Table of Content

1 Introduction
2 Financial Institutions, Financial Intermediaries, and Asset Management Firms
3 Depository Institutions: Activities and Characteristics
4 The U.S. Federal Reserve and the Creation of Money
5 Monetary Policy in the United States
6 Insurance Companies
7 Investment Companies and Exchange-Traded Funds
8 Pension Funds
9 Properties and Pricing of Financial Assets
10 The Level and Structure of Interest Rates
11 The Term Structure of Interest Rates
12 Risk/Return and Asset Pricing Models
13 Primary Markets and the Underwriting of Securities
14 Secondary Markets
15 Treasury and Agency Securities Markets
16 Municipal Securities Markets
17 Markets for Common Stock: The Basic Characteristics
18 Markets for Common Stock: Structure and Organization
19 Markets for Corporate Senior Instruments: I
20 Markets for Corporate Senior Instruments: II
21 The Markets for Bank Obligations
22 The Residential Mortgage Market
23 Residential Mortgage-Backed Securities Market
24 Market for Commercial Mortgage Loans and Commercial Mortgage-Backed Securities
25 Market for Asset-Backed Securities
26 Financial Futures Markets
27 Options Markets
28 Pricing of Futures and Options Contracts
29 OTC Interest Rate Derivatives: Forward Rate Agreements, Swaps, Caps, and Floors
30 Market for Credit Risk Transfer Vehicles: Credit Derivatives and Collateralized Debt Obligations
31 The Market for Foreign Exchange and Risk Control Instruments

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.