* Covers a wide array of behavioural finance topics, including a rich selection of academic research, as well as theory drawn from established and emerging areas * Very accessible writing style helps students who are not finance specialists understand the concepts, while still retaining the attention of those with more in-depth knowledge * Experiential examples and end-of-chapter questions help students test their understanding * New content on fintech and cryptocurrencies, the role of social media in investing, generational biases, and the covid-19 pandemic * A dedicated chapter on the physiology of investment explores the latest research from genetics and neuroscience in informing investment behaviour, with new content on generational biases * More international examples, including from Asia and Africa, increasing the book's relevance for globally focused behavioural finance courses * Online supplements comprising student quizzes and an instructor manual and slides for lecturers.

This book helps readers understand the widely documented distortion in the portfolio choice of individual investors toward proximate firms - the proximity bias phenomenon. First, it recapitulates the fundamentals of modern portfolio theory. It then goes on to describe and demonstrate different approaches on how to measure proximity bias and identifies and examines potential motives and reasons for such a bias. In addition, the book presents new analysis on the financial effects of individual investors' proximity bias, explaining and contributing with possible policy implications on their portfolio distortion. This book will be of interest to students and researchers, as well as decision-makers in business firms and households.

Drawing on the history of modern finance, as well as the sociology of money and risk, this book examines how cultural understandings of finance have contributed to the increased capitalization of the UK financial system following the Global Financial Crisis. Providing both a geographically-inflected analysis and re-appraisal of the concept of performativity, it demonstrates that financial risk management has a spatiality that helps to inform understandings and imaginaries of the risks associated with money and finance. The book traces the development of understandings of risk at the Bank of England, with an analysis that spans some 1,000 reports, documents and speeches alongside elite interviews with past and present employees at the central bank. The author argues that the Bank has moved from a relatively broad-brush approach to the risks being managed in the financial sector, to a greater preoccupation with the understanding and mapping of the mobilization of financial risk. The study of financial practices from a critical social sciences and humanities perspective has grown rapidly since the Global Financial Crisis and this book will be of interest to multiple subject areas including IPE, economic geography, sociology of finance and critical security studies.

Identifies and appraises public and private finance and investment mechanisms that deliver sustainable infrastructure investment globally, nationally and regionally Infrastructure investment will grow in the wake of the Covid 19 pandemic as governments seek to stimulate their economies

This textbook helps students truly understand how to apply the principles behind corporate finance in a real world context from both a firm and investor perspective. In its second edition, this text focuses on traditional theory applied to a holistic and realistic business case study, written as a novel set in current times so that all readers can relate. As such, this textbook offers readers both a quantitative and qualitative perspective on topics such as capital budgeting, time value of money, corporate risk, and capital structure. The sections are laid out to mirror the financial decision process, making it easier for readers to grasp the idea of the corporate financial life cycle. New topics such as socially responsible investing and private capital markets are also incorporated into this edition. Finally, PowerPoint slides, answer keys and data sets are available online for instructors.

Hybrid capital securities or 'hybrids' offer various benefits. They offer flexibility equity without shareholder dilution, provide protection to senior creditors, are a stable source of long-term funding for healthy companies, and help insurers and banks meet regulatory and rating agency capital requirements. Risks and features of hybrid securities are expressed in the credit spread of some relatively new financial instruments, but no structural fundamentals exist for to price hybrids precisely. This book proposes a model for the pricing of hybrids. It begins by explaining the concept of hybrids as well as their equity- and debt-like characteristics. Different types of hybrids are presented, including preference shares, convertible bonds, contingent convertibles (CoCos) and bail-in bonds. The authors then present analysis of regulatory regimes' impact on hybrids. They discuss the types of hybrid bonds that are contemplated in the Capital Requirements Regulation (CRR) and Banking Union mechanism. They then present an in-depth examination of hybrids pricing and risk assessment techniques. The book provides a comprehensive analysis from mathematical, legal and financial perspectives in order to look at relatively new financial instruments and address problems with the pricing models of hybrids which are as yet unsolved.

The investor community is constantly looking for new sources of investment opportunity in the form of current income and capital gains. Much of the focus by fund managers, institutional investors and retail investors is currently on the global emerging markets of Asia where over USD1 trillion of infrastructure and development projects will have to be funded over the next decade. In recent months, more institutions have been focusing on the fixed income markets, where returns have been impressive. The text from credit risk authority Erik Banks provides a detailed review of the emerging Asian fixed income markets and their primary instruments, along with a discussion of market participants, market mechanics and associated hedging and financing instruments.

Efficient Methods for Valuing Interest Rate Derivatives provides an overview of the models that can be used for valuing and managing interest rate derivatives. Split into two parts, the first discusses and compares the traditional models, such as spot- and forward-rate models, while the second concentrates on the more recently developed Market models. Unlike most of his competitors, the author's focus is not only on the mathematics: Antoon Pelsser draws on his experience in industry to explore the practical issues, such as the implementation of models, and model selection.Aimed at people with a solid quantitative background, this book will be of particular interest to risk managers, interest rate derivative traders, quantitative researchers, portfolio and fund managers, and students of mathematics and economics, but it will also prove invaluable to anyone looking for a good overview of interest rate derivative modelling.

New edition of UK's market leading Real Estate Investment textbook, reorganised with renewed focus on hot topic of PropTech and innovations in the global market, including Brexit, Covid-19, and Crypto Currencies Every chapter begins with and is built around a real-world case study from: Japan, UK, US, Kuwait Packed with professional and technical approaches to building a global real estate portfolio from internationally renowned Professor of Practice at Said Business School, University of Oxford

This book presents China's wealth management market to the public, institutions and research groups. As the money base of Renminbi (RMB or Chinese Yuan) from the central bank increases exponentially in recent years, the overall leverage ratio rises in an alarming rate and the shadow banking issues stick out. Where this massive amount goes has raised huge interest all over the world. This book answers this question in three aspects: What is the money made up? Who is managing the money and how are they doing? The author studied six types of financial institutions that are responsible for channeling the money to industries and individuals. Banks although still the main vehicle for money flows, other financial organizations have taken more and more important roles in the money management market. Insurance, trust, security and mutual funds are the main non-banking business participants. New money management products are innovated, as are the regulations. The money management business in China has experience from starting chaos to a regulated market and the evolution is still going on. Professionals and researchers around the world are watching China's money market closely, studying the mechanisms, looking for business opportunities and trying to theorizing economic rules. This book is a well presented and professionally structured for the above purposes.

The authors examine the conditions under which democratic events, including elections, cabinet formations, and government dissolutions, affect asset markets. Where these events have less predictable outcomes, market returns are depressed and volatility increases. In contrast, where market actors can forecast the result, returns do not exhibit any unusual behavior. Further, political expectations condition how markets respond to the political process. When news causes market actors to update their political beliefs, market actors reallocate their portfolios, and overall market behavior changes. To measure political information, Professors Bernhard and Leblang employ sophisticated models of the political process. They draw on a variety of models of market behavior, including the efficient markets hypothesis, capital asset pricing model, and arbitrage pricing theory, to trace the impact of political events on currency, stock, and bond markets. The analysis will appeal to academics, graduate students, and advanced undergraduates across political science, economics, and finance.

Over the past decade, structured products have become part of the financial mainstream. The area is characterized by rapid market expansion and product innovation as the acceptance and use of derivative structures has become more widespread.

This book takes a practical approach to the principal structured products which have been appearing in financial markets during the past few years. The investor will find in this work answers to questions which could arise in investment dealings, and how to maximize the potential for profitability.

An excellent reference source for the institutional investor, this book will assist in the understanding of this area, showing that it is not necessarily as complex as it may initially seem.

Invaluable insight into measuring the performance of today's hedge fund manager
More and more institutional funds and high-net-worth assets are finding their way to hedge funds. This book provides the quantitative and qualitative measures and analysis that investment managers, investment advisors, and fund of fund managers need to allocate and monitor their client's assets properly. It addresses important topics such as Modern Portfolio Theory (MPT) and Post Modern Portfolio Theory (PMPT), choosing managers, watching performance, and researching alternate asset classes. Author Edward Stavetski also includes an appendix showing detailed case studies of hedge funds, and gives readers a road map to monitor their investments.
Edward J. Stavetski (Wayne, PA) is Director of Investment Oversight for Wilmington Family Office, serving ultra high-net-worth families in strategic asset allocation, traditional and alternative investment manager selection, and oversight.

To become successful in the bond options market, it is important for professionals to gain a basic, yet thorough understanding of how options are priced, traded, and used in interest-rate risk and fixed-income portfolio management. Provides practical answers to questions that new participants will ask as they become more sophisticated in the bond option market. It describes the U.S. government bond options markets and discusses how options pricing and computer technologies are used in market-making, strategic trading, and value investing. After introducing standard options terminology, it provides background data on U.S. Treasury bonds, bond options pricing models, advanced pricing models, the fundamentals of bond options dealing, strategies driven by interest rate forecasts, the most widely used structured portfolio strategies involving options, and more.

Candlestick charts are often used in speculative markets to describe and forecast asset price movements. This book is the first of its kind to investigate candlestick charts and their statistical properties. It provides an empirical evaluation of candlestick forecasting. The book proposes a novel technique to obtain the statistical properties of candlestick charts. The technique, which is known as the range decomposition technique, shows how security price is approximately logged into two ranges, i.e. technical range and Parkinson range. Through decomposition-based modeling techniques and empirical datasets, the book investigates the power of, and establishes the statistical foundation of, candlestick forecasting.

This edited volume offers thorough coverage of the business of investment banking, including much inside information based on the extensive professional experience of the contributors. Comprising 32 chapters, covering every facet of investment banking, from its historical origins in the U.S. to the current high-dollar activity in mergers and acquisitions. Contributors are noted businessmen and academics from the U.S., Canada, Europe, and Japan. Chapters fall into eight sections: investment banking today, raising capital, transactional activities, specialized financial instruments, tax-exempt financing, broker activities, commercial banks and investment banking, and investment banking outside the United States. Raising capital is traditionally what investment banking is all about, and the Handbook explains who does it and how it's done.

This book provides an extensive and critical assessment of the current regulatory and supervisory framework of investment services in the European Union (EU) and proposes alternative institutional structures. Recent trends in financial services at EU level as well as regulatory and institutional developments at a national level make the focus of this book very timely. The book contributes to the debate by making specific suggestions with regard to the institutional structure and the operational sphere of a central pan-European regulator.

[P]rovides fundamental information and a wealth of resources that readers can use to focus on areas of particular interest. Booklist, Starred Review Your Money Mentors offers advice for millennials and their parents on how to succeed in the years post college graduation. Co-written by a millennial, and based on the author's sixty-plus years of experience in finance, the collective advice is full of data, current research, anecdotes, and suggestions regarding mentors, continuing education, internships, careers, starter jobs, setting financial goals, budgeting, and money matters concerning marriage. The book is presented in three parts: Foundations for Success, Careers, and Making Your Money Work. The book features real-life stories of successful millennials in the traditional working world and those who have joined the "gig" economy, by choice, or otherwise. It considers an American school system that has slowly but surely become woefully inadequate in many parts of the country when it comes to preparing our millennial population to succeed in society. With that in mind, it offers concrete advice to help millennials and the generation coming up behind them excel in their futures. Your Money Mentors is an uplifting guidebook for this generation and beyond.

* Covers a wide array of behavioural finance topics, including a rich selection of academic research, as well as theory drawn from established and emerging areas * Very accessible writing style helps students who are not finance specialists understand the concepts, while still retaining the attention of those with more in-depth knowledge * Experiential examples and end-of-chapter questions help students test their understanding * New content on fintech and cryptocurrencies, the role of social media in investing, generational biases, and the covid-19 pandemic * A dedicated chapter on the physiology of investment explores the latest research from genetics and neuroscience in informing investment behaviour, with new content on generational biases * More international examples, including from Asia and Africa, increasing the book's relevance for globally focused behavioural finance courses * Online supplements comprising student quizzes and an instructor manual and slides for lecturers.

Proof of the "Fundamental Theorem of Asset Pricing" in its general form by Delbaen and Schachermayer was a milestone in the history of modern mathematical finance and now forms the cornerstone of this book.

Puts into book format a series of major results due mostly to the authors of this book.

Embeds highest-level research results into a treatment amenable to graduate students, with introductory, explanatory background.

Awaited in the quantitative finance community.

This book provides insights into the hidden role of intuitive expertise in financial decision-making. The authors show and discuss how expertise combined with intuitive judgments positively affect decision-making outcomes. The book builds on the latest academic studies in this emergent field. In combination with the academic perspective, the authors provide a field study that they conducted in the context of mergers and acquisitions (M&As), a common and critical strategic investment for companies. The interviews were carried out with experts and decision-makers in large and successful international companies (i.e., M&A experts, CEOs, CFOs, and board members). The book provides a solid theoretical and empirically based grounding of the topic. In addition, it offers suggestions to practitioners on how they can develop and nurture intuitive expertise in strategic investment decision-making. The report of the field study provides examples and quotes from interviews to visualize findings, thus helping practitioners gain understanding and insights from the text. The authors also discuss the downsides of intuitive expertise, such as biases and flawed decision-making. For scholars, students, and professionals, the book offers a concise and up-to-date summary of an emergent stream of research, exploring how cognition and judgment affect financial decision-making.

Predicting foreign exchange rates has presented a long-standing challenge for economists. However, the recent advances in computational techniques, statistical methods, newer datasets on emerging market currencies, etc., offer some hope. While we are still unable to beat a driftless random walk model, there has been serious progress in the field. This book provides an in-depth assessment of the use of novel statistical approaches and machine learning tools in predicting foreign exchange rate movement. First, it offers a historical account of how exchange rate regimes have evolved over time, which is critical to understanding turning points in a historical time series. It then presents an overview of the previous attempts at modeling exchange rates, and how different methods fared during this process. At the core sections of the book, the author examines the time series characteristics of exchange rates and how contemporary statistics and machine learning can be useful in improving predictive power, compared to previous methods used. Exchange rate determination is an active research area, and this book will appeal to graduate-level students of international economics, international finance, open economy macroeconomics, and management. The book is written in a clear, engaging, and straightforward way, and will greatly improve access to this much-needed knowledge in the field.

Twenty leading money minds reveal how to prosper in today's volatile markets
What strategies have made Wall Street's top investors so successful? What are their biggest mistakes and proudest accomplishments? How do they invest their own money? And what are the keys to finding the best stocks and bonds? This enlightening book features one-on-one interviews with 20 of the world's leading mutual fund managers representing a variety of different styles-from growth gurus, value masters, bond wizards, and international globetrotters to specialists in such market sectors as technology, healthcare, financial services, and real estate. All have demonstrated track records that consistently outperform the competition. These managers speak frankly about their strategies for beating the market in good times and bad, along with their predictions for the future and exclusive lists of favorite investments for the coming years.
Kirk Kazanjian (Mountain View, CA) is an experienced investment and personal finance author. He has written more than 20 books, including Wizards of Wall Street and Value Investing with the Masters. Kazanjian is a former award-winning television news anchor and business reporter whose stories appeared on CNN and ABC stations across the country. In addition to running his own investment company, he was an executive at several leading financial firms, including American Century Investments. He is regularly interviewed by CNBC, CNNfn, and Bloomberg, and has been featured in numerous business and investment publications.

Financial markets are growing in complexity, and there is an increased risk that investors are led to investment products and strategies they do not fully understand. The crisis-ridden decade of the 2000s is a stark reminder of how poorly managed finances can wreak havoc on household finances. Traditional finance assumes that all investors are risk-averse and require a risk premium from investing in risky assets such as stocks. However, recent developments in behavioural finance show that many individual investors often adopt strategies that lead to serious investment missteps, including over-investing in lottery-type stocks and securities. Lottery-type securities in fact attract investors who may be risk-seeking or are strongly influenced by cognitive biases ranging from overconfidence to being over-optimistic about future investment returns, especially during periods of high sentiment. Drawing on existing and new research, The Lottery Mindset summarizes the behavioural motivations and detrimental impact of investment strategies which are popular with individual investors. Wai-Mun Fong provides insight and guidance on behavioural biases, and successful investment. By both reviewing and contributing to exiting literature on this topic, this book will be of use to academics and general readers alike.