A Financial Bestiary: Introducing Equity, Fixed Income, Credit, FX, Forwards, Futures, Options and DerivativesThis is an applied book, using the bare minimum of mathematics to give a good understanding of finance. It is ideal for people just starting out in their financial career or those who have some financial experience who want to broaden and refresh their knowledge. A bestiary was a medieval book containing pictures and descriptions of mythical beasts each with its own moral tale to edify the reader. This is a bestiary of finance, and as such starts with a picture book of jobs and traded instruments in finance. Then the "Foundations" section sets out the broad picture of who does what and why in financial markets. Finally there are detailed chapters on financial instruments grouped into sections on "Fixed Income," "Credit," and "Forwards, Futures and Options." The book contains many figures and fully worked exercises to clarify the concepts. |
Contents
Yield Sensitivity | 14 |
Foundations | 41 |
Institutions | 79 |
Sovereign Wealth Funds | 93 |
Univariate Normal | 108 |
7 | 114 |
4 | 138 |
Money Market Instruments | 145 |
1 | 277 |
41 | 283 |
2 | 296 |
4 | 303 |
Structured Credit | 315 |
Forwards Futures Options | 325 |
Introduction | 347 |
Option Pricing Risk | 363 |
Common terms and phrases
basis points Black-Scholes Bloomberg borrowing calculate call and put call option call spread capital carry rate cash flows client compounding contract convertible correlation cost coupon payment credit default swap credit risk credit spread currency d₁ day count convention debt decreases delta discount factor dividend dollar duration equation equity example exchange Exercise expiry Figure fixed coupon bond floater floating leg forward price forward rate FTSE future value gamma government bonds hedge fund increase inflation interest rate risk interest rate swap investment banks investor issue issuer Kazakhmys LIBOR LIBOR rate Macaulay duration margin means mortgages normal distribution notional payoff portfolio position premium present value principal profit protection put option put-call parity receive sell sensitivity share price spot price stock price swap curve swap rate term three month trade tranche underlying vega yield curve zero coupon bond zero rate