Cover image for An introduction to global financial markets
Title:
An introduction to global financial markets
Author:
Valdez, Stephen.
Personal Author:
Edition:
Fourth edition.
Publication Information:
Houndmills, Basingstoke, Hampshire ; New York : Palgrave Macmillan, [2003]

©2003
Physical Description:
xviii, 403 pages : illustrations ; 24 cm
General Note:
"An extensively revised edition of An introduction to Western financial markets."

Includes index.
Language:
English
ISBN:
9781403900128

9781403900111
Format :
Book

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Summary

Summary

Describing the various financial sectors in clear and easy-to-understand terms, this book reflects the fact that the world is moving towards a single global market and provides a broad and balanced introduction to financial markets across the world.


Author Notes

Stephen Valdez formed Valdez Financial Training in 1985 He later sold the company and joined Profile Financial Training as a Director
Julian Wood worked in a range of roles for major banks for a number of years before joining Profile Financial Training where he is Course Director


Reviews 1

Choice Review

Valdez's book, which describes an array of financial markets ranging from money market instruments to high-yield securities and derivatives, is a particularly useful tool for American students who need a concise reference to global financial terminology. The extensive glossary and index readily direct readers to specific topics. For example, similar terms have different meanings in global markets. A debenture is an "unsecured" bond in the US, but a "secured" bond in Britain; the glossary clarifies the differences. The index facilitates identifying abbreviations and acronyms as well. While American investors know that the SEC stands for the Securities and Exchange Commission, they may not know many of the abbreviated terms used in global financial markets, e.g., APACS (Association for Payment Clearing Services) and CHAPS (Clearing House Automated Payments System) used for sterling and euros, which the index readily locates. The same applies to terminology, e.g., a "dragon bond" is a Eurobond issued in Hong Kong for distribution to Asian investors. Interspersed with the descriptions are historical facts and illustrations, which increase readers' interest and comprehension. A useful volume for anyone who needs a convenient reference to global financial terms, abbreviations, and facts. ^BSumming Up: Recommended. General readers; students, upper-division undergraduate and up; and practitioners. H. Mayo The College of New Jersey


Table of Contents

Prefacep. xvii
Acknowledgementsp. xviii
Introductionp. 1
1 The Debt Merry-Go-Roundp. 3
Raison D'etre of the Marketsp. 3
Raising Capitalp. 6
Conclusionp. 9
Summaryp. 10
Bankingp. 11
2 Banking Backgroundp. 13
Historyp. 13
Banking Super Visionp. 16
Types of Bank: Definitionsp. 17
Other Banking Terminologyp. 25
A Bank's Balance Sheetp. 26
The Creation of Creditp. 28
Capital Ratiop. 30
Central Bank Reportingp. 34
The Second Banking Directivep. 35
Major World Banksp. 36
Summaryp. 39
Appendix 1 Major Banks Across the Worldp. 41
Appendix 2 International and Domestic Banking Cooperation and Mergersp. 44
3 The Role of the Central Bankp. 47
History of the Major Central Banksp. 47
Central Bank Activitiesp. 50
The Position of Central Banks Todayp. 58
Summaryp. 60
4 Commercial Bankingp. 61
Introductionp. 61
Retail Bankingp. 61
Wholesale Bankingp. 79
Bank Lendingp. 79
Summaryp. 90
5 Investment Bankingp. 91
Introductionp. 91
Investment Bankingp. 91
Regulationp. 101
Summaryp. 103
Securities Marketsp. 105
6 The Money and Bond Marketsp. 107
The Rate of Interestp. 107
Yieldp. 110
Credit Ratingsp. 114
Domestic Money Marketsp. 117
Central Bank Rolep. 124
Domestic Bond Marketsp. 125
International Marketsp. 137
Summaryp. 151
Appendix 1 Announcement of Result of a Uk Bid Price Auction for Government Bondsp. 153
Appendix 2 Recent Changes to the Uk Gilts Marketp. 154
7 Stock Exchangesp. 155
History of Associations for Tradingp. 155
The Role of a Stock Exchangep. 156
Stocks and Sharesp. 156
International Equityp. 159
Indicesp. 160
Who Owns Shares?p. 163
Dealing Systemsp. 171
Settlementp. 181
New Issuesp. 182
Rights Issuesp. 184
Scrip Issues and Splitsp. 186
Scrip Dividendsp. 187
Second Marketsp. 187
Analysts' Ratiosp. 188
Us Stock Market - The New Paradigm and the Burst of the dot.com Bubblep. 190
Eu Rulesp. 191
Challenges to Traditional Stock Exchangesp. 192
Summaryp. 194
Foreign Exchange and International Tradep. 197
8 Foreign Exchangep. 199
Introductionp. 199
What Determines Exchange Rates?p. 200
Bretton Woodsp. 203
Floating Ratesp. 206
European Economic and Monetary Unionp. 208
Foreign Exchange Risk for Corporatesp. 208
Foreign Exchange Dealingp. 214
Arbitragep. 221
Central Bank Surveysp. 222
Why London?p. 224
Summaryp. 224
Appendixp. 226
9 Trade Financep. 227
General Problemsp. 227
Payment Servicesp. 227
Collection of Debtsp. 229
Extension of Creditp. 229
Finance for the Exporterp. 233
Foreign Exchangep. 234
Trading Guaranteesp. 234
Miscellaneous Servicesp. 236
Summaryp. 237
10 European Economic and Monetary Unionp. 238
Introductionp. 238
History of the European Unionp. 238
The Institutions of the European Unionp. 247
History of Previous Monetary Unionsp. 252
History of Steps to EMUp. 253
Summaryp. 268
Derivative Productsp. 271
11 Traded Optionsp. 273
Derivative Productsp. 273
Traded Options: Equitiesp. 274
Traded Options: Other Optionsp. 285
Option Strategiesp. 289
Summaryp. 291
12 Financial Futuresp. 293
Futures Tradingp. 293
Summaryp. 307
13 Other Derivative Productsp. 309
Introductionp. 309
Forward Rate Agreements (FRAs)p. 309
Swapsp. 312
Currency Swapsp. 319
Caps, Floors and Collarsp. 320
Credit Derivativesp. 323
The Market in Derivative Instrumentsp. 324
Summaryp. 327
Insurancep. 329
14 Insurancep. 331
Background to the Insurance Marketsp. 331
Reinsurancep. 336
The London Marketp. 339
Lloyd'sp. 340
The Market Todayp. 345
Eu Regulationp. 347
Summaryp. 348
The Periodic Global Crisesp. 351
15 Global Financial Crisesp. 353
Introductionp. 353
What Happened?p. 353
Why did it All Happen?p. 359
The Solutions?p. 362
Summaryp. 366
Trends in the Global Financial Marketsp. 367
16 Key Trendsp. 369
11 Septemberp. 369
The Economic Outlookp. 369
The Pension Time Bombp. 370
The Internetp. 371
Electronic Brokingp. 371
Risk Management and Derivativesp. 372
Exchangesp. 373
Asset-Backed Securitiesp. 374
Summaryp. 374
Glossaryp. 375
Indexp. 395