We determine if a decrease in the size of the market for Bankers Acceptances
(BAs) from 1984 to 2000 led to an increase in the liquidity premium for BAs, which in turn changed the relative relation between BA rates and the rates on other money-market instruments.
In addition to open market purchases of bankers acceptances
, the Federal Reserve Act authorized Reserve Banks "to buy and sell, at home or abroad, bonds and notes of the United States, and bills, notes, revenue bonds, and warrants.
Government securities, obligations that are direct obligations of, or fully guaranteed as to principal and interest by, any agency of the United States, and prime bankers acceptances
of the types authorized for purchase under l(b) above, from dealers for the account of the Federal Reserve Bank of New York under agreements for repurchase of such securities, obligations, or acceptances in 15 calendar days or less, at rates that, unless otherwise expressly authorized by the Committee, shall be determined by competitive bidding, after applying reasonable limitations on the volume of agreements with individual dealers; provided that in the event U.
4 Definition and Key Features of Bankers Acceptances
issued by the First American Bank of New York on behalf of BCCI's Hong Kong subsidiary came due after BCCI was closed on July 5, 1991, and the BCCI subsidiary has not repaid the First American bank.
The Purchase Price is financed by a hypothecary loan from Societe Financiere MCAP for an amount of thirteen million six hundred thousand dollars ($13,600,000), at the annual floating interest rate established on the bankers acceptances
plus four hundred points per year.
The $26 million debt accrued after the global financier acquired several bankers acceptances
(BAs) from Interfin Bank on a repurchase basis.
The new credit facility is a five-year amortizing loan with an interest margin of 2-1/2% over LIBOR or Bankers Acceptances