Risk Management and Financial Institutions 3rd Edition

Fully revised and updated, this new edition features coverage of Basel 2.5, Basel III and Dodd-Frank as well as expanded sections on counter party credit risk, central clearing, and collateralization. In addition, end-of-Chapter practice problems and a website featuring supplemental materials designed to provide a more comprehensive learning experience make this the ultimate learning resource. Written by acclaimed risk management expert, John Hull, Risk Management and Financial Institutions is the only book you need to understand-and respond to-financial risk.

Key Features

• Top-Selling Author: John Hull is a brand name in academic circles highly-respected and phenomenally successful. His books are taught adopted globally for undergrad and MBA courses. Hull's two other books (Options, Futures & Derivatives / Fundamentals of Futures & Options) are in their 8th and 7th editions, respectively, and regularly sell 50k to 100k per edition.
• All the Ancillaries: As a professor, John understands the importance of providing readers and instructors with the proper back-up material to enhance learning. He's including software, practice questions & answers, and all the other necessary teaching ancillaries, as he did for previous editions.

About the Author
John Hull is the Maple Financial Professor of Derivatives and Risk Management at the Joseph L. Rotman School of Management, University of Toronto. He is an internationally recognized authority on derivatives and risk management. He was, with Alan White, one of the winners of the Nikko-LOR research competition for his work on the Hull-White interest rate model and was in 1999 voted Financial Engineer of the Year by the International Association of Financial Engineers. He has acted as consultant to many North American, Japanese, and European financial institutions. He has written three books "Risk Management and Financial Institutions" (now in its second edition), "Options, Futures, and Other Derivatives" (now in its eighth edition) and "Fundamentals of Futures and Options Markets" (now in its seventh edition). The books have been translated into many languages and are widely used in trading rooms throughout the world, as well as in the classroom.

He has won many teaching awards, including University of Toronto's prestigious Northrop Frye award, Dr. Hull is co-director of Rotman's Master of Finance program. In addition to the University of Toronto, Dr. Hull has taught at York University, University of British Columbia, New York University, Cranfield University, and London Business School. Earlier in his career he worked as a corporate planning analyst with British Shoe Corporation. He is an Associate Editor of eight academic journals.

Table of Contents
Chapter 1 Introduction
Chapter 2 Banks
Chapter 3 Insurance Companies and Pension Plans
Chapter 4 Mutual Funds and Hedge Funds
Chapter 6 The Credit Crisis of 2007
Chapter 7 How Traders Manage Their Risks
Chapter 8 Interest Rate Risk
Chapter 9 Value at Risk
Chapter 10 Volatility
Chapter 11 Correlations and Copulas
Chapter 12 Basel I, Basel II, and Solvency II
Chapter 13 Basel 2.5, Basel III, and Dodd--Frank
Chapter 14 Market Risk VaR: The Historical Simulation Approach
Chapter 15 Market Risk VaR: The Model-Building Approach
Chapter 16 Credit Risk: Estimating Default Probabilities
Chapter 17 Counterparty Credit Risk in Derivatives
Chapter 18 Credit Value at Risk
Chapter 19 Scenario Analysis and Stress Testing
Chapter 20 Operational Risk
Chapter 21 Liquidity Risk
Chapter 22 Model Risk
Chapter 23 Economic Capital and RAROC
Chapter 24 Risk Management Mistakes to Avoid
Appendix A Compounding Frequencies for Interest Rates
Appendix B Zero Rates, Forward Rates, and Zero-Coupon Yield Curves
Appendix C Valuing Forward and Futures Contracts
Appendix D Valuing Swaps
Appendix E Valuing European Options
Appendix F Valuing American Options
Appendix G Taylor Series Expansions
Appendix H Eigenvectors and Eigenvalues
Appendix I Principal Components Analysis
Appendix J Manipulation of Credit Transition Matrices
Appendix K Valuation of Credit Default Swaps
Appendix L Synthetic CDOs and Their Valuation
Answers to Questions and Problems
Glossary
DerivaGem Software
Table for N(x) when x 2264 0
Table for N(x) when x 2265 0
Index