Financial Markets and Institutions (2-downloads)

PART ONE

INTRODUCTION

1

1

Why Study Financial Markets and Institutions?

1

2

Overview of the Financial System

15

PART TWO

FUNDAMENTALS OF FINANCIAL MARKETS

36

3

What Do Interest Rates Mean and What Is Their Role in Valuation?

36

4

Why Do Interest Rates Change?

64

5

How Do Risk and Term Structure Affect Interest Rates?

89

6

Are Financial Markets Efficient?

116

PART THREE

FUNDAMENTALS OF FINANCIAL INSTITUTIONS

134

7

Why Do Financial Institutions Exist?

134

8

Why Do Financial Crises Occur and Why Are They So Damaging to the Economy?

163

PART FOUR

CENTRAL BANKING AND THE CONDUCT OF MONETARY POLICY 191

9

Central Banks and the Federal Reserve System

191

10

Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics

214

PART FIVE

FINANCIAL MARKETS

254

11

The Money Markets

254

12

The Bond Market

279

13

The Stock Market

302

14

The Mortgage Markets

323

15

The Foreign Exchange Market

344

16

The International Financial System

374

PART SIX

THE FINANCIAL INSTITUTIONS INDUSTRY

398

17

Banking and the Management of Financial Institutions

398

18

Financial Regulation

425

19

Banking Industry: Structure and Competition

454

20

The Mutual Fund Industry

489

21

Insurance Companies and Pension Funds

513

22

Investment Banks, Security Brokers and Dealers, and Venture Capital Firms

543

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viii

Contents in Brief

PART SEVEN

THE MANAGEMENT OF FINANCIAL INSTITUTIONS

568

23

Risk Management in Financial Institutions

568

24

Hedging with Financial Derivatives

590

Glossary

G-1

Index

I-1

CHAPTERS ON THE WEB

25

Savings Associations and Credit Unions

26

Finance Companies

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ix

Contents in Detail 

Contents on the Web

xxvii

Preface

xxix

About the Authors

xxxix