Capital Markets

« The purpose of this book is to describe the wide range of instruments for financing, investing, and controlling risk available in today’s financial markets. New financial instru-ments are not created simply because someone on Wall Street believes that it would be “fun” to introduce an instrument with more bells and whistles than existing instruments. The demand for new instruments is driven by the needs of borrowers and investors based on their financing and investment objectives situation, regulatory constraints (if any), finan-cial accounting considerations, and tax considerations. For these reasons, to comprehend the financial innovations that have occurred and are expected to occur in the capital markets in the future, a general understanding of the risk management problems faced by both insti-tutional and individual (retail) investors is required. Therefore, in addition to coverage of the markets for all financial instruments (both cash and derivative instruments), an over-view of the risk management issues faced by major institutional investors and the strategies they employ is provided »
Capital Markets by Frank Fabozzi