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. Key Features 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. Table of contantents  

Table of Contents:
PART I. INTRODUCTION AND OVERVIEW OF FINANCIAL MARKETS Chapter 1. Introduction Chapter 2. Determinants of Interest Rates Chapter 3. Interest Rates and Security Valuation Chapter 4. The Federal Reserve System, Monetary Policy, and Interest Rates PART II. SECURITIES MARKETS Chapter 5. Money Markets Chapter 6. Bond Markets Chapter 7. Mortgage Markets Chapter 8. Foreign Exchange Markets (used to be chpt.9) Chapter 9. Stock Markets (used to be chpt. 8) Chapter 10. Derivative Securities Markets PART III. COMMERCIAL BANKS Chapter 11. Commercial Banks Chapter 12. Commercial Banks? Financial Statements and Analysis Chapter 13. Regulation of Commercial Banks PART IV. OTHER FINANCIAL INSTITUTIONS Chapter 14. Other Lending Institutions: Savings Institutions, Credit Unions, and Finance Companies Chapter 15. Insurance Companies Chapter 16. Securities Firms and Investment Banks Chapter 17. Mutual Funds Chapter 18. Pension Funds PART V. RISK MANAGEMENT IN FINANCIAL INSTITUTIONS Chapter 19. Types of Risks Incurred by Financial Institutions Chapter 20. Managing Credit Risk on the Balance Sheet Chapter 21. Managing Liquidity Risk Chapter 22. Managing Interest Rate and Insolvency Risk Chapter 23. Managing Risk with Derivative Securities Chapter 24. Managing Risk with Loan Sales and Asset Securitization References Index