It focuses on these areas because financial markets, instruments and institutions have undergone substantial change over the last decade. Santomero/Babbel covers the wide range of financial instruments and the structure of financial markets and institutions, issues not addressed by traditional “Money and Banking” books. Santomero/Babbel also includes valuation and pricing methodologies, issues avoided by lower level “Money and Capital Markets” books.
Part 1:GROUND RULES and REASONS FOR STUDY
Chapter 1: Introduction: Function Performed by Financial Markets
Chapter 2: The Flow of Funds in the Markets
Part II:PRICING CASH FLOWS
Chapter 3: Fundamentals of Interest Rate Determination
Chapter 4: The Behavior of Nominal Interest Rates
Chapter 5: The Term Structure of Interest Rates
Chapter 6: Valuing Cash Flows
Chapter 7: Recognizing the Uncertainty of Future Interest Rates
Chapter 8: Interest Rate Risk and the Value of Cash Flows
Chapter 9: Default Risk and Other Risk to Cash Flow
PART III:INSTRUMENTS IN THE MARKET
Chapter 10: Valuing Cash Flows in Foreign Currencies
Chapter 11: Understanding the Money Market
Chapter 12: Understanding the Bond Market
Chapter 13: Understanding the Mortgage and Other Asset-Backed Debt Markets
Chapter 14: Understanding Equities
Chapter 15: Understanding Futures and Options
Chapter 16: Understanding Derivatives Securities
Part IV:MARKETS and INSTITUTIONS
Chapter 17: The Structure of Financial Markets
Chapter 18: Primary Market Structure
Chapter 19: Secondary Market Structure
Chapter 20: The Changing Institutional Structure of the Financial Markets
Chapter 21: The Investment Banking Industry
Chapter 22: The Commercial Banking Industry
Chapter 23: Other Depository Institutions
Chapter 24: Nonbank Financial Institutions
Chapter 25: Managing Financial Institutions
Part V:THE IMPORTANT ROLE of BANKS
Chapter 26: The Money Supply Process and Banks
Chapter 27: The Federal Reserve and the Money Supply Process