The purpose of this book is to describe the wide range of instruments for financing, investing, and controlling risk available in today's financial markets. New financial instruments are not created simply because someone on Wall Street believes that it would be ''fun'' to introduce an instrument with more ''bells and whistles'' than existing instruments. The demand for new instruments is driven by the needs of borrowers and investors based on their asset/liability management situation, regulatory constraints (if any), financial accounting considerations, and tax considerations. For these reasons, to comprehend the financial innovations that have occurred and expected to occur in the future, a general understanding of the asset/liability management problem of major institutional investors is required. Therefore, in addition to coverage of the markets for all financial instruments, we provide an overview of the asset/liability management issues faced by major institutional investors and the strategies they employ.
Section 1 The Players
Section 2 Organization And Structure Of Markets
Section 3 Risk And Return Theories
Section 4 Derivatives Markets
Section 5 The Equity Market
Section 6 Interest Rate Determination And Bond Valuation
Section 7 Debt Markets
Section 8 Foreign Exchange Markets