Financial Markets and Institutions

Overview

Main description

Financial Markets and Institutions, 5e offers a unique analysis of the risks faced by investors and savers interacting through financial institutions and financial markets, as well as strategies that can be adopted for controlling and managing risks. Special emphasis is put on new areas of operations in financial markets and institutions such as asset securitization, off-balance-sheet activities, and globalization of financial services.

Table of contents

Part I. Introduction and Overview of Financial Markets 1. Introduction 2. Determinants of Interest Rates 3. Interest Rates and Security Valuation 4. The Federal Reserve System, Monetary Policy, and Interest RatesPart II. Securities Markets 5. Money Markets 6. Bond Markets 7. Mortgage Markets 8. Stock Markets 9. Foreign Exchange Markets 10. Derivative Securities MarketsPart III. Commercial Banks 11. Commercial Banks: Industry Overview 12. Commercial Banks’ Financial Statements and Analysis 13. Regulation of Commercial BanksPart IV. Other Financial Institutions 14. Other Lending Institutions: Savings Institutions, Credit Unions, and Finance Companies 15. Insurance Companies 16. Securities Firms and Investment Banks 17. Mutual Funds and Hedge Funds 18. Pension FundsPart V. Risk Management in Financial Institutions 19. Types of Risks Incurred by Financial Institutions 20. Managing Credit Risk on the Balance Sheet 21. Managing Liquidity Risk on the Balance Sheet 22. Managing Interest Rate and Insolvency Risk on the Balance Sheet 23. Managing Risk off the Balance Sheet with Derivative Securities 24. Managing Risk off the Balance Sheet with Loan Sales and Securitization