Contents
Foreword ix
Acknowledgements xiii
Prologue xv
Part I Financial Systems 1
1 Securities Markets and Financial Intermediation 3
2 Introduction to Securities Valuations 27
3 Central Banks and the Creation of Money 47
Part II The Spread Business 69
4 Deposit Taking and Other Funding 71
5 Corporate Lending 83
6 Operational Services 99
7 Mortgage Lending 107
8 Credit Cards and Other Retail Loans 117
Part III Risk Management 129
9 The Controls Cycle 131
10 Managing Interest Rate and FXRisk 139
11 Trading 159
12 Managing Market Risk 181
13 Managing Credit Risk 201
14 Capital Management 227
Part IV Capital Markets 253
15 Fund Management 255
16 Stock and Bond Issuance and Brokerage 285
17 Securitization 307
Part V Bank Valuations and Acquisitions 319
18 Bank Valuations 321
19 Bank Acquisitions 349
Part VI Problem Loans and Banking Crises 367
20 Corporate Failures and Problem Loans 369
21 Banking Crises 387
22 Dealing with and Valuing Insolvent Banks 405
Part VII Supervision and Financial Statements 417
23 Regulation, Supervision and Policing 419
24 The Balance Sheet 435
25 The Income Statement 451
Primers 465
Statistics for Finance 467
Derivation of Duration and Convexity 479
Financial Institutions 485
Appendix I - The Basel Accord 501
Appendix II - Glossary of Terms 523
Sources and Further Reading 537
Index 539