James C. Van Horne, Stanford University

Publisher: Prentice Hall
Copyright: 2001
Format: Paper; 304 pp

ISBN-10:	0130180440
ISBN-13:	9780130180445

Our Price: £32.99
Status: Not Yet Published
Estimated Availability: 15 Jun 2000

This text provides a conceptual basis from which to understand interest rates, how they behave with changing market conditions, and how risk can be managed.

• NEW - Treatment of credit risk.

  • Presents students with information on the treatment of credit ratings, default losses and migration patterns, quality yield spreads over time, high-yield debt, yield spreads with respect to maturity, together with a new section on liquidity. Ex.___

• NEW - Updated data on the flow of funds (Ch. 2).

  • Offers students new information regarding the total debt outstanding for various major sectors of the economy. Ex.___

• NEW - Reworked chapter on inflation and returns.

  • Introduces students to a section on inflation-indexed bonds and Treasury TIPS. Ex.___

• NEW - Improved chapter on the term structure of interest rates (Ch. 6).

  • Familiarizes students with modeling the term structure as well as with relevant empirical work. Ex.___

• NEW - Detailed treatment of bond portfolio management.

  • Illustrates for students the arbitrage efficiency between zero-coupon and coupon bonds with an actual situation. Ex.___

• NEW - Expanded chapter on credit derivative securities.

  • Enables students to explore a very important market that is continually developing. Ex.___

• NEW - Rewritten chapter on mortgage securities—Covers mortgage derivatives; modeling prepayments; and “TBA” pricing.

  • Reflects important changes in mortgage-backed securities. Ex.___

• NEW - Reorganized treatment of municipal bonds.

  • Helps explain to students the nature of the market and the valuation of municipals in relation to taxable bonds. Ex.___

• Emphasis on financial risk management throughout.

  • Introduces students to its relation to volatility, call risk, and default risk. Ex.___

• Current developments—e.g., interest rates; financial institutions; and financial innovations.

  • Gives students a presentation that reflects the latest shifts in the financial markets. Ex.___

• Extensive exploration into currency risk.

  • Shows students how it affects a foreign bond portfolio. Ex.___

• Institutional content is not presented as separate chapters but in conjunction with risk and practice concepts.

  • Provides a more lively approach than chapter-by-chapter institutional descriptions. Ex.___

• Treatment of credit risk.

  • Presents students with information on the treatment of credit ratings, default losses and migration patterns, quality yield spreads over time, high-yield debt, yield spreads with respect to maturity, together with a new section on liquidity. Ex.___

• Updated data on the flow of funds (Ch. 2).

  • Offers students new information regarding the total debt outstanding for various major sectors of the economy. Ex.___

• Reworked chapter on inflation and returns.

  • Introduces students to a section on inflation-indexed bonds and Treasury TIPS. Ex.___

• Improved chapter on the term structure of interest rates (Ch. 6).

  • Familiarizes students with modeling the term structure as well as with relevant empirical work. Ex.___

• Detailed treatment of bond portfolio management.

  • Illustrates for students the arbitrage efficiency between zero-coupon and coupon bonds with an actual situation. Ex.___

• Expanded chapter on credit derivative securities.

  • Enables students to explore a very important market that is continually developing. Ex.___

• Rewritten chapter on mortgage securities—Covers mortgage derivatives; modeling prepayments; and “TBA” pricing.

  • Reflects important changes in mortgage-backed securities. Ex.___

• Reorganized treatment of municipal bonds.

  • Helps explain to students the nature of the market and the valuation of municipals in relation to taxable bonds. Ex.___