
Financial Markets and Institutions, 7th Edition
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Financial Markets and Institutions, 7th Edition is aimed at the first course in financial markets and institutions at both the undergraduate and MBA levels. It offers a distinct analysis of the risks faced by investors and savers interacting through financial institutions and financial markets and introduces strategies that can be adopted to control and manage risks. Special emphasis is placed on new areas of operations in financial markets and institutions, such as asset securitization, off-balance-sheet activities, and globalization of financial services. - Part 1 provides an overview of the text and an introduction to financial markets. - Part 2 presents an overview of the various securities markets. - Part 3 summarizes the operations of commercial banks. - Part 4 provides an overview of the key characteristics and regulatory features of the other major sectors of the U.S. financial services industry. - Part 5 concludes the text by examining the risks facing modern financial institutions and financial institution managers, and the various strategies for managing these risks. New to This Edition - Tables and figures in all chapters have been revised to include the latest data. - After the Crisis boxes in each chapter have been revised to highlight significant events related to the financial crisis. - Updates on the major changes proposed to financial regulation have been added throughout the book. - Discussions of how financial markets and institutions continue to recover have been added throughout the book. - Discussions of Brexit’s effect on risks and returns for investors are featured. - Explanations of the impact of initial interest rate increases by the Federal Reserve are given. - Details about the impact of China's economic policies are provided. Digital resources within Connect help students solve financial problems and apply what they've learned. This textbook's strong markets focus and superior pedagogy are combined with a complete digital solution to help students achieve higher outcomes in the course. Connect is the only integrated learning system that empowers students by continuously adapting to deliver precisely what they need, when they need it, and how they need it, so that class time is more engaging and effective.
1. IntroductionPart 2 SECURITIES MARKETS
2. Determinants of Interest Rates
3. Interest Rates and Security Valuation
4. The Federal Reserve System, Monetary Policy, and Interest Rates
5. Money MarketsPart 3 COMMERCIAL BANKS
6. Bond Markets
7. Mortgage Markets
8. Stock Markets
9. Foreign Exchange Markets
10. Derivative Securities Markets
11. Commercial Banks: Industry OverviewPart 4 OTHER FINANCIAL INSTITUTIONS
12. Commercial Banks’ Financial Statements and Analysis
13. Regulation of Commercial Banks
14. Other Lending Institutions: Savings Institutions, Credit Unions, and Finance CompaniesPart 5 RISK MANAGEMENT IN FINANCIAL INSTITUTIONS
15. Insurance Companies
16. Securities Firms and Investment Banks
17. Investment Companies
18. Pension Funds
19. Types of Risks Incurred by Financial Institutions
20. Managing Credit Risk on the Balance Sheet
21. Managing Liquidity Risk on the Balance Sheet
22. Managing Interest Rate Risk and Insolvency Risk on the Balance Sheet
23. Managing Risk off the Balance Sheet with Derivative Securities
24. Managing Risk off the Balance Sheet with Loan Sales and Securitization


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