Preface   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   Index

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. NEW TO THIS EDTION Incorporate the latest in financial market topics with all-new chapters: Chapter 2: Financial Institutions, Financial Intermediaries, and Asset Management Firms,includes coverage of the concerns of regulators.Chapter 24: Market for Commercial Mortgage Loans and Commercial Mortgage-Backed Securities.Chapter 31: Market For Credit Risk Transfer Vehicles: Credit Derivatives and Collateralized Debt Obligations Significant Chapter Revisions: Chapter 1 Introduction: Includes a discussion of market regulation (including the U.S. Treasury’s Blueprint for Regulatory Reform) and the causes of financial innovation.Chapter 7 Investment Companies and Exchange-Traded Funds: Includes expanded coverage of exchange-traded funds.Chapter 10 The Level and Structure of Interest Rates: Expanded coverage of the swap curve.Chapter 11 The Term Structure of Interest Rates: Includes coverage of the main influences of the shape of the yield curve.Chapter 12, Risk/Return and Asset Pricing Models: Covers the attacks on the traditional theory of portfolio selection, including a discussion of asset return distributions (fat tails), alternative risk measures, and behavioral finance theory.Chapters 17 Markets for Common Stock: The Basic Characteristics and 18 Markets for Common Stock: Structure and Organization : Now includes topics such as electronic trading, international and domestic mergers for the NYSE and Nasdaq, algorithmic trading, and internalization.Chapter 19 Markets for Corporate Seni

NEW TO THIS EDTION Incorporate the latest in financial market topics with all-new chapters: Chapter 2: Financial Institutions, Financial Intermediaries, and Asset Management Firms,includes coverage of the concerns of regulators.Chapter 24: Market for Commercial Mortgage Loans and Commercial Mortgage-Backed Securities.Chapter 31: Market For Credit Risk Transfer Vehicles: Credit Derivatives and Collateralized Debt Obligations Significant Chapter Revisions: Chapter 1 Introduction: Includes a discussion of market regulation (including the U.S. Treasury’s Blueprint for Regulatory Reform) and the causes of financial innovation.Chapter 7 Investment Companies and Exchange-Traded Funds: Includes expanded coverage of exchange-traded funds.Chapter 10 The Level and Structure of Interest Rates: Expanded coverage of the swap curve.Chapter 11 The Term Structure of Interest Rates: Includes coverage of the main influences of the shape of the yield curve.Chapter 12, Risk/Return and Asset Pricing Models: Covers the attacks on the traditional theory of portfolio selection, including a discussion of asset return distributions (fat tails), alternative risk measures, and behavioral finance theory.Chapters 17 Markets for Common Stock: The Basic Characteristics and 18 Markets for Common Stock: Structure and Organization : Now includes topics such as electronic trading, international and domestic mergers for the NYSE and Nasdaq, algorithmic trading, and internalization.Chapter 19 Markets for Corporate Senior Instruments: Part I: Now has coverage of the secondary market for bank loans.Chapter 20 Corporate Senior Instruments: Part II: Covers the factors considered by rating agencies in the rating of corporate debt.Chapter 22 The Residential Mortgage Market: Revised the discussion on residential mortgage market to include subprime loans.Chapter 25 Market for Asset-Backed Securities: Completely revised the discussion on market for asset-backed securities.Chapter 26 Financial Futures Markets: Expanded coverage of futures contracts.Chapter 32 The Market for Foreign Exchange and Risk Control Instruments: Completely revised the discussion on the market for foreign exchange risk and control instruments. Online Appendices Additional Content available on the companion website at: http://www.pearsonhighered.com/fabozzi/. Also listed on the website is a list of the central banks of countries throughout the world. Chapter 9 Appendix: Review of Present Value Chapter 18-A Appendix: The Current NYSE Stock Market Chapter 18-B Appendix: Major Non-U.S. Stock Exchanges Chapter 29 Appendix: General Principles of Hedging with Futures