Table of contents All the changes are highlighted
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 Rates
Part II. Securities Markets
5. Money Markets
6. Bond Markets
7. Mortgage Markets
8. Foreign Exchange Markets (used to be chpt.9)
9. Stock Markets (used to be chpt. 8)
10. Derivative Securities Markets
Part III. Commercial Banks (title change)
11. Commercial Banks
12. Commercial Banks? Financial Statements and Analysis (new title)
13. Regulation of Commercial Banks (new title)
Part IV. Other Financial Institutions
14. Other Lending Institutions: Savings Institutions, Credit Unions, and Finance Companies (new title)
15. Insurance Companies
16. Securities Firms and Investment Banks
17. Mutual Funds
18. Pension Funds
Part V. Risk Management in Financial Institutions
19. Types of Risks Incurred by Financial Institutions
20. Managing Credit Risk on the Balance Sheet (new title)
21. Managing Liquidity Risk (new title)
22. Managing Interest Rate and Insolvency Risk (new title)
23. Managing Risk with Derivative Securities
Managing Risk with Loan Sales and Asset Securitization (new title
New Features
The text 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.
? Strong markets focus within a modern risk management framework.
? Detailed coverage of ethics in finance
? Looks at how new risks have evolved, how the more traditional risks have changed as a result, and how all of these risks can be measured and managed.
? Pedagogically rich to help students retain and apply chapter concept. Chapter Navigators.
? Well developed end of chapter problems, at least twenty per chapter, are written for varied levels of difficulty.
? Exceptional illustration program (figures, diagrams, graphs) explaining the details of getting a security to the market and the subsequent trading of securities.
? Strong Excel integration (templates in the OLC)