{"product_id":"an-introduction-to-bond-markets-isbn-9780470687246","title":"An Introduction to Bond Markets","description":"The bond markets are a vital part of the world economy. The fourth edition of Professor Moorad Choudhry's benchmark reference text \u003ci\u003eAn Introduction to Bond Markets\u003c\/i\u003e brings readers up to date with latest developments and market practice, including the impact of the financial crisis and issues of relevance for investors. This book offers a detailed yet accessible look at bond instruments, and is aimed specifically at newcomers to the market or those unfamiliar with modern fixed income products. The author capitalises on his wealth of experience in the fixed income markets to present this concise yet in-depth coverage of bonds and associated derivatives.  \u003cp\u003eTopics covered include:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eBond pricing and yield\u003c\/li\u003e \u003cli\u003eDuration and convexity\u003c\/li\u003e \u003cli\u003eEurobonds and convertible bonds\u003c\/li\u003e \u003cli\u003eStructured finance securities\u003c\/li\u003e \u003cli\u003eInterest-rate derivatives\u003c\/li\u003e \u003cli\u003eCredit derivatives\u003c\/li\u003e \u003cli\u003eRelative value trading\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eRelated topics such as the money markets and principles of risk management are also introduced as necessary background for students and practitioners. The book is essential reading for all those who require an introduction to the financial markets.\u003c\/p\u003e \u003cp\u003eForeword xvii\u003c\/p\u003e \u003cp\u003ePreface xix\u003c\/p\u003e \u003cp\u003ePreface to the First Edition xxiii\u003c\/p\u003e \u003cp\u003eAbout the author xxv\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Introduction to Bonds 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDescription 4\u003c\/p\u003e \u003cp\u003eOutline of market participants 6\u003c\/p\u003e \u003cp\u003eBond analysis 8\u003c\/p\u003e \u003cp\u003eFinancial arithmetic: the time value of money 8\u003c\/p\u003e \u003cp\u003ePresent value and discounting 9\u003c\/p\u003e \u003cp\u003eDiscount factors and boot-strapping the discount function 15\u003c\/p\u003e \u003cp\u003eBond pricing and yield: the traditional approach 18\u003c\/p\u003e \u003cp\u003eBond pricing 18\u003c\/p\u003e \u003cp\u003eBond yield 23\u003c\/p\u003e \u003cp\u003eAccrued interest 30\u003c\/p\u003e \u003cp\u003eClean and dirty bond prices 30\u003c\/p\u003e \u003cp\u003eDay-count conventions 32\u003c\/p\u003e \u003cp\u003eIllustrating bond yield using Excel spreadsheets 33\u003c\/p\u003e \u003cp\u003eBibliography 38\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 The Yield Curve, Spot and Forward Yields 41\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe yield curve 42\u003c\/p\u003e \u003cp\u003eYield-to-maturity yield curve 42\u003c\/p\u003e \u003cp\u003eThe par yield curve 44\u003c\/p\u003e \u003cp\u003eThe zero-coupon (or spot) yield curve 45\u003c\/p\u003e \u003cp\u003eThe forward yield curve 49\u003c\/p\u003e \u003cp\u003eTheories of the yield curve 50\u003c\/p\u003e \u003cp\u003eSpot rates 54\u003c\/p\u003e \u003cp\u003eDiscount factors and the discount function 55\u003c\/p\u003e \u003cp\u003eThe boot-strapping method: deriving the theoretical zero-coupon (spot) rate curve 56\u003c\/p\u003e \u003cp\u003eMathematical relationship 60\u003c\/p\u003e \u003cp\u003eImplied forward rates 62\u003c\/p\u003e \u003cp\u003eUnderstanding forward rates 69\u003c\/p\u003e \u003cp\u003eThe term structure of interest rates 70\u003c\/p\u003e \u003cp\u003eBibliography 73\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Bond Instruments and Interest-rate Risk 75\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDuration, modified duration and convexity 76\u003c\/p\u003e \u003cp\u003eDuration 77\u003c\/p\u003e \u003cp\u003eProperties of Macaulay duration 81\u003c\/p\u003e \u003cp\u003eModified duration 81\u003c\/p\u003e \u003cp\u003eConvexity 87\u003c\/p\u003e \u003cp\u003eBibliography 91\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Floating-rate Notes and other Bond Instruments 93\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFloating-rate notes 94\u003c\/p\u003e \u003cp\u003eSynthetic convertible note 98\u003c\/p\u003e \u003cp\u003eDescription 98\u003c\/p\u003e \u003cp\u003eInvestor benefits 99\u003c\/p\u003e \u003cp\u003eInterest differential notes 99\u003c\/p\u003e \u003cp\u003eExample of IDN 99\u003c\/p\u003e \u003cp\u003eBenefits to investors 100\u003c\/p\u003e \u003cp\u003eConvertible quanto note 101\u003c\/p\u003e \u003cp\u003eExample of Japanese equity note 102\u003c\/p\u003e \u003cp\u003eBibliography 105\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 The Money Markets 107\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 109\u003c\/p\u003e \u003cp\u003eSecurities quoted on a yield basis 111\u003c\/p\u003e \u003cp\u003eMoney market deposits 111\u003c\/p\u003e \u003cp\u003eCertificates of deposit 113\u003c\/p\u003e \u003cp\u003ecd yields 114\u003c\/p\u003e \u003cp\u003eSecurities quoted on a discount basis 118\u003c\/p\u003e \u003cp\u003eTreasury bills 120\u003c\/p\u003e \u003cp\u003eBanker’s acceptances 121\u003c\/p\u003e \u003cp\u003eEligible banker’s acceptance 122\u003c\/p\u003e \u003cp\u003eCommercial paper 123\u003c\/p\u003e \u003cp\u003eCommercial paper programmes 124\u003c\/p\u003e \u003cp\u003eCommercial paper yields 126\u003c\/p\u003e \u003cp\u003eAsset-backed commercial paper 127\u003c\/p\u003e \u003cp\u003eRepo 132\u003c\/p\u003e \u003cp\u003eDefinition 133\u003c\/p\u003e \u003cp\u003eThe classic repo 134\u003c\/p\u003e \u003cp\u003eExamples of classic repo 136\u003c\/p\u003e \u003cp\u003eThe sell\/buy-back 141\u003c\/p\u003e \u003cp\u003eExamples of sell\/buy-back 142\u003c\/p\u003e \u003cp\u003eRepo collateral 144\u003c\/p\u003e \u003cp\u003eLegal treatment 146\u003c\/p\u003e \u003cp\u003eMargin 146\u003c\/p\u003e \u003cp\u003eVariation margin 148\u003c\/p\u003e \u003cp\u003e5.A Currencies using money market year base of 365 days 148\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 the Eurobond Market 151\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEurobonds 152\u003c\/p\u003e \u003cp\u003eForeign bonds 155\u003c\/p\u003e \u003cp\u003eEurobond instruments 155\u003c\/p\u003e \u003cp\u003eConventional bonds 155\u003c\/p\u003e \u003cp\u003eFloating rate notes 156\u003c\/p\u003e \u003cp\u003eZero-coupon bonds 157\u003c\/p\u003e \u003cp\u003eConvertible bonds 157\u003c\/p\u003e \u003cp\u003eThe issue process: market participants 159\u003c\/p\u003e \u003cp\u003eThe borrowing parties 160\u003c\/p\u003e \u003cp\u003eThe underwriting lead manager 162\u003c\/p\u003e \u003cp\u003eThe co-lead manager 163\u003c\/p\u003e \u003cp\u003eInvestors 164\u003c\/p\u003e \u003cp\u003eFees, expenses and pricing 164\u003c\/p\u003e \u003cp\u003eFees 164\u003c\/p\u003e \u003cp\u003eExpenses 165\u003c\/p\u003e \u003cp\u003ePricing 165\u003c\/p\u003e \u003cp\u003eIssuing the bond 166\u003c\/p\u003e \u003cp\u003eThe grey market 168\u003c\/p\u003e \u003cp\u003eAlternative issue procedures 168\u003c\/p\u003e \u003cp\u003eCovenants 169\u003c\/p\u003e \u003cp\u003eTrust services 170\u003c\/p\u003e \u003cp\u003eDepositary 170\u003c\/p\u003e \u003cp\u003ePaying agent 171\u003c\/p\u003e \u003cp\u003eRegistrar 172\u003c\/p\u003e \u003cp\u003eTrustee 172\u003c\/p\u003e \u003cp\u003eCustodian 173\u003c\/p\u003e \u003cp\u003eForm of the bond 173\u003c\/p\u003e \u003cp\u003eTemporary global form 173\u003c\/p\u003e \u003cp\u003ePermanent global bond 174\u003c\/p\u003e \u003cp\u003eDefinitive form 174\u003c\/p\u003e \u003cp\u003eRegistered bonds 175\u003c\/p\u003e \u003cp\u003eFiscal agent 176\u003c\/p\u003e \u003cp\u003eListing agent 176\u003c\/p\u003e \u003cp\u003eClearing systems 176\u003c\/p\u003e \u003cp\u003eMarket associations 178\u003c\/p\u003e \u003cp\u003eInternational Capital Market Association 178\u003c\/p\u003e \u003cp\u003eBloomberg screens 178\u003c\/p\u003e \u003cp\u003eSecondary market 180\u003c\/p\u003e \u003cp\u003eSettlement 180\u003c\/p\u003e \u003cp\u003eBibliography 181\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 CONVERTIBLE BONDS, MTNs AND WARRANTS 183\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDescription 184\u003c\/p\u003e \u003cp\u003eAnalysis 184\u003c\/p\u003e \u003cp\u003eValue and premium issues 187\u003c\/p\u003e \u003cp\u003eZero-coupon convertibles 188\u003c\/p\u003e \u003cp\u003eWarrants 189\u003c\/p\u003e \u003cp\u003eMedium-term notes 190\u003c\/p\u003e \u003cp\u003eMTN programme 191\u003c\/p\u003e \u003cp\u003eShelf registration 192\u003c\/p\u003e \u003cp\u003eCredit rating 192\u003c\/p\u003e \u003cp\u003eSecondary market 192\u003c\/p\u003e \u003cp\u003eIssuers and investors 193\u003c\/p\u003e \u003cp\u003eMTNs and corporate bonds 193\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Credit Ratings 197\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCredit ratings 199\u003c\/p\u003e \u003cp\u003ePurpose of credit ratings 199\u003c\/p\u003e \u003cp\u003eFormal credit ratings 200\u003c\/p\u003e \u003cp\u003eCredit rating agencies and the 2007–2008 financial market crash 201\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Inflation-linked Bonds 209\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBasic concepts 210\u003c\/p\u003e \u003cp\u003eChoice of index 210\u003c\/p\u003e \u003cp\u003eIndexation lag 211\u003c\/p\u003e \u003cp\u003eCoupon frequency 213\u003c\/p\u003e \u003cp\u003eType of indexation 213\u003c\/p\u003e \u003cp\u003eIndex-linked bond cash flows and yields 215\u003c\/p\u003e \u003cp\u003eTIPS cash flow calculations 216\u003c\/p\u003e \u003cp\u003eTIPS price and yield calculations 217\u003c\/p\u003e \u003cp\u003eAssessing yields on index-linked bonds 220\u003c\/p\u003e \u003cp\u003eWhich to hold: indexed or conventional bonds? 221\u003c\/p\u003e \u003cp\u003eInflation-indexed derivatives 222\u003c\/p\u003e \u003cp\u003eMarket instruments 223\u003c\/p\u003e \u003cp\u003eApplications 227\u003c\/p\u003e \u003cp\u003eBibliography 228\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 An Introduction to Asset-backed Securities 229\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe concept of securitisation 232\u003c\/p\u003e \u003cp\u003eReasons for undertaking securitisation 233\u003c\/p\u003e \u003cp\u003eBenefits of securitisation to investors 236\u003c\/p\u003e \u003cp\u003eThe process of securitisation 237\u003c\/p\u003e \u003cp\u003eSecuritisation process 237\u003c\/p\u003e \u003cp\u003eSPV structures 239\u003c\/p\u003e \u003cp\u003eCredit enhancement 240\u003c\/p\u003e \u003cp\u003eImpact on balance sheet 242\u003c\/p\u003e \u003cp\u003eCredit rating 243\u003c\/p\u003e \u003cp\u003eRedemption mechanism 245\u003c\/p\u003e \u003cp\u003eAverage life 245\u003c\/p\u003e \u003cp\u003eIllustrating the process of securitisation 246\u003c\/p\u003e \u003cp\u003eSecuritisation post-credit crunch 250\u003c\/p\u003e \u003cp\u003eBloomberg screens 253\u003c\/p\u003e \u003cp\u003eBibliography 259\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Introduction to Derivative Instruments 261\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInterest-rate swaps 262\u003c\/p\u003e \u003cp\u003eCharacteristics of IR swaps 264\u003c\/p\u003e \u003cp\u003eSwap spreads and the swap yield curve 267\u003c\/p\u003e \u003cp\u003eSwap duration 270\u003c\/p\u003e \u003cp\u003eSummary of IR swap 271\u003c\/p\u003e \u003cp\u003eNon-standard swaps 271\u003c\/p\u003e \u003cp\u003eUsing swaps 273\u003c\/p\u003e \u003cp\u003eCancelling a swap 276\u003c\/p\u003e \u003cp\u003eZero-coupon swap pricing 276\u003c\/p\u003e \u003cp\u003eHedging using bonds and swaps 278\u003c\/p\u003e \u003cp\u003eSwaptions 282\u003c\/p\u003e \u003cp\u003eCross-currency swaps 283\u003c\/p\u003e \u003cp\u003eBloomberg screens 284\u003c\/p\u003e \u003cp\u003eFutures contracts 288\u003c\/p\u003e \u003cp\u003eDescription 288\u003c\/p\u003e \u003cp\u003eBond futures contracts 290\u003c\/p\u003e \u003cp\u003eFutures pricing 293\u003c\/p\u003e \u003cp\u003eArbitrage-free futures pricing 297\u003c\/p\u003e \u003cp\u003eHedging using futures 299\u003c\/p\u003e \u003cp\u003eThe hedge ratio 301\u003c\/p\u003e \u003cp\u003eInterest-rate options 302\u003c\/p\u003e \u003cp\u003eIntroduction 302\u003c\/p\u003e \u003cp\u003eDefinition 303\u003c\/p\u003e \u003cp\u003eOption terminology 305\u003c\/p\u003e \u003cp\u003eOption premium 306\u003c\/p\u003e \u003cp\u003ePricing options 307\u003c\/p\u003e \u003cp\u003eBehaviour of option prices 311\u003c\/p\u003e \u003cp\u003eUsing options in bond markets 312\u003c\/p\u003e \u003cp\u003eHedging using bond options 314\u003c\/p\u003e \u003cp\u003eExotic options 315\u003c\/p\u003e \u003cp\u003eBibliography 317\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Introduction to Credit Derivatives 319\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 321\u003c\/p\u003e \u003cp\u003eWhy use credit derivatives? 323\u003c\/p\u003e \u003cp\u003eClassification of credit derivative instruments 325\u003c\/p\u003e \u003cp\u003eDefinition of a credit event 326\u003c\/p\u003e \u003cp\u003eAsset swaps 327\u003c\/p\u003e \u003cp\u003eCredit default swaps 330\u003c\/p\u003e \u003cp\u003eImpact of the 2007–2008 credit crunch: new CDS contracts and the CDS ‘Big Bang’ 334\u003c\/p\u003e \u003cp\u003eCredit-linked notes 338\u003c\/p\u003e \u003cp\u003eTotal return swaps 341\u003c\/p\u003e \u003cp\u003eSynthetic repo 345\u003c\/p\u003e \u003cp\u003eReduction in credit risk 346\u003c\/p\u003e \u003cp\u003eCapital structure arbitrage 347\u003c\/p\u003e \u003cp\u003eThe TRS as a funding instrument 347\u003c\/p\u003e \u003cp\u003eCredit options 349\u003c\/p\u003e \u003cp\u003eThe CDS iTraxx index 350\u003c\/p\u003e \u003cp\u003eGeneral applications of credit derivatives 355\u003c\/p\u003e \u003cp\u003eUse of credit derivatives by portfolio managers 355\u003c\/p\u003e \u003cp\u003eThe credit default swap basis 358\u003c\/p\u003e \u003cp\u003eA negative basis 358\u003c\/p\u003e \u003cp\u003eThe basis as market indicator 361\u003c\/p\u003e \u003cp\u003eBibliography 364\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Approaches to Government Bond Trading And Yield Analysis 365\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 366\u003c\/p\u003e \u003cp\u003eThe determinants of yield 366\u003c\/p\u003e \u003cp\u003eSpread trade risk weighting 367\u003c\/p\u003e \u003cp\u003eIdentifying yield spread trades 373\u003c\/p\u003e \u003cp\u003eCoupon spreads 374\u003c\/p\u003e \u003cp\u003eButterfly trades 376\u003c\/p\u003e \u003cp\u003eBasic concepts 376\u003c\/p\u003e \u003cp\u003ePutting on the trade 377\u003c\/p\u003e \u003cp\u003eYield gain 379\u003c\/p\u003e \u003cp\u003eConvexity gain 380\u003c\/p\u003e \u003cp\u003eBloomberg screens 384\u003c\/p\u003e \u003cp\u003eBond spreads and relative value 386\u003c\/p\u003e \u003cp\u003eBond spreads 388\u003c\/p\u003e \u003cp\u003eSummary of a fund manager’s approach to value creation 393\u003c\/p\u003e \u003cp\u003eBibliography 396\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Risk Management and Value-at-risk 397\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCharacterising risk 398\u003c\/p\u003e \u003cp\u003eRisk management 400\u003c\/p\u003e \u003cp\u003eThe risk management function 401\u003c\/p\u003e \u003cp\u003eInterest-rate risk 402\u003c\/p\u003e \u003cp\u003eValue-at-Risk 403\u003c\/p\u003e \u003cp\u003eDefinition 403\u003c\/p\u003e \u003cp\u003eCalculation methods 404\u003c\/p\u003e \u003cp\u003eValidity of the variance–covariance (correlation) VaR estimate 406\u003c\/p\u003e \u003cp\u003eAssessment of VaR tool 407\u003c\/p\u003e \u003cp\u003eVaR methodology for credit risk 408\u003c\/p\u003e \u003cp\u003eModelling VaR for credit risk 409\u003c\/p\u003e \u003cp\u003eTime horizon 411\u003c\/p\u003e \u003cp\u003eApplications of credit VaR 412\u003c\/p\u003e \u003cp\u003eBibliography 412\u003c\/p\u003e \u003cp\u003eGlossary 413\u003c\/p\u003e \u003cp\u003eList of abbreviations 421\u003c\/p\u003e \u003cp\u003eIndex 425\u003c\/p\u003e \u003cb\u003eDr Moorad Choudhry\u003c\/b\u003e is the former Head of Treasury at Europe Arab Bank plc in London. He is Visiting Professor at the Department of Economics, London Metropolitan University, a Visiting Research Fellow at the ICMA Centre, University of Reading, a Fellow of the \u003ci\u003eifs\u003c\/i\u003e-School of Finance and a Fellow of the Chartered Institute for Securities and Investment.  The bond markets are a vital part of the world economy. The fourth edition of Professor Moorad Choudhry's benchmark reference text \u003ci\u003eAn Introduction to Bond Markets\u003c\/i\u003e brings readers up to date with latest developments and market practice, including the impact of the financial crisis and issues of relevance for investors. This book offers a detailed yet accessible look at bond instruments, and is aimed specifically at newcomers to the market or those unfamiliar with modern fixed income products. The author capitalises on his wealth of experience in the fixed income markets to present this concise yet in-depth coverage of bonds and associated derivatives.  \u003cp\u003eTopics covered include:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eBond pricing and yield\u003c\/li\u003e \u003cli\u003eDuration and convexity\u003c\/li\u003e \u003cli\u003eEurobonds and convertible bonds\u003c\/li\u003e \u003cli\u003eStructured finance securities\u003c\/li\u003e \u003cli\u003eInterest-rate derivatives\u003c\/li\u003e \u003cli\u003eCredit derivatives\u003c\/li\u003e \u003cli\u003eRelative value trading\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eRelated topics such as the money markets and principles of risk management are also introduced as necessary background for students and practitioners. The book is essential reading for all those who require an introduction to the financial markets.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988724039909,"sku":"NP9780470687246","price":68.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470687246.jpg?v=1761781338","url":"https:\/\/k12savings.com\/es\/products\/an-introduction-to-bond-markets-isbn-9780470687246","provider":"K12savings","version":"1.0","type":"link"}