The international capital market

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Money capital - money that can act as a factor of production and the means to make a profit.Local entrepreneurs are often in a situation of feeling lack of capital.This fact may serve as a barrier to their effective operation and further development.Simultaneously some other participants of economic relations are at the disposal of temporarily available monetary resources in the form of savings.The owners of these funds have the opportunity for some time to transfer them to the use of another participant of economic relations.The second side can profit from them, using as an investment.However, it has for some period of lack of liquidity of financial resources for the intended growth in the near term.It appeared and capital market instrument whose funds are issued to economic entities for a certain period for a fee and subject to repayment.This is the organization that provides its funds as a loan, gets some income as a percentage of their use of the borrower.

world capital market has two types of structures: operational and institutional.This second structure is the most common and includes at formal institutions (Bank of Russia, international financial and credit institutions), private finance institutions (commercial banks, pension funds and insurance companies), as well as other firms and exchanges.The leading role in this group of organizations assigned to multinational banks and corporations.

international capital markets, depending on the timing of its movement consists of three sectors: eurocredits market, the money market and the financial value of the world market.Thus, the global market of financial resources is based on providing eurocredits for short periods (up to one year).Capital markets for a longer time undergoing some changes in terms of increasing the volume of operations on it with the 70-ies of XX century.This is due to technical progress.This is often called the capital market sphere konsortsionalnyh or syndicated loans, since these are the financial relationships are banking consortia or syndicates.

world capital market is based on the provision of bond issues, and the beginning of its formation falls on the 60th year of the twentieth century.It began with his appearance in parallel to operate a traditional market and the market of foreign loans Euroloan.Already in the early 90s it was on Euroloan accounts for about 80% of all international loan resources.This money-capital market is the main feature - and creditors and borrowers to use the foreign currency loan.Another difference in this sphere of financial relations is the release of non-residents of the traditional foreign loans within the same country, and the placement Euroloan carried out in the markets of several countries.