Foundations of Financial Markets and Institutions

Submitted by Book Library on 11 April, 2010 - 01:32

This book offers a comprehensive exploration of the revolutionary developments occurring in the world's financial markets and institutions —i.e., innovation, globalization, and deregulation —with a focus on the actual practices of financial institutions, investors, and financial instruments. Extensive coverage of the markets for derivative securities. Coverage of Depository Institutions is included. For professionals in the field of financial markets.

A core text for one semester courses in Financial Institutions and Markets. A comprehensive exploration of the world's financial markets and institutions. Foundations of Financial Markets and Institutions (3rd Edition) and Institutions, offers a comprehensive exploration of the revolutionary developments occurring in the world's financial markets and institutions i.e., innovation, globalization, and deregulation with a focus on the actual practices of financial institutions, investors, and financial instruments. This 3rd edition incorporates and addresses the vast amount of changes that have recently occurred in financial institutions and markets around the world.

A core text for one semester courses in Financial Institutions and Markets.

A comprehensive exploration of the world's financial markets and institutions.

Foundations of Financial Markets and Institutions, offers a comprehensive exploration of the revolutionary developments occurring in the world's financial markets and institutions –i.e., innovation, globalization, and deregulation–with a focus on the actual practices of financial institutions, investors, and financial instruments.

This fourth edition incorporates and addresses the vast amount of changes that have recently occurred in financial institutions and markets around the world.

Lengthy coverage of the mortgage market and the securitization of assets: Going in-depth into the mortgage market and scrutinizing assets helps represent a departure from traditional systems of financing that student’s need to understand in today’s world of financial markets and institutions.

Extensive and integrated coverage of international and global aspects of contemporary finance: Provides students with an in-depth discussion of how the world's major financial markets and institutions interact with one another.

Extensive coverage of the markets for derivative securities: This text equips students with fundamental information about the structure of these derivatives, the markets where they are traded, the principles for pricing them, and the applications to which financial practitioners can put them.

A wide array of financial instruments described: Showing students the vast amount of instruments available in today's markets provides insight on how the instruments–for investing, financing operations, and controlling the various kinds of financial risk –are responses to the needs of borrowers, lenders, and investors.

World's key financial institutions–Examined in-depth: Provide your students with a unique perspective on how these institutions manage their assets and liabilities in a complicated environment.

Positive Review of Book

I use this textbook for my Financial Markets class and I learn so much from it. Fabozzi does a wonderful job of transferring his ideas to students so they can comprehend them and learn. Because of this book, I will definitely get an 'A' in my class. I recommend this book to anybody.

Negative Review of Book

I am using this textbook for a MBA course and I just had to stop studying and write a review. The authors must have collectively agreed to make this the most confusing read possible. For every one definition, there are two to three words that can mean the same thing, and they are interchangeably used throughout the text; after several chapters, it is very difficult to remember which term matches with which definition. Besides that, the text book was written for people who ALREADY know all the terms associated with this field. They can take a simple subject and convolute it with jargon that the average user will not understand.

The writing style used is VERY technical; instead of writing simple sentences that are clear/easily understood, it appears as though they used every word in the thesaurus. I spend more time in the index and glossary than I do reading the text itself. Why couldn't they have written it more intelligently? A good text book explains itself as it goes and does not jump off the high dive into the deep end of the pool. If you are a Finance Major, this is the book for you, for the rest, I would keep looking. I'm off to wade through the rest of this book and look forward to the last page; will it ever come?

Author Biography

Frank J. Fabozzi is an Adjunct Professor of Finance at the School of Management at Yale University arid editor of the Journal of Portfolio Management. From 1986 to 1992, he was a full-time member of the Finance faculty at the Sloan School of Management at MIT. Dr. Fabozzi has authored and edited several widely acclaimed books in finance. He is on the board of directors of the B1ackRock complex of closed-end funds and the Guardian Park Avenue Portfolio family of open-end funds. He earned a doctorate in economics in 19'72 from The Graduate Center of the City University of New York and is a Chartered Financial Analyst. In 1994, he was awarded an honorary doctorate of Humane Letters from NOVA Southeastern University.

Franco Modigliani is Institute Professor and Professor of Finance and Economics at MIT He is an Honorary President of the International Economic Association and a former President of the American Economic Association, the American Finance Association, and the Econometric Society. He is a member of several academies, including the National Academy of Science. Professor Modigliani has authored numerous books and articles in economics and finance. In October 1985, he was awarded the Alfred Nobel Memorial Prize in Economic Sciences. He has served as a consultant to the Federal Reserve System, the U.S. Treasury Department, and a number of European banks, as well as to many businesses, and is on several boards of directors. Professor Modigliani received a Doctor of Jurisprudence in 1939 from the University of Rome and a Doctor of Social Science in 1944 from the New School for Social Research, as well as several honorary degrees.

Frank J. Jones is Executive Vice President & Chief Investment Officer of The Guardian Life Insurance Company and President of The Park Avenue Portfolio, Guardian's family of mutual funds. He is also on the board of directors of Guardian Baille Gifford Limited and the International Securities Exchange. He is on the editorial boards of the Journal of Portfolio Management and the Financial Analysts Journal. He received a doctorate from Stanford University and an M.S. in nuclear engineering from Cornell University. Dr. Jones has been on the Graduate Faculty of Economics at the University of Notre Dame, an associate professor at the San Jose State University College of Business, a lecturer at the Yale University School of Management, and an Adjunct Professor of Finance at New York University. Dr. Jones has been Director of Global Fixed Income Research and Economics at Merrill Lynch & Co. and Senior Vice President at the New York Stock Exchange.

Michael G. Ferri is a Professor of Finance at George Mason University in Fairfax, Virginia, and holds the GMU Foundation Chair in Finance. He received his doctorate in economics from the University of North Carolina in 19'75. His numerous articles on financial markets and investments have appeared in a variety of financial and economic journals. He is on the editorial advisory board of the, Journal of Portfolio Management and several academic journals. He has been a vice-president of the Financial Management Association International and has served as a consultant to agencies of the U.S. government and to several major financial institutions. In 1997, Dr. Ferri held the Coenen Visiting Professorship in the Darden School of the University of Virginia.

Table of Contents

  1. Introduction.
  2. Financial Intermediaries and Financial Innovation.
  3. The Role of the Government in Financial Markets.
  4. II. DEPOSITORY INSTITUTIONS.
    • Depository Institutions: Activities and Characteristics.
    • Central Banks and the Creation of Money.
    • Monetary Policy.
  5. III. NONDEPOSITORY FINANCIAL INTERMEDIARIES.
    • Insurance Companies.
    • Investment Companies and Exchange-Traded Funds.
    • Pension Funds.
  6. IV. DETERMINANTS OF ASSET PRICES AND INTEREST RATES.
    • Properties and Pricing of Financial Assets.
  7. The Level and Structure of Interest Rates.
  8. The Term Structure of Interest Rates.
  9. Risk/Return and Asset Pricing Models.
  10. V. ORGANIZATION AND STRUCTURE OF MARKETS.
    • Primary Markets and the Underwriting of Securities.
    • Secondary Markets.
  11. VI. MARKETS FOR GOVERNMENT DEBT.
    • Treasury and Agency Securities Markets.
    • Municipal Securities Markets.
  12. VII. MARKETS FOR CORPORATE SECURITIES.
    • Common Stock Markets in the United States.
    • International Stock Markets.
    • Markets for Corporate Senior Instruments
    • Corporate Senior Instruments
    • The Markets for Bank Obligations.
  13. VIII. MORTGAGE AND SECURITIZED ASSET MARKETS.
    • The Mortgage Market.
    • Mortgage-Backed Securities Market.
    • Asset-Backed Securities Market.
  14. IX. MARKETS FOR DERIVATIVE SECURITIES.
    • Financial Futures Markets.
    • Options Markets.
    • Pricing of Futures and Options Contracts.
    • The Applications of Futures and Options Contracts.
    • Other Derivative Markets: swaps, Caps, Floor, and Credit Derivatives.
    • The Market for Foreign Exchange Rate Risk Control Instruments.

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