Vocabulary

Financial market финансовый рынок

Bond market рынок облигаций

Maturity срок долгового обязательства

To back гарантировать, давать поручительство

To serve customers обслуживать заказчиков

Money market денежный рынок, рынок краткосрочного капитала

Capital market рынок долгосрочного ссудного капитала

Primary market первичный рынок

Secondary market вторичный рынок

To deal (in) торговать

Short-term securities краткосрочные ценные бумаги

To turn (to) обращаться (к кому-либо)

Debt financing финансирование путем получения займов

In return for в обмен на

Equity financing мобилизация капитала с помощью выпуска акций

Share (зд.) доля

Ownership (зд.) владение собственностью

To issue stock (bonds) выпускать акции (облигации)

Long-term funds долгосрочные средства

Issuer эмитент ценных бумаг

Debtor должник, дебитор

Lender кредитор

Supranational наднациональная организация

Municipal government муниципалитет

By far (зд.) в значительной степени

Uniform единый

From the perspective of с точки зрения

Internal bond market внутренний рынок облигаций

External bond market внешний рынок облигаций

To decompose разлагать на составные части

Domiciled постоянно проживающий

Subsequently впоследствии, затем, позже

To trade (зд.) осуществлять сделки на рынке ценных бумаг

To nickname давать прозвище

Distinguishing feature отличительная черта

To underwrite гарантировать размещение ценных бумаг

Jurisdiction юрисдикция

In unregistered form незарегистрированный

Offshore bond market оффшорный рынок облигаций

Eurobond market рынок еврооблигаций

Submarket субрынок

To denominate выражать в валюте различного достоинства

Readil быстро, легко, без труда

In certificate form в форме сертификата

Computer entry запись в компьютере

Exercise 2. Answer the following questions:

1. What role do financial markets play?

2. In what ways do financial markets differ?

3. How can financial markets be classified?

4. In what way can capital be raised?

5. What ways of raising capital are available for governments?

6. What is a bond?

7. How can the global bond market be subdivided?

8. In what forms can government bonds be issued?

Exercise 3. Fill in the gaps with the words and expressions from the text:

1. People and organizations wanting to borrow…………………… are brought together with those having ……………………………… in the financial markets.

2. There are a great many different …………………………., each one consisting of many ……………………….., dealing with different instruments in terms of the instrument maturity and the assets backing it, and serving different types of ………………………. .

3. Generally, financial markets are classified as ……………………………………. and ……………………………………………………. .

4. Money markets deal in …………………………………………… having maturities of one year or ……………….. .

5. Some sources of funds available to businesses (like issuing stock) are not available to ……………………………. .

6. A bond is an instrument in which the issuer (debtor/ borrower) promises to ……………. to the lender/ investor the amount borrowed plus ………………… over some specified period of time.

7. From the perspective of a given country, the global bond market can be classified into two markets: …………………………………. and …………………… .

8. The domestic bond market is where issuers domiciled in the country issue ………… and where those …………………… are subsequently ……………… .

9. Bonds traded in the US foreign bond market are nicknamed ……………………… .

10. Computerization in bond markets has reduced ………………….of trading bonds and made them more …………………………… to hold and transfer: they are not issued in certificate form – they are only computer ………………………. .

Exercise 4. Translate the words and expressions below from Russian into English and make up your own sentences with them.

1. наднациональная организация

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2. муниципалитет

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3. в значительной степени

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4. внутренний рынок облигаций

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5. внешний рынок облигаций

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6. разлагать на составные части

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7. постоянно проживающий

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8. осуществлять сделки на рынке ценных бумаг

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9. давать прозвище

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10. гарантировать размещение ценных бумаг

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11. оффшорный рынок облигаций

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12. рынок еврооблигаций

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13. субрынок

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14. выражать в валюте различного достоинства

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15. в форме сертификата

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Exercise 5. Translate the words and expressions below from English into Russian and make up your own sentences with them.

1. financial market

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2. bond market

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3. maturity

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4. to back

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5. money market

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6. capital market

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7. debt financing

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8. equity financing

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9. to issue stock (bonds)

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10. long-term funds

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11. issuer

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12. debtor

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13. lender

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14. ownership

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15. primary market

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Exercise 6. Find in the text (of exercise 1) English equivalents for the following Russian phrases:

1. иметь дело с различными финансовыми инструментами

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2. обслуживать клиентов

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3. со сроком платежа менее (более) одного года

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4. участвовать в сделках на рынке

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5. финансирование путем получения займов

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6. мобилизация капитала с помощью выпуска акций

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7. единая система классификации

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8. эмитент, не проживающий постоянно в стране

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9. облигации, которыми торгуют на рынке

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10. выпуск облигаций гарантирован международным синдикатом

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11. сократить расходы, связанные с куплей и продажей облигаций

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12. выпускать облигации в форме сертификата

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13. выпускать облигации в виде записи в компьютере

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14. выпускать в незарегистрированной форме

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Exercise 7. Single out the main points of the text (ex. 1). Use the following opening phrases:

1. The text looks at (the problem of …) …;

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2. The text deals with the issue of …;

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3. It is clear from the text that …;

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4. Among other things the text raises the issue of …;

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5. The problem of … is of great importance.

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6. One of the main points to be singled out is …;

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7. Great importance is also attached to …;

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8. In this connection, I’d like to say …;

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9. It further says that … ;

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10. I find the question of … very important because …;

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11. We shouldn’t forget that … ;

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12. I think that … should be mentioned here as a very important mechanism of … .

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Exercise 8. Match the verbs from (a) with the nouns from (b) below:

a) to bring together b) capital

to classify people

to underwrite issue

to invest into debt financing

to speed up role

to raise use

to broaden real sector

to rely on financial instruments

to enhance placements

to issue bonds

to satisfy classification

to use needs

to reduce parts

to decompose into costs

Exercise 9. Think of and write the verbs that are most commonly used with:

1. maturity

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2. bond

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3. stock

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4. issue

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5. investor

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6. banks

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7. return

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8. depository

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9. sale

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10. credit rating

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11. placement

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12. needs

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Exercise 10. Read the text, supplying the articles where necessary. Explain how the Eurobond Market operates.

The Eurobond Market

The Eurobond Market is … major source of corporate financing in …unregulated international capital market.

This market permits lenders to lend directly to borrowers across … national borders.

The borrowers or issuers of the bonds include MNCs, public sector organizations, sovereign states and … commercial banks. The lenders or purchasers of the bond securities are individual and institutional investors, with … latter group dominating. Generally, purchasers buy Eurobonds in currencies other than their own and … major attraction of these bonds for investors is that in most currencies they are anonymous bearer bonds that exempt individuals from capital gains and withholding taxes in their own domestic system.

Banks play a major role in … Eurobond market by bringing together lenders and borrowers, underwriting the bond issue, selling or placing the bonds, supporting the secondary market in bonds, and managing the repayment of interest an capital to … investors. The participating banks will receive … fee for each of these services rendered to the borrower or investor.

The key to the market is … established and high quality credit rating with an internationally recognized rating agency such as Moody’s or Standard and Poor’s.

Eurobonds, of whichever currency denomination, are listed in another country and trade independently of any domestic market. In recent years there has been … continued rapid expansion of Eurobond issuance that has been one of … most significant developments in bond markets worldwide.

In this context, there was one more fast-growing market that deserves … mention. It is the ECU (European Currency Unit) bond market which proved to be popular a few years ago and paved the way to the single Eurobond market.