Cover -- Mastering Investment Banking Securities -- Contents -- Foreword -- The aim of the book -- Introduction -- Part 1 Structures -- Investment bank divisions -- Mergers and acquisitions (M&A) -- Capital markets (CM) -- Securitisation -- Sales and trading -- Investment bank organisational structure -- Front office -- Middle office -- Back office -- Part 2 Money markets and capital markets instruments -- Money market products -- Time value of money -- Nominal and effective rates -- Cashflow analysis -- Overview of money market products -- Money market calculations -- Capital markets instruments -- Overview of capital markets instruments -- Bond pricing fundamentals -- Other bond markets -- Part 3 Financial derivatives -- Speculative financial instruments - derivatives -- Overview of derivatives markets -- Users of derivatives -- Interest rate derivatives -- Equity derivatives -- Commodity derivatives -- Credit derivatives -- Financial futures and forward rate agreements (FRAs) -- Financial futures -- Forward rate agreements (FRAs) -- Futures vs. FRAs -- Swaps -- Basic swap concepts and applications -- Types of swaps -- Swap pricing fundamentals -- Pricing currency swaps -- Equity swap valuation -- Foreign exchange -- Spot exchange rates -- Direct and cross-rates -- Forward exchange rates -- Options -- Motivation behind option trading -- Option contract specifications -- Types of option contracts -- Option contract risks and benefits -- Ideas behind option pricing -- Put-call parity -- Option value sensitivities - 'option Greeks' -- Option pricing: practical implementation -- Bond and equity derivatives -- Introduction to bond derivatives -- Background on equity markets -- Commodity and credit derivatives -- Background on commodity derivatives -- Introduction to credit derivatives -- OTC derivatives and hybrid securities -- OTC derivatives.

Hybrid securities -- Part 4 Pricing and valuation tools -- Probability and statistics -- Definition of probability -- The main concepts of probability -- The concept of probability distribution -- Types of probability distribution -- Binomial distribution -- Normal distribution -- Log-normal distribution -- Other probability distributions -- Binomial trees -- Yield curves -- Choice of financial instruments for yield curve construction -- Yield curve construction methodology -- The one-month yield curve construction -- The basis curve construction -- Shape of the yield curve -- Graphical yield curve representation -- Quantitative analytics -- Role of quantitative analytics -- Classification of pricing models -- Numerical methods -- Analytical methods -- Summary of pricing formulae -- Notation -- Time value of money -- Money markets calculations -- Capital markets instruments -- Financial futures -- Forward rate agreements (FRAs) -- Interest rate swaps -- Foreign exchange -- Option characteristics -- Option pricing -- Bond derivatives -- Equity derivatives -- Probability and statistics -- Yield curves -- Part 5 Risk management -- Credit risk on derivatives -- Counterparty risk -- Product risk -- Credit risk of specific financial instruments -- Credit ratings -- Credit risk management -- Credit risk management best practice guidelines -- Market risk on derivatives -- Balance sheet vs. off-balance sheet instruments -- Market risk on specific financial instruments -- Market risk management -- Market risk management best practice guidelines -- Value at risk (VAR) -- Appendices -- Option strategies -- ISO (SWIFT) currency codes -- Glossary -- Bibliography -- Index.

Investment banks and banking are financial institutions and practices that assist corporations and governments in raising capital, underwriting debt and financial risks, and enabling mergers and acquisitions. Securities are the fundamental tools and products of investment banking. They can be broadly categorized into debt - including banknotes, bonds and debentures, equity - such as common stocks, and derivative financial instruments that range from options and swaps to very complex and risky trading strategies. It is a multi-billion dollar business based on sophisticated financial models and pricing techniques. Mastering Investment Banking Securities is a comprehensive guide to these trading instruments, their trading practices, pricing techniques and associated risks. It includes: An introduction to investment bank structures, divisions and their roles. All commonly traded money market and capital market instruments. The most popular interest rate, equity, commodity and credit- linked financial instruments. A wide range of derivative securities. Details of pricing and valuation tools and the key pricing techniques. The fundamentals of credit risk and market risk. A glossary of key terms.

Description based on publisher supplied metadata and other sources.

Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2019. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.