Financial Markets and Institutions

Description

Preface Supplements Introduction and Overview of Financial Markets Introduction Determinants of Interest Rates Interest Rates and Security Valuation Appendix 3A: Duration and Immunization Appendix 3B: More on Convexity The Federal Reserve System, Monetary Policy, and Interest Rates Securities Markets Money Markets Appendix 5A: Single versus Discriminating Price Treasury Auctions Appendix 5B: Creation of a Banker’s Acceptance Bond Markets Mortgage Markets Appendix 7A: Amortization Schedules for No-Points versus Points Mortgages in Example 7–4 Stock Markets Appendix 8A: The Capital Asset Pricing Model Appendix 8B: Event Study Tests Foreign Exchange Markets Appendix 9A: Balance of Payment Accounts Derivative Securities Markets Appendix 10A: Black–Scholes Option Pricing Model Commercial Banks Commercial Banks: Industry Overview Commercial Banks’ Financial Statements and Analysis Regulation of Commercial Banks Appendix 13A: Calculating Deposit Insurance Premium Assessments Appendix 13B: Calculating Risk-Based Capital Ratios Appendix 13C: Primary Regulators of Depository Institutions Appendix 13D: Deposit Insurance Coverage for Commercial Banks in Various Countries Appendix 13E: Calculating Minimum Required Reserves at U.S. Depository Institutions Other Financial Institutions Other Lending Institutions: Savings Institutions, Credit Unions, and Finance Companies Insurance Companies Securities Firms and Investment Banks Mutual Funds and Hedge Funds Pension Funds Appendix 18A: Calculation of Growth in IRA Value during an Individual’s Working Years Risk Management in Financial Institutions Types of Risks Incurred by Financial Institutions Managing Credit Risk on the Balance Sheet Managing Liquidity Risk on the Balance Sheet Appendix 21A: New Liquidity Risk Measures Implemented by the Bank for International Settlements Appendix 21B: Sources and Uses of Funds Statement: Bank of America, June 2010 Managing Interest Rate Risk and Insolvency Risk on the Balance Sheet Managing Risk off the Balance Sheet with Derivative Securities Appendix 23A: Hedging with Futures Contracts Appendix 23B: Hedging with Options Appendix 23C: Hedging with Caps, Floors, and Collars Managing Risk off the Balance Sheet with Loan Sales and Securitization References Index End Papers