Chris Terry was awarded his Doctorate from New York University in 1975 the year in which he joined the New South Wales Institute of Technology. He has taught a range of subjects, including Microeconomics, Public Finance and Capital Markets and co-written four textbooks in the areas of Microeconomics, Microeconomic Policy and Financial Markets as well as contributing many chapters to books in these fields. Chris was Head of the Economics Department from 1983 to 1986, Head of School from 1987 to 1989, Associate Dean (Postgraduate Programs and Research) from 1994 to 1995 and once again Head of School from 1997 to 2004.
Banking and financial markets.
Terry, C & Forde, K 1992, Microeconomics: An introduction for Australian students, 3rd, Prentice-Hall, Sydney, Australia.
Terry, C 1989, Industry economics, Heinemann, Melbourne, Australia.
Terry, C, Jones, R & Broddock, R 1988, Australian microeconomic policies, 3rd, Prentice Hall, Sydney, Australia.
Terry, C, Jones, R & Broaddock, R 1985, Australian microeconomics: Policies and industry cases, 2nd, Prentice Hall, Sydney, Australia.
Terry, C 1980, Australian microeconomics: Policies and industry cases, Prentice Hall, Sydney, Australia.
© Zhao R, 2016. This paper presents the findings of the first study of the index effects from changes in the composition of Australia's tradeable benchmark index: the S&P/ASX 200. Prior to the introduction of the S&P/ASX200 changes to the composition of the market's (then) benchmark index (the All Ordinaries Index) became evident before the formal announcement dates and the changes were made the following trading day. These announcement arrangements enabled profitable front-running trading. Along with the introduction of the new indices (including the S&P/ASX200) the arrangements for announcing changes to the composition of the index were changed to remove the opportunity for profitable frontrunning trading. While this objective was largely met for additions to the index the study found statistically significant evidence of price pressure between the announcement and implementation dates which were partially offset over the subsequent 20-day period. In relation to deletions the study found negative abnormal returns prior to announcement dates as well as between the announcement and implementation dates that were partially reversed over the subsequent 20-day period. The overall conclusion is that the event of changes in the composition of the S&P/ASX200 is on average associated with positive abnormal returns for additions and negative abnormal returns for deletions.
Studies over recent decades of the return effects for the stocks added to and deleted from the S&P 500 have documented the so-called `S&P game, where traders could profit from stock price reactions to changes in the indexs composition. Studies on the All Ordinaries Index covering the 1990s also found profitable trading opportunities over the pre-announcement period. Our study of the effects of changes in the composition of the S&P/ASX 200 from its introduction (in April 2000) to June 2009 found these pre-announcement opportunities were eliminated but that potential exists for the `S&P/ASX 200 game between announcement and implementation dates.
The ASX has two functionally similar markets for contingent equity contracts a warrants market principally serving retail investors and an ETO market that may be used by retail and professional traders. Using pricing and volatility comparisons, this study finds that warrants are generally overpriced and are significantly dearer than their ETO equivalents. The paper recommends that short selling be allowed in the warrants market in order to reduce the pricing differentials and end the systematic exploitation of retail warrant investors by warrant issuers.
Terry, C 2009, 'The new Basel Capital Accord: A major advance at a turbulent time', Agenda, vol. 16, no. 1, pp. 25-43.
January 2008, the Australian Prudential Regulation Authority introduced the second-generation capital requirement, Basel II, that substantially extended the 1988 Capital Accord of the Basel Committee on Banking Supervision. This paper explains the main features of Basel II; reviews concerns about the likely effects of the new capital requirement; and assesses the new capital requirement in the context of the global financial crisis.
Terry, C 1994, 'Competition Policy', Policy, vol. Winter, pp. 59-63.
Terry, C 1985, 'Inflation and the personal income tax', Economic Analysis and Policy, vol. 15, no. 2, pp. 145-163.
Terry, C 1982, 'Inflation, Tax Indexation and Personal Tax Scale', Australian Quarterly, vol. 54, no. 4, pp. 418-427.
Menzies, GD, Terry, C & Trayler, RM 2005, 'Waiting for capital: the impact of corruption in Indonesian financial markets' in Gup, BE (ed), Capital Markets, Globalization, and Economic Development, Springer, New York, USA, pp. 175-191.
Terry, C & Trayler, RM 2004, 'Too big to fail: the Australian perspective' in Gup, B (ed), Too big to fail: policies and practices in government bailouts., Praeger Publishers, Westport, USA, pp. 197-218.
Jones, R & Terry, C 1994, 'Industry assistance' in Ross Jones (ed), Australian Microeconomic Policies, Prentice Hall, Sydney, Australia, pp. 151-172.
Terry, C 1994, 'Concepts underpinning microeconomic policies' in Ross Jones (ed), Australian Microeconomic Policies, Prentice Hall, Sydney, Australia, pp. 229-251.
Terry, C 2009, 'The future of Basel II - How will it remain relevant?', Australiasian Compliance Institute 13th Annual Conference, Sydney, Australia.
Trayler, RM, Terry, C & Nielsen, J 1997, 'Banking expectations, do bankers understand the needs of their customers', Australian Institute of Banking and Finance 1997 Conference Proceedings, Australian Institute of Banking and Finance 1997 Conference, Australian Institute of Banking and Finance, Melbourne, Australia, pp. 396-414.
Polynomial functions of the term to maturity have long been used to provide a general functional form for zero-coupon yield curves. The polynomial form has many advantages over alternative functional forms such as Laguerre, when using non-linear least squares to estimate zero-coupon yield curves with coupon bond data. Most importantly the polynomial form invariably enables convergence of the etimation process. Unfortunately, the simple polynomial form results in estimated models of zero-coupon yield curves that approach either plus or minus infinity as the term increases. This unsatisfactory aspect of the simple polynomial is inconsistent with both theoretical considerations and observational reality. We propose a new zero-coupon yield curve functional form consisting not of simple polynomials of term, tau, but rather constructed from polynomials of 1/(1+tau). This form has the desirable property that long-term yields approach a constant value. Further, we model zero-coupon yields as a linear function of the first k principal components of p polynomials of (1/(1+tau), k The principal components of poynomials of 1/(1+tau) model is applied to Australian coupon bond data. The results compare favourably to those obtained using the traditional polynomial term model.