发现，与短期债券持有者相比，其投资的价值已经大幅度下降。
In addition, the short-term bond holder has the option of holding the bond forthe short-time remaining to maturity and then reinvesting the proceeds from that bond atthe new higher interest rate. 另外，短期债券持有者拥有一种选择权，即短期持有的债券到期后，可以用该债券的收益再投资于新的高利率债券。
The long-term bond holder must wait much longer before thisopportunity is available. 长期债券持有人需要花很长时间才能等到这一机会。
Accordingly, it is argued that whatever the shape of the yield curves, a maturity or liquidity premium is reflected in it.相应地还有一种观点，即无论收益曲线是什么形状，它都反映出到期或清偿性溢酬。
The maturity premium is largerfor long-term bonds than for short-term bonds.长期债券的到期溢酬要高于短期债券。
The maturity structure of interest rates also changes depending on the relative supplyand demand for securities in various maturity ranges. Some investors, such as insurancecompanies and pension funds, prefer to hold long-term securities. In contrast, commercialbanks prefer securities with shorter terms to maturity. Accompanying the fluctuations inthe demand and supply for bonds of different maturities by investors and borrowers will befluctuations in the level of interest rates across maturity horizons.
The maturity structure of interest rates also changes depending on the relative supplyand demand for securities in various maturity ranges.
这个句子中，The maturity structure of interest rates=the term structure of interest rates
利率的期间结构也随着不同到期范围内相应的证券供需情况而改变。
Some investors, such as insurancecompanies and pension funds, prefer to hold long-term securities.一些投资者，如保险公司和养老基金倾向持有长期证券。
In contrast, commercialbanks prefer securities with shorter terms to maturity. 与此相反，商业银行偏好短期证券。
Accompanying the fluctuations inthe demand and supply for bonds of different maturities by investors and borrowers will befluctuations in the level of interest rates across maturity horizons.
大家看一下这个句子的主体结构是什么呢？应该是：Accompanying the fluctuations in the demand and supply… will be fluctuations in the level of interest rates: 意思是：供需波动的同时发生着利率的波动
Across maturity horizon: 在不同的到期日
译文：投资者和借款者对于到期日不同的债券的供需的波动，会表现为在不同到期日中利率水平的波动。
The Default Risk Premium
government securities generally are considered to be free of default risk; that is,the risk that interest and principal will not be paid as promised in the bond indenture. Incontrast, corporate bonds are subject to varying degrees of default risk. Investors requirehigher rates of return on securities subject to default risk. Bond rating agencies, such asMoody's, Standard and Poor's, provide evaluations of the default risk of many corporatebonds in the form of bond ratings. Moody's for example, rates bonds on a 9-point scalefrom Aaa, Aa through C, where Aaa-rated bonds have the lowest expected defaultrisk. As can be seen in the follwing Table the yields on bonds increase as the risk of defaultincreases, reflecting the positive relationship between risk and required return.
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The Default Risk Premium违约风险溢酬
government securities generally are considered to be free of default risk; that is,the risk that interest and principal will not be paid as promised in the bond indenture. 美国政府证券一般被认为是无违约风险的，违约风险即指利息和本金不按债券合约的规定予以偿还的风险。
Incontrast, corporate bonds are subject to varying degrees of default risk.. 与此相反，公司债券会有不同程度的违约风险。
Investors requirehigher rates of return on securities subject to default risk而投资者需要的是低风险和高回报率的债券。
Bond rating agencies, such asMoody's, Standard and Poor's, provide evaluations of the default risk of many corporatebonds in the form of bond ratings. 债券评级机构，如穆迪、“标准普尔”等，用债券评级的方式给许多公司进行违约风险评估。
Moody's for example, rates bonds on a 9-point scalefrom Aaa, Aa through C, where Aaa-rated bonds have the lowest expected defaultrisk.例如，穆迪公司将债券分为9级，从Aaa，Aa一直到C，其中Aaa级债券的预期违约风险最低。
As can be seen in the following Tablethe yields on bonds increase as the risk of defaultincreases, reflecting the positive relationship between risk and required return.从下表中可看出，随着违约风险的增加，债券收益也增加。这表明风险和要求报酬率是正相关的。
Table Relationship between Default Risk and Required Returns违约风险和要求收益率之间的关系
Security 证券 Yield收益率
(30year) 8. 77%
Aaa-ratedCorporateBonds %
Aa-ratedCorporateBonds %
A-rated Corporate Bonds %
Baa-rated Corporate Bonds 10. 75%
美国国库券(30年期) 8．77％
Aaa级公司债券 9．45％
Aa级公司债券 9．74％
A级公司债券%
Baa级公司债券10. 75%
Over time,the spread between the required returns on bonds having various levels of default riskvaries, reflecting the economic prospects and the resulting probability of default. For example,during the relative prosperity of 1989, the yield on Baa-rated corporate bonds was points greater than the yield on higher-quality (lower default risk)A-ratedbonds. By late 1990,as the economy weakened and headed toward a recession, thisspread had increased to 0. 70 percentage points.
Over time,the spread between the required returns on bonds having various levels of default riskvaries,reflecting the economic prospects and the resulting probability of default.
Over time:随着时间的演变，句子的主要谓语动词是什么呢？应该是：varies 变化，主语是balance差价，也就是说：差价会发生变化，那么什么差价会发生变化呢？spread between the required returns on bonds having various levels of default risk具有不同违约风险水平的债券所具有的要求报酬率的差价会发生变化, 同时这一差价反映了：the economic prospects and the resulting probability of default.反映了经济前景和与之相伴的违约发生的概率。
For example,during the relative prosperity of 1989, the yield on Baa-rated corporate bonds was points greater than the yield on higher-quality (lower default risk)A-ratedbonds. 1989年相对繁荣期内，Baa级的公司债券收益率比高质量(低违约风险)的A级债券高0．44％
By late 1990,as the economy weakened and headed toward a recession, thisspread had increased to 0. 70 percentage 年未，美国经济低迷并面临着经济衰退，这个差价上升到O．7个百分点。
The Seniority Risk Premium
Corporations issue many different types of securities. These securities differ withrespect to their claim on the cash flows generated by the company and the claim on the company's assets in the case of default. A partial listing of these securities, from the least senior(that is, from the security having the lowest priority claim on cash flows and assets) to the most senior, includes the following: common stock, preferred stock, income bonds, subordinated debentures, debentures, second mortgage bonds, and first mortgage bonds. Generally, the less senior are the claims of the security holder, the greater is the required rate of return demanded by investors in that security.
The Seniority Risk Premium优先风险溢酬
我们首先来了解一个词：Seniority: n. 优先权 senior: adj. 优先的
Corporations issue many different types of securities. 公司通常会发行多种证券。
These securities differ withrespect to their claim on the cash flows generated by the company and the claim on the company's assets in the case of default.
这个句子的结构应该是：These securities differ withrespect to their claim on A and the claim on B in the case of default.意思是说：在违约情况下，in the case of default, 这些证券对于A 的求偿权和对于B的求偿权是不同的。With respect to: 考虑到某方面 claim on sth: 意思是对某事的求偿权。这个句子中，A是the cash flows generated by the company公司产生的现金流量，B是指the company's assets公司的资产
因此这个句子完整的含义是：在违约情况下，这些证券对于公司产生的现金流量以及公司资产具有不同的求偿权。
A partial listing of these securities, from the least senior(that is, from the security having the lowest priority claim on cash flows and assets) to the most senior, includes the following: common stock, preferred stock, income bonds, subordinated debentures, debentures, second mortgage bonds, and first mortgage bonds.
Partial: not complete, 部分的
the least senior：最不优先的，最低级别
the most senior：最优先的，最高级别
以下列出了从最低级别(即对于现金流量和资产具有最少求偿权的)到最高级别的部分证券：普通股、优先股、income bonds收入债券、subordinated debentures次等债券、debentures债券、second mortgage bonds二级抵押债券和first mortgage bonds一级抵押债券。
因此我们可以看出：common stock普通股这种证券的claims求偿权是最低的，所以说他的风险risk是最大的。
Generally, the less senior the claims of the security holder, the greaterthe required rate of return demanded by investors in that security. 总的来说，证券持有者的求偿权越低，他对该种证券的要求报酬率就越高。
For example, the holders of bonds issued by Exxon are assured that they will receive interest and principal payments on these bonds except in the highly unlikely event that the company faces bankruptcy. In contrast, common stockholders have no such assurance regardingdividend payments, also, in the case of bankruptcy, all senior claimholders must be paid before common stockholders receive any proceeds from the liquidation of the firm. Accordingly, common stockholders require a higher rate of return on their investment in Exxon stock than do Exxon bond holders.
For example, the holders of bonds issued by Exxon are assured that they will receive interest and principal payments on these bonds except in the highly unlikely event that the company faces bankruptcy.
这个句子中：the holders of bonds issued by Exxon意思是：持有埃克森(Exxon)公司发行债券的债券持有人are assured that被公司承诺，也就是说：埃克森(Exxon)公司向其债券持有人承诺：that they will receive interest and principal payments on these bonds公司都能保证债权人收到利息和本金except in the highly unlikely event that the company faces bankruptcy. Except: 意思是：除了，in the highly unlikely event：意思是：在极端不可能出现的情况下，也就是说：除了在公司陷入极不可能出现的破产情况下时
好，那么这个句子的完整的含义是：埃克森(Exxon)公司向它的债券持有人保证，除了在公司陷入极不可能出现的破产情况下时，公司都能保证债权人收到利息和本金。
In contrast, common stockholders have no such assurance regardingdividend payments,与此相反，普通股股东的股利收入却不享有这样的保证。
also, in the case of bankruptcy, all senior claimholders must be paid before common stockholders receive any proceeds from the liquidation of the firm.
senior claimholders：意思是：最优先的求偿者
同样，公司破产时，全部最优先的求偿者都必须首先得到偿付，before common stockholders receive any proceeds from the liquidation of the firm.之后普通股股东才可以从公司清偿资产中获得收益。
Accordingly, common stockholders require a higher rate of return on their investment in Exxon stock than do Exxon bond holders.与此相应的是，埃克森公司的普通股股东require a higher rate of return on their investment对其投资要求更高的报酬率，than do Exxon bond holders比债券持有人要求更高的报酬率。
Business and Financial Risk Premiums
Within individual security classes, one observes significant differences in required rates of return between firms. For example, the required rate of return on the common stock of Control Data is considerably higher than the required rate of return on the common stock of IBM. The difference in the required rate of return on the securities of these two companies reflects differences in their business and financial risk. The business risk of a firm refers to the variability in the firm's operating earnings over time. Business risk is influenced by many factors, including variability in sales and operating costs over a business cycle, the diversity of a firm's product line, the market power of the firm, and the choice of production technology. As a much larger, more powerful, and diverse firm, IBM can be expected to have a lower perceived level of business risk and a resulting lower required return on its common stock(all other things held constant).
Business and Financial Risk Premiums经营风险溢酬和财务风险溢酬
Within individual security classes, one observes significant differences in required rates of return between firms. 在个别的证券类别中，人们发现，significant differences in required rates of return between firms.公司间的要求报酬率差别很大。
For example, the required rate of return on the common stock of Control Data is considerably higher than the required rate of return on the common stock of IBM. 例如，the required rate of return on the common stock of Control Data控制数据公司普通股的要求报酬率is considerably higher than要高出很多，than the required rate of return on the common stock of IBM.要比IBM公司的普通股的要求报酬率高出很多。
The difference in the required rate of return on the securities of these two companies reflects differences in their business and financial risk.
这个句子的结构应该是：The difference in A reflects the difference in B. 即：A的不同反映了B的差异。A指：the required rate of return on the securities of these two companies两个公司证券要求报酬率的B指：their business and financial risk.经营风险和财务风险
因此这个句子的含义是：两个公司证券要求报酬率的不同反映了两个公司经营风险和财务风险的不同。
The business risk of a firm refers to the variability in the firm's operating earnings over time. 公司的经营风险指公司经营期间营业收益的变动。
Operating earnings: 营业收益
Business risk is influenced by many factors, including variability in sales and operating costs over a business cycle, the diversity of a firm's product line, the market power of the firm, and the choice of production technology.有很多因素影响经营风险，包括一个营业周期内销售和经营成本的变动、公司产品线的多样化、公司的市场影响力和生产技术的选择。’
a business cycle：一个营业周期
As a much larger, more powerful, and diverse firm, IBM can be expected to have a lower perceived level of business risk and a resulting lower required return on its common stock(all other things held constant).
As a much larger, more powerful, and diverse firm, IBM作为一个较大的、较有实力的多元化企业，IBM can be expected to have a lower perceived level of business risk它的预计的经营风险水平会较低，resulting：表示结果，因此它的普通股的要求收益率也较低( 其他条件相同时)。
Financial risk refers to the additional variability in a company's earnings per share that results from the use of fixed-cost sources of funds, such as debt and preferred stock. In addition,asdebt financing increases,the risk of bankruptcy increases. For example,Control Data had a long-term debt to common equity ratio of 1990. In comparison, the long-term debt to common equity ratio was approximately 0. 26 for IBM in 1990. This difference in financial risk will lead to lower required returns on the common stock of IBM compared to the common stock of Control Data, all other things being equal.
Financial risk refers to the additional variability in a company's earnings per share that results from the use of fixed-cost sources of funds, such as debt and preferred stock.
the additional variability：额外变动
Financial risk refers to the additional variability in a company's earnings per share财务风险是指公司每股收益的额外变动，that 引导定语从句告诉我们每股收益的额外变动的来源：是results from the use of fixed-cost sources of funds, such as debt and preferred stock.使用固定成本融资来源，如负债和优先股。
译文：财务风险指公司使用固定成本融资来源，如负债和优先股，而导致的每股收益的额外变动。
In addition,asdebt financing increases,the risk of bankruptcy increases. 另外，随着负债融资的增加，公司破产风险也增加。
For example,Control Data had a long-term debt to common equity ratio of 1990.例如，控制数据公司1990年长期负债与普通股权益比率为0．42。
In comparison, the long-term debt to common equity ratio was approximately 0. 26 for IBM in 1990.相比之下，IBM公司1990年该项比率为0．26。
This difference in financial risk will lead to lower required returns on the common stock of IBM compared to the common stock of Control Data, all other things being equal.
这个句子的意思是：财务风险的差别导致lower required returns on the common stock of IBM IBM公司普通股的要求收益率要低一些compared to the common stock of Control Data,于控制数据公司普通股的要求收益率相比较，句子逗号后面的内容：all other things being equal在其他条件相同时。
因此：这个句子的含义是：财务风险的差别导致在其他条件相同时，IBM公司普通股的要求收益率要低于控制数据公司普通股的要求收益率。
Systematic Versus Unsystematic Risk
Much of the risk facing investors in a firm's securities can be decomposed into systematic (undiversifiable) andunsystematic (diversifiable) riskcomponents. The systematic risk of a security refers to that portion of the return variability caused by factors affecting the security market as a whole, such as a change in the general business outlook. Systematic risk often is measured by a security's beta, a measure of the volatility of a security's returns relative to the returns of the overall security market. Unsystematic risk refers to the portion of the variability of an individual security's returns caused by factors unique to that security. Unsystematic risk can be greatly reduced or even totallyeliminated by investors whohold a broad (diversified)collection (portfolio)of securities. Systematic risk cannot be diversified away.
Systematic Versus Unsystematic Risk系统风险和非系统风险
Much of the risk facing investors in a firm's securities can be decomposed into systematic (undiversifiable) andunsystematic (diversifiable) riskcomponents.
be decomposed into：被分解成…
diversifiable: 可分散的
undiversifiable: 不可分散的
公司证券投资者面临的大多数风险可分为系统风险(不可分散的)和非系统风险(可分散的)。
The systematic risk of a security refers to that portion of the return variability caused by factors affecting the security market as a whole, such as a change in the general business outlook.
这句话介绍什么是系统风险：The systematic risk of a security证券的系统风险指refers to that portion of the return variability收益变动性部分caused by factors affecting the security market as a whole,由影响整个证券市场的因素造成的。such as a change in the general business outlook.如：总体商业前景的变化。
译文：证券的系统风险指由影响整个证券市场的因素造成的收益变动性部分，如：总体商业前景的变化。
Systematic risk often is measured by a security's beta, a measure of the volatility of a security's returns relative to the returns of the overall security market.
系统风险通常由证券的beta系数来衡量，逗号后面的内容进一步解释这个系数：是a measure of the volatility 是一种衡量变动的方法。the volatility of a security's returns relative to the returns of the overall security market. 与整个证券市场的收益相关的一个证券收益的变动。
系统风险通常由证券的beta系数来衡量，是一种衡量与整个证券市场的收益相关的一个证券的收益变动的方法。
Unsystematic risk refers to the portion of the variability of an individual security's returns caused by factors unique to that security.
这句话介绍什么是非系统风险，非系统风险是指：the portion of the variability收益变动性部分，但这个变动性部分和系统风险的差别在于：他是an individual security's returns caused by factors unique to that security. 由影响一支证券的独特的因素造成的该证券收益变动性部分。
Unsystematic risk can be greatly reduced or even totallyeliminated by investors whohold a broad (diversified)collection (portfolio)of securities.
这句话告诉我们，非系统风险可以被投资者极大的减少或者eliminated，被彻底的消除，investors whohold a broad (diversified)collection (portfolio)of securities.通过投资者拥有广泛的（分散化）的证券选择（组合）。
Systematic risk cannot be diversified away.但是系统风险不会由于分散经营而被消除。
The Marketablity Risk Premium变现风险溢酬
Marketability risk refers to the ability of an investor to buy and sell a company's securities quickly and without a significant loss of value. For example, there is very little marketability risk for the shares of stock of most companies that are traded on the or American Stock Exchange or listed on the NASDAQ system for over-the-counter stocks. For these securities, there is an active market. Trades can be executed almost instantaneously with low transactions costs at the current market price. In contrast, if you own shares in a rural Nebras Ka Bank, you might find it difficult to locate a buyer for those shares(unless you owned a controlling interest in the bank). When a buyer is found, that buyer may not be willing to pay the price that you could get for similar shares of a larger bank listed on the New York Stock Exchange. The marketability risk premium can be significant for securities that are not regularly traded, such as the shares of many small and medium-size firms.
The Marketablity Risk Premium
Marketability risk refers to the ability of an investor to buy and sell a company's securities quickly and without a significant loss of value.
变现风险：指投资者的一种能力即：to buy and sell a company's securities quickly能迅速的买卖公司证券并且without a significant loss of value.没有巨大损失的能力
For example, there is very little marketability risk for the shares of stock of most companies that are traded on the or American Stock Exchange or listed on the NASDAQ system for over-the-counter stocks. 例如，there is very little marketability risk for the shares of stock of most companies大多数公司的股票几乎不存在变现风险。在哪里交易的大多数公司的股票会不存在变现风险呢？that are traded on the or American Stock Exchange or在纽约证券交易所或美国股票交易所交易或者listed on the NASDAQ system for over-the-counter stocks.在纳斯达克系统下进行“店头交易”的大多数公司的股票几乎不存在变现风险。
For these securities, there is an active market.
对于这些证券总是存在一个活跃的市场。
Trades can be executed almost instantaneously with low transactions costs at the current market price.
Execute: 意思是do something, execute trades: 意思是：进行交易。execute, 这个单词还有死刑的意思。
这句话的含义是：这些市场的交易都是按当前市价以较低的成本立刻进行交易。
In contrast, if you own shares in a rural Nebras Ka Bank, you might find it difficult to locate a buyer for those shares(unless you owned a controlling interest in the bank).
locate a buyer：寻找一位买家。
与此相反：如果你拥有位于郊区的Nebras Da银行的股票，你会发现为这些股票寻找买家非常困难。（除非你拥有该银行的具有控制权的权益）
When a buyer is found, that buyer may not be willing to pay the price that you could get for similar shares of a larger bank listed on the New York Stock Exchange.
即使你找到了买家，他支付的价格也很可能很不理想，远低于在纽约证券交易所上市的较大银行的类似的股票出售时可以获得的价格。
The marketability risk premium can be significant for securities that are not regularly traded, such as the shares of many small and medium-size firms.
securities that are not regularly traded,：不经常交易的股票
这个句子的含义时：不经常交易的股票变现风险溢酬一般比较大，例如；许多中小企业的股票。
好，以上内容给大家介绍了：风险和要求报酬率之间的关系，主要解释了影响要求报酬率的决定性因素，共有7个：他们分别是：
The Risk-free Rate of Return无风险要求报酬率
The Maturity Risk Premium到期风险溢酬
The Default Risk Premium违约风险溢酬
The Seniority Risk Premium优先风险溢酬
Business and Financial Risk Premiums经营风险溢酬和财务风险溢酬
Systematic Versus Unsystematic Risk系统风险和非系统风险
Business and Financial Risk Premiums经营风险溢酬和财务风险溢酬
The Marketablity Risk Premium变现风险溢酬
下面我们来讲财务管理的另外一个概念：市场效率
Capital Market Efficiency
Market Efficiency
A central theme of much of the academic finance and financial economics research since the 1960s has been the efficiency of the capital markets. The more efficient capital markets are, the more likely it is that resources will find their highest (risk-adjusted) return uses. Capital market efficiency is an implicit assumption in many decision models used widely in finance. Consequently, this concept is important to a full understanding of these decision models.
A central theme of much of the academic finance and financial economics research since the 1960s has been the efficiency of the capital markets.
A central theme意思是：中心议题of much of the academic finance and financial economics research since the 1960s. 20世纪60年代以来，很多金融和财务经济方面学术研究的中心议题是：has been the efficiency of the capital markets.资本市场的效率问题。
The more efficient capital markets are, the more likely it is that resources will find their highest (risk-adjusted) return uses.
资本市场的效率越高，其资源使用收益也越高（经过风险调整后）
。
Capital market efficiency is an implicit assumption in many decision models used widely in finance.
Decision model: 决策模型
Implicit assumption: 内含假设
这个句子的含义是：资本市场效率是金融领域广泛使用的很多决策模型的内含假设。
Consequently, this concept is important to a full understanding of these decision models.
因此，这个概念（市场效率）对于完全理解这些决策模型很重要。
In an efficient capital market, stock prices provide an unbiased estimate of the true value of an enterprise. Stock prices reflect a present value estimate of the firm's expected cash flows, evaluated at an appropriate required rate of return. The required rate of return is determined by conditions in the financial markets, including the supply of funds from savers, the investment demand for funds, and expectations regarding future inflation rates. The required rate of return on a security also depends on the seniority of the security, the maturity of that security, the business and financial risk of the firm issuing the security, the risk of default, and the marketability of the security.
In an efficient capital market, stock prices provide an unbiased estimate of the true value of an enterprise.
在一个有效的资本市场中，股票价格公正的评估了一个企业的真实价值，
Stock prices reflect a present value estimate of the firm's expected cash flows, evaluated at an appropriate required rate of return.
股票价格反映了a present value estimate of the firm's expected cash flows,公司未来现金流量的净现值evaluated at an appropriate required rate of return. ：按照合适的要求报酬率算出来的。
这个句子的含义是：股票价格反映了按照合适的要求报酬率算出来的公司未来现金流量的净现值
The required rate of return is determined by conditions in the financial markets, including the supply of funds from savers, the investment demand for funds, and expectations regarding future inflation rates.
这个句子意思是：要求报酬率是由资本市场的状况所决定的，包括supply of funds from savers,从储蓄者处获得的资金供给，the investment demand for funds,资金的投资需求和expectations regarding future inflation rates. 对未来通货膨胀率的期望值
The required rate of return on a security also depends on the seniority of the security, the maturity of that security, the business and financial risk of the firm issuing the security, the risk of default, and the marketability of the security.
这句话告诉我们，除了上面提到的情况，证券的要求报酬率也also取决于：depends onhe seniority of the security,证券的优先等级the risk of default,违约风险the marketability of the security.证券的变现能力。
The efficiency of the capital markets is the important "glue" that bonds the present value of a firm's net cash flows, discounted at the appropriate risk-adjusted required rate of return, to shareholder wealth, as measured by the market value of a company's common stock. Hence, in this final section of the chapter, the concept of market efficiency is defined, the evidence regarding the extent of capital market efficiency briefly is reviewed, and some important implications of market efficiency are identified.
The efficiency of the capital markets is the important "glue" that bonds the present value of a firm's net cash flows, discounted at the appropriate risk-adjusted required rate of return, to shareholder wealth, as measured by the market value of a company's common stock.
"glue"：意思是胶水，黏合剂。
Bond A to B : 把A 与B二者结合起来
这句话意思是说：资本市场效率像一种重要的黏合剂，他粘合的内容A是： the present value of a firm's net cash flows,discounted at the appropriate risk-adjusted required rate of return我们先看前半句：意思是“公司净现金流量的现值”，后面discounted 告诉我们这个现值是折现后的现值，按照什么折现呢？at the appropriate risk-adjusted required rate of return按适当的风险调整贴现率折现。所以：A的内容应该是：按适当的风险调整贴现率折现的公司净现金流量的现值。B的内容 是:shareholder wealth, as measured by the market value of a company's common stock.股东财富, 股东财富是如何衡量的呢? by the market value of a company's common stock.以公司普通股市场价值衡量的.
因此这段话的含义是: 资本市场效率像一种重要的黏合剂, 他把按适当的风险调整贴现率折现的公司净现金流量的现值和以公司普通股市场价值衡量的股东财富，紧密联系了起来。
因此，在本章的最后一个部分，我们将定义市场效率，简要阐述与资本市
场效率程度有关的证据，并要明确一些有关市场效率的重要暗示条件。
Hence, in this final section of the chapter, the concept of market efficiency is defined, the evidence regarding the extent of capital market efficiency briefly is reviewed, and some important implications of market efficiency are identified.
Information and Capital Market Efficiency
Capital markets are efficient if security prices instantaneously and fully reflect in anunbiased manner all economically relevant information about a security's prospectivereturns and the risk of those returns. What is meant by "all economically relevantinformation"? Information is a message about future events that may occur. "Relevant"information can be used by an individual to take actions that will change the welfare of thatindividual. Messages that an individual cannot act upon to change his or her welfare havelittle value. For example, a cotton farmer who grows cotton on irrigated land might bewilling to pay for accurate weekly rainfall forecasts, because these forecasts can be used toestablish the most efficient irrigation schedule. In contrast, once a dry-land cotton farmerhas planted his fields, weekly rainfall forecasts are of little use, because there are noactions the farmer can take on a day-to-day basis using this information.
Information and Capital Market Efficiency信息和资本市场效率
Capital markets are efficient if security prices instantaneously and fully reflect in anunbiased manner all economically relevant information about a security's prospectivereturns and the risk of those returns.
这句话告诉我们在什么情况下,资本市场是有效的,right? That is if security prices instantaneously and fully reflect in anunbiased manner all economically relevant information如果股票价格能立即、完整、公正地反映出全部经济信息about a security's prospectivereturns and the risk of those returns.与证券未来收益和风险相关的信息.
也就是说: 如果股票价格能立即、完整、公正地反映出与证券未来收益和风险相关的全部经济信息，该市场就是有效率的。
What is meant by "all economically relevantinformation"? “全部的相关的经济信息”意味着什么呢?
Information is a message about future events that may occur. 信息指有关未来将发生的事件的消息。
"Relevant"information can be used by an individual to take actions that will change the welfare of thatindividual.
Take action: 采用,采取行动
Welfare: 福利
“相关”信息是可以使个人在使用后能改变本人的福利状况。
Messages that an individual cannot act upon to change his or her welfare havelittle value.
Act upon: =take action
那些个人不能用于改变福利状况的消息是没有价值的。
For example, a cotton farmerwho grows cotton on irrigated land might bewilling to pay for accurate weekly rainfall forecasts, because these forecasts can be used toestablish the most efficient irrigation schedule.
a cotton farmer:棉花农
irrigated land:可灌溉土地
举例说，a cotton farmerwho grows cotton on irrigated land一个在可灌溉土地上种植棉花的农夫might bewilling to pay for accurate weekly rainfall forecasts,可能乐意花钱以获得每周的雨情预报，because these forecasts can be used toestablish the most efficient irrigation schedule.
因为这些预报可用来建立最有效的灌溉安排。
In contrast, once a dry-land cotton farmerhas planted his fields, weekly rainfall forecasts are of little use, because there are noactions the farmer can take on a day-to-day basis using this information.反过来，once a dry-land cotton farmerhas planted his fields,对于一个在干旱土地上种植棉花的农夫，weekly rainfall forecasts are of little use,雨情预报根本没有作用。because there are noactions the farmer can take on a day-to-day basis using this information.因为农夫每天使用这种信息并不会采取任何行动。
In addition to being able to act upon the information in a manner that will affect one'swelfare, it is essential that the information be correlated with the future events when theyoccur. For example, if your broker always told you that a stock you had identified lookedlike a "good buy", this message would have little value to you, because you know that some of these stocks will perform well and others will not. In contrast, if your broker recommends stocks to buy and stocks to sell based upon the broker's estimate of each security's return prospects and if the broker is right more often than he or she is wrong, then this message constitutes economically relevant information.
In addition to being able to act upon the information in a manner that will affect one'swelfare, it is essential that the information be correlated with the future events when theyoccur.除了依据信息可采取影响福利状况的行动外，重要的是信息能正确地预示未来事件的发生。
For example, if your broker always told you that a stock you had identified lookedlike a "good buy", this message would have little value to you,
例如，如果你的经纪人总告诉你你已买的一支股票看上去买得很正确，这种信息对你来说毫无价值。
because you know that some of these stocks will perform well and others will not.因为你知道一些股票业绩会好，而另一些会较差。
In contrast, if your broker recommends stocks to buy and stocks to sell based upon the broker's estimate of each security's return prospects and if the broker is right more often than he or she is wrong, then this message constitutes economically relevant information.
反过来，if your broker recommends stocks to buy and stocks to sell如果你的经纪人建议你买或卖股票，并且这种建议是: based upon the broker's estimate of each security's return prospects根据他对每支股票的收益前景的估计，if the broker is right more often than he or she is wrong,而且他的判断大多数情况下都是正确的，then this message constitutes economically relevant information.这种信息即构成了相关的经济信息。
In security markets, some messages are relevant economically to investors and others are not. If a message has no impact on the future return or risk prospects of a security, it is not relevant to investors and should not be correlated with security performance; that is, it does not constitute information. For example, the news that a company has changed the format of the presentation of its financial reports is not information because this cosmetic change has no impact on the return or risk of that company's securities. In contrast, if the company announces that it has adopted a new accounting convention that will result in significant tax savings. This is information because it affects the return stream from that company's securities.
In security markets, some messages are relevant economically to investors and others are not.证券市场中，一些信息对投资者来说是经济相关的，另一些却不是。
If a message has no impact on the future return or risk prospects of a security, it is not relevant to investors and should not be correlated with security performance; that is, it does not constitute information.
我们来看一下这个句子的含义: If a message has no impact on the future return or risk prospects of a security,如果一条消息对证券的未来收益或风险前景没有影响，it is not relevant to investors该消息对投资者来说就不相关，should not be correlated with security performance;而且与证券业绩表现也不相关，that is, it does not constitute information. 也就是说，这条消息不构成信息。
For example, the news that a company has changed the format of the presentation of its financial reports is not information because this cosmetic change has no impact on the return or risk of that company's securities.
the format of the presentation: 表述形式the format of the presentation of its financial reports财务报表的表述形式
cosmetic: dealing with the outside appearance rather than the important part of something [= superficial]: 表面的,装饰性的
We're making a few cosmetic changes to the house before we sell it.房子出售之前我们做了简单的装修
Cosmetics: 化妆品
我们来看这个句子: 举例说，the news that a company has changed the format of the presentation of its financial reports is not information 关于一个公司改变了财务报表的表述形式的消息就不是信息，because this cosmetic change has no impact on the return or risk of that company's securities.因为这种装饰性的改变不会影响证券的收益和风险状况。
In contrast, if the company announces that it has adopted a new accounting convention that will result in significant tax savings.
Convention: 常规,习俗, 标准a new accounting convention: 一种新的会计准则
反过来，如果公司宣布采取一种新的会计标准以节约大量的税负，
This is information because it affects the return stream from that company's securities. 这就构成了信息，因为它会影响公司证券的收益流。
Degrees of Market Efficiency
Three levels of market efficiency have been identified, based on the information set under consideration: weak-form efficiency, semistrong-form efficiency, and strong-form efficiency.
Degrees of Market Efficiency市场效率程度
Three levels of market efficiency have been identified, based on the information set under consideration: weak-form efficiency, semistrong-form efficiency, and strong-form efficiency.基于所考虑的各种信息，市场效率可被分为三个水平：弱式效率、次强式效率和强式
效率。
Weak-form Efficiency
With weak-form market efficiency, no investor can expect to earn excess returns based on an investment strategy using such information as historical price or return information. All stock market information, including the record Of past stock price changes and stock trading volume, is fully reflected in the current price of a stock..
Weak-form Efficiency弱式效率
With weak-form market efficiency, no investor can expect to earn excess returns based on an investment strategy using such information as historical price or return information.
With weak-form market efficiency,在弱式效率的市场中no investor can expect to earn excess returns没有投资者能获取超额收益based on an investment strategy 基于一种投资策略using such information as historical price or return information.使用诸如历史价格或收益的信息制定投资策略
那么这个句子的含义是: 在弱式效率的市场中，投资者使用诸如历史价格或收益的信息制定投资策略，但是没有投资者能基于这种投资决策获取超额收益。
All stock market information, including the record of past stock price changes and stock trading volume, is fully reflected in the current price of a stock.
这个句子的主句是: All stock market informationis fully reflected in the current price of a stock.
这个句子我们看到他是一个被动句, 我们翻译的时候, 把他翻译为主动句要更好理解一些,意思是: 股票的现行价格反映了全部股票市场的信息, 两个逗号间的内容进一步说明包括那些市场信息: 包括the record of past stock price changes过去股价变动的记录和stock trading volume,股票交易量。
Tests of the weak-form market efficiency hypothesis have included statistical tests of independence of stock price changes from various day-to-day periods. These studies haveconcluded that stock price changes over time essentially are independent andthat a knowledge of past price changes cannot be used to predict future changes. Othertests have looked for the existence of longer-term cycles in stock prices, such as monthlyor seasonal cycles. In addition, there have been tests of numerous trading rules basedsolely on past market price and volume information. Pinches, in a review of much of thisresearch, has concluded that "with some exceptions, the studies of mechanical tradingrules do not indicate that profits can be generated by these rules." In conclusion, theweight of the evidence indicates that capital markets are efficient in a weak-formcontest.
Tests of the weak-form market efficiency hypothesis have included statistical tests of independence of stock price changes from various day-to-day periods.
我们看这个句子的主语是什么呢? Tests, right? 谓语: have included 宾语: statistical tests of independence, so the main structure should be : Tests of …. have included thestatistical tests of independence of…., right?
Hypothesis: 假设the weak-form market efficiency hypothesis弱式市场效率的假设
Tests of the weak-form market efficiency hypothesis弱式市场效率的假设检验have includedstatistical tests of independence独立性的统计测试of stock price changes from various day-to-day periods.股票价格每天变动的独立性的统计测试
因此这个句子的含义是: 弱式市场效率的假设检验包括了股票价格每天变动的独立性的统计测试。
These studies have concluded that stock price changes over time essentially are independent andthat a knowledge of past price changes cannot be used to predict future changes.
研究的结论表明，stock price changes over time股价随时间的变动essentially are independent基本上是独立的，that a knowledge of past price changes过去价格变动的情况cannot be used to predict future changes.不能用于预测未来的变动。
Othertests have looked for the existence of longer-term cycles in stock prices, such as monthlyor seasonal cycles. 其他测试是为寻找股价长期循环的存在，如月循环或季节循环。
In addition, there have been tests of numerous trading rules basedsolely on past market price and volume information.
Numerous: 大量的
Trading rules: 交易规则
Based solely on: 完全依赖
这个句子的含义是: 另外，还有完全基于过去市场价格和数量信息的大量交易原则的测试。
Pinches, in a review of much of thisresearch, has concluded that "with some exceptions, the studies of mechanical tradingrules do not indicate that profits can be generated by these rules."
In a review of : 考虑…
Pinches这个人, 在大多数的测试基础上，得出结论，即除了一些例外情况，有关交易机制原则的研究没有显示出这些原则可以产生利润。
In conclusion, theweight of the evidence indicates that capital markets are efficient in a weak-formcontest.总而言之，各种证据显示，美国资本市场属于弱式效率市场。
Semistrong- form Efficiency
With semistrong-form market efficiency, no investor can expect to earn excess returns based on an investment strategy using any publicly available information. Announcements of earnings changes, stock splits, dividend changes, interest rate changes, money supply levels, changes in accounting practices that affect a firm's cash flows, takeover announcements, and so on are quickly and unbiasedly incorporated in the price of a security. A finding of semistrong-form market efficiency implies that the market also is weakly efficient, because the information set considered in the weak-form case also is publicly available.
Semistrong- form Efficiency次强式效率
With semi strong-form market efficiency, no investor can expect to earn excess returns based on an investment strategy using any publicly available information.次强式效率的市场中，投资者使用任何公开的可用信息作出投资决策，但没有人能基于这些决策获取额外收益。
我们可以看出这个句子的结构和弱式效率的结构完全是一样的, 所不同的是: 在弱式效率的市场中，投资者使用诸如历史价格或收益的信息制定投资策略，而在次强式效率中, 投资者使用any publicly available information任何公开的可用信息作出投资决策，不过结果呢是一样的, no investor can expect to earn excess returns based on an investment strategy但是没有投资者能基于这种投资决策获取超额收益。
Announcements of earnings changes, stock splits, dividend changes, interest rate changes, money supply levels, changes in accounting practices that affect a firm's cash flows, takeover announcements, and so on are quickly and unbiased incorporated in the price of a security.
这个句子比较长, 我们先来找谓语动词, can you find it, ok, it should be “ are incorporated in …”宾语: the price of a security. 也就是说: 前面逗号连接的一系列的内容都被包括在证券的价格中, 并且是quickly and unbiased快速的,公正的. 还句话说: 就是证券的价格能迅速地、公正地反映出以下信息: Announcements of earnings changes收益改变的公告、stock splits, 股票分割dividend changes,股利变化、 interest rate changes,利率变更、 money supply levels,货币供应水平changes in accounting practices that affect a firm's cash flows,影响公司现金流量的会计政策变更、 takeover announcements,兼并公告 and so on等等
我们把句子完整的翻译一下: 证券的价格能迅速地、公正地反映出以下信息：即我们刚才提到的: 收益改变的公告、股票分割、股利变化、利率变更、货币供应水平、影响公司现金流量的会计政策变更、兼并公告等。
A finding of semistrong-form market efficiency implies that the market also is weakly efficient, because the information set considered in the weak-form case also is publicly available.
有关次强式市场效率的一项发现表明，市场效率也是较弱的，因为the information set considered意思是考虑的信息in the weak-form case在弱式市场中考虑的信息also is publicly available.同样也对公众来说是可用的。
这个句子的完整的含义是: 有关次强式市场效率的一项发现表明，市场效率也是较弱的,因为在弱式市场中考虑的信息同样也对公众来说是可用的.
Once information is made public in a semistrong-form efficient capital market, it is impossible for investors to earn excess returns (after considering trading costs) from transactions based upon this information, because the security price already will reflect accurately the value of this information. Studies of stock splits, new issues, stock listing announcements, earnings and dividend announcements, stock acquisition announcements, and announcements of analyst recommendations support the notion of semistrong-form market efficiency, at least after the cost of commissions on transactions are considered.
Once information is made public in a semistrong-form efficient capital market, it is impossible for investors to earn excess returns (after considering trading costs) from transactions based upon this information, because the security price already will reflect accurately the value of this information.
Once information is made public in a semistrong-form efficient capital market,一旦在次强式效率的资本市场中公开了一些信息，it is impossible for investors to earn excess returns (after considering trading costs) from transactions based upon this information,投资者就无法基于这些信息去获取超额收益(考虑交易成本之后)，because the security price already will reflect accurately the value of this information.因为证券价格已经准确地反映出信息的价值。
Studies of stock splits, new issues, stock listing announcements, earnings and dividend announcements, stock acquisition announcements, and announcements of analyst recommendations support the notion of semistrong-form market efficiency, at least after the cost of commissions on transactions are considered.
这个句子也比较长, 我们先来找一下谓语动词, Can you find it? Well, it should be “ support”支持, 好我们来看一下主语: 主语应该是: Studies of ….对于…的研究谓语是:support 支持宾语: the notion of semistrong-form market efficiency次强式市场效率的说法, notion: 意思是: 概念,说法. 我们来看是对于什么的研究呢? stock splits,股票分割new issues,发行新股stock listing announcements,上市公告earnings and dividend announcements,盈利和股利分配公告、stock acquisition announcements,股票收购公告announcements of analyst recommendations以及分析性建议公告等的研究
好, 我们来看一下这个句子的完整的含义:
有关股票分割、发行新股、上市公告、盈利和股利分配公告、股票收购公告以及分析性建议公告等的研究，支持次强式市场效率的说法, at least after the cost of commissions on transactions are considered.至少在考虑了交易的佣金成本之后。
Strong-form Efficiency
With strong-form market efficiency, security prices fully reflect all information, both public and private. Thus, in a strong-form efficient capital market, no individual or group of individuals should be able consistently to earn above-normal profits, including insiders possessing information about the economic prospects of a firm.
Strong-form Efficiency强式效率
With strong-form market efficiency, security prices fully reflect all information, both public and private. 强式效率市场中，股票价格反映了全部的信息，包括公共的和私人的。
Thus, in a strong-form efficient capital market, no individual or group of individuals should be able consistently to earn above-normal profits, including insiders possessing information about the economic prospects of a firm因此，in a strong-form efficient capital market,在强式效率的资本市场中，no individual or group of individuals should be able consistently to earn above-normal profits,没有个人或团队能够持续的获取超常利润，including insiders possessing information about the economic prospects of a firm即使那些拥有公司经济前景信息的内部人员也不可能。
Implications of Market Efficiency for Financial Managers
In general, we can conclude that capital markets are quite efficient, both in an informational and an operational sense. The observed efficiency of capital markets has some very important implications for financial managers.
Implications of Market Efficiency for Financial Managers供财务经理使用的有关市场效率的暗示
In general, we can conclude that capital markets are quite efficient, both in an informational and an operational sense. 总的来说，我们认为从信息和经营角度讲资本市场还是相当有效率的。
The observed efficiency of capital markets has some very important implications for financial managers.我们所观察到的资本市场的效率情况为财务经理们提供了重要的暗示。
Timing or Gambling时机与赌博
In a weak-form efficient capital market, we know there are no detectable patterns in the movement of stock and bond prices. Companies often indicate that they have delayed a stock or bond offering in anticipation of more favorable capital market conditions; that is, a higher stock price or lower interest rates. Since there are no predictable patterns of stockprice and interest rate movements over time, financing decisions based upon improvedmarket timing are not likely to be productive, on average. If a stock has traded as high as$ 30 per share recently but is now trading only at $ 28, management may delay aproposed new stock issue in anticipation of a higher future price. If this delay is based upona market timing argument--such as "the market is now temporarily depressed"—ratherthan on some inside information known only to management that suggests that the stock iscurrently undervalued, then the strategy is not likely to be successful.
Timing or Gambling
In a weak-form efficient capital market, we know there are no detectable patterns in the movement of stock and bond prices.
Detect: v. 检测 detectable: 检测的.detectable patterns: 检测模式
这个句子的含义是: 在弱式效率资本市场上，我们知道不存在检测股票和债券价格运动的模式。
Companies often indicate that they have delayed a stock or bond offering in anticipation of more favorable capital market conditions; that is, a higher stock price or lower interest rates.
Anticipation: n. 预测 anticipate: v. 预测
公司通常指出它们经常推迟股票和债券的上市, in anticipation of more favorable capital market conditions由于预测到更为有利的资本市场情况而，that is, a higher stock price or lower interest rates.这种有利情况指较高的股价或较低的利率。
Since there are no predictable patterns of stockprice and interest rate movements over time, financing decisions based upon improvedmarket timing are not likely to be productive, on average.
这个句子是由since 引导原因状语从句加一个主句构成, 我们先来看一下主句. financing decisions: 财务决策based upon improvedmarket timing基于改善的市场时机作出的财务决策are not likely to be productive,on average.基本上不可能具有生产率. 我们再来看从句: Since there are no predictable patterns of stockprice and interest rate movements因为不存在可预测的股票价格和利率运动的模式over time 意思是:长期中
好,我们看这个句子的完整的含义: 因为长期中不存在可预测的股票价格和利率运动模式，基于改善的市场时机而做出的财务决策基本上不可能具有生产率。
If a stock has traded as high as$ 30 per share recently but is now trading only at $ 28, management may delay aproposed new stock issue in anticipation of a higher future price如果一个股票近期以每股30美元的价格交易，但目前交易价格仅为28美元，管理人员可能由于预计更高的未来价格而要推迟预计的新股发行。.
If this delay is based upona market timing argument--such as "the market is now temporarily depressed"—ratherthan on some inside information known only to management that suggests that the stock iscurrently undervalued, then the strategy is not likely to be successful.
If this delay is based upona market timing argument-如果这种推迟是基于市场时间观点——such as "the market is now temporarily depressed"如市场只是暂时处于萧条——ratherthan on some inside information known only to management而不是基于一些只有管理层才掌握的内部信息，that suggests that the stock iscurrently undervalued,即股票目前是被低估的，then the strategy is not likely to be successful.那么这项政策不太可能成功。
In some instances,the stock price will increase in the direction of the target, while in others, it will declineeven further. In weak-form efficient capital markets, financial decisions based on timingmarket cycles are not able consistently to lead to higher returns than are available tomanagers who do not attempt to time their financial decisions to take advantage of marketcycles.
In some instances,the stock price will increase in the direction of the target, while in others, it will declineeven further. 在一些例子中，股价会依据目标方向增加，而另一些则愈加远离目标
方向。
In weak-form efficient capital markets, financial decisions based on timingmarket cycles are not able consistently to lead to higher returns than are available tomanagers who do not attempt to time their financial decisions to take advantage of marketcycles.
这个句子看似长,但其实就是一个比较结构: A is not able to lead higher returns than B 就是说:A并没有比B带来更好的收益. 比较的对象是A: financial decisions based on timingmarket cycles基于时间市场周期的财务决策B是time their financial decisions to take advantage of marketcycles.没有按时期划分以利用市场周期而做出的财务决策.
那么这个句子的含义:是在In weak-form efficient capital markets,弱式效率资本市场中，基于时间市场周期的财务决策相比那些不打算给财务决策按时期划分,以利用市场周期的经理所作的决策，不能持续带来较高回报。
好,其实抛开所有的定语,这个句子的含义就是: 弱式效率资本市场中, 基于时间的财务决策并不比没有基于时间的财务决策获得更高的收益.
Security Investments Have an NPV of Zero
In an efficient capital market, ali securities are perfect substitutes for one another, inthe sense that each security is priced such that its purchase represents a zero net present value investment. This is another way of saying that required returns equal expected returns in efficient capital markets. For example, if you buy 1 share of Apple Computer stock for $ 50,the present value of the market expectation of its cash flows is equal to $ 50. Hence, this purchase has a net present value of zero. The difference between the risk and expected returns of the two companies' stocks is reflected in their market prices and the discount rate used by the market to evaluate the expected future cash flows. Only if an investor possesses information that is not known to the marketplace, for example, insider knowledge of a pending takeover attempt-will the investment in a stock or bond have a positive net present value.
Security Investments Have an NPV of Zero证券投资的净现值为0
In an efficient capital market, all securities are perfect substitutes for one another, inthe sense that each security is priced such that its purchase represents a zero net present value investment. 在有效率的资本市场中，all securities are perfect substitutes for one another,这样每一种证券都可以完全替代另一种证券。inthe sense that: 意思是: 如果each security is priced such that its purchase represents a zero net present value investment.每一个证券的定价都使得购买后投资的净现值为零，
This is another way of saying that required returns equal expected returns in efficient capital markets. 这是在有效率的资本市场中要求收益率等于期望收益率的另一种说法。
For example, if you buy 1 share of Apple Computer stock for $ 50,the present value of the market expectation of its cash flows is equal to $ 50.. 假如你以50美元的价格购买一股苹果公司的股票，市场对该现金流量的预期值的现值也等于50美元，Hence, this purchase has a net present value of zero因此该项购买的净现值为零
The difference between the risk and expected returns of the two companies' stocks is reflected in their market prices and the discount rate used by the market to evaluate the expected future cash flows. 两个公司之间期望收益和风险的差异反映在它们的市场价格中以及市场用于评价预计未来现金流量的折现率中。
Only if an investor possesses information that is not known to the marketplace, for example, insider knowledge of a pending takeover attempt---will the investment in a stock or bond have a positive net present value.
我们先看这个句子的结构: only if …条件句+ 主句(倒装结构) . 大家一定记住,only if 放在句首, 主句一定要用倒装句. 如这个主句: will the investment in a stock or bond have a positive net present value.他的正常的语序应是: the investment in a stock or bondwill have a positive net present value.意思是: 投资于股票或债券将会得到正的净现值.
好,我们来看整个句子的含义: Only if an investor possesses information that is not known to the marketplace,只有在投资者拥有不为市场所知的信息时，for example, insider knowledge of a pending takeover attempt (比如说关于即将发生的兼并的内部消息)，-will the investment in a stock or bond have a positive net present value.投资于股票或债券才会得到正的净现值。
Corporate Diversification is Expensive and Unnecessary
If capital markets are efficient and all securities are fairly priced, on average, investors can accomplish on their own without the help of a firm's financial managers. For example, consider Eastman Kodak's acquisition of Sterling Drug. In 1988, Eastman Kodak paid $ per share to acquire Sterling Drug. During the previous year, traded for as little as $ per share. AS a stockholder of Eastman Kodak, you could have achieved the same diversification in your portfolio by simply buying shares of Sterling Drug in the open market. In spite of this, financial managers of many firms continue to make acquisitions of other companies in order to achieve "the benefits of diversification". In efficient capital markets, this type of activity is better left to individual investors.
Corporate Diversification is Expensive and Unnecessary公司多样化经营花费高且不必要
If capital markets are efficient and all securities are fairly priced, on average, investors can accomplish on their own without the help of a firm's financial managers.
Accomplish:to succeed in doing something, especially after trying very hard成功的完成某件事
这个句子的含义是: 如果资本市场是有效率的，而且平均上是公平定价的，那么无需企业财务经理的帮助，投资者就可以自主完成投资。
For example, consider Eastman Kodak's acquisition of Sterling Drug.以柯达公司兼并斯特林药业为例。
In 1988, Eastman Kodak paid $ per share to acquire Sterling Drug. 1988年，柯达以每股89．50美元收购斯特林药业。
During the previous year, traded for as little as $ per share.而前一年，斯特林的股票的每股交易价仅为35．25美元。
AS a stockholder of Eastman Kodak, you could have achieved the same diversification in your portfolio by simply buying shares of Sterling Drug in the open market.作为柯达的股东，你仅仅通过在公开市场上购买斯特林的股票就可以达到同样投资多样化的目标。’
In spite of this, financial managers of many firms continue to make acquisitions of other companies in order to achieve "the benefits of diversification".尽管这样，许多公司的财务经理继续对其他公司进行购并以获得“多样化的益处”。
In efficient capital markets, this type of activity is better left to individual investors.在有效的资本市场中，这种行动还是最好留给个人投资者进行。
Capital Markets Rarely are Fooled
In efficient capital markets, security prices reflect expected cash flows and the risk of those cash flows. If a transaction, such as an accounting change, does not impact thefirm's expected cash flows or the risk of those cash flows, then the transaction shouldhave no impact on security prices. Investors are not fooled by cosmetic accounting or othercosmetic transactions.
Capital Markets Rarely are Fooled资本市场很少被蒙骗
In efficient capital markets, security prices reflect expected cash flows and the risk of those cash flows. 在有效的资本市场上，security prices reflect expected cash flows证券价格反映出预期的现金流量the risk of those cash flows.及相应的风险。
If a transaction, such as an accounting change, does not impact thefirm's expected cash flows or the risk of those cash flows, then the transaction shouldhave no impact on security prices.
如果一项交易does not impact thefirm's expected cash flows or the risk of those cash flows,并不影响公司的预计现金流量或其相应的风险, such as an accounting change,诸如会计变更的，then the transaction shouldhave no impact on security prices.那么这种交易也不会影响证券价格。
Investors are not fooled by cosmetic accounting or othercosmetic transactions. --投资者是不会受到这种粉饰性会计或其他粉饰性交易的愚弄的。
Efficient capital markets research has shown that accounting format changes having noimpact on a firm's cash flows do not result in changes in the firm's value. Such actions as including the capitalized value of financial leases on a firm's balance sheet, providing an inflation-adjusted income statement and balance sheet, company name changes, stock splits, and stock dividends unaccompanied by a rise in earnings and/or dividends have no significant impact on stock prices. In contrast, any event impacting actual cash flows-- such as a change in inventory valuation designed to reduce tax obligations--or the risk of these cash flows--such as an announcement by Arizona Public Service Company that it will sell all of its nuclear power plants--will be reflected quickly in the stock price.
Efficient capital markets research has shown that accounting format changes having noimpact on a firm's cash flows do not result in changes in the firm's value.有关有效资本市场的研究表明，不影响公司现金流量的会计形式变更不会影响公司的价值，
大家注意一下: impact 这个单词的发音, 当他是动词时,发音时:impact重音在第一个音节,
名词时重音在第一个音节
Such actions as including the capitalized value of financial leases on a firm's balance sheet, providing an inflation-adjusted income statement and balance sheet, company name changes, stock splits, and stock dividends unaccompanied by a rise in earnings and/or dividends have no significant impact on stock prices.
这个句子有点长, 这个句子首先告诉我们: 上面所说的会计形式的变更包括什么: Such actions as including the capitalized value of financial leases on a firm's balance sheet,意思是:这包括诸如公司资产负债表上融资性租赁的资本化价值等方式,Providing 引导一个条件句告诉我们一个会计形式变更不会影响公司的价值的前提条件: 是: an inflation-adjustedincome statement and balance sheet, company name changes, stock splits, and stock dividends unaccompanied by a rise in earnings and/or dividends have no significant impact on stock prices.是经通货膨胀调整的损益表和资产负债表、公司名称变更、股票分割和不带来收益和／或股利增加的股票股利等对股价没有显著的影响。
这包括诸如公司资产负债表上融资性租赁的资本化价值等方式, 条件是:是经通货膨胀调整的损益表和资产负债表、公司名称变更、股票分割和不带来收益和／或股利增加的股票股利等对股价没有显著的影响。
In contrast, any event impacting actual cash flows such as a change in inventory valuation designed to reduce tax obligations--or the risk of these cash flows--such as an announcement by Arizona Public Service Company that it will sell all of its nuclear power plants--will be reflected quickly in the stock price
这个句子也是一个长句, 但是结构我们已经碰到过了, ……will be reflected in the stock price: 意思是: 股票价格反映了…. 反应的内容是两个由 or 连接的并列事件:any event impacting actual cash flows影响真实现金流量的事件such as a change in inventory valuation designed to reduce tax obligations(如旨在减少税负的存货计价变更or the risk of these cash flows影响现金流量的风险such as an announcement by Arizona Public Service Company that it will sell all of its nuclear power plants-(如亚利桑那州公共服务公司作出的出售全部核能量设施的公告)。
这个句子的含义就是:
与之相反，股价中可以迅速地反映出以下事件，即影响真实现金流量的事件(如旨在减少税负的存货计价变更)或影响现金流量风险事件(如亚利桑那州公共服务公司作出的出售全部核能量设施的公告)。
Security Prices tell a Story
Prices in efficient capital markets have a story to tell. For example, on , Republic Bank Corporation of announced plans to acquire InterFirstCorporation. InterFirst was suffering from severe loan portfolio quality problems at that time due to the energy sector downturn and a real estate glut in its major market areas. On the day following the announcement, the stock price of InterFirst declined from $ 5 to $ share. The stock price of Republic declined from $ to $19 per share. The market's assessment of this acquisition was not positive, indeed, the market's early assessment appears to have been correct. In early 1988, stock traded for $ per share. The bank failed shortly thereafter.
Security Prices tell a Story证券价格会反映出某种情况
Prices in efficient capital markets have a story to tell. 有效率资本市场中的价格总能告诉我们一些情况。
For example, on , Republic Bank Corporation of announced plans to acquire InterFirstCorporation. ，达拉斯的共和银行公司宣布收购InterFirst公司的计划。
InterFirst was suffering from severe loan portfolio quality problems at that time due to the energy sector downturn and a real estate glut in its major market areas.
Glut: 意思是过剩反义词: shortage 短缺
好,我们来看这个句子. InterFirst was suffering from severe loan portfolio quality problems at that time公司当时受到了严重的贷款组合质量问题的困扰, due to the energy sector downturn 由于能源部门情况逆转and a real estate glut in its major market areas. 以及在InterFirst的主要营销区域房地产过剩
这个句子的含义就是: 由于能源部门情况逆转以及在InterFirst的主要营销区域房地产过剩，公司当时受到了严重的贷款组合质量问题的困扰。
On the day following the announcement, the stock price of InterFirst declined from $ 5 to $ share. 在兼并公告宣布后的第二天，InterFir·st公司的股价从每股5美元跌到4．875美元。
The stock price of Republic declined from $ to $19 per share. 共和的股价从每股21．75美元跌至19美元。
The market's assessment of this acquisition was not positive, indeed, the market's early assessment appears to have been correct. 市场对此次兼并的评价并不乐观。确实，市场的早期评价还是正确的。
In early 1988, stock traded for $ per share. The bank failed shortly thereafter. 1988年早期，第一共和公司的股价降至每股1．75美元。很快，这个银行就破产了。
Thereafter: = afterwards : after a particular period or time. 随后，
International Issues: Market Efficiency outside of the
As mentioned above, extensive testing of the efficiency of security markets in the has led researchers to the conclusion that the major capital markets in this country are quite efficient in their operation and the way in which investors process new, economically relevant information. An important question facing the manager of a multinational firm that desires to raise capital outside of the is: are foreign capital markets also efficient with respect to security pricing and the processing of new information?
International Issues: Market Efficiency outside of the United States国际问题：美国之外的市场效率
As mentioned above, extensive testing of the efficiency of security markets in the has led researchers to the conclusion that the major capital markets in this country are quite efficient in their operation and the way in which investors process new, economically relevant information.
这个句子也比较长，但是结构不复杂，比较容易理解，我们一起来看一下这个句子的含义：As mentioned above,就像上文中提到的那样，extensive testing of the efficiency of security markets in the 美国已经进行了广泛的有关证券市场效率的研究。Has led researchers to the conclusion that the major capital markets in this country are quite efficient研究人员得出结论：美国国内的资本市场是相当有效率的。 in their operation and the way in which investors process new, economically relevant information. 从证券市场的运作和投资者获取崭新的相关的经济信息方面看美国国内的证券市场是相当有效率的。
An important question facing the manager of a multinational firm that desires to raise capital outside of the is: are foreign capital markets also efficient with respect to security pricing and the processing of new information?
这句话也比较好理解意思是：跨国公司的经理若希望在美国国外筹集资金时，所要面对的问题是：are foreign capital markets also efficient with respect to security pricingand the processing of new information?国外资本市场在证券定价和处理新信息方面是否同样有效率呢?
Extensive tests of the efficiency of capital markets outside of the also have been conducted. These studies have concluded that the capital markets in the major industrialized countries, such as , , the , and most of , are reasonably efficient.
Extensive tests of the efficiency of capital markets outside of the also have been conducted. 目前也已经作过了有关美国国外资本市场效率的广泛测试。
这个句子中由一个短语： conduct a test 进行一项测试
These studies have concluded that the capital markets in the major industrialized countries, such as , , the , and most of , are reasonably efficient.研究表明，主要工业国如日本、加拿大、英国和大多数西欧国家的资本市场也是具有合理效率的。
Outside of the major industrialized countries, capital markets function but without the frequency of trading and liquidity that are necessary for efficient markets. Forexample, on one recent day in , the total number of trades on the Cairo StockExchange was 8! Transferring shares in is a complicated, bureaucratized processthat requires many signatures, the payment of transfer taxes, and the reissue of stockcertificates by the issuing company (a signature is required by two member of thecompany's board of directors). Overall, it can take between two and three months beforethe purchaser receives the shares. Brokers in have a gentlemen's agreement thatprices will not be allowed to move more than 10 percent a day. When someone wants tobuy shares from a broker in , the first question that usually is asked is "Why?" Thebroker always suspects that the buyer is privy to some inside information. Insider trading isillegal in . The inefficiency of the Cairo Exchange holds for the capital markets inmany developing countries. Hence, most of the capital that is raised by multinational firms is acquired in countries with well-developed, efficiently functioning capital markets.
Outside of the major industrialized countries, capital markets function but without the frequency of trading and liquidity that are necessary for efficient markets.
Outside of : 在…之外，或者：除了…Outside of the major industrialized countries,
主要工业国以外的国家，capital markets function资本市场在起作用或者说：存在资本市场but without the frequency of tradingand liquidity但不具备交易频率和变现能力that are necessary for efficient markets.有效率市场应有的
这个句子的含义是主要工业国以外的国家，存在资本市场但不具备有效率市场应有的交易频率和变现能力
Forexample, on one recent day in , the total number of trades on the Cairo StockExchange was 8! Transferring shares in is a complicated, bureaucratized processthat requires many signatures, the payment of transfer taxes, and the reissue of stockcertificates by the issuing company (a signature is required by two member of thecompany's board of directors).
on one recent day in Cairo,以开罗最近的一天交易为例，the total number of trades on the Cairo StockExchange was 8!开罗的股票交易所全天的交易量仅为8 ！Transferring shares in Egypt is a complicated,bureaucratized process在埃及转移股票涉及非常复杂的官僚过程，that requires many signatures,需要大量的签字、the payment of transfer taxes,转移税收支付，and the reissue of stockcertificates by the issuing company而且发行公司需要重新发行股票证(a signature is required by two member of thecompany's board of directors). (需要有公司两名董事的签名)。
Overall, it can take between two and three months beforethe purchaser receives the shares. 总的来说，购买者收到股票之前要等2～3个月。Brokers in have a gentlemen's agreement thatprices will not be allowed to move more than 10 percent a day.开罗的经纪人之间有一种君子协定，即每天股价的波动不应超过10％。
When someone wants tobuy shares from a broker in , the first question that usually is asked is "Why?"当有人想从埃及的经纪人手中购买证券时，第一个被问到的问题总是“为什么?” Thebroker always suspects that the buyer is privy to some inside information.经纪人总是怀疑买方拥有一些内部信息。
Privy： =private
'privy to' means 'knows confidential or private information'
Insider trading isillegal in . 在埃及内部交易是非法的：
The inefficiency of the Cairo Exchange holds for the capital markets inmany developing countries. 开罗交易所的无效率情况出现在许多发展中国家的资本市场中。
Hence, most of the capital that is raised by multinational firms is acquired in countries with well-developed,efficiently functioning capital markets.因此，跨国公司筹集的资金多来自于发展完备的有效运行的资本市场中。
Even if the capital markets of the major industrialized countries are relatively efficient, it may still be true that international capital markets, in general, are not efficient. For example, to the extent that there are barriers to the free flow of capital among the major world capital markets, it is possible that a multinational firm can use these barriers to reduce the overall cost of raising capital. Some of the barriers that have been identified include:
Even if the capital markets of the major industrialized countries are relatively efficient, it may still be true that international capital markets, in general, are not efficient. 尽管主要工业国家的资本市场是相对有效率的，但从总体上讲，国际资本市场还是没有效率的。
For example, to the extent that there are barriers to the free flow of capitalamong the major world capital markets, it is possible that a multinational firm can use these barriers to reduce the overall cost of raising capital. Some of the barriers that have been identified include:
举例说，there are barriers to the free flow of capitalamong the major world capital markets,主要世界资本市场中有一些限制资本自由流动的障碍，it is possible that a multinational firm can use these barriers跨国公司可能利用这些障碍to reduce the overall cost of raising capital来降低整体筹资成本。一些限制性障碍如下所示：
1. Legal restrictions that limit the amount of foreign investment by some institutional investors. Some countries limit the amount of foreign ownership of domestic industries in an attempt to prevent a loss of local control.
2. High transactions costs also may make the free flow of capital difficult across country borders less than efficient. These high costs include the cost of gathering information, trading costs, fees for managing international investments, and security custodial service fees.
3. Taxation policies between nations sometimes discourage the free flow of capital across borders.
4. International investments are subject to greater political risks than are domestic investments. These political risks range from expropriation to limits on the repatriation of profits and assets.
5. Foreign exchange risks, that is, the risks of unfavorable movements in the value of foreign currencies, also act as a deterrent to the free flow of capital across national borders.
1. Legal restrictions that limit the amount of foreign investment by some institutional investors. 法律限制，即限制机构投资者的对外投资额。Some countries limit the amount of foreign ownership of domestic industries一些国家限制外资所有权在国内工业中所占数额，in an attempt to prevent a loss of local control.以防止丧失在当地的控制。
2. High transactions costs also may make the free flow of capital difficult across country borders less than efficient.高额交易成本使资本以低效率、困难地跨国界自由流动。
These high costs include,高成本包括the cost of gathering information,收集信息成本、trading costs,交易成本、fees for managing international investments管理国际投资的费用和and security custodial service fees.证卷监管服务费用。
3. Taxation policies between nations sometimes discourage the free flow of capital across borders.税收政策，即国家间的税收政策有时会限制资本的跨国界自由流动。
4. International investments are subject to greater political risks than are domestic investments. 政治风险，即国际投资比国内投资更容易遭受政治风险，These political risks range from expropriation to limits on the repatriation of profits and assets.我们来看两个单词 Expropriation: 没收私人财产，国有化repatriation：to send profits or moey you have earned back to your own country: 把利润或者钱汇回自己的国家。
所以说政治风险是包括从：私人财产被没收规为国有，到限制利润资产的汇出。
5. Foreign exchange risks, that is, the risks of unfavorable movements in the value of foreign currencies, also act as a deterrent to the free flow of capital across national borders.汇率风险，即外汇价值不利的波动也会阻碍跨国界资本的自由流动。
Deter: stop someone from doing sth 阻止某人做某事。Deterrent: n. 障碍物
These factors may lead to somewhat segmented international capital markets. To the extent that international capital markets are not fully integrated, opportunities may exist for multinational firms that are willing to aggressively manage their investment andcapital-raising functions to gain some advantage over less internationally integrated firms.
These factors may lead to somewhat segmented international capital markets. 以上因素的存在可能导致国际资本市场分割而立。
To the extent that international capital markets are not fully integrated,根据国际资本市场不完全整合的程度。 opportunities may exist for multinational firms跨国公司可能面临许多机会that are willing to aggressively manage their investment andcapital-raising functions可以积极地管理它们的投资和筹资功能，gain some advantage over less internationally integrated firms.从而可以比那些国际一体化较差的公司赚取更多的利益。
Unit21 Financial Articles Published in Newspapers and Magazines
Is Price Stability Enough? 1
Is Price Stability Enough?
物价稳定就够了吗?
Central banks need to worry aboutmore than just inflation
中央银行需要担忧的不仅仅是通货膨胀
Three months after Ben Bernanketook over as chairman of America’s Federal Reserve，financial markets are struggling to decipher his monetary smoke signals．His testimony to Congress on April 27th and some unguarded remarks to a jiournalist have leftmarkets confused over whether or notthe Fed has nearly finished raising interest rates．Some economists argue that the Fed would find its policy easier to explain if it had an explicit inflation target--something Mr．Bernanke iS known to favor．That might make it easier for financial markets to guess where interest rates are going，but would it necessarily result in better policy?
Three months after Ben Bernanketook over as chairman of America’S Federal Reserve，financial markets are struggling to decipher his monetarysmoke signals．
Decipher: 破解，解读，
Smoke signals: So here this means that Bernanke has a way of communicating that isn't easy to understand.微妙信号
本·伯南克当上美联储主席三个月后，整个金融市场都在竞相解读其给出的有关货币政策的微妙信号。
His testimony to Congress on April 27th and some unguarded remarks to a iournalist have leftmarkets confused over whether or notthe Fed has nearly finished raising interest rates．
Testimony：誓词unguarded remarks口无遮拦的评论 leave sb confused: 使某人迷惑，茫然
这个句子的含义使：His testimony to Congress on April 27th and some unguarded remarks to a iournalist他向国会作的誓词以及向记者发表的一些口无遮拦的评论have leftmarkets confused使金融市场一片茫然，over表示有关什么方面，whether or notthe Fed has nearly finished raising interest rates．不知是否美联储已经接近完全结束提升利率。
Some economists argue that the Fed would find its policy easier to explain if it had an explicit inflation target--something Mr．Bernanke is known to favor．一些经济学家认为the Fed would find its policy easier to explain美联储的政策将会更容易解释if it had an explicit inflation target--如果美联储有一个明确的通货膨胀目标值——something Mr．Bernanke is known to favor．这是伯南克先生所公开支持的.
That might make it easier for financial markets to guess where interest rates are going，but would it necessarily result in better policy?
金融市场可能会更容易猜测到美联储利率的走向，但是它一定就会引出更好的政策吗?
If candidates in an economics exam are asked：“What should be the main objective of monetary policy?”，the“correct”answer today is price stability：Central banks should single-mind-edly reduce inflation and then keep it low；they should also avoid deflation．In that same exam in ten years’time，however，the required answer may bedifferent．Or so implies a new paper by Bill White，the chief economist at the Bank for International Settlements，which asks：“Is price stability enough?”
If candidates in an economics exam are asked：“What should be the main objective of monetary policy?”，如果参加经济学考试的考生被问及：“货币政策的主要目标应该是什么?”，
the“correct”answer today is price stability：Central banks should single-mindedly reduce inflation and then keep it low；they should also avoid deflation．
Single-minded: 专心致志的，一心一意的
在今天“正确的”答案是物价稳定：央行应该一门心思地减低通货膨胀率然后使其处于低的水平，而且还要避免通货紧缩。
In that same exam in ten years’time， however，the required answer may be different．然而，十年以后，在同样的考试中，人们需要的答案可能就会不同。
Or so implies a new paper by Bill White，the chief economist at the Bank for International Settlements，which asks：“Is price stability enough?”
Or so: 或许 imply: 暗示the chief economist首席经济学家
或许答案正如国际清算银行的首席经济学家比尔·怀特的一篇新的论文所暗示的那样，文中他问道：“物价稳定就够了吗”
Inflation is indeed a curse on economies．High inflation disrupts steady growth，and by blurring movements in relative prices it leads to a misallocation of resources．However，stable prices do not guarantee stable economies．The bursting of Japan’S bubble in the early 1990s and East Asia’s economic crisis in 1997——98 were both preceded by periods of low inflation．Furthermore，recent structural changes in the global economy could mean that a low，positive rate of inflation is not always best．Thanks to the re-emergence of China and India and the productivity gains from information technology，the world is enjoying a terrific Positive supply shock，which has reduced the prices of many goods．Howshould centrel banks respond?
Inflation is indeed a curse on economies的确，通货膨胀对经济的祸害很深。
High inflation disrupts steady growth，and by blurring movements in relative prices it 1eads to a misallocation of resources．
Blur: to make hard to discern or see很难辨认
高通货膨胀率扰乱经济的稳定增长，使相对价格运动显得扑朔迷离从而导致资源配置不当。
However，stable prices do not guarantee stable economies．然而，物价稳定并不一定保证经济稳定。
The bursting of Japan’S bubble in the early 1990s and East Asia’s economic crisis in 1997——98 were both preceded by periods of low inflation．
Be preceded by: 在…之前反义词：by followed by.
20世纪90年代初日本泡沫经济的破灭以及1997—98年间东亚的经济危机之前都有一段时间低的通货膨胀率。
Furthermore，recent structural changes in the global economy could mean that a low，positive rate of inflation is not a1ways best．而且，近期全球经济的结构性变化可能意味着一个低的积极的通货膨胀率并不总是最好的。
Thanks to the reemergence of China and India and the productivity gains from information technology，the world is enjoying a terrific positive supply shock，which has reduced the prices of many goods．由于中国和印度的复兴以及信息科技带来的生产力盈余，整个世界正在享有个极大的积极的供给冲击，该冲击降低了许多商品的价格。
How should centrel banks respond?中央银行应该怎样应对呢?
Current received wisdom holds thatif a negative supply shock(higher oil prices，say)causes inflation to rise，centrel banks should tolerate this so long as it does not increase inflationaryexpectations and lead to second-round effects on other prices．The logic is that central banks should ignore oneoff changes in the price of things they cannot control．So，asks Mr．White，shouldn’t centrel banks also ignore thefall in inflation arising from a positive supply shock?To be consistent，they should allow inflation to fall below target．Instead，as the prices of traded goods fall，centreI banks have been propping up inflation by pursuing looser monetary policies．
Current received wisdom holds thatif a negative supply shock(higher oil prices，say)causes inflation to rise，centrel banks should tolerate this so long as it does not increase inflationaryexpectations and lead to second-round effects on other prices．
Current received wisdom当前普遍接受的观点holds thatif a negative supply shock(higher oil prices，say)causes inflation to rise，认为如果负面的供给冲击(比如更高的石油价格)导致通货膨胀率上升，centrel banks should tolerate this中央银行不应予以制止so long as it does not increase inflationaryexpectations and lead to second-round effects on other prices，但是只要其不增加通货膨胀预期，不引起对其他物价的第二轮效应.
The logic is that central banks should ignore oneoff changes in the price of things they cannot control．其逻辑是央行应该忽略其不能控制的物品物价的一时变化。
So，asks Mr．White，shouldn’t centrel banks also ignore thefall in inflation arising from a positive supply shock?因此，怀特先生便问，中央银行是不是也应该忽略正面的供给冲击所引起的通货膨胀率的下降呢?
To be consistent，they should allow inflation to fall below target．为了做到一致，它们应该允许通货膨胀率降到目标值以下。
Instead，as the prices of traded goods fall，centreI banks have beenpropping up inflation by pursuing looser monetary policies．而实际正好相反，随着交易商品价格的下降，中央银行却一直在通过宽松的货币政策来支撑通货膨胀率，不让其下降。
Mr．Bernanke WOuld argue that back in 2003 when the Fed slashed interest rates to 1％，it was trying to prevent deflation．However，not all deflations are like that of the 1930s，a vicious circle of deficient demand，falling prices and rising real debt burdens，which further depressed demand and hence prices．Historically，most deflations have been benign，caused by technological innovation and associated with robust growth．During the rapid globalization of the late 1 9th century，falling average prices went hand in hand with strong growth．Today’S world has much in common with that period．
Mr．Bernanke WOuld argue that back in 2003 when the Fed slashed interest rates to 1 %，it was trying to prevent deflation．伯南克先生可能会说，在2003年当联储将利率狂降到1 %的时候，它是在尝试阻止通货紧缩。
However，not all deflations are like that of the 1930s，a vicious circle of deficient demand，falling prices and rising real debt burdens，which further depressed demand andhence prices．
然而，并不是所有的通货紧缩都像20世纪30年代的那样，那是一个a vicious circle: 恶性循环什么样的恶性循环呢？ deficient demand需求不足falling prices物价下降rising real debt burden实际负债增加which further depressed demand，而该循环又进一步使需求低迷hence prices．物价下跌。
Historically，most deflations have been benign，caused by technological innovation and associated with robust growth．从历史上看来，大多数通货紧缩都是良性的，caused by technological innovation由技术创新所引起and ssociated with robust growth．并与经济的强劲增长相连。
During the rapid globalization of the late 19th century，falling average prices went hand in hand with strong growth．
Sth go hand in hand with sth: 意思是：二者紧密相连。
在19世纪末的快速全球化阶段，falling average prices平均物价的下降went hand in hand with strong growth经济的强势增长紧密相连。
Today’S world has much in common with that period．今天的世界和那个时期颇为相似。
Is Price Stability Enough? 2
Are central banks targeting too high a rate of inflation now that and have boosted global capacity SO dramatically? Some of the deflation that the Fed was worrying about in 2003 was in fact benign deflation due to cheaper goods from China and the IT revolution．But its determination to prevent inflation falling caused it to push interest rates unusually low．This，argues Mr White，could have long-term costs to the extent that persistently easy money leads to too much borrowing，too little saving and unsustainable asset prices．
Are central banks targeting too high a rate of inflation now that and have boosted global capacity so dramatically?
这个句子是一个一问句，我们先来看后半句，Now that : since 既然China and India have boosted global capacityso dramatically?既然中国和印度已极大地提高了全球的生产能力
Are central banks targeting too high a rate of inflation中央银行的通货膨胀率目标值是否太高了呢?
Some of the deflation that the Fed was worrying about in 2003 was in fact benign deflation due to cheaper goods from China and the IT revolution． 2003年间一些令联邦储备忧心忡忡的通货紧缩现象was in fact benign deflation，实际上是良性的通货紧缩，due to cheaper goods from China and the IT revolution．源于来自中国的廉价商品以及信息革命。
But its determination to prevent inflation falling caused it to push interest rates unusually low．但是，联邦储备却决心阻止通货膨胀率下降，因此不得不把利率降到了低得异乎寻常的地步。
This，argues Mr White，could have long-term costs to the extent that persistently easy money leads to too much borrowing，too little saving and unsustainable asset prices．怀特先生据此争论，联邦储备这样做长期看来是要付出代价的，persistently easy money持续的低利率会leads to too much borrowing导致借贷过度，too little saving储备过少，unsustainable asset prices资产价格也会变得不可维持。
Most centrel banks base their policy analysis on models derived from Keynesian economics． In these，hold ing interest rates too low creates excessive aggregate demand and hence inflation．But Mr．White believes that a model based on the Austrian school
of economics，at its height between the world wars，may now be more relevant．In Austrian models，the main resuh of excessively low interest rates iS excess credit and an imbalance between saving and investment--rather like the one in America today．
Most centrel banks base their policy analysis on models derived from Keynesian economics．大多数中央银行把他们的政策分析建立在源于凯恩斯经济学的模型之上。
In these，hold ing interest rates too low creates excessive aggregate demand and hence inflation．根据这些模型，保持利率水平太低会造成总需求过量并由此导致通货膨胀。
But Mr．White believes that a model based on the Austrian school of economics，at its height between the world wars，may now be more relevant．但是怀特先生却相信现在使用建立在兴盛于两次世界大战之间的奥地利学派的经济学之上的模型则可能更为贴切。
In Austrian models，the main result of excessively low interest rates is excess credit and an imbalance between saving and investmentrather like the one in America today．在奥地利模型中， the main result of excessively low interest rates过度低的利率水平所引发的主要结果是is excess credit过度信贷和imbalance between saving and investment储蓄与投资的失衡，rather like the one in America today非常像美国今天的情况。
A fresh look at fusty tomes
There are two reasons for dustingoff Austrian economics．Financial liberalization，by allowing bigger increases in credit than in the past，has increased the risk of boom-bust cycles the Austrian sort．Second，competition from China and faster productivity growth may have changed the inflation process and made traditional indicators a 1ess useful guide to monetary policy．Defenders of today’s monetary-policy method，focused on consumer price inflation，may say that it seems to have delivered the goods，in the form of more stable growth． So why change? One reason，suggests Mr．White，is that if monetary policy is concerned solely with price stability，surges in credit will be restrained only if they trigger intlationary -bigger financial imbalances could thus build up．Even if inflation remains subdued in the short term，low interest rates could either increase the risk of higher inflation in future or pump up borrowing and asset prices．Should these imbalances eventually correct themselves，there will be a sharp slowdown．
A fresh look at fusty tomes旧论新观
There are two reasons for dusting off Austrian economics．奥地利学派经济学已久不为人所用，而今将其备好待用，原因有二。
First, Financial liberalization，by allowing bigger increases in credit than in the past，has increased the risk of boom-bust cycles of the Austrian sort．
这个句子的结构很简单，主句是：Financial liberalizationhas increased the risk of boom-bust cycles of the Austrian sort．金融自由化, 提高了奥地利式的繁荣衰退周期的风险。逗号之间的内容是插入语，告诉我们金融自由化通过什么方式提高了风险。
by allowing bigger increases in credit than in the past，通过允许信贷比以往更大幅度地增加，
Second，competition from China and faster productivity growth may have changed the inflation process and made traditional indicatorsa 1ess useful guide to monetary policy．
其次，competition from China and faster productivity growth来自中国的竞争以及更快的生产力增长may have changed the inflation process可能已经改变了通货膨胀的过程and made traditional indicatorsa 1ess useful guide to monetary policy．Traditional indicators: 传统的各项指数a 1ess useful guide: 较底的导向作用。所以，这部分的意思是：并且使得传统的各项指数对货币政策有了较低的导向作用
其次，来自中国的竞争以及更快的生产力增长可能已经改变了通货膨胀的过程，从而降低传统的各项指数对货币政策的导向作用。
Defenders of today’s monetary-policy method，focused on consumer price inflation，may say that it seems to have delivered the goods，in the form of more stable growth．
Defender: 捍卫者
我们首先来看这个句子的主体结构是：Defenders of today’s monetary-policy methodmay say that it seems to have delivered the goods，今天的货币政策方法的捍卫者可能会说该方法看起来已经实现了商品流通。focused on consumer price inflation，定语修饰monetary-policy ，意思是：今天的货币政策方法是以消费者物价膨胀为中心。我们再来看句子末尾的短语：in the form of more stable growth 告诉我们货币政策方法是通过更稳定的增长方式来实现商品流通。
好，我们来看这个句子的完成的含义：今天的货币政策方法以消费者物价膨胀为中心，其捍卫者可能会说该方法看起来已通过更稳定的增长方式实现了商品流通。
So why change? One reason，suggests Mr．White， is that if monetary policy is concerned solely with price stability，surges in credit will be restrained only if they trigger intlationary pressures·
Surge: a sudden increase in amount or number数量的激增
Trigger: to make something happen very quickly, especially a series of events:引发，使得一系列的事件迅速的发生。
Certain forms of mental illness can be triggered by food allergies.
食物过敏可以引发特殊形式的大脑疾病。
好，我们来看这个句子
So why change? One reason，suggests Mr．White，那么，为什么要改变呢? 怀特先生认为，一个原因就是is that if monetary policy is concerned solely with price stability如果货币政策所关心的仅仅是物价稳定，那么，surges in credit信贷的激增will be restrained 应该被限制only if they trigger inflationary pressures只有当信贷的激增引发了通货膨胀压力，也就是说：如果不引发通货膨胀压力就不应该限制信贷的激增。
好，我们来看这个句子的含义：那么，为什么要改变呢? 先生认为，一个原因就是如果货币政策所关心的仅仅是物价稳定，那么，如果不引发通货膨胀压力就不应该限制信贷的激增。
Everbigger financial imbalances couldthusbuild up．这样一来更大的金融失衡就会聚积。
Even if inflation remains subdued in the short term，low interest rates could either increase the risk of higher inflation in future orpump up borrowing and asset prices．。
Subdue: v. to defeat or control a person or group, especially using force:使用武力挫败或征服 remain subdued=be subdued 被遏制，被征服，被挫败
Pump up: to increase the value, amount, or level of something增加价值，提高数量或水平等
好，我们来看这个句子Even if inflation remains subdued in the short term，即便通货膨胀在短期内被遏制low interest rates could either increase低利率亦可能会增加the risk of higher inflation in future将来更高通货膨胀的风险pump up borrowing and asset prices．促进借贷以及提高资产价格
译文：即便通货膨胀短期内被遏制，低利率亦可能会增加将来更高通货膨胀的风险或者促进借贷以及提高资产价格
Should these imbalances eventually correct themselves，there will be a sharp slowdown．当这些失衡的现象最终要自我调整的时候，经济就会出现急刹车。
Central banks therefore need to watch a wider range of indicators。In eluding the growth in credit，saving rates and asset prices．They should be prepared to raise interest rates in response to clear evidence of financialimbalance even if this leads them toershoot their targets for inflation．
Central banks therefore need to watch a wider range of indicators.因此，中央银行需要关注一系列范围更广的指数，
Including the growth in credit，saving rates and asset prices．包括信贷增长指数、储蓄率指数和资产价格指数等。
They should be prepared to raise interest rates in response to clear evidence of financialimbalance even if this leads them to undershoot their targets for inflation．
Undershoot:
They 指代中央银行。They should be prepared to它们应该做好raise interest rates提升利率的准备in response to clear evidence of financialimbalance以应对明显的金融失衡现象，even if this leads them to undershoot their targets for inflation．即使这样做会使他们达不到通货膨胀目标值。
The snag is that in contrast to a simple inflation target，such a frame work will make policy less transparentand a central bank may find it harder to explain its interest—rate decisions．Central bankers will need especially clear heads：What could be better than a-brisk hike in the Austrian Alps?
The snag is that in contrast to a simple inflation target，such a frame work will make policy less transparentand a central bank may find it harder to explain its interest rate decisions．
Snag: problem or disadvantage, especially one that is not very serious, which you had not expected: 问题，特别是没有预料到，并且不太严重的问题。
It's an interesting job. The only snag is that it's not very well paid.
The snag is that in contrast to a simple inflation target问题是与简单的通货膨胀目标相反，such a frame work这样一个框架will make policy less transparent它会降低政策的透明度and a central bank may find it harder而且中央银行可能会发现很难to explain its interest rate decisions解释其利率决定
译文：问题是这样一个框架与简单的通货膨胀目标相反，它会降低政策的透明度，而且中央银行可能会发现更难解释其利率决定。
Central bankers will need especially clear heads：what could be better than a-brisk hike in the Austrian Alps?中央银行会需要头脑异常清醒的人物：还有什么比步履轻盈的走在奥地利的阿尔卑斯山上更好的呢?
Blue Chip Blues 1
Blue Chip Blues’
忧郁的蓝筹股
How long will the stocks of ’s largest companies remain weaklings on Wall Street?美国大公司的股票在华尔街还会疲软多久?
Weakling：
Just a few years ago，U．S．bluechip stocks were the most respected asset class in the world．No longer．In May，the$22 billion Fidelity Blue Chip Growth fund，which holds shares of giant U．S．companies such as Microsoft，Johnson&Johnson，and WalMart Stores，will make a surprising request．It will ask shareholders to approve a switch in its benchmark from the Standard&Poor’s 500 stock index，a traditional blue chip barometer，to the Russell 1 000 Growth Index，a broader gauge that includes many smaller companies．“The move.” says fund manager John McDowell。“reflects the investment style of the fund through thick and thin．”Meanwhile，anotherFidelityfund，$5 0 billion Magellan，recently dumped blue chips Pfizer，Intel，and Procter&Gamble and boosted its foreign holdings to 25 ％．up from 4％just a few months ago.
Just a few years ago，U．S．bluechip stocks were the most respected asset class in the world．No longer．仅仅几年前，美国的蓝筹股还是世界上最受推崇的一类资产，而如今风光不再。
In May，the$22 billion Fidelity Blue Chip Growth fund，which holds shares of giant U．S．companies such as Microsoft，Johnson&Johnson，and WalMart Stores，will make a surprising request．
大家看一下这个句子的主句应该是什么？ Well, it should be “ In Maythe$22 billion Fidelity Blue Chip Growth fund wil make a surpsing request. 管理资产高达220亿美元的富达蓝筹股成长基金它将在今年5月发出让人吃惊的请求。这里要注意一个英文的表达the $22 billion 他的意思是：基金管理的资产高达220亿元。Which 引导定语从句告诉我们这个基金拥有哪些公司的股票which holds shares of giant U．S．companies such as Microsoft，Johnson&Johnson，and WalMart Stores. 他持有多家美国大公司的股票，譬如微软、强生和沃尔玛百货商店。
译文：管理资产高达220亿美元的富达蓝筹股成长基金持有多家美国大公司的股票，譬如微软、强生和沃尔玛百货商店。
It will ask shareholders to approve a switch in its benchmark from the Standard&Poor’s 500一stock index，a traditional blue—chip barometer，to the Russell 1 000 Growth Index，a broader gauge that includes many smaller companies．
approve a switch：同意转移,改变，switch: 改变，变化
benchmark: 基准，基点，指数
approve a switch in its benchmark：同意指数的转移
barometer：指标
gauge: 指标
It will ask shareholders to approve a switch in its benchmark他请求股东批准股指进行转移。from the Standard&Poor’s 500一stock index， to the Russell 1 000 Growth Index，标准普尔500股指转移到拉塞尔1000成长指数。a traditional blue—chip barometer，告诉我们：标准普尔500股指是传统的蓝筹股指标， a broader gauge that includes many smaller companies．拉塞尔1000成长指数是一个对象更广泛的指标，包括许多小型股
译文：他请求股东批准把股指由传统的蓝筹股指标标准普尔500股指，转移到对象更广泛的指标、包括许多小型股的拉塞尔1000成长指数。
“The move.” says fund manager John McDowell，“reflects the investment style of the fundthrough thick and thin．”
through thick and thin：长期以来，一贯以来
The move.：此举
好，那么这个句子的含义是：基金管理人约翰·麦克道威尔说：“reflects the investment style of the fundthrough thick and thin．此举体现了这家基金一贯以来的投资风格。”
Meanwhile，anotherFidelityfund，$5 0 billion Magellan，recently dumped blue chips Pfizer，Intel，and Procter&Gamble and boosted its foreign holdings to 25 ％．up from 4％just a few months ago.
Dump: get rid of 抛弃，丢弃
Boost: increase增加，提高
anotherFidelityfund $5 0 billion Magellan，富达的另一个基金管理资产高达500亿美元的麦哲伦基金recently dumped blue chips Pfizer，Intel，and Procter&Gamble也在近期抛弃了辉瑞、英特尔和宝洁等蓝筹股and boosted its foreign holdings to 25 ％．把持有的外国股份提升到了25％ up from 4％just a few months ago.由仅仅几个月前的4％提高的
译文：与此同时，富达的另一个基金管理资产高达500亿美元的麦哲伦基金也在近期抛弃了辉瑞、英特尔和宝洁等蓝筹股，把持有的外国股份由仅仅几个月前的4％提升到了25％。
These are confusing times for theshareholders of America’s biggest cor Dorations．General Electric Co．has boosted its earnings by 2 2％since Chief Executive J effrey R． Immelt took the reins on Sept．7，2001．But GE’s once vaunted stock price has languished during his tenure．Home Depot Inc．，the second-biggest U．S．retailer，has more than doubled its profits since 2001，a feat rewarded with a measly 1．5％ bump in its stock price．Intel Corp．’s prize for boosting its
earnings by 173％in five years?A 30％plunge in its shares．
These are confusing times for theshareholders of America’s biggest coroperations．这段时期让美国大公司的股东们一头雾水。
General Electric Co．has boosted its earnings by 2 2％since Chief Executive Jeffrey R．Immelt took the reins on Sept．7，2001．自首席执行官杰弗里·R·伊梅尔特执掌大权以来，通用电气公司的收益已增长了22％.
Take the reins: =take over the reins 掌权 hand over the reins: 把权力交给他人掌管
But GE’s once vaunted stock price has languished during his tenure．
Vaunted: a plan, system, achievement etc that is vaunted is praised or talked about too much and in a way that is too proud:引以为豪的vaunted stock price：引以为豪的的股价
Much-vaunted: 过度吹嘘的，过度夸张的
Languish: if something languishes, it fails to improve and develop or become successful某事停步不前，没有任何的进展或进步The shares are languishing at just $5 after yesterday's fall.股价在昨天下跌后，今天一直停留在5美元
Tenure: the period of time when someone has an important job任期
译文：但公司一度引以为豪的股价在他任职期间却表现乏力或者说：没有任何的升值。
Home Depot Inc．，the second-biggest U．S．retailer，has more than doubled its profits since 2001，a feat rewarded with a measly 1．5 ％ bump in its stock price．
Feat: impressive achievements了不起的业绩
Measly: very small and disappointing in size, quantity, or value - used to show disapproval: 非正式的一种表达对数量，质量，价值非常的少而感到令人失望的词，我们可以翻译为：区区，仅仅
All I got was a measly £5after woking for 1day. 辛苦一天仅仅得到区区5美元。
Bump: n.上涨
自2001年以来，美国第二大零售商家得宝has more than doubled its profits盈利翻了一番还多， a feat rewarded with a measly 1．5 ％ bump in its stock price ：但所换回的股票价格的收益为上涨了区区%
Intel Corp．’s prize for boosting its earnings by 173％in five years? A 30％plunge in its shares．想知道英特尔公司的收益在五年内攀升173％换来的是什么吗?换来的是股价骤跌了30％。
A similar malaise afflicts Walt Disney，Microsoft，Pfizer，WalMart，and others across many sectors and industries．What exasperates the leaders of these corporations is that it seems there’s little they can do about it．They’re delivering the earnings growth，but investors aren’t respon
ding．At work are forces largely beyond their control．
A similar malaise afflicts Walt Disney，Microsoft，Pfizer, WalMart，and others across many sectors and industries．一种类似的股价萎靡不振的现象也让，沃尔特·迪斯尼、微软、辉瑞、沃尔玛及其他行业的许多公司觉得很痛苦
Malaise：萎靡不振，忧患，焦虑不满的情绪
Afflict: 折磨，使遭受痛苦
What exasperates the leaders of these corporations is that it seems there’s little they can do about it．让这些公司的领导人觉得烦恼的是，他们对此似乎无计可施。
Exasperate: =annoy 令人烦恼的，令人不高兴的
They’re delivering the earnings growth，but investors aren’t responding．他们实现了收益增长，但投资者却没有相应的报答。
At work are forces largely beyond their control．在起作用的是他们基本上无力控制的一些因素。
Blue Chip Blues 2
BOILING DOWN TO ZILCH回报率几乎为零
Zilch: nothing at all, 根本就什么都不是
Boil down to: 总结为，归结为
Welcome to the blue chip blues．The S&P 500 is near a five-year high．But don’t celebrate：It has returned just 4．3％annually during that span，far less than its long-term average of 10％．The S&P 100-stock index－the bluest of the blue chips，with$6．5 trillion in market capitalization and a huge share of U．S．corporate profits －has returned just 2．03％annually to
investors during that span，chiefly from dividends． Without dividends，it’S just 0．94％overall，or 0．19％ annually．In any event，after taxes and inflation，that pretty much boils down to zilch．Things have gotten so bad that ISI Group strategist Jason tLTrennert has said blue chips could be“the cheapest asset class in the developed world．”
Welcome to the blue chip blues．不妨正视一下忧郁的蓝筹股吧。
The S&P 500 is near a five-year high．But don’t celebrate：标准普尔500股指接近五年来的最高点，但没什么好庆贺的：
It has returned just 4．3％annually during that span，far less than its long-term average of 10％．
Span: a period of time.一段时间
在这段时间内，年回报率只有4．3％，远低于其长期的平均回报率10％水平。
The S&P 100-stock index－the bluest of the blue chips，with$6．5 trillion in market capitalization and a huge share of U．S．corporate profits －has returned just 2．03％annually to investors during that span，chiefly from dividends．
这个句子我们看到是由两个破折号连接，他们的作用和逗号的作用是一样的，都是起到解释说明的作用。因此主语就是破折号前的内容：The S&P 100-stock index标准普尔100股指谓语是破折号后的内容has returned just 2．03％annually to investors during that span，chiefly from dividends．而在这段时间每年给投资者带来的回报率只有2．03 %，主要来自股息。插入语的内容“the bluest of the blue chips，with$6．5 trillion in market capitalization and a huge share of U．S．corporate profits”意思是：标准普尔100股指可以说是蓝筹股的精粹部分市场资本总额高达6．5万亿美元，占有美国公司盈利的一大部分。
译文：而在这段时间，标准普尔100股指每年给投资者带来的回报率只有2．03 %，主要来自股息。标准普尔100股指可以说是蓝筹股的精粹部分，市场资本总额高达6．5万亿美元，占有美国公司盈利的一大部分。
Without dividends，it’s just 0．95％overall，or 0．19％ annually．要是股息不计算在内，五年总回报率只有0．95％，也就是说每年0．19％。
In any event，after taxes and inflation，that pretty much boils down to zilch．无论如何，如果扣除税收和通货膨胀，这回报率几乎为零。That refers to return 收益
Things have gotten so bad that ISI Group strategist Jason R Trennert has said blue chips could be“the cheapest asset class in the developed world．”形势变得如此之糟糕，连国际战略和投资集团的策略师贾森·R·特纳特说过，现在蓝筹股恐怕是“发达国家最不值钱的一类资产。”
There’s no law that says stockprices must track corporate earnings perfectly．But the degree of the disconnect and its long duration pose serious questions for CEOs，managers，and shareholders aike．Is this a temporary phenomenon or a pemanentstructural change?Should America’Sinvestor class—the doctors and nurses，couples and singles，clerks and judges--continue to hold these stocksas dearly as they did a few years ago? What would it take to get big U．S．stocks moving again?
There’s no law that says stockprices must track corporate earnings perfectly．
Track:= keep track of和…保持一致
没有任何规律规定股价与企业收益的步调必须完全一致。
But the degree of the disconnect and its long duration pose serious questions for CEOs，managers，and shareholders alike．
But the degree of the disconnect, disconnect在这里指股价和收益的反差，he degree of the disconnect反差的程度大，而且its long duration持续时间也很长pose serious questions for CEOs，managers，and shareholders alike．这给首席执行官、基金管理人和股东们都提出了严峻的问题。短语：pose questions: 提出问题
译文：但两者之间的反差太明显了，持续时间也太长了，这给首席执行官、基金管理人和股东们都提出了严峻的问题：
Is this a temporary phenomenon or a pemanentstructural change?这只是暂时现象，还是永久性的结构变化?
Should America’Sinvestor class—the doctors and nurses，couples and singles，clerks and judges--continue to hold these stocksas dearly as they did a few years ago?美国的投资者医生和护士、夫妻和单身、文员和法官是不是应当像几年前那样继续信心备足地牢牢持有这些股票?
这个句子也是由破折号连接，破折号前后的内容是主体结构。这是一个疑问句。Should ’Sinvestor classcontinue to hold these stocksas dearly as they did a few years ago?一时是：美国的投资者是不是应当像几年前那样继续信心备足地牢牢持有这些股票?
Dearly: 由衷的，as dearly as : 信心十足的破折号内的内容，告诉我们投资者包括哪些。the doctors and nurses，couples and singles，clerks and judges医生和护士、夫妻和单身、文员和法官等
What would it take to get big U．S．stocks moving again?怎样才能让美国大股票再度一路上扬?
Just about everything is crushing blue chips：real estate，commodities，precious metals，international stocks，and smaller U．S．stocks．And investors haven’t had tO be geniuses to take
part in those gains．They’ve merely had to dust off some old ideas．Basic finance theory says that investors canget the best balance of risk and rewardby owning pieces of as many of the world’8 asset classes as they can，from stocks to gold，alpacas to saffron．For years，the S&P 500一stock index of the biggest U．S．companies was the best approximation of that ideal available to Investors--and they flocked to it．
Just about everything is crushing blue chips：real estate，commodities，precious metals，international stocks，and smaller U．S．stocks．蓝筹股面临的压力可以说来自四面八方：房地产、大宗商品、贵金属、国际股票和美国小型股。
Cursh: 1 to press something so hard that it breaks or is damaged:努力的挤压，使其损害，冲击
And investors haven’t had to be geniuses to take part in those gains．投资者并不需要多大的天分，也能从中获得收益。
They’ve merely had to dust off some old ideas．他们仅需抛弃一些旧的投资理念。
dust off：get rid of 抛弃
Basic finance theory says that investors canget the best balance of risk and rewardby owning pieces of as many of the world’s asset classes as they can，from stocks to gold，alpacas to saffron．基本的金融理论认为，只要在全球市场持有尽可能多的资产类别，从股票到黄金，从羊驼毛到藏红花，投资者就能得到搭配最合理的风险和回报。
For years，the S&P 500一stock index of the biggest U．S．companies was the bestapproximation of that ideal available to Investors--and they flocked to it．多年来，囊括美国大公司的标准普尔500股指最接近投资者可以获得的这种投资典范（也就是说拥有尽可能多的投资类别），于是他们趋之若鹜。
Approximation: 接近值，概算，
Flock: n. 鸟群 people flock to a place, they go there in large numbers because something interesting or exciting is happening there蜂拥而至
Blue Chip Blues 3
But in the past decade，the world’s finaneial markets have changed in unexpected ways．The proliferation of hedge funds，those lightly regulated pools of capital that cater to wealthy Investors，has allowed pension fund managers and other institutionalinvestors to venture beyond . shores and seek high returns wherever they present themselves．And the explosion of exchange-traded funds，or mutual funds that trade like stocks，has opened up the world to individual investors in ways that were never before possible．China，Mexico，and South Africa are now just a mouse click away．A decade ago，they were available chiefly through clunky，high-fee mutual funds，if at all．
But in the past decade，the world’s financial markets have changed in unexpected ways．但是在过去的十年里，全球金融市场出现了意料不到的变化。
The proliferation of hedge funds，those lightly regulated pools of capital that cater to wealthy Investors，has allowed pension fund managers and other institutionalinvestors to venture beyond U．S．shores and seek high returns wherever they present themselves．
Proliferation: a sudden increase in the amount or number of something数量的猛增，激增
Pool of capital: 资产池，资产组合
The proliferation of hedge funds数量激增的对冲基金，those lightly regulated即指指受监管较宽松的pools of capital that cater to wealthy Investors，面向富有投资者的资产池，在这里就是指基金，那么这种基金的激增使得has allowed pension fund managers and other institutionalinvestors to venture beyond U．S．shores退休基金管理人及其他机构投资者把投资目光瞄向国外市场，and seek high returns wherever they present themselves寻求可以获得高回报率的任何机会。
译文：数量激增的对冲基金让退休基金管理人及其他机构投资者把投资目光瞄向国外市场，寻求可以获得高回报率的任何机会。对冲基金是指受监管较宽松的基金，其对象是有钱的投资者。
And the explosion of exchange-traded funds，or mutual funds that trade like stocks，has opened up the world to individual investors in ways that were never before possible．
Explosion: =proliferation 快速发展，或激增
exchange-traded funds：交易所交易基金
the explosion of exchange-traded funds，or mutual funds that trade like stocks，急剧发展的交易所交易基金，或者像股票那样交易的共同基金，has opened up the world to individual investors为散户投资者进入全球市场提供了便利。in ways that were never before possible．以以前所根本不可能实现的方式，
China，Mexico，and South Africa are now just
这个句子很形象，意思是：China，Mexico，and South Africa，中国、墨西哥和南非等国的市场，只要你用只要用鼠标轻轻点击一下a mouse click away．他们就会出现在面前。
A decade ago，they were available chiefly through clunky，high-fee mutual funds，if at a11.
Clunky: 笨重，笨拙
十年前，if at all 意思是：就算要享受这种服务，they were available chiefly through clunky，high-fee mutual funds，主要也是通过笨拙、收取高昂手续费的共同基金
十年前，就算要享受这种投资服务，主要也是通过笨拙、收取高昂手续费的共同基金才能得以实现。
With more choices，investors are diversifying their portfolios as textbooks say they should．Emerging—market shares，small U．S．stocks，gold，and even commodities are taking up sizable checks．
With more choices，investors are diversifying their portfolios as textbooks say they should．由于现在有了更多的选择，投资者们可以像教科书里面所说的那样进行投资多元化。
Emerging market shares，small U．S．stocks，gold，and even commodities are taking upsizable checks．新兴市场的股票、美国小型股、黄金甚至大宗商品在投资中占了taking upsizable checks．相当大的份额。
ONLY GAME IN TOWN唯一的投资选择
Some market strategists think this global rebalancing act could be a 10 or 20 year process．But skeptics point out that an overseas financial crisis coulderupt at any time and send investors fleeing to the relative safety of the U．S．markets--not unlike what happened during the 1 9 9 7 and 1 9 9 8 Asian and Russjan sell—offs．
Some market strategists think this global rebalancing act could be a 10 or 20 year process．一些市场策略师认为，这种全球性的重新平衡过程可能需要历时10年或20年。
But skeptics point out that an overseas financial crisis coulderupt at any time and send investors fleeing to the relative safety of the U．S．markets--not unlike what happened during the 1 9 9 7 and 1 9 9 8 Asian and Russjan sell—offs．
Skeptics:
Erupt:
Flee: to leave somewhere very quickly, in order to escape from danger:为了躲避危害而逃向某个地方。＝flock
Sell-off: A mass selling of a given stock or of all the stocks in a given sector or market.
If people panic because of bad news, etc. this happens...
But skeptics point out但怀疑人士指出，that an overseas financial crisis coulderupt at any time海外金融危机有可能随时爆发，and send investors fleeing to the relative safety of the U．S．markets-到时可能会促使投资者涌向相对安全的美国市场not unlike what happened during the 1 9 9 7 and 1 9 9 8 Asian and Russian sell—offs．这个句子中not unlike =like, 也就是说就像1997年到1998年亚洲和俄罗斯股市崩盘期间发生的一幕。
Who’s right?Before we can sort out the possibilities，we must understand how the blue chips got so popular in the first place．
Who’S right?Before we can sort out the possibilities，we must understandhow the blue chips got SO popular in the first place．那么谁对谁错呢?我们在弄清楚种种可能性之前，先来了解一下蓝筹股当初是如何大行其道的。
The biggest U．S．stocks returned an average of 16％a year during the1982—2000 bull market，gains that far outpaced the underlying corporate profit growth．In 1981 the average price-earnings ratio for these stocks was around 8．By 2000，at the peak of the tech bubble that sent many stocks
to all-time highs，it had swelled to 35．Even a conglomerate such as GE sported a ratio nearly double its current 18．Blue chips“are coming off the biggest p-e expansion in history．”says James P．Shaughnessy，who oversees more than $ billion at Bear Stearns Asset Management Inc．“In 2000 it was as if there was nothing else worth investing in．”
The biggest U．S．stocks returned an average of 16％a year during the1982—2000 bull market，gains that far outpaced the underlying corporate profit growth．
Outpace: to go faster, do better, or develop more quickly than someone or something else:超过far outpace远远的超过
在1982年到2000年的牛市期间，美国大型股每年的回报率平均为16％，这收益远远超过基本的公司利润增长。
In 1981 the average price-earnings ratio for these stocks was around 8．
1981年，这些大型股的平均市盈率为8左右。
By 2000，at the peak of the tech bubble that sent many stocks to all-time highs，it had swelled to 35．
Swell: v. increase in number or amount 增加
at the peak of the tech bubble科技股泡沫高峰时候that sent many stocks to all-time highs ，all time high=recod high创纪录高度
到了2000年，即促使许多股票的价格达到创记录高度的科技股泡沫高峰时候，市盈率猛增到35。
Even a conglomerate such as GE sported a ratio nearly double its current 18．连通用电气这样的联合大企业其市盈率也要比目前的18增长了近一倍。
Blue chips“are coming off the biggest p－e expansion in history．”says James P．Shaughnessy，who oversees more than$6．5 billion at Bear Stearns Asset Management Inc．为贝尔斯登资产管理公司管理超过65亿美元的詹姆斯·P·奥肖内西说，蓝筹股“的市盈率增长幅度创历史之最。
“In 2000 it was as if there was nothing else worth investing in．”在2000年，好像除了蓝筹股其他就没有什么可以值得投资的。”
Nothing indeed．The bull market resulted from a dearth of alternative opportunities．Long-term interest rates fell throughout the period．making bond yields less attractive to investors．Prices of oil，other commodities，and precious metals fell，too．Two housing busts soured investors on real
estate by the mid_1990s．Stocks were the only game in town．The Peratios of companies with growing but stable earnings soared，with blue chips enjoying unprecedented popularity.
Nothing indeed．确实没有什么好投资的。
The bull market resulted from a dearth of alternative opportunities．
Dearth: A lack of sth 缺乏
行情上涨是因为缺乏其他投资机会而形成的。
Long-term interest rates fell throughout the period making bond yields 1ess attractive to investors．在那段时间，长期利率一路下调，结果债券收益对投资者来说没有多大吸引力。Prices of oil，other commodities，and precious metals fell，too．石油、其他大宗商品和贵金属的价格也在下跌。
Two housing busts soured investors on real estate by the mid-1990s．
Bust: broke崩盘
Sour: sour sb: 使某人失去了兴趣
上世纪90年代中期，住房市场的两次崩盘让投资者对房地产失去了兴趣。
Stocks were the only game in town．股票是唯一的投资选择。
The p-e ratios of companies with growing but stable earnings soared，with blue chips enjoying unprecedented popularity.
companies with growing but stable earnings: 收益稳定增长的公司
soar: 飙升
收益稳定增长的公司其市盈率一路飙升，蓝筹股受追捧的程度达到了空前
。
Then the profit growth stopped and with it，blue chip supremacy．According to Goldman，Sachs&Co．，reported earnings per share Of the companies in the S&P 500 fell from$ 2000 to$17．50 by 2002．The largest 100 stocks lost 53％，peak to trough．Assuming an 8％average annual return，it would still take Cisco Systems Inc．17 years to hit its 2000 level；Microsoft，10 years；GE，8；and Disney，6．
Then the profit growth stopped and with it，blue chip supremacy．后来盈利增长的步伐戛然而止——蓝筹股也随之失去了主导地位。
Supremacy: the position in which you are more powerful or advanced than anyone else:优先地位，超级地位，主导地位
According to Goldman，Sachs&Co．，reported earnings per share of the companies in the S&P 500 fell from$ 2000 to$17．50 by 2002．据高盛公司声称，标准普尔500股指公司公布的每股收益从2000年的50美元跌到了2002年的17．50美元。
The largest 100 stocks lost 53％，peak to trough．从峰值到谷底，最大100家公司的股票暴跌了53％。
Trough: low point 反义词 peak
Assuming an 8％average annual return，it would still take Cisco Systems Inc．17 years to hit its 2000 level；假定平均年回报率为8％，思科系统公司仍需要17年才能达到其在2000年的水平；
Microsoft，10 years；GE，8；and Disney，6．微软需要10年，通用电气需要8年，迪斯尼需要6年。
Smaller stocks have fared much better，for two reasons．For one thing，their valuations hadn’t run up so muchin the first place．And second，smaller companies are nimbler than big ones，
and can adapt to changing economic conditions faster．As blue chip profits cratered in 2 0 0 2，the earnings of theS&P 600一stock index of small capitalization companies rocketed 20％，then 15％and 28％the following two years．Investors sought out the relative value of small and midsize compahies，which have returned an average of 15％and 13％a year，respectively，since March，2001．Small caps once were considered much riskier than big ones．The big company earnings crash showed that even the celebrated blue claps are risky，too．
Smaller stocks have fared much better，for two reasons．
Fare:fare well/badly/better etc to be successful, unsuccessful etc:成功或不成功
小盘股的日子却要好得多，这有两个原因：
For one thing，their valuations hadn’t run up so much in the first place．一是，小盘股的估价首先并没有大幅猛增。
And second，smaller companies are nimbler than big ones，and can adapt to changing economic conditions faster．
Nimble: able to move quickly and easily with light neat movements [= agile]:可以快速移动的，灵活的
二是，小公司比大公司来得灵活，能够更迅速地适应不断变化的商业形势。
As blue chip profits cratered in 2 0 0 2，the earnings of theS&P 600一stock index of small capitalization companies rocketed 20％，then 15％and 28％the following two years．
Crater: a crater is made by something falling very very fast...and hitting very hard.
Crater: v. fall down fast. 反义词: rocket
Rocket: 向火箭一样上升,猛增
2002年蓝筹股的盈利状况惨不忍睹，而小盘股公司组成的标准普尔600股指的收益却猛增了20％，在随后的两年里分别增长了15％和28％。
Investors sought out the relative value of small and midsize companies，which have returned an average of 15％and 13％a year，respectively，since March，2001．投资者寻求的是中小公司的相对价值，自2001年3月以来，小型公司和中型公司的年回报率分别为15％和13％。Small caps once were considered much riskier than big ones．小盘股的风险一度被认为比大盘股高得多。Small caps=small stocks. 反义词: large caps
The big company earnings crash showed that even the celebrated blue claps are risky，too．大公司收益一落千丈表明，连赫赫有名的蓝筹股也是风险很高。
Blue Chip Blues 4
The question is，which period wasthe aberration：1982—2000 or 2001—2006 History seems to argue for the former．According to Ibbotson Associates。small caps have returned 1 1．7％annually since 1926，vs．1arge caps’9．8％．As Herb Stein，chairman of the Coundl of Economic Advisers under President Nixon,once quipped，“if sometnlng cannot go on forever，it will stop．”
The question is，which period was the aberration：1982—2000 or 2001—067 History seems to argue for the former．问题在于，哪段期间表现失常? 是1982年到2000年?还是2001年到2006年?历史似乎赞成前者。
Aberration: an action or event that is different from what usually happens or what someone usually does:失常,偏离轨道
Abbrant : adj . =abnormal 失常的
According to Ibbotson Associates small caps have returned 1 1．7％annually since 1926，vs．1arge caps’9．8％．据伊博森公司声称，自1926年以来，小盘股每年的回报率为11．7％，而大盘股每年的回报率为9．8％。
As Herb Stein，chairman of the Council of Economic Advisers under President Nixon,once quipped，“if something cannot go on forever，it will stop．”正如担任过尼克松总统的经济顾问委员会主席的赫伯·斯坦曾开玩笑说：“如果某事不能永远继续下去的话，它将会停下。”
Hedge funds exacerbated the shift to small stocks．In 1 982 they were minor players．But they took off in the late'90s and especially during this decade．Their superior information-gathering allows them to spot profit opportunities in small companies that aren’t widely followed．The ability of SO called activist hedge funds to transform small companies by taking bigpositions and agitating for change has been another lure．Perhaps most important，hedge fund traders are trend followers，traveling in packs into and out of asset classes．Right now the trend favors small stocks.“If you were to stick a gun to my head，" says Bear Stearns’ O’Shaughnessy。“ I'd say small caps will keep beating for 20 years．”
Hedge funds exacerbated the shift to small stocks．对冲基金加剧了向小盘股的转变。
Exacerbate=accelerate 加速,加剧
In 1 982 they were minor players．1982年，对冲基金还是微不足道的投资工具。
But they took off in the late90s and especially during this decade．但它们在90年代末迅速流行起来，特别是在近几年。
Their superior information gathering allows them to spot profit opportunities in small companies that aren’t widely followed．
companies that aren’t widely followed．: 没有引起广泛关注的小公司
spot=watch 关注
出众的信息搜集能力让对冲基金得以在没有引起广泛关注的小公司身上找到盈利机会。
The ability of so called activist hedge funds to transform small companies by taking bigpositions and agitating for change has been another lure．
activist hedge funds激进的对冲基金
The abilityto transform small companies: 激进的对冲基金可以将小公司进行改造,转型的能力
taking bigpositions: 购买大量的股票
agitate: 感动,煽动
lure: 诱惑
所谓的操作手法激进的对冲基金能够通过购买大批股票、鼓动进行变革，从而对小公司进行改造，这是吸引人的另一个因素。
Perhaps most important，hedge fund traders are trend followers，traveling in packs into and out of asset classes．也许最重要的是，对冲基金交易商是赶潮流的人，交易行为带有成群结对的特点。
Right now the trend favors small stocks．眼下，形势对小盘股有利。
“If you were to stick a gun to my head，’’says Bear Stearns’O’Shaughnessy。“I’d say small caps will keep beating for 20 years．”贝尔斯登公司的奥肖内西说：“如果你把枪顶在我头上，我还是会说，小盘股将盛行20年。”
It isn’t only small caps that are dominating． Blue chips are getting crushed by just about everything overseas．South Korea was up 54％last year；Latin America，55％；and Saudi Arabia，108％．Russia and a resurgent Japan returned 87％and 42％，respectively．In the past five years，the S＆P Citigroup Emerging Market Index has returned about 1 7％a year，slightly better than the annual returns U．S．blue chips posted from 1982 to 2000．Could emerging markets pull off a
similar 1 8一year run?
It isn’t only small caps that are dominating．主导市场的不只是小盘股。
Blue chips are getting crushed by just about everything overseas．蓝筹股几乎遭到了国外各个方面的挤压。
South Korea was up 54％last year；Latin America，55％；and Saudi Arabia，108％．去年，韩国股市上扬54％；拉美上涨55％；沙特阿拉伯更是飞涨108％。
Russia and a resurgent Japan returned 87％and 42％，respectively．俄罗斯及经济复苏的日本股市回报率分别为87％和42％。
In the past five years，the S＆P Citigroup Emerging Market Index has returned about 1 7％a year，slightly better than the annual returns U．S．blue chips posted from 1982 to 2000．在过去的五年里，标准普尔花旗集团新兴市场指数的年回报率在17％左右，略高于美国蓝筹股在1982年到2000年公布的年回报率。
Could emerging markets pull off a similar 1 8一year run?新兴市场能够再现18年连续的辉煌吗?
Pull off: to succeed in doing sth. 成功的做某事.
Blue Chip Blues 5
Time was，investors looking for exposure to International and emerging markets would buy shares of a huge U．S multinational，which supposedlyoffered transparency and sound governance and none of the crony capitalism found in emerging markets．Then the corporate scandals hit，and big U&companies were seen in a different light．
Time was，investors looking for exposure to International and emerging markets would buy shares of a huge U．S multinational，which supposedly offered transparency and sound governance and none of the crony capitalism found in emerging markets．曾经一度，在国际和新兴市场寻求投资机会的投资者们会购买美国大型跨国公司的股票。这些公司被认为应当具有透明度和健全的治理机制，根本没有新兴市场出现的裙带资本主义现象。
Then the corporate scandals hit，and big U&companies were seen in a different light．但随后传出了系列公司丑闻案，于是投资者对美国大公司另眼相看。
Nowadays，foreign Pure plays are getting the benefit of the doubt over U．S．giants．For example，shares of Brazil’S Banco Bradesco，which tradein the U．S．as American depositary
receipts，have soared more than 3 70％since 2001．Citigroup’S shares have gained only 12％，despite the bank’s presence not only in Brazil but alsoChina，India，Korea，Mexico，the Philippines，Poland，Russia，and almost 100 other countries．In all。Citigroup derived 41％of its 2005 net income from foreign markets．Yet investors clearly favor the Brazilian Pure play．
Nowadays，foreign Pure plays are getting the benefit of the doubt over U．S．giants．如今，美国大公司遭到怀疑的同时，外国的专业公司却在从中得利。
For example，shares of Brazil’S Banco Bradesco，which trade in the U．S．as American depositary receipts，have soared more than 3 70％since 2001．譬如说，自2001年以来，巴西商业与储蓄银行的股票就暴涨了370％以上，它在美国市场作为美国存托凭证来成交。
Citigroup’S shares have gained only 12％，despite the bank’s presence not only in Brazil but also China，India，Korea，Mexico，the Philippines，Poland，Russia，and almost 100 other countries．花旗集团的股票却只上扬了12％，尽管这家银行的势力范围不但遍布巴西，还遍布中国、印度、朝鲜、墨西哥、菲律宾、波兰、俄罗斯及差不多100个其他国家。
In all, Citigroup derived 41％ of its 2005 net income from foreign markets．花旗集团在2005年的净收入共有41％来自外国市场。
Yet investors clearly favor the Brazilian Pure play．不过投资者显然青睐巴西的这家专业银行。
It’s difficult to argue with thegrowth these nations are posting．According to statistics from the International Monetary Fund，Brazil，China，India，and Russia drove 3 0％of the overall growth in global demand in2005，more than double the figure five years earlier．
It’s difficult to argue with thegrowth these nations are posting．这些国家具有强劲的增长势头，这毋庸置疑。
According to statistics from the International Monetary Fund，Brazil，China，India，and Russia drove 3 0％of the overall growth in global demand in2005，more than double the figure five years earlier．
According to statistics from the International Monetary Fund据国际货币基金组织的统计数据表明，Brazil，China，India，and Russia drove 3 0％of the overall growth in global demand in2005，2005年，全球需求的总增长有30％来自巴西、中国、印度和俄罗斯，more than double the figure five years earlier．
比五年前的数字翻了一番还多。
And so the hunger for international stocks iS huge. Since 2003, net flows to international—stock mutual funds have more than tripled，to $150 billion，while flows into US funds have plunged from$154 billion to$64 billion. In January, foreign equity funds’inflows almost doubled those of December．
And so the hunger for international stocks is huge．所以，对国际股票的需求也很大。
Since 2003，net flows to international—stock mutual funds have more than tripled，to$150 billion，while flows into U．S． funds have plunged from$154 billion to$64 billion.自2003年以来，流人国际股票共同基金的资金净额增加了三倍以上，达到1500亿美元，而流入美国基金的资金却从1540亿美元骤减至640亿美元。
In January, foreign equity funds’inflows almost doubled those of December．今年1月，外国股票基金流入的资金几乎比去年12月增加了一倍。
The explosion of lower-cost exchange-traded funds has only hastened the advance，making it even easier for ordinary investors to j ump into and out of emerging markets．Barclays Global Investors offers 37 international and global ETFs holding$72 billion in assets,up from 24 and$2 billion in January，2001．
The explosion of lower-cost exchange-traded funds has only hastened the advance，making it even easier for ordinary investors to jump into and out of emerging markets．成本较低的交易所交易基金发展迅猛只会加快对蓝筹股的进攻势头，从而使普通投资者进出新兴市场更容易了。
Hasten: accelerate 加速
Barclays Global Investors offers 37 international and global ETFs holding$72 billion in assets。巴克莱全球投资公司提供37支国际和全球交易所交易基金，持有总资产高达720亿美元；
UP from 24 and$2 billion in January，2001．而2001年1月只有24支，总资产仅为20亿美元。
Some argue that emerging marketshave emerged for good．“The structural story has changed，”says Thomas Melendez，associate portfolio manager at MFS Emerging Markets Equity fund。which has returned an average at 38％annually for the past three years．Emerging markets，he says，will keep growing，diversifying，and cleaning up their fiscal houses．
Some argue that emerging markets have emerged for good．一些人认为，新兴市场会永远涌现出来。For good =forever.
“The structura1 story has changed，’’says Thomas Melendez，associate portfolio managerat MFS Emerging Markets Equity fund,which has returned an average of 38％annually for the past three years．。马萨诸塞金融服务公司新兴市场股票基金的助理投资组合管理人托马斯·梅伦德斯说：“结构已发生了变化。”which has returned an average of 38％annually for the past three years．在过去的三年里，他所在基金的年回报率平均为38％。
Emerging markets，he says，will keep growing，diversifying，and cleaning up their fiscal houses．
他说，新兴市场会继续增长、多元化并整顿其财政状况。
Fiscal houses:fiscal positions.
Consider the emergence of red chips，the biggest and best companies in China. They don’t have the stability of their Western counterparts，and they carry the risk of maj or government intervention．But over the next several years，red chips should turn bluer．Demand for the initial public offering later this year of Industrial＆Commercial Bank of China, one of China's largest financial institutions．is extIected to be strong．Already，Goldman Saehs has ponied up$2．58
billion for a 7 9，6 stake，ahead of a potentially$12 billion IPO that’S on track to be one of the biggest ever．
Consider the emergence of red chips，the biggest and best companies in China . 不妨考虑新出现的红筹股，红筹股是指中国最大、最好的公司。
They don’t have the stability of their Western counterparts，and they carry the risk of major government intervention．它们不具备西方国家同类公司的稳定性，而且面临政府重大干预的风险。
But over the next several years，red chips should turn bluer．但在未来几年，红筹股应当会变得更像蓝筹股。
Demand for the initial public offering later this year of Industrial＆Commercial Bank of China, one of China's largest financial institutions is expected to be strong．
今年晚些时候，中国最大的金融机构之一中国工商银行将首次公开发售，预计需求会很强劲。
Already，Goldman Sachs has ponied up $2．58 billion for a 7% stake，ahead of a potentially$12 billion IPO that’S ontrack to be one of the biggest ever．高盛公司在首发上市之前就已经支付25．8亿美元，购买了该银行7％的股份。这起融资数额可能高达120亿美元的首发上市将成为有史以来规模最大的上市活动之一。
Pony up: to find or produce a particular amount of money, or raise money.
Goldman Sachs has ponied up $2．58 billion for a 7% stake，高盛公司在首发上市之前就已经支付25．8亿美元，购买了该银行7％的股份。ahead of a potentially$12 billion IPO that’S ontrack to be one of the biggest ever．这起融资数额可能高达120亿美元的首发上市将成为有史以来规模最大的上市活动之一。
Yet despite the long rally，emerging-markets companies still trade below their historical averages based on p-e and price-cash flow ratios．“The kemerging-markets Istory has legs for the next 10 years，”says Melendez．In fact,legendary value investor Warren Buffett，who made a fortune with big mvestments in blue chips such as Coca Cola Co．and Gillette，recently disclosed that he had made big bets on four major stock indexes，three of which are outside the U．S．
Yet despite the long rally，emerging-markets companies still trade below their historical averagesbased on pe and price-cash flow ratios．不过尽管经过了长期的股市反弹，但按照市盈率和价格现金流量比率来看，新兴市场的公司的交易价格仍低于其历史平均值。
Rally: =recover to become stronger again after a period of weakness or defeat反弹
“The ‘emerging-markets’ story has legs for the next 10 years，”says Melendez．梅伦德斯说：“新兴市场在接下来10年有后劲。”
In fact,legendary value investor Warren Buffett，who made a fortune with big mvestments in blue chips such as Coca Cola Co．and Gillette，recently disclosed that he had made big bets on four major stock indexes，three of which are outside the U．S．
这个句子的主体结构应该使: Warren Buffettrecently disclosed that…巴菲特最近公布说…
好,我们来看这个句子.
In fact,实际上，legendary value investor Warren Buffett，具有传奇色彩的价值投资者沃伦·巴菲特最近透露，who made a fortune with big mvestments in blue chips such as Coca Cola Co．and Gillette，巴菲特因大笔投资于可口可乐和吉列等蓝筹股而大发其财recently disclosed that he had made big bets on four major stock indexes，three of which are outside the U．S．他往四个主要股指下了大赌注，其中三个股指是在美国境外。
Whether or not you share that optimism，it’s clear that big U．S．stocks face much more competition for investor dollars than ever before．With nearly everything else working，why should investors bother with blue chips?
Whether or not you share that optimism，it’s clear that big U．S．stocks face much more competition for investor dollars than ever before．无论你是不是持同样的乐观态度，很显然，美国大股票在争夺投资者美元方面所面临的竞争要比以往激烈得多。
With nearly everything else working，why should investors bother with blue chips?既然几乎其他任何投资选择都能获利，投资者为什么为蓝筹股而操心呢?
Predicting the major turning pointsfor markets has proved perilous for investors，academics，and business publications alike．But asset classes move in discernible cycles，rising and falling
over long periods of time．Commodities．for instance，ruled the 1970s，slumped for two decades，and then re surged recently．
Predicting the major turning pointsfor markets has proved perilous for investors，academics，and business publications alike．事实证明，预测市场会出现哪些重大转折点对投资者、学术界和商业刊物来说都很危险。
Perilous: very dangerous.
But asset classes move in discernible cycles，rising and falling over long periods of time．．但资产类别运动具有可以察觉的周期性，在很长一段时间出现涨跌。
Discernible: adj. 可以辨认的 discern: v. 辨认, 察觉.
Commodities, for instance，ruled the 1970s，slumped for two decades，and then resurged recently．譬如说，大宗商品是上世纪70年代的主导者，然后整整二十年一路下跌，最近又复苏了。
Resurge: rally.
Strategists citing the cyclical argument have been predicting a blue chip comeback for 18 months． It hasn’t happened yet．“Clients gripe：‘We listened to blue chip bulls last year，and
it did not work．’’’says Tobias Lev kovich，chief U．S．equity strategist at Citigroup．“‘[The bulls are]saying the same thing this year，and it’S still not working．’’’The degree to which blue chips have fallen out of favor is remarkable．When we buy a large cap，we hear：‘How can you buy that dog?It has done nothing for five years，" says Ron Muhlenkamp，manager of the $3．2 billion Muhlenkamp Fund，which has big positions in several blue chips．
Strategists citing the cyclical argument have been predicting a blue chip comeback for 18 months．
18个月来，持有周期性观点的策略师们一直在预言蓝筹股会卷土重来。
It hasn’t happened yet．但这一幕还没有出现。
“Clients gripe：‘We listened to blue chip bulls last year，and it did not work．’’’says Tobias Lev kovich，chief U．S．equity strategist at Citigroup．
Gripe: comlain. 抱怨
花旗集团的首席美国股票策略师托比亚斯·莱夫科维奇说：“客户抱怨，‘去年我们就听到蓝筹股行情会上涨，但根本没有上涨。
“‘The bulls are saying the same thing this year，and it’s still not working．’’’The degree to which blue chips have fallen out of favor is remarkable．现在又有人说今年行情上涨，但还是没有上涨。”’蓝筹股失宠的程度相当惊人。
Out of favor: 失宠
we hear：‘How can you buy that dog?It has done nothing for five vears，，”says Ron Muhlenkamp，manager of the$3．2 billion Muhlenkamp Fund，which has big positions in several blue chips．
“When we buy a large cap，“如果我们买进一支大盘股，就会听到：How can you buy that dog?你们怎么买这种破股It has done nothing for five vears它已经有五年没带来回报了says Ron Muhlenkamp，manager of the$3．2 billion Muhlenkamp Fund，资产规模达32亿美元的米伦坎普基金的管理人罗恩·米伦坎普说：which has big positions in several blue chips．该基金持有几支蓝筹股的大量股票。
译文: 资产规模达32亿美元的米伦坎普基金的管理人罗恩·米伦坎普说：“如果我们买进一支大盘股，就会听到：‘你们怎么买这种破股?它已经有五年没带来回报了。”’该基金持有几支蓝筹股的大量股票。
But betting against fund flows，prevailing sentiment，and trend lines has made contrarian investors rich over the years．“The time to make money．” said Lord Rothschild，“iS when there
is blood on the streets．” Big stocks are clearly wounded．“It actually hurts to say this again，” wrote ISI’S Trennert in a Feb．27 research note to clients，“but we believe large caps are due．”
But betting against fund flows，prevailing sentiment，and trend lines has made contrarian investors rich over the years．但面对流人资金、普遍观点以及趋势线却不按常理出牌，让这些反向投资者在过去几年发了财。
“The time to make money．” said Lord Rothschild，“is when there is blood on the streets．”罗斯柴尔德爵士说：“赚钱的最佳时机就是市场上血流成河的时候。”
Big stocks are clearly wounded．大股票显然受到了重创。
“It actually hurts to say this again，” wrote ISI’S Trennert in a Feb．27 research note to clients，“but we believe large caps are due．”国际战略和投资集团的特纳特在发给客户的研究纪要中写道：“再这样说确实会伤人的心，但我们还是认为大盘股遭到了报应。”
