{"product_id":"financial-instruments-and-institutions-isbn-9780470040379","title":"Financial Instruments and Institutions","description":"This book is an authoritative guide to the accounting and disclosure rules for financial institutions and instruments. It provides guidance from a “fair value” perspective and demonstrates the simplest and most natural measurement basis for reporting financial instruments, as is relevant for thrifts, mortgage banks, commercial banks, and property-casualty and life insurers. \u003cp\u003ePreface ix\u003c\/p\u003e \u003cp\u003eAcknowledgments xvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Financial Instruments and Institutions 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMain Ingredients of the Analysis of Financial Instruments 4\u003c\/p\u003e \u003cp\u003eActivities and Risks of Financial Institutions 11\u003c\/p\u003e \u003cp\u003eValuation of Financial Institutions in Practice 16\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Nature and Regulation of Depository Institutions 19\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eActivities of Depository Institutions 19\u003c\/p\u003e \u003cp\u003eBank Regulation 22\u003c\/p\u003e \u003cp\u003eBank Subtypes 35\u003c\/p\u003e \u003cp\u003eRecent Trends 38\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Thrifts 45\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFinancial Statement Structure 46\u003c\/p\u003e \u003cp\u003eMain Risk-Return Trade-Offs and Financial Analysis Issues 56\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Interest Rate Risk and Net Interest Earnings 63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eViews of Interest Rate Risk 64\u003c\/p\u003e \u003cp\u003eInterest Rate Risk Concepts 66\u003c\/p\u003e \u003cp\u003eAnalysis of Net Interest Earnings 78\u003c\/p\u003e \u003cp\u003eRate-Volume Analysis 81\u003c\/p\u003e \u003cp\u003eRepricing Gap Disclosures 84\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Credit Risk and Losses 93\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEconomics of Credit Risk 95\u003c\/p\u003e \u003cp\u003eAccounts for Loans and Loan Losses 97\u003c\/p\u003e \u003cp\u003eAccounting and Disclosure Rules for Unimpaired Loans 100\u003c\/p\u003e \u003cp\u003eAccounting and Disclosure Rules for Impaired Loans 107\u003c\/p\u003e \u003cp\u003eLoan Portfolio Quality and Loan Loss Reserve Adequacy 110\u003c\/p\u003e \u003cp\u003eResearch on Banks’ Loan Loss Reserves 118\u003c\/p\u003e \u003cp\u003eAppendix 5A: SunTrust Banks—After the Restatement 119\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Fair Value Accounting for Financial Instruments: Concepts, Disclosures, and Investment Securities 131\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFair Value Accounting for Financial Instruments 133\u003c\/p\u003e \u003cp\u003eDisclosures of the Fair Value of Financial Instruments 141\u003c\/p\u003e \u003cp\u003eInvestment Securities 149\u003c\/p\u003e \u003cp\u003eAppendix 6A: Washington Federal’s Big Gap 158\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Mortgage Banks 161\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMortgage Banking Industry, Major Players, and Activities 162\u003c\/p\u003e \u003cp\u003eFinancial Statement Structure 167\u003c\/p\u003e \u003cp\u003eMain Risk-Return Trade-Offs and Financial Analysis Issues 174\u003c\/p\u003e \u003cp\u003eAccounting for Fees and Costs 186\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Securitizations 189\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy and What? 192\u003c\/p\u003e \u003cp\u003eSecuritization Structures 196\u003c\/p\u003e \u003cp\u003eSFAS No. 140 204\u003c\/p\u003e \u003cp\u003eFinancial Analysis Issues 216\u003c\/p\u003e \u003cp\u003eEmpirical Research on Securitizations 221\u003c\/p\u003e \u003cp\u003eServicing Rights and Prepayment-Sensitive Securities 222\u003c\/p\u003e \u003cp\u003eAppendix 8A: Doral Financial’s Interesting Interest-Only Strips 224\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Elements of Structured Finance Transactions 235\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSpecial-Purpose\/Variable-Interest Entities 236\u003c\/p\u003e \u003cp\u003eRelated Transactions 244\u003c\/p\u003e \u003cp\u003eHybrid Financial Instruments 248\u003c\/p\u003e \u003cp\u003eFinancial Guarantees 251\u003c\/p\u003e \u003cp\u003eRecent SEC Decisions Regarding Structured Finance Transactions 253\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Commercial Banks 255\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBalance Sheet 257\u003c\/p\u003e \u003cp\u003eIncome Statement 261\u003c\/p\u003e \u003cp\u003eCash Flow Statement 265\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Derivatives and Hedging 269\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDerivatives 272\u003c\/p\u003e \u003cp\u003eHedging 282\u003c\/p\u003e \u003cp\u003eSFAS No. 133 (1998), as Amended 285\u003c\/p\u003e \u003cp\u003eFramework for Assessing Financial Institutions’ Derivatives and Hedging 308\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Market Risk Disclosures 311\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOverview of FRR No. 48 (1997) 312\u003c\/p\u003e \u003cp\u003eTabular Format 315\u003c\/p\u003e \u003cp\u003eSensitivity Approach 322\u003c\/p\u003e \u003cp\u003eValue-at-Risk Approach 326\u003c\/p\u003e \u003cp\u003eComparison of Disclosure Approaches 331\u003c\/p\u003e \u003cp\u003eEffect of SunTrust’s Derivatives and Hedging on Its Market Risk 332\u003c\/p\u003e \u003cp\u003eResearch 337\u003c\/p\u003e \u003cp\u003eAppendix 12A: Bank of America’s Derivatives, Hedging, and Market Risk 337\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Lessors and Lease Accounting 347\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCompetitive Advantages of Leasing 350\u003c\/p\u003e \u003cp\u003eLease Structures and Contractual Terms 352\u003c\/p\u003e \u003cp\u003eLessors’ Risks 355\u003c\/p\u003e \u003cp\u003eLease Accounting Methods 357\u003c\/p\u003e \u003cp\u003eAnalysis Issues Regarding Lease Accounting Methods 366\u003c\/p\u003e \u003cp\u003eSpecial Lease Transactions 369\u003c\/p\u003e \u003cp\u003eLessors’ Financial Statements 374\u003c\/p\u003e \u003cp\u003eLease Disclosures 379\u003c\/p\u003e \u003cp\u003ePossible Future Changes in Lease Accounting 387\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Insurers and Insurance Accounting 389\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eProducts 391\u003c\/p\u003e \u003cp\u003eRisk-Return Trade-Offs 396\u003c\/p\u003e \u003cp\u003eRegulation 403\u003c\/p\u003e \u003cp\u003ePrimary Insurance Accounting Standards 405\u003c\/p\u003e \u003cp\u003eAccounting Standards Governing Embedded Derivatives and Other Life Insurance Policy Features 421\u003c\/p\u003e \u003cp\u003eFinancial Statements 423\u003c\/p\u003e \u003cp\u003eLine of Business Disclosures 428\u003c\/p\u003e \u003cp\u003eOther Insurance Accounting Systems 429\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Property-Casualty Insurers’ Loss Reserve Disclosures 435\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLoss Reserve Footnote 438\u003c\/p\u003e \u003cp\u003eLoss Reserve Development Disclosures 440\u003c\/p\u003e \u003cp\u003eCalculating Loss Reserves by Accident Year 444\u003c\/p\u003e \u003cp\u003eCalculating Loss Reserve Revisions by Accident Year 446\u003c\/p\u003e \u003cp\u003eCalculating Claim Payments by Accident Year and Tail 448\u003c\/p\u003e \u003cp\u003eConstructing Accident Year Loss Reserve T Accounts 452\u003c\/p\u003e \u003cp\u003eProperty-Casualty Expense Ratios 453\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Reinsurance Accounting and Disclosure 457\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAccounting and Analysis Issues 459\u003c\/p\u003e \u003cp\u003eReinsurance Contracts 462\u003c\/p\u003e \u003cp\u003eAccounting for Reinsurance Contracts 472\u003c\/p\u003e \u003cp\u003eReinsurance Disclosures and Analysis 487\u003c\/p\u003e \u003cp\u003eEvolution of Financial Reporting for Reinsurance 493\u003c\/p\u003e \u003cp\u003eIndex 497\u003c\/p\u003e \u003cb\u003eStephen G. Ryan\u003c\/b\u003e is an Associate Professor of Accounting and Robert Stovall Faculty Fellow at the SternSchool of Business, New York University. Prior to that position, he was an assistant professor of accounting at the Yale School of Organization and Management and has been an associate consultant with Bain \u0026amp; Company. He has written numerous articles that have appeared in such publications as Accounting Horizons, Financial Analysts Journal, the Accounting Review, and the Journal of Financial Statement Analysis. He is an Editor of the Review of Accounting Studies. In addition, he is on the FASB's Financial Institutions Advisory Group and its Liabilities and Equity Resource Group.  \u003cp\u003eFinancial Instruments \u0026amp; Institutions\u003c\/p\u003e \u003cp\u003eAccounting and Disclosure Rules\u003c\/p\u003e \u003cp\u003eSecond Edition\u003c\/p\u003e \u003cp\u003eFinancial reporting for financial instruments and institutions is undergoing a period of unprecedented change and relevance for financial analysis. In the past decade, the Financial Accounting Standards Board (FASB) has issued major standards on derivatives and hedging, transfers of financial instruments including securitizations, servicing of financial assets, consolidation of special purpose\/variable interest entities, hybrid financial instruments, financial guarantees, and fair value measurements.\u003c\/p\u003e \u003cp\u003eNow in a Second Edition updated to reflect the many significant changes in financial reporting rules, regulations, and economic conditions that have occurred since the publication of the first edition, Stephen Ryan's Financial Instruments and Institutions: Accounting and Disclosure Rules provides users and preparers of financial reports with the tools necessary to construct as coherent a story as possible about how firms generate or destroy value using financial instruments.\u003c\/p\u003e \u003cp\u003eThis book equips professionals to fully exploit the various sources of information about the fair value and risks of financial instruments and explains how \"fair value\" provides the most natural measurement basis for reporting financial instruments. It contends that users of financial reports do not need to know all of the myriad details involved in each financial reporting rule, but rather only the critical features that make or break the representational faithfulness of the reports.\u003c\/p\u003e \u003cp\u003ePrecise, clear, and helpful, Financial Instruments and Institutions, Second Edition examines six types of financial institutions in detail:\u003c\/p\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003eThrifts\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eMortgage banks\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eCommercial banks\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eLessors\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eProperty-casualty insurers\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eLife insurers\u003c\/p\u003e \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eThese institutions were chosen because each reflects specific financial transactions in a clear fashion and\/or because each has distinctive accounting or disclosure requirements. Financial Instruments and Institutions describes the activities and risks of each in an economically grounded yet intuitive fashion, using numerous cases from actual financial institutions' financial reports to illustrate when fair value accounting for financial instruments works well and when it is fragile.\u003c\/p\u003e  \u003cb\u003ePraise for Financial Instruments \u0026amp; Institutions Accounting and Disclosure Rules, Second Edition\u003c\/b\u003e  \u003cp\u003e\"Financial Instruments and Institutions is a superbly informative integrated treatment of institutional, analytical, and financial reporting issues for financial institutions. I strongly recommend the book for analysts, investors, regulators, educators, and anyone with an interest in a coherent, intellectually rigorous discussion of issues encountered in reporting on and analyzing financial institutions and their commercial arrangements, including fair value measurements, risk reporting, and structured finance.\"\u003cbr\u003e —Katherine Schipper, Thomas F. Keller Professor of Business Administration, Duke University\u003c\/p\u003e \u003cp\u003e\"When you combine the unique risk attributes of financial institutions with the complex transactions they enter into, it can make even the most seasoned investor shudder. Dr. Ryan provides a well-structured and logical approach to the analysis of these companies, layering on explanations of the transactions they enter into and how they impact your analysis. Seasoned investors will find the book an important reference tool, especially on securitizations and derivatives and the new chapter on reinsurance.\"\u003cbr\u003e —Janet L. Pegg, CPA, Accounting \u0026amp; Taxation Research, Bear, Stearns \u0026amp; Co. Inc.\u003c\/p\u003e \u003cp\u003e\"Stephen Ryan's book is indispensable for anyone involved with financial institutions, whether it be bankers, insurers, investment advisors, or the student. There is no better book for understanding how these institutions work and how one handles their financial statements to gain that understanding. The detailed coverage of financial instruments—and the accounting for financial instruments—is outstanding.\"\u003cbr\u003e —Stephen Penman, George O. May Professor and Morgan Stanley Research Scholar, Columbia Business School\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePraise for the First Edition\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\"To any professional engaged in hands-on analysis of financial institutions' financial statements, this exhaustive text is an indispensable resource.\"\u003cbr\u003e —Martin S. Fridson, CFA, \u003ci\u003eFinancial Analysts Journal\u003c\/i\u003e\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989210153189,"sku":"NP9780470040379","price":150.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470040379.jpg?v=1761783219","url":"https:\/\/k12savings.com\/es\/products\/financial-instruments-and-institutions-isbn-9780470040379","provider":"K12savings","version":"1.0","type":"link"}