Understand and interpret the global debt capital markets Now in a completely updated and expanded edition, this is a technical guide to the yield curve, a key indicator of the global capital markets and the understanding and accurate prediction of which is critical to all market participants. Being able to accurately and timely predict the shape and direction of the curve permits practitioners to consistently outperform the market. Analysing and Interpreting the Yield Curve, 2nd Edition describes what the yield curve is, explains what it tells participants, outlines the significance of certain shapes that the curve assumes and, most importantly, demonstrates what factors drive it and how it is modelled and used. Covers the FTP curve, the multi-currency curve, CSA, OIS-Libor and 3-curve models Gets you up to speed on the secured curve Describes application of theoretical versus market curve relative value trading Explains the concept of the risk-free rate Accessible demonstration of curve interpolation best-practice using cubic spline, Nelson-Siegel and Svensson 94 models This advanced text is essential reading for traders, asset managers, bankers and financial analysts, as well as graduate students in banking and finance.

A comprehensive, in-depth look at global debt capital markets in the post-crisis world Fully updated with comprehensive coverage of the post-crisis debt markets and their impact on key industry issues, Fixed Income Markets: Management, Trading, and Hedging, Second Edition offers insights into derivative pricing, cross-currency hedging, and new liquidity legislation. Written by Choudhry, Moskovic, and Wong, Fixed Income Markets is an indispensable read for anyone working in bond markets, interest-rate markets, and credit derivatives markets looking to better understand today's debt markets. This acclaimed book takes a unique look into the leading practices in bond markets as well as post-credit-crunch impacts on pricing that are rarely captured in textbooks. The new edition provides expanded coverage on a wide range of topics within hedging, derivatives, bonds, rebalancing, and global debt capital markets. New topics include: * Dynamic hedging practices and cross-currency hedging * Collateralized and uncollateralized derivatives, and their impact on valuation * Callable bonds, pricing, trading, and regulatory aspects related to liquidity * Rebalancing as a method for capturing contingencies and other complex imbedded risks As a bonus, the book includes reference information for statistical concepts and fixed income pricing, as well as a full glossary and index. Written in Choudhry's usual accessible style, Fixed Income Markets is a comprehensive and in-depth account of the global debt capital markets in today's post-crisis world.

The definitive and timeless guide to the principles of banking and finance, addressing and meeting the challenges of competition, strategy, regulation and the digital age. Moorad Choudhry Anthology compiles the best of renowned author Professor Moorad Choudhry's incisive writings on financial markets and bank risk management, together with new material that reflects the legislative changes in the post-crisis world of finance and the impact of digitization and global competition. Covering the developments and principles of banking from the 1950s to today, this unique book outlines the author's recommended best practices in all aspects of bank strategy, governance and risk management, including asset-liability management, liquidity risk management, capital planning, Treasury risk, and corporate framework, and describes a "vision of the future" with respect to a sustainable bank business model. You will gain the insight of a global authority on topics essential to retail, corporate, and investment/wholesale banking, including strategy, risk appetite, funding policies, regulatory requirements, valuation, and much more. The companion website is a goldmine for senior practitioners that provides templates that can applied in virtually any bank, including policy documents, pricing models, committee terms of reference, teaching aids and learning tools including PowerPoint slides and spreadsheet models. These facilitate a deeper understanding of the subject and the requirements of the senior executive, making this book an ideal companion for practitioners, graduate students and professional students alike. The intense demand for knowledge and expertise in asset-liability management, liquidity, and capital management has been driven by the regulatory challenges of Basel III, the European Union s CRDIV, the Volcker Rule, Dodd-Frank Act, and a myriad of other new regulations. This book meets that need by providing you with a complete background and modern insight on every aspect of bank risk management. * Re-engage with timeless principles of finance that apply in every market and which are the drivers of principles of risk management * Learn strategic asset liability management practices that suit today's economic environment * Adopt new best practices for liquidity models and choosing the appropriate liquidity risk management framework * Examine optimum capital and funding model recommendations for corporate, retail, and investment/wholesale banks * Dig deeper into derivatives risk management, balance sheet capital management, funding policy, and more * Apply best-practice corporate governance frameworks that ensure a perpetual and viable robust balance sheet * Adopt strategy formulation principles that reflect the long-term imperative of the banking business In the 21st century more than ever banks need to "re-learn" traditional risk management principles and apply them every day. Every bank in the world needs to be up to speed on these issues, and Anthology from Professor Moorad Choudhry is the answer to this new global policy response.

In the newly revised Second Edition of The Principles of Banking, Professor Moorad Choudhry delivers a comprehensive overview of the fundamentals of banking designed to offer senior management and regulators a roadmap toward a more sustainable business model for their banks. The book builds on the author's experience as a practitioner in commercial and investment banking over many years, and this makes it suitable for both academic and professional audiences. The author explains the original principles of banking, including the need for sound lending policy, capital management and liquidity risk management, and why these need to be maintained robustly to ensure the industry avoids another banking crisis during the next economic recession. Readers can access a wide range of downloadable ancillary materials, including policy templates, spreadsheet models, risk metric dashboards, and PowerPoint slides. This Second Edition offers: Updates to reflect new regulations published since the last edition, including Basel III Final Form and its constituent elements of The Fundamental Review of the Trading Book, Interest Rate Risk in the Banking Book, and Recovery and Resolution Planning New chapters in market risk management, foreign exchange risk management, and interest rate risk, as well as credit risk policy and management, and capital and liquidity adequacy stress testing regulations New material covering the impact of COVID-19 on banks, risk management, and balance sheet management and what this implied for the discipline of risk management going forward A recommended approach to bank asset-liability management good-practice, to enable a bank to deliver an optimised balance sheet for all stakeholders' benefit Perfect for bank practitioners, including managers in retail and commercial banking, ALCO members, treasury professionals, all C-suite executives and board non-executive directors, The Principles of Banking is an indispensable resource for all professionals and students seeking an authoritative and practical guide to the foundations of modern banking and good banking practice.

The Repo markets have grown dramatically in the past few years because of the need to hedge short positions in the capital and derivatives markets. Virtually all major currency markets in the world now have an established repo market, the facility is also increasingly being used in developing currency markets as well.

This book is a practical introduction that focuses on the instruments, applications and risk management techniques essential for this rapidly evolving market. Fully updated to reflect the changes in these markets, the book also includes worked examples and case studies, and new sections on basket and structured finance repo.

The third edition of "Capital Market Instruments: Analysis and Valuation" is a fully revised and updated guide to the most important products in use in the financial markets today, providing clear understanding of key concepts, mathematical techniques and market analysis. There is detailed coverage of debt and equity products and market conventions, illustrated with worked examples and case studies of events in the industry. The book is accompanied by web-based software for a yield curve construction model, enabling readers to set up an Excel application to calculate spot and forward interest rates. In this new edition, all chapters are updated to reflect the latest market developments. There is also a succinct analysis of the 2007-2008 financial crisis, with lessons learned and recommendations for market practitioners.
The authors have extensive experience in investment banking, quantitative analysis, bond trading and risk management, and provide valuable insight and understanding of the financial markets. www.quantlib.org

Bonds are a vital part of the global capital markets and are essential for any investor's portfolio. In this book leading expert Moorad Choudhry demystifies bonds once and for all. This guide explains, in a simple, clear fashion, the importance of bonds and why all private investors should include them as part of their investment strategy. Many bonds offer secure returns at a lower risk than equities. Readers will gain insight into the advantages of holding bonds and why they should always form part of any savings portfolio. Covering, among other topics, government bonds, the yield curve and what drives the market, in an easy, accessible style, this book is a must for anyone who wants to adopt a sound investment strategy.

In this book leading expert Moorad Choudhry demystifies bonds once and for all. He explains the importance of bonds and why all private investors should include them as part of their investment strategy. Readers will gain insight into the advantages of holding bonds and why they should always form part of any savings portfolio.

This book is a revised and updated guide to some of the most important issues in the capital markets today, with an emphasis on fixed-income instruments such as index-linked bonds, asset backed securities, mortgage backed securities and related products such as credit derivatives. However, fundamental concepts in equity market analysis, foreign exchange and money markets are also covered to provide a comprehensive overview. The focus is on analysis and valuation techniques, presented for the purposes of practical application. The book includes an accompanying CD-ROM with RATE software, designed to introduce readers to yield curve modelling. It also includes calculators for vanilla interest rate swaps and caps.

The growth of the credit derivatives market has meant that credit default swaps (CDSs) have been playing a big part in the credit market situation. An understanding of how these instruments work and what they can, and cannot, offer is vital to knowing how to best use them.

This book investigates the close relationship between the synthetic and cash markets in credit, which manifests in the credit default swap basis. Choudhry covers: factors that drive the basisimplications for market participantsthe CDS index basistrading the basis

Credit market investors and traders as well as anyone with an interest in the global debt markets will find "The Credit Default Swap Basis" insightful and rewarding.

The value-at-risk measurement methodology is a widely-used tool in financial market risk management. The fifth edition of Professor Moorad Choudhry's benchmark reference text "An Introduction to Value-at-Risk" offers an accessible and reader-friendly look at the concept of VaR and its different estimation methods, and is aimed specifically at newcomers to the market or those unfamiliar with modern risk management practices. The author capitalises on his experience in the financial markets to present this concise yet in-depth coverage of VaR, set in the context of risk management as a whole.

Topics covered include: Defining value-at-riskVariance-covariance methodologyPortfolio VaRCredit risk and credit VaRStressed VaRCritique and VaR during crisis

Topics are illustrated with Bloomberg screens, worked examples and exercises. Related issues such as statistics, volatility and correlation are also introduced as necessary background for students and practitioners. This is essential reading for all those who require an introduction to financial market risk management and risk measurement techniques.

Foreword by Carol Alexander, Professor of Finance, University of Sussex.

The definitive guide to fixed-come securities-revised to reflect today's dynamic financial environment

The "Second Edition" of the "Fixed-Income Securities and Derivatives Handbook" offers a completely updated and revised look at an important area of today's financial world. In addition to providing an accessible description of the main elements of the debt market, concentrating on the instruments used and their applications, this edition takes into account the effect of the recent financial crisis on fixed income securities and derivatives.

As timely as it is timeless, the "Second Edition" of the "Fixed-Income Securities and Derivatives Handbook" includes a wealth of new material on such topics as covered and convertible bonds, swaps, synthetic securitization, and bond portfolio management, as well as discussions regarding new regulatory twists and the evolving derivatives market.Offers a more detailed look at the basic principles of securitization and an updated chapter on collateralized debt obligationsCovers bond mathematics, pricing and yield analytics, and term structure modelsIncludes a new chapter on credit analysis and the different metrics used to measure bond-relative valueContains illustrative case studies and real-world examples of the topics touched upon throughout the book

Written in a straightforward and accessible style, Moorad Choudhry's new book offers the ideal mix of practical tips and academic theory within this important field.

The bond markets are a vital part of the world economy. The fourth edition of Professor Moorad Choudhry's benchmark reference text "An Introduction to Bond Markets" brings readers up to date with latest developments and market practice, including the impact of the financial crisis and issues of relevance for investors. This book offers a detailed yet accessible look at bond instruments, and is aimed specifically at newcomers to the market or those unfamiliar with modern fixed income products. The author capitalises on his wealth of experience in the fixed income markets to present this concise yet in-depth coverage of bonds and associated derivatives.

Topics covered include: Bond pricing and yieldDuration and convexityEurobonds and convertible bondsStructured finance securitiesInterest-rate derivativesCredit derivativesRelative value trading

Related topics such as the money markets and principles of risk management are also introduced as necessary background for students and practitioners. The book is essential reading for all those who require an introduction to the financial markets.

"Again, Moorad Choudhry takes his readers beyond the older books in the market that simply list a string of facts, and into a world of highly practical and up-to-the-minute concepts and strategies. Bank asset-liability management is about knowing when and how to use all the tools available...This book tackles the whole spectrum." --Peter Eisenhardt, Head of Short Term Fixed Income Origination, Debt Capital Markets, Bank of America, N.A.

"Like the author's book "The Bond and Money Markets: Strategy, Trading, Analysis," this is again a superb example how a financial book should be written.... The book comes highly recommended." --Tibor Szigeti, Fixed Income Analytics, Bloomberg L.P., London

"An informative account of banking ALM from the point of view of the market practitioner." --Shahid Ikram, Head of UK Sovereign bonds and G7 hedge fund, Morley Fund Management LT

"A highly readable text which serves as an essential primer for both market practitioners and academics alike to help understand the rapidly evolving risk management techniques used by Treasury and Money Market desks." --Adam Sutton, Head of European Repo, Global Funding Desk, Bank of America, London

""Bank Asset and Liability Management" offers a clear, insightful perspective of the global banking and liquidity markets...This book is a great reference tool for all finance professionals. Really, really impressive." --Bhavin Parmar, Securities Finance Trader, ABN Amro Bank N.V., London

"A brilliant and comprehensive account of all the various disciplines that make up the art of bank asset-liability management. A fantastic work! Every bank should have a copy of this book." --Mohamoud Barre Dualeh, PrivateBanking Unit, Abu Dhabi Commercial Bank, UAE

"This latest publication is an essential read for anyone involved in the industry. Moorad delivers financial theories in a practical and entertaining package." --Mark Williams (Director) and Wei Lieh Goh, Hedge Fund Derivatives, KBC Financial Products, London

The ultimate guide for bank management: how to survive and thrive throughout the business cycle

An essential guide for bankers and students of finance everywhere, "The Principles of Banking" reiterates that the primary requirement of banking--sound capital and liquidity risk management--had been forgotten in the years prior to the financial crash. Serving as a policy guide for market practitioners and regulators at all levels, the book explains the keys to success that bankers need to follow during good times in order to be prepared for the bad, providing in-depth guidance and technical analysis of exactly what constitutes good banking practice.

Accessible to professionals and students alike, "The Principles of Banking" covers issues of practical importance to bank practitioners, including asset-liability management, liquidity risk, internal transfer pricing, capital management, stress testing, and more. With an emphasis on viewing business cycles as patterns of stable and stressful market behavior, and rich with worked examples illustrating the key principles of bank asset-liability management, the book is an essential policy guide for today and tomorrow. It also offers readers access to an accompanying website holding policy templates and teaching aids.Illustrates how unsound banking practices that were evident in previous bank crashes were repeated during the creation of the 2007-2008 financial market crisisProvides a template that can be used to create a sound liquidity and asset-liability management framework at any bankAn essential resource for the international banking community as it seeks to re-establish its credibility, as well as for students of financeExplains the original principles of banking, including sound lending policy and liquidity management, and why these need to be restated in order to avoid another bank crisis at the time of the next economic recessionCovers topics of particular importance to students and academia, many of which are marginally--if ever--addressed in current text books on financeOffers readers access to a companion website featuring invaluable learning and teaching aids

Written by a banking practitioner with extensive professional and teaching experience in the field, "The Principles of Banking" explains exactly how to get back to basics in risk management in the banking community, essential if we are to maintain a sustainable banking industry.

""engaging and interesting and, more importantly, easily understood, allowing a clear picture to emerge of how the principle or concept under discussion is to be applied in the real world."" - Graeme Wolvaardt, Head of Market & Liquidity Risk Control, Europe Arab Bank Plc

Updated coverage of structured credit products with in-depth coverage of the latest developments

Structured credit products are one of today's fastest growing investment and risk management mechanisms, and a focus of innovation and creativity in the capital markets. The building blocks of these products are credit derivatives, which are among the most widely used products in finance. This book offers a succinct and focused description of the main credit derivative instruments, as well as the more complex products such as synthetic collateralized debt obligations. This new edition features updated case studies from Europe and Asia, the latest developments in synthetic structures, the impact of the subprime meltdown, and a CD-ROM of models and teaching aids.

Moorad Choudhry returns with this excellent update of the credit derivatives market. The second edition of his classic work is, like the subject matter itself, at the forefront of the financial industry. It deserves a wide readership.
--Dr Didier Joannas
"Regional Director, Thomson Reuters, Hong Kong"

This is the perfect companion for both experienced and entry level professionals working in the structured credit fraternity. It is an erudite, insightful and enjoyable read that successfully demystifies one of the most topical subject areas in banking today, while also providing important practical examples that link the theory to the job itself.
--Dr James Berriman
"Global Pricing Unit, Royal Bank of Scotland"

Moorad Choudhry has earned a deserved reputation from both academics and practitioners as one of the leading practical yet rigorous authors of finance books. In this Second Edition, his practical knowledge of credit derivatives keeps the audience engaged with straightforward explanations of complicated structures, and an accessible level of mathematical sophistication necessary to understand structured credit products. The author offers complete, rigorous analysis while avoiding overuse of mathematical formulas and carefully balanced practical and theoretical aspects of the subject. I strongly recommend this book for those wishing to gain an intuitive understanding of structured credit products, from practitioners to students of finance
--Mohamoud Barre Dualeh
"Senior Product Developer, Abu Dhabi Commercial Bank, UAE"

This is THE book for credit derivative trading. From first steps to advanced trading strategies, this is invaluable. Well written and insightful, perfect for ad hoc reference or reading cover to cover.
--Andrew Benson
"ETF Market Making, KBC Peel Hunt, London"

Professor Choudhry has inspired me to really get into credit derivatives. It's great to be lectured by someone with such energy and practical hands-on experience, as well as the ability to get stuck into the details.
--George Whicheloe
"Equity-Linked Technology, Merrill Lynch, London"

Moorad Choudhry is Head of Treasury at Europe Arab Bank plc in London. He is a Visiting Professor at the Department of Economics at London Metropolitan University.

New banking and investment business models to navigate the post-financial crisis environment

The financial crisis of 2007-2008 has discredited business models in the banking and fund management industries. In "The Future of Finance, " Moorad Choudhry and Gino Landuyt argue that banks must realign their business models, implying a lower return-on-equity; diversifying their funding sources; and increasing liquidity reserves. On the investment side, the authors discuss how diversification did not reduce risk, but rather amplified it, and failed to stabilize returns. The authors conclude that the clear lesson from the crisis is to know one's risk. A lesson that is best served by concentrating on assets and sectors that you understand.Examines the weaknesses in the business models of many institutions, as well as the theoretical foundation for professionals in the field of financeIdentifies the shortcomings of Modern Portfolio TheoryAddresses how investment managers can find new strategies for creating "alpha" and why they need to re-vamp their fee structures

Filled with in-depth insights and practical advice, "The Future of Finance" will provide bankers and investment managers with a guide to realigning their businesses in order to prosper in the post-crisis financial markets.