Essentials of Money and Capital Markets

Essentials of Money and Capital Markets provides students with a concise exploration of fixed income markets and how financial institutions play a critical role in fixed income markets.

The book begins with a discussion of the debt levels in the United States, the variability of interest rates, and the financial crisis of 2007-2009. Over the course of 14 chapters, students learn about the Federal Reserve, the U.S. Treasury, pension plans, mutual funds, banks, determinants of interest rates, time values, money market instruments and rates, and the risks associated with changing interest rates. Dedicated chapters address spot and forward interest rates, arbitrage for bonds, theories of the term structure of interest rates, bond ratings and default risk, mortgages and mortgage-backed securities, futures contracts, and bond futures.

The fourth edition features updated coverage of the causes and consequences of the financial crisis of 2007-2009.

Featuring class-tested content and insightful coverage, Essentials of Money and Capital Markets is well suited for graduate and upper-level undergraduate courses with focus on fixed income securities and important financial institutions in fixed income markets.