ESCP Europe

Financial Markets and Institutions takes a practical approach to the changing landscape of financial markets and institutions. The text uses core principles to introduce topics, then examines these models via real-world scenarios. Empirical applications of themes help you develop essential critical-thinking and problem-solving skills. The 10th Edition reflects major changes in the aftermath of the global financial and Covid crises. With timely new sections, cases and boxes, you'll have the latest, most relevant information to help prepare you for your future career. Features Hallmark features of this title A unifying analytic framework uses a few basic principles to organize students' thinking. The Practicing Manager applications emphasize the financial practitioner's approach to financial markets and institutions. Careful step-by-step development of models helps students master the material. International perspectives are integrated throughout the text. Following the Financial News boxes introduce students to relevant news articles and data reported in financial news sources and explain how to read them. A focus on the impact of electronic technology on the financial system makes use of the web for exercises, chart/table sources, and margin references. E-Finance boxes explain how changes in tech have affected financial markets and institutions. New to this Edition New and updated features of this title UPDATED: A section on nonconventional monetary policy tools and quantitative easing discusses how they were used during the Covid pandemic (Ch. 10). UPDATED: Inside the Fed boxes discuss presidential attacks on the independence of the Fed (Ch. 9) and the Fed lending facilities during the Covid crisis (Ch. 10). NEW: Cases include analysis of the risk structure of interest rates (Ch. 5), the effects of the Trump tax cuts on bond interest rates (Ch. 5), whether the Covid pandemic could have led to a financial crisis (Ch. 8), Covid's impact on the stock market (Ch. 13), and supply & demand analysis of the foreign exchange market (Ch. 15). NEW: Mini-Case boxes focus on how Covid led to money market fund withdrawals (Ch. 11), whether Covid has led to a housing price bubble (Ch. 14), updates to the Affordable Care Act (Ch. 21), whether liability issues will be a roadblock to driverless cares (Ch. 21), and how Twitter used a poison pill to drive a hard bargain with Elon Musk (Ch. 22).

Table of Contents PART 1: INTRODUCTION Why Study Financial Markets and Institutions? Overview of the Financial System PART 2: FUNDAMENTALS OF FINANCIAL MARKETS What Do Interest Rates Mean and What Is Their Role in Valuation? Why Do Interest Rates Change? How Do Risk and Term Structure Affect Interest Rates? Are Financial Markets Efficient? PART 3: FUNDAMENTALS OF FINANCIAL INSTITUTIONS Why Do Financial Institutions Exist? Why Do Financial Crises Occur and Why Are They So Damaging to the Economy? PART 4: CENTRAL BANKING AND THE CONDUCT OF MONETARY POLICY Central Banks and the Federal Reserve System Conduct of Monetary Policy PART 5: FINANCIAL MARKETS The Money Markets The Bond Market The Stock Market The Mortgage Markets The Foreign Exchange Market The International Financial System PART 6: THE FINANCIAL INSTITUTIONS INDUSTRY Banking and the Management of Financial Institutions Financial Regulation Banking Industry: Structure and Competition The Mutual Fund Industry Insurance Companies and Pension Funds Investment Banks, Security Brokers and Dealers, and Venture Capital Firms PART 7: THE MANAGEMENT OF FINANCIAL INSTITUTIONS Risk Management in Financial Institutions Hedging with Financial Derivatives CHAPTERS ON THE WEB Financial Crises in Emerging Market Economies W-1 Savings Associations and Credit Unions W-22 Finance Companies .