Financial Market Rates and Flows

Van Horne, James C.

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9780138894603: Financial Market Rates and Flows

Synopsis

New edition of a textbook on interest rates and financial risk management. Issues addressed include why interest rates and interest rate differentials exist, what causes them to change, and how risk can be shifted through hedging devices in the global financial arena. Intended for use in classes on money and capital markets, bond markets, investments, and financial institutions. Annotation c. by Book News, Inc., Portland, Or.

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From the Back Cover

This book covers interest rates and financial risk management while providing a conceptual basis from which to understand interest rates, interest-rate differentials, financial market equilibration, risk, and risk shifting. Emphasizing financial risk management, this book reflects the latest developments. It considers the volatility of bond prices with respect to coupon rate and maturity, and convexity while offering an extensive exploration into currency risk as it affects a foreign bond portfolio. It also explores the arbitrage equilibration between financial markets and likely changes that accompany change in the institutional environment. The fifth edition of Financial Market Rates and Flows>D> has been revised to include a new chapter on prices and yields for bonds and money market instruments and one on mortgage securities and prepayment risk. Its overall presentation has been revised to reflect the latest shifts in the financial markets. In addition, the presentation of flow of funds has been updated and streamlined for easier comprehension and the discussion on modeling the term structure of interest rates as well as duration and convexity has been updated. An essential reference book for every financial professional and investor.

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