Download Figure 3

S1-INVESTASI KEUANGAN
(FINANCIAL INVESTMENTS)
BAHAN 2
FIGURES
FIGURE 1
THREE TYPES OF MARKETS IN THE GLOBAL ECONOMIC SYSTEM
Product markets
Flow of payments for
Consumption and taxes
Flow of payments
Goods and service
Flow of production
Financial Markets
 Flow of funds (savings)
 Flow of financial servi-
Producing units
(mainly
business firms and
governments)
Consuming units
(mainly households)
ces, income, and financials claims
Flow of incomes
Flow of incomes
Productive service
Factor markets
Productive service
Sumber : Rose, Peter S., and, Marquis, Milton H., Money and Capital Markets, McGraww Hill
(International Edition), Ninth Edition, 2006 (Book 6) p.5.
FIGURE 2
METHODS OF FINANCE
Metode Pembiayaan Dalam Ekonomi
Primary
Securities
Selling
$ (USD)
Surplus Income Units
(SIUs) : Para Investor
(Pemilik Dana)
Households
Non-financial Business
Government
Foreigners
Indirect
(Secondary Securities
DIRECT FINANCE
Metode Langsung
CAPITAL MARKET
(Stocks, bonds and
MTNs markets)
Brokers and dealers,
Investment banks (perusahaan
sekuritas)
Direct loans and investments
Federal Reserve System
(Bank Reserves)
Bank Sentral
(Monetary & Banking
Authority)
Otoritas Moneter &
Perbankan
Financial Intermediary
Institutions (FII)
Lembaga Keuangan Perantara (LKP)
Primary
Securities
Issuing/ Selling
$ (USD)
Deficit Spending Units
(DSUs) : Para Peminjam
Dana (Penerbit Surat
Berharga)
Households
Non-financial Business
Government
Foreigners
Primary
Securities
Issuing/
Selling
1. Commercial Banks as Intermediary Institutions
Bank Komersiil/ Umum sebagai
Lembaga Perantara antara SIUs
dan DSUs
$ (USD)
Deposits
$ (USD)
Buying Products
2. Nonbank (Nonbank FII)
a. Mutual savings bank
b. Savings and loans associations
c. Credit unions
d. Investments comp
e. Pension funds
f. Insurance companies
INDIRECT FINANCE
Metode Pembiayaan Tidak Langsung
(USD)
$ (USD)
Lending/
Financing
$ (USD)
Buying Securities
FIGURE 3
PASAR MODAL DAN PASAR UANG
PASAR MODAL
 Brokers and Dealers
 Perusahaan Sekuritas
Surat
Berharga


Dana
(Investment banks)
Pasar surat berharga pasar
modal (stocks, bonds,
MTNs)
Investasi keuangan
langsung (private
placements
Deficit Spending Units
(DSUs)
Debitur (debitors)/
Penerbit surat
berharga (Issuers)
Surat
Berharga
Dana
Surplus Income Units
(SIUs)
Kreditur (creditors)/
Investor (investors)
Kredit
(Loans)
Dana
Giro, Tabungan,
Deposito
(Deposits)
PASAR UANG
Surat
Berharga
 Perbankan (Intermadiary
financial institutions banking)
 Perusahaan sekuritas
(securities companies)
 Brokers and dealers
 Lembaga Keuangan
Non Perbankan lainnya
(other intermediary
institutions)
Surat
Berharga
FIGURE 4
FINANCIAL INSTITUTIONS
A. Federal Reserves System
B. Financial Intermediaries
1. Depository Institutions
1.1Commercial Banks
1.2Nonbank Thrits
a. Saving and loan associations
b. Saving banks
c. Credit unions
d. Money market funds
2. Contractual Institutions
2.1 Life insurance companies
2.2 Property-casualty insures
2.3 Pension funds
3. Investment Institutions
3.1 Investment companies (mutual funds)
3.2 Real estate investment trusts
4. Other Financial Intermediaries
4.1 Finance companies
4.2 Governments credit
C. Other Financial Institutions
1. Investmen Bankers
2. Mortgage Bankers
3. Security Dealers
4. Security Brokers
FIGURE 5
STRUKTUR LEMBAGA KEUANGAN DI INDONESIA
Sistem
Moneter
(Monetary
System)
Otoritas
Moneter
Monetary
Authority)
Bank Indonesia
ia
Departemen
Keuangan*)
BPUG
Bank Umum
Perbankan
BPR
Modal Ventura
Sistem
Keuangan
(Financial
System)
Leasing
Factoring
Kartu Kredit
Lembaga
Pembiayaan
Di luar
Sistem
Moneter
Pembiayaan
Konsumen
Asuransi
Dana Pensiun
Bursa Saham
Pefindo
Lembaga
Lainnya
*)Sebagai salah satu unsur Otoritas Moneter
berdasarkan Undang-Undang Bank Indonesia
Tahun 1968. Tetapi tidak lagi sebagai unsur
atas dasar Undang-Undang Bank Indonesia
Tahun 1999.
Pegadaian
Pialang
Pasar Uang
Kantor Pos
FIGURE 5 (Lanjutan)
STRUKTUR LEMBAGA KEUANGAN DI INDONESIA
Asuransi Sosial
Asuransi Jiwa
Asuransi Kerugian
Reasuransi
Asuransi
Broker Asuransi
Broker Reasuransi
Adjuster (Penilai)
Konsultan Aktuaria
Lembaga
Keuangan
Lainnya
Dana
Pensiun
DP Pemberi Kerja
Dp Lembaga
Keuangan
Bursa Efek
Penjamin Emisi
Lembaga Kliring
Lembaga
Pasar Modal
Pedagang Perantara
Reksa Dana
Manajer Investasi
Pefindo
Perusahaan Efek
Pegadaian
Lbg Penunjang PM
Pialang
Pasar Uang
Biro Adm Efek
Penitipan Harta
Wali Amanat
Kantor Pos
FIGURE 6
An Overview of Investment Alternatives
I. Financial Assets
A. Direct Ownership (or eguity) Securities
1. Common Stock
2. Preferred Stock
3. Asset-backed securities
a. Mortgage-backes securities
b. Lease-backed securities
c. Receivables-backed securities
B. Indirect Ownership through Investment company shares
1. Close-end investment companies
2. Open-end investment companies or mutual funds
C. Monetary (or creditor) claims
1. Non-marketable
a. U.S. Saving bond
b. Savings accounts
c. Time deposits and Certificates of deposit
2. Money market securities
a. Repurchase agreements
b. Banker’s acceptances
3. Bonds (or debt) securities
a. Federal Bonds
b. Municipal bonds
c. Corporate bonds
D. Contingent claims
1. Issuer-created
a. Warrants
b. Convertibles
c. Right
2. Market-created
a. Options
b. Future contracs
1). Traditional Comodity futures
2). Financial futures
3). Options on Futures
II. Real (or non-financial) assets
A.
B.
C.
D.
Real estate
Gemstones
Precious metals
Collectible
1. Art
2. Antigues
3. Coins
4. Stamps
E. Other real assets
FIGURE 7
THE STURCTURE OF FINANCIAL INSTRUMENTS
I.
IOUs (I OWE YUOUs) INSTRUMENTS
A. SECURITIES (TRADEABLE IOUs)
Issuer
a. Tresury bills (TBs)
1. Treasury bills (TBs)………………………………….………. Government
2. Central bank Certificates……………………………………… Central bank
3. Certificate of deposit (CDs)………………………………….. Banks
4. Commercial papers (CPs)…………………………………..... Firms
5. Banker’s (Trader’s) Acceptances (BAs) …………………….. Banks, Firms
6. Derivaties (option, swap, etc)………………………………… Borrowers
b. Medium and long term
1. Bonds …………………………………………………….…… .Government
2. Devivaties (option, swap, stc)…………………………………. Central bank
B. NON TRADEABLE IOUs
1. Promissory notes ………………………………………….…… Firms, Bank’s,
Government
2. Loan and other contracts………………………………..……… Firms, Bank’s,
Government
C. NON SECURITIES
1. Cheque and deposit receipt………………………………….... Banks
2. Insurance receipt……………………………………………… Insurance coys
3. Pension receipt………………………………………………... Pension fund
II.
STOCKS
1. Firm shares placed and traded in exchanges (bourses)
2. Rights
3. Warrant
III.
BENCHMARK INSTRUMENTS
Lowest risk and returns instruments
Treasury bills
Government bonds
Central Bank Certificates
Highly rated bank’s bonds and stock as well as
deposits and loans
5. Highly rated firms’ bond and stocks
1.
2.
3.
4.
1.
2.
3.
4.
5.
6.
Risks for banchmark
Default risk
Political-sovereign risk
Exchange rate risk
Interest rate risk
Inflation risk
Liquidity risk
FIGURE 8
TYPES OF RISK CONFRONTING INVESTORS
IN THE MONEY AND CAPITAL MARKET
TYPE OF RISK
Market Risk
Reinvestment risk
DEFINITION
The risk that the market price (value) of an asset will decline, resulting
in a capital loss when sold. Sometimes referred to as interest rate risk.
The risk an investor will be forced to place earnings from a loan or
security into a lower-yielding investment because interest payments on
loan or security.
Default risk
The probability that a borrower will fail to meet one or more promised
principal or interest payments on a loan or security.
Inflation risk
The risk that increases in the general price level will reduce the
purchasing power of investor earning from a loan or security.
Currency risk
The risk that adverse movements in the price of one national currency
vis-à-vis another will reduce the net rate of return from a foreign
investment. Sometimes called exchange-rate risk.
Political risk
The probability that changes in governments laws or regulations will
reduce the investor’s expected retur from an investmen.
FIGURES 9
FINANCIAL RISKS, CONTRACTS, AND MARKETS
1.
2.
3.
4.
5.
RISKS
(Changes and Defaults)
Exchange rates (per $) changes: up
(depreciation/ devaluation) or down
(appreciation/ revaluation)
Market interest rate changes: up
(capital gain) or down (capital loss)
Market price changes: up or down
Defaults: loss
Country’s risks: default and
exchange rate risks
Types
 Spot
 Forward
 Future
 Currency swap
 Interest rate swap
 Option
 Stock index
 Short selling
CONTRACTS AND MARKETS
Contracts
Types of Markets
Nature
 Settlement risk (value date risk)
 Spot (OTC)
 Hedge (protecttion) or speculation  Forward (OTC)
 Speculation
 Future (Bourse)
 Hedge (protection)
 Stock exchange (Bourse)
 Speculation
 Derivatives (OTC)
Market actors:
 Speculation
 Arbitragers
 Speculation
 Hedgers
 Speculation
 Speculators
 A forward, or forward contract, is an agreement between a buyer and a seller to exchange a commodity or financial instrument for specified amount of
cash on a prearranged future date.
 A future, or futures contract, is a forward contract that has been standardized and sold through an organized exchange (bourse). So, a futures contract




specifies that the seller, who has the short position, will deliver some quantity of a commodity or financial instrument to the buyer, who has the long
position, on a specific date, called settlement or delivery date, for a predetermined price. No payments are made initially when the contract is agreed to.
The seller benefits from declines in the price of the underlying asset, while the buyer benefits from increases.
Derivatives are financial contracts whose values are derived from the values of underlying financial assets (securities).
Hedge is an action to take a position for eliminating or reducing or compensating the existing risk attached on the own financial assets, and usually with
an amount of costs.
Arbitrage is an action of buying and selling simultaneously due to different levels of prices among places, hence the actor will have profits of price
differentials.
Speculation is an action with a risk of gain or loss in the future.
FIGURE 10
TYPE OF RISK
Type of Risk
 Market Risk,
or, Ineterest
Rate Risk
 Reinvestment
risk
 Default risk
 Inflation risk
 Currency risk,
or, Exchange
Rate Risk
 Political risk
Definition
Type of Risk
The risk to investors whose  Firm-spesific
investment horizon is shorter
risks:
than the maturity of a
 Business risk
financial asset that the market
price (value) of an asset will
decline, resulting in a capital
loss when sold. Sometimes
 Financial risk
referred to as interest rate risk.
The risk to investors whose
investment horizon exceeds  Investor-spesific
the maturity of a financial
risk
asset that they will be forced
 Interest rate
to place earnings from that
risk
maturing asset into a loweryielding investment because
 Liquidity risk
interest rates have fallen.
 Market risk
The probability that a
borrower will fail to meet one
or more promised principal or
interest payments on a loan or  Firm & investor
security.
risks
 Event risk
The risk that increases in the
general price level will reduce
the purchasing power of
 Exchange rate
earnings from a loan, security,
risk
or other investment.
 PurchasingThe
risk
that
adverse
power risk
movements in the price of one
Definition
The chance that the firm will
be unable to cover its
operating costs. Level is
driven by the firm’s revenue
stability and the structure of
its operating costs (fixed vs.
variable).
The chance that the firm will
be unable to cover its
financial obligation. Level is
driven by the predictability
of the firm’s operating cash
flows and its fixed-cost
financial obligation.
The chance that changes in
interest rates will adversely
affect the value of an
investment.
The
chance
that
an
investment cannot be easily
liquidated at a reasonable
price.
The chance that the value of
an investment will decline
because of market factors
that are independent of an
the investment (such as
economic, political, and
social events).
national currency vis-à-vis
another will reduce the net
rate of return from a foreign
investment. Sometimes called
exchange-rate risk.
The probability that changes
in government laws or
regulations will reduce the
investor’s expected return
from an investment.
Source: Rose, Peter S., and, Marquis, Milton H.,
Money and Capital Markets, McGraww Hill
(international Edition), Ninth Edition, 2006 --Ch.10 p.280.
 Tax risk
The chance that a totally
unexpected event occurs that
has a significant effect on the
value of the firm or a
specific investment.
The exposure of future
expected cash flows to
currency exchange rate
fluctuations.
The chance that changing
price levels caused by
inflation or deflation in the
economy will adversely
affect
the
firm’sinvestment’s cash flows and
value.
The chance that unfavorable
tax law changes will occur.
Source: Gitman, Lawrence J., and, Madura, Jeff,
Introduction to Finance, Addison Wesley
(International Edition), 2001 Ch.4 p.87 & Ch.6
p.150.