1、 Part I Lead-inWhy is the mobile device so important for financial innovation?1Watch the video clip and discuss the questions given below.The mobile device creates the possibility of skipping a lot of steps that have always characterized the provision of financial services:the development of expensi
2、ve branches.You can finish your transactions just on your mobile device.Five years ago,people just couldnt imagine that.Part I Lead-inWhy are the authorities worried about the innovation?2Watch the video clip and discuss the questions given below.Market structure always changes.The financial innovat
3、ion bundles and securitizes the loans for the poor.It creates potential for more economic activities and at the same time the ability to harm the economy.Part II Textintact:not broken,damaged,or spoiled.未受损伤的 Part II Textpolemicist:someone who is skilled at arguing very strongly for or against a bel
4、ief or opinion.辩论家cum:used between two nouns to show that something has two purposes.连同 Part II Textrun-up:the period of time just before an important event.预备阶段 CDSs:信用违约互换CDOs:担保债务凭证 Part II Textunimpeachable:so good or definite that criticism or doubt is impossible.无懈可击的 vilify:to say or write ba
5、d things about someone or something.贬低 Part II Textunderachieve:if someone underachieves in something such as schoolwork or a job,they do not perform as well as they could.(学业、工作)表现不佳 Ramifications:may not have been clear when you first decided to do it.衍生物 Part II Textcohort:a group of people of th
6、e same age,social class etc,especially when they are being studied.一群 burgeon:to grow or develop quickly.迅速生长 Part II Texthusband:to be very careful in the way you use your money,supplies etc and not waste any.节约地使用 rehabilitate:to help someone to live a healthy,useful,or active life again after the
7、y have been seriously ill or in prison.恢复正常生活 Part II Texta lump sum:一次性付款 ostensible：seeming to be the reason for or the purpose of something,but usually hiding the real reason or purpose.表面的；假装的 Part II Textalign:bring(components or parts)into proper or desirable coordination correlation.匹配 securi
8、tisation:the use of such securities as eurobonds to enable investors to lend directly to borrowers with a minimum of risk but without using banks as intermediaries证券化证券化 Part II Textpremium：the cost of insurance,especially the amount that you pay each year.保险费grapple with:努力克服、解决 Part II Texttrigger
9、:to make something happen very quickly,especially a series of events.触发laud:to praise someone or something.称赞 Part II Textspeculation:when you guess about the possible causes or effects of something without knowing all the facts,or the guesses that you make.投机 interest-rate swaps:利率互换 Part II Texthe
10、dge：to try to protect yourself against possible problems,especially financial loss.对冲contentious:involving or likely to cause controversy.引起争论的 Part II Textculpability:a state of guiltshortfall:the difference between the amount you have and the amount you need or expect.Part II Textlament:to express
11、 annoyance or disappointment about something you think is unsatisfactory or unfair.demonise:make into a demon.Part II Texttranche:a portion of something(especially money)in miniature:exactly like something or someone but much smaller.Part II Textrisk-averse:风险规避的peripheral：not as important as other
12、things or people in a particular activity,idea,or situation Part II Textsubprime loans：次级贷款gold-plated：covered with a very thin layer of gold Part II Textblinkered:having a limited view of a subject,or refusing to accept or consider different ideas.underwrite:If an institution or company underwrites
13、 an activity or underwrites the cost of it,they agree to provide any money that is needed to cover losses or buy special equipment,often for an agreed-upon fee.Part II Textfroth:form bubbles.plump up:fill outripple:to pass from one person to another like a wave.Notes:Paul Volcker,a former chairman o
14、f Americas Federal Reserve,who emerged from the 2007-08 financial crisis with his reputation intact,once said that none of the financial inventions of the past 25 years matches up to the ATM.Part II Text在07到08金融危机中名誉尚在的前美联储主席保罗沃克尔曾说过去二十五年的金融创新没有能 ATM机的。But the debateand hence this special reportfocu
15、ses mainly on wholesale products and techniques,both because they are less obviously useful than retail innovations and because they were more heavily implicated in the financial crisis:think of those evil credit-default swaps(CDSs),collateralised-debt obligations(CDOs)and so on.Part II Text 但是这场争论（
16、包括这个特别报告）主要把目光集中在批发产品和技术上，既是因为他们不如产品创新看起来那么有用，还因为他们跟金融危机牵连很大想想那些邪恶的信用违约互换和债务抵押债券等产品。Part II TextNotes:Reconviction rates among the prisoners recruited to the scheme will be measured against a national database of prisoners with a similar profile,and investors will get payouts from the Ministry of Ju
17、stice if the Peterborough cohort does better than the rest.Part II Text该计划中招募的这批烦人的重判决率将会和国家服刑人员数据库中具有类似特征的服刑人员的重判决率相比，如果招募的这批人判决率更低则投资者可以从彼得伯勒司法部获得支付。Notes:Only the bravest are prepared to defend the more exotic mortgage products that sprouted at the height of Americas housing bubble as lenders fou
18、nd ever more creative ways to bring unaffordable houses within reach.Part II Text只有最勇敢的投资者才会准备去捍卫那些更奇特的抵押贷款产品，这些产品产生于美国房地产泡沫的顶峰，因为借款人发现了更有创意的让买不起房的人轻轻松松贷款买房的办法。Notes:The real problem with the CDOs that blew up was that they were stuffed full of subprime loans but treated by banks,ratings agencies an
19、d investors as though they were gold-plated.Part II TextCDO破灭的真正问题在于他们的内部构成都是些次级贷款，但是银行和评级机构以及投资者却把他们当做金饭碗。In a 2011 paper for the National Bureau of Economic Research,Josh Lerner of Harvard Business School and Peter Tufano of Said Business School also argue that in a typical“S-curve”pattern,in whic
20、h the earliest adopters of an innovation are the most knowledgeable,a widely adopted product is more likely to have lots of users with an inadequate grasp of the products risks.Part II Text在2011年一篇由哈佛大学商学院的Josh Lerner和赛德商学院的Peter Tufano为NBER撰写的论文中，他们认为存在“S曲线”模式，最早接触创新产品的一批人是最聪明的，而那些被广泛接纳的产品的使用者中往往有很
21、多人难以充分掌握产品中的风险。Business Terms：:CDSs：信用违约互换：信用违约互换A financial swap agreement that the seller of the CDS will compensate the buyer in the event of a loan default or other credit event.The buyer of the CDS makes a series of payments(the CDS fee or spread)to the seller and,in exchange,receives a payoff
22、if the loan defaults.Part II Text信用违约互换是将参照资产的信用风险从信用保障买方转移给信用卖方的交易。信用保障买方在合同期限内愿意向承担风险保护的卖方支付一笔固定的费用；信用保障卖方在接受费用的同时，则承诺在合同期限内，当对应信用违约时，向信用保障买方赔付违约的损失。*信用违约互换示意图Part II Text 卖方卖方 买方买方标的资产标的资产违约时支付违约时支付一定比例的费用一定比例的费用CDOs：担保债务凭证：担保债务凭证 A type of structured asset-backed security(ABS)with multiple tranc
23、hes that are issued by special purpose entities and collateralized by debt obligations including bonds and loans.Each tranche offers a varying degree of risk and return so as to meet investor demand.CDOs value and payments are derived from a portfolio of fixed-income underlying assets.CDO securities
24、 are split into different risk classes,or tranches,whereby senior tranches are considered the safest securities.Interest and principal payments are made in order of seniority,so that junior tranches offer higher coupon payments(and interest rates)or lower prices to compensate for additional default
25、risk.Part II Text 担保债务凭证是一种固定收益证券，其现金流量的可预测性较高，不仅提供投资人多元的投资管道以增加投资收益，更强化了金融机构的资金运用效率，转移不确定风险。凡是具有现金流的资产，都可以作为证券化的标的。*简单的担保债务凭证Part II Text 发起银行发起银行（发起人）（发起人）特殊目的公特殊目的公司（司（spv）次级票据次级票据 股票股票 优先票据优先票据现金现金资金资金资产资产息票和本金息票和本金CDO中中各部分各部分interest-rate swaps：利率互换：利率互换A financial derivative instrument in whic
26、h two parties agree to exchange interest rate cash flows,based on a specified notional amount from a fixed rate to a floating rate(or vice versa)or from one floating rate to another.So it can be used to transform a floating-rate liability(asset)into a fixed-rate liability(asset)and vice versa.Part I
27、I Textsubprime loans:次级贷款次级贷款Loans made to people who may have difficulty maintaining the repayment schedule.These loans are characterized by higher interest rates and less favorable terms in order to compensate for higher credit risk.Part II TextSupplementary InterpretationSovereign Credit Default
28、swaps（主权债务 信用违约互换）SCDS developed in response to the need to use flexible instruments to hedge and trade sovereign credit risks.Three main purposes are:Hedging.Owners of sovereign debt buy SCDS to protect themselves against losses arising from a default or other credit event affecting the value of th
29、e underlying debt.SCDS are also used widely in so-called proxy hedging,that is,to hedge risks of other assets(such as those of domestic banks or utility companies)whose value is correlated with the creditworthiness of the sovereign.Part II Text Speculating.SCDS contracts can be used to buy(or sell)p
30、rotection on a naked basisthat is,without an offsetting position in the underlying reference assetsto express a negative(or positive)opinion about the credit outlook of the issuer of the underlying bonds.Hence,although SCDS and other CDS are often called“default insurance,”they clearly differ from t
31、raditional insurance in that the purchasers need not own or have a financial interest in the reference asset.Expressing an opinion about prospective changes in the creditworthiness of a sovereign entity can be executed using other markets(e.g.,interest rate futures,cash bond markets,and other deriva
32、tives),but they reflect other types of risks in addition to sovereign credit risk.Part II TextBasis trading.SCDS are used to profit from pricing differences between SCDS and the underlying debt obligations by taking offsetting positions in the two(“basis trading”).This strategy is based on the princ
33、iple that CDS can be used to replicate the cash flows of underlying obligations.In this regard,when CDS spreads are narrower than the credit spreads of the underlying debt(i.e.,the“basis”is negative),arbitragers may be able to profitably buy the obligations and buy CDS protectionand vice versa if th
34、e basis is positive.In theory,the basis should always be close to zero as a result of this arbitrage activity,but in practice there are various costs and frictions that can alter the profitability of these transactions.Part II TextSocial Impact Bond(SIB)SIBsalso known as“social innovation financing”
35、or“pay for success”offer governments a risk-free way of pursuing creative social programs that may take years to yield results.Usually,governments decide what problems they want to address and then enter a contractual agreement with an intermediary(or bond-issuing organization)that is responsible fo
36、r raising capital from independent investors including banks,foundations,and individuals,and for hiring and managing nonprofit service providers.Part II TextIf the project achieves its stated objectives,the government repays the investors with returns based on the savings the government accrues as a
37、 result of the programs success.(Taxpayers also receive a portion of the budget gains in the form of freed-up public resources,though the investors may need to be fully paid first.)A neutral evaluator,agreed on by both parties,is hired to measure the outcomes and resolve any disputes that arise.Part
38、 II Text*How social innovation financing worksPost-Reading Review match up to be known for measure against a lump sum grapple with hedge against in favour of blow up plump up take hold Fill in the blanks with the words and expressions given below.Make changes where necessary1)These are some of the c
39、hallenges we face with social media and we them every day.2)If youre willing to settle for a lower income,you can ensure that your heirs will receive or series of payments.grapple with a lump sum3)While London could its creative talent,what Itstill lacks is commercial clout.4)His performance did not
40、 the glowing account we had received of him.5)Europes population today,the Black Death took the equivalent of almost two billion lives.6)Now my cheeks are beginning to .7)A large number of idle funds to seek inflation,value-added means,resulting in over-investment.8)Authorities say the bomber himsel
41、f at a security checkpoint at the malls entrance.9)Whether the market will of this longer-term is uncertain but at least the market has something to accept or reject.10)Lets put it to the question.How many people here are unilateral disarmament？be known formatch up toMeasured againstplump uphedge ag
42、ainstblewuptake holdin favour ofa)An asset-back security which uses a portfolio of bonds or loans as collateral,or security.consent or statutory provisionb).A debt investment in which an investor loans money to an entity(corporate or governmental)that borrows the funds for a defined period of time a
43、t a fixed interest rate.c)A fund established by an employer to facilitate and organize the investment of employees retirement funds contributed by the employer and employees.d)A swap designed to transfer the credit exposure of fixed income products between parties.e)In the context of stocks,an influ
44、ential investor who creates demand for a security because of their positive outlook on it.TranslationWord Matching Translation Translate the following passages into ChineseThe problem of rampant growth and mutation has two answers.One is a willingness on the part of regulators to raise red flags.A g
45、ood example of this approach came last year,when the IMF and others voiced concerns about the rapid evolution of the ETF market and,in particular,a corner of the industry that uses derivatives to achieve desired returns.The warnings sparked a bout of introspection within the industry and led to bett
46、er disclosure practices.Translation Translate the following passages into ChineseThe second imperative is to make sure that the infrastructure of finance keeps pace with its ingenuity.When there is demand for a product,sales teams can pump out almost unlimited supply.The back office is left trailing
47、.Insiders shudder to think what the crisis would have looked like if regulators had not acted to clear up a massive paperwork mess in the CDS market in 2005,for instance.Even then,supervisors missed the huge exposures being taken on by AIG,an insurer,in over-the-counter trades.Data on such transacti
48、ons are now being gathered and made available to regulators,which should make it harder for vulnerabilities of this sort to go unnoticed.Translation Translate the following passages into Chinese（金融产品）野蛮增长和变异的难题有两个答案。一个是监管者愿意竖起红旗来警示。一个很好的例子是在去年，当IMF等机构表示了对快速进化的ETF市场的关切特别是其中利用金融衍生品来达到想要获得的收益的部分。这样的警告引
49、发了行业内部的自省，并且采取了更多的披露信息的做法。Translation Translate the following passages into Chinese第二种方法是让金融基础设施和其创新保持同步。当一种产品的需求产生的时候，销售团队几乎可以立即提供无限制的供应。后台部门却被落在后面。业内人士颤抖着假象如果监管部门在2005年没有去清理大量的CDS的文件会是什么样的后果。即便如此，监管者依然忽略了保险公司AIG的OTC交易的风险暴露。如见这些交易的数据被收集起来并且提供给监管者，这将会使得一些缺陷不会难以被发现。Paraphrasing Paraphrase the sentenc
50、es in your own words.（1）But even innovations that are directed to unimpeachably“good”ends often bear substantial resemblances to those that are now vilified.（2）A mixture of social and financial returns is central to a burgeoning asset class known as“impact investing”.（3）Third,even at this early stag
