Interest rate of the securities with fixed-income in Iran
Subject Areas : Journal of Investment KnowledgeTaghi Torabi 1 , Peyman Tataei 2 , Samaneh Tarighi 3 , Abdollah Daryabor 4
1 - Associate Professor, Islamic Azad University, Science and Research Branch
2 - Ph.D. Student of Financial Management, Islamic Azad University, Science and Research Branch
3 - Ph.D. student in Economics, Islamic Azad University, Science and Research Branch
4 - Ph.D. Student of Financial Management, Islamic Azad University, Science and Research Branch
Keywords: Market Making, Infrest Rate, Supply &, Demand,
Abstract :
Interest rate of the securities with fixed-income in Iran which is determined in terms of policy and regulatory package of central bank, typically it is considered as fixed and interest rate of the county. Obviously, the interest rate should be floating and more than inflation rate. However, due to available mechanism for notifying the interest rate, there are not floating interest rate in Iran unlike most world countries and notified interest rate is not fair rate. On the other hand, according to high inflation, lake of flexibility, attractiveness of other parallel markets, redeem volume of increased and handling market securities is forced to high volume from unattractive securities. In this article, modern method for securities handling market is introduced with fixed-income. In this procedure, the securities price supplied to auction and or fair price method, is variable without amplitude and securities transactions into single-price auction during trading session and the handling marketer is obligated to import simultaneously sale and purchase orders. After describing possible and specific conditions model using a corner solutions and considering possible condition strongest and its efficiency is evaluated. With verifying the model efficiency can be expected to occur in the country the finding interest rate and reducing the financing with supplying the securities to the auction method, escrowing the handling market process to the market mechanism, discovering optimum price, increasing the efficiency and attractiveness, interest rate form the securities and reducing handling market.
