The Capital Markets : Evolution of the Financial Ecosystem.

Cover -- Title Page -- Copyright -- Contents -- Preface -- Acknowledgments -- About the Author &amp -- Executive Editor -- About the Contributors -- Part One: Introduction and Tools -- Chapter 1: The Early 21st-Century Evolution of Global Capital Markets -- Introduction -- Capital Market Mission and Key Capital Market Questions -- Post-Great Recession, Global Capital Markets Chart a More Conservative Course -- Accurate Financial Era Definition Helps Chart Business and Portfolio Strategy -- The Great Transition Age Unfolds -- No Transitions Are Frictionless -- The New Conservative Financial Consensus Speeds the Transition to the Next-Generation Global Financial System -- Sturdier Global Financial System Promotes World Economic Growth -- Chapter 2: The Role of Global Capital Markets -- Introduction -- The Basic Products Offered in Capital Markets -- Capital Markets as a Substitute for Bank Lending -- Key Participants in Capital Markets -- Types of Markets -- Capital Markets Development -- Chapter 3: How the Global Financial Crisis Transformed the Industry -- The Situation Prior to the Global Financial Crisis -- Overview of Regulation Introduced 2008-2015 -- Impacts on Business Models -- How It Impacts the Functioning of Capital Markets -- Chapter 4: Cash Bonds and Futures -- Tools of the Trade -- Discount Factors -- Price-Yield Formula -- U.S. Treasury Debt Obligations -- PV01, PVBP -- Convexity -- Yield Curve -- Sample Trades -- Forward Prices: Cash and Carry -- Forward Rates -- Extracting the Discount Factor Curve -- Carry, Roll-Down -- U.S. Treasury Futures -- Chapter 5: Risk in Capital Markets -- Introduction -- Overview of Risk Management in Capital Markets -- Metrics Used to Measure and Monitor Risk -- Brief Overview of Regulatory Landscape -- Metrics for Major Risk Types -- The Intersection between Risk and Strategy -- Future Outlook.

Chapter 6: Enablers for Robust Risk Management in Capital Markets -- Introduction -- Overview of Capital Markets Risk Management Processes -- Technology Capabilities and IT Architecture to Support Capital Markets Risk -- Data Capabilities to Support Capital Markets Risk -- Looking Forward -- Chapter 7: Making Markets Work -- Introduction -- Securities Market Infrastructure -- Derivatives Market Infrastructure -- Concluding Remarks -- Part Two: Capital Markets Products -- Chapter 8: Money Markets -- Federal Funds Markets -- Repurchase Agreements -- U.S. Treasury Bills (T-Bills) -- Government-Sponsored Enterprises/Federal Agency Securities -- Commercial Paper -- Certificates of Deposit -- Eurodollar Deposits -- Municipal Notes -- Variable Rate Demand Notes -- Money Market Funds -- How the Financial Crisis of 2007 and 2008 Changed the Money Markets -- Conclusion -- Chapter 9: Repurchase Agreements -- Introduction -- Mechanics of a Repo Trade -- Margining Trades -- Market Participants -- Risks Associated with Repo Transactions -- Delivery Conventions -- General Collateral and Specials -- Determinants of Repo Rates -- Availability of Collateral -- The Federal Reserve and Repo -- Repo and Bond Carry -- Conclusion -- Chapter 10: U.S. Treasury and Government Agency Securities -- Features of U.S. Treasury Securities -- Types of Treasury Securities -- Treasury Auctions -- Conclusion -- Chapter 11: Government-Sponsored Enterprises and Federal Agencies -- Introduction -- Agency Bonds -- Overview of Government-Sponsored Enterprises -- Housing GSEs -- History of Fannie Mae and Freddie Mac -- Federal Home Loan Banks (FHLB) -- Overview of Government-Sponsored Enterprises -- Non-Housing GSEs -- Overview of Federal Agencies -- Types of Agency Debt -- Cost-Benefit Analysis of Callable Notes -- The 2008 Financial Crisis -- Conclusion.

Chapter 12: Inflation-Linked Bonds -- Indexation -- Real Yields and Inflation Breakevens -- Seasonality of Consumer Prices -- Diversification Properties -- Tax Treatment -- Risks -- Issuance Schedule -- I Bonds -- Other Countries -- Reasons for Issuing Inflation-Linked Bonds -- Bond Mathematics -- Summary -- Chapter 13: Mortgage-Backed Securities -- Mortgages: The Building Blocks of MBSs -- What Are Mortgage-Backed Securities? -- The Issuing Agencies -- Why Are MBSs Attractive? -- Terminology -- Types of Underlying Loans -- Agency Pass-through Trading -- Prepayment Risk and Analysis -- OAS Analysis and MBS -- The Future of Fannie Mae and Freddie Mac Securitization -- Chapter 14: Corporate Bonds -- What Is a Corporate Bond? -- Types of Bond Structures -- How Are Corporate Bonds Priced? -- Stakeholders in the Corporate Bond Market -- Price Transparency -- High-Yield ("Junk") Bonds -- Emerging Bond Markets -- What Is an Emerging Market? -- Chapter 15: Preferred Stock -- Perpetual Preferred Stock -- Dividend-Received Deduction (DRD) -- Fixed to Float -- Noncumulative Preferred Stock -- Cumulative Preferred Stock -- Convertible Preferred Stock -- Features of Preferred Stock -- Anticipating the Risks -- Preferred Stock Issuance and Trading -- Conclusion -- Chapter 16: Distressed Debt Securities -- Overview of Distressed Debt Securities -- What Constitutes "Distress -- Trading Market for Distressed Debt -- Trading Strategy on the Distressed Debt -- Puerto Rico: A Distressed Situation -- The Sovereign Debt Crisis -- Greece -- Final Thoughts on Distressed Debt Securities -- Chapter 17: Securitization -- Securitizations in General -- Securitization Basics: Structures, Collateral Types, and Risks -- TRACE Reporting -- Chapter 18: Asset-Backed Securities -- Automobile Securitization -- Credit Card Securitization.

Chapter 19: Non-Agency Residential Mortgage-Backed Securities (RMBSs) -- RMBS Overview -- The Creation of RMBSs -- Mortgage Quality Types -- Participants in the Creation of an RMBS -- Credit Ratings -- Risk Factors Affecting RMBSs -- Operation of the RMBS Market -- RMBS Contracts -- Representations and Warranties -- Opacity and Complexity of Securities -- Chapter 20: Commercial Mortgage-Backed Securities (CMBSs) -- Overview of Commercial Mortgage-Backed Securities -- CMBS Market Participants -- Underlying Collateral -- CMBS 2.0 -- CMBS Structures -- Industry Practices for the Marketing and Sales of CMBSs -- Chapter 21: Collateralized Debt Obligations (CDOs) -- Introduction to CDOs -- Priority of Payments -- CDO Market Participants -- Collateral Pricing -- CDO Trading -- Motivation for Issuing CDOs -- Chapter 22: Structured Investment Vehicles (SIVs) -- Introduction to SIVs -- SIV Structure -- Structural Protections -- Chapter 23: Collateralized Loan Obligations (CLOs) -- What Is a Collateralized Loan Obligation (CLO)? -- Structures and Strudels: An Introduction to Structured Finance -- Bon Appetit: Reengineering for Risk Appetite -- Chasing Waterfalls -- The Capital Structure: The Intersection of Structured and Corporate Finance -- Being Friendly: Debt versus Equity -- CLO Coverage Tests: Take your PIK -- The Life and Times of a CLO -- The Loan Market -- CLO Report Cards: Performance Metrics -- The CLO Manager -- Qualitative Analysis of a CLO -- Quantitative Analysis of a CLO -- A Whole New World: CLOs in the Post-Crisis Regulatory Environment -- Conclusion -- Chapter 24: Municipal Bonds -- Introduction -- Municipal Bond Credit Analysis -- The Erosion of the General Obligation Pledge -- A Word about Puerto Rico -- Types of Municipal Bond Structures -- The Primary Market -- The Secondary Market -- Investing in Municipal Bonds.

Municipal Bond Risk Factors -- Case Study -- Chapter 25: Equities -- What Is an Equity? -- Types of Equities -- Why Do Companies Issue Equities? -- Equity Market Participants -- Equity Markets -- Mechanics of Order-Driven Markets -- History of Equity Trading -- Modern Market Structure-Order Types -- Modern Market Structure-Complexity -- Modern Market Structure-Market Data -- High-Frequency Trading -- Chapter 26: Cash Equities in the Secondary Market -- Introduction -- The Institutional Client -- The Portfolio Manager -- The Research Analyst -- The Buy-Side Trader -- The Broker-Dealer (Sell-Side) -- Equity Research -- The Research Analyst -- Research Sales -- Execution -- Additional Products and Services -- Conclusion -- Chapter 27: Exchange-Traded Funds (ETFs) -- Constructing an ETF: Market Participants and Their Functions -- ETF Regulations -- Determining Net Asset Value of ETFs -- Portfolio Disclosure -- Understanding Different ETF Strategies -- Portfolio Construction Methodology -- Conclusion -- Chapter 28: Equity Capital Markets -- Securities Offering Reform of 2005 -- The Rise of Electronic Trading -- The Great Recession -- Growth of the ATM Market -- ATM Financing versus Follow-on Offering -- Due Diligence Regimen -- Transaction Participants and Typical ATM Documentation -- The Selling Agent -- Corporate Board and Management Oversight -- Marketplace Acceptance -- Sizing an ATM Program -- Regulation M -- Procedures and Mechanics of the ATM program -- ATM Selling Strategies -- Variations of the ATM Model -- Summary -- Chapter 29: Interest Rate Swaps -- Plain-Vanilla Fixed-for-Floating Swaps -- Classical Single-Curve World -- The New World: Decoupled Discount and Forward Curves -- OIS Market -- Libor Market Instruments -- Dual Curve Construction -- Swap Trading-Rates or Spreads -- Swap Spreads -- Risk, PV01, Gamma Ladder.

Credit Considerations: XVA.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.