Foundations of Global Financial Markets and Institutions, fifth edition / Edition 5

by Frank J. Fabozzi, Frank J. Jones, Francesco A. Fabozzi, Steven V. Mann

Overview

A thoroughly revised and updated edition of a textbook for graduate students in finance, with new coverage of global financial institutions.

This thoroughly revised and updated edition of a widely used textbook for graduate students in finance now provides expanded coverage of global financial institutions, with detailed comparisons of U.S. systems with non-U.S. systems. A focus on the actual practices of financial institutions prepares students for real-world problems.

After an introduction to financial markets and market participants, including asset management firms, credit rating agencies, and investment banking firms, the book covers risks and asset pricing, with a new overview of risk; the structure of interest rates and interest rate and credit risks; the fundamentals of primary and secondary markets; government debt markets, with new material on non-U.S. sovereign debt markets; corporate funding markets, with new coverage of small and medium enterprises and entrepreneurial ventures; residential and commercial real estate markets; collective investment vehicles, in a chapter new to this edition; and financial derivatives, including financial futures and options, interest rate derivatives, foreign exchange derivatives, and credit risk transfer vehicles such as credit default swaps. Each chapter begins with learning objectives and ends with bullet point takeaways and questions.

Product Details

ISBN-13:	9780262039543
Publisher:	MIT Press
Publication date:	04/30/2019
Series:	The MIT Press
Edition description:	fifth edition
Pages:	1088
Product dimensions:	8.30(w) x 8.90(h) x 1.70(d)
Age Range:	18 Years

About the Author

Frank J. Fabozzi is Professor of Finance at EDHEC Business School, France. He has held positions at Princeton University, Yale School of Management, and MIT Sloan School of Management. He is the author of Capital Markets (fifth edition, MIT Press), Entrepreneurial Finance and Accounting for High-Tech Companies (MIT Press), and other books.

Frank J. Jones is Professor of Finance and Accounting at San Jose State College of Business. His previous positions in finance include Chairman of the International Securities Exchange and Director of Global Fixed Income Research and Economics at Merrill Lynch.

Table of Contents

Preface xi

Acknowledgments xiii

Overview of the Book xv

I Financial Markets and Players

1 Introduction 3

2 Role of Governments in Financial Markets 23

3 Financial Institutions, Financial Intermediaries, and Asset Management Firms 47

4 Overview of Private Market Participants 61

5 Credit Rating Agencies and Their Role in Financial Markets 81

6 Depository Institutions: Activities and Characteristics 99

7 Central Banks 127

8 Insurance Companies 153

9 Investment Banking Firms 185

II Understanding Risks and Asset Pricing

10 Overview of Risks and Their Management 209

11 Properties and Pricing of Financial Assets 239

12 Return Distributions, Risk Measures, and Risk-Return Ratios 263

13 Portfolio Selection Theory 295

14 Asset Pricing Theories 317

III Interest Rates, Interest Rate Risk, and Credit Risk

15 The Theory of Interest Rates 345

16 The Structure of Interest Rates 377

IV Primary and Secondary Markets

17 Primary Markets 415

18 Secondary Markets 435

19 The Foreign Exchange Market 453

V Global Government Debt Markets

20 Sovereign Debt Markets 469

21 Subnational (Municipal) Government Debt Markets 491

VI Corporate Funding Markets

22 The Structure and Trading Venues of the Equity Market 515

23 U.S. Common Stock Market: Pricing Efficiency, Trading, and Investment Strategies 551

24 Non-U.S. Equity Markets 587

25 Global Short-Term Funding and investing Markets 611

26 Corporate Debt Markets 647

27 Market for Asset-Backed Securities 677

28 Financing Market for Small, Medium-Sized, and Entrepreneurial Enterprises 697

VII Real Estate Markets

29 The Residential Mortgage Market 733

30 Residential Mortgage-Backed Securities Market 761

31 Commercial Real Estate Markets 793

VIII Collective Investment Vehicles and Financial Derivatives Markets

32 Market for Collective Investment Vehicles 817

33 Financial Futures Markets 845

34 Options Markets 873

35 Pricing Futures and Options Contracts 899

36 Applications of Futures and Options Contracts 929

37 Over-the-Counter Interest Rate Derivatives: Forward Rate Agreements, Swaps, Caps, and Floors 955

38 Market for Foreign Exchange Derivatives 989

39 Market for Credit Risk Transfer Vehicles 1007

Index 1029

What People are Saying About This

From the Publisher

For almost twenty years I have been assigning this book to my students, through successive editions, because it is very thorough and insightful in describing real-world activities and clear and broad in its presentation of theory. I am glad to see the new emphasis in this edition on global markets, for my students appreciate their importance to all of us as we continue to see globalization proceed

— Robert J. Shiller, Sterling Professor of Economics , Yale University

During these turbulent times, students of finance and international business must be kept abreast on the ramifications on the financial world of external actions and decisions by world leaders.  This textbook provides the topical fundamental knowledge and helps students develop a critical perspective on the implications for global business.

— Deanne Butchery, University Lecturer in Finance , Florida International University