Capital Markets and Investments: Essential Insights and Concepts for Professionals

This intermediate book on the financial capital markets goes beyond basic financial concepts, and discusses the plumbing and the mechanics of the markets. It requires no prior background, and is accessible to students, practitioners, journalists and enthusiasts.

This book covers the basics of financial institutions, instruments (debt, equity and options) and mentions new developments such as fintech and regulation. Compared to other books, this book is more concise and goes beyond the theory. It delves into institutional details rather than only discussing conceptual issues; the plumbing in the markets does matter!

The book also introduces tools such as Bloomberg and has annexures on accounting, macroeconomics and statistics for introductory students. In that sense, it lies somewhere in between a traditional textbook and a reference book, and requires no prior finance background.

Dr. Sid Dastidar (www.columbia.edu/ sgd2002) teaches at Columbia University, at the IEOR Department and earlier at the Graduate School of Business. Sid has two decades of industry experience, buy-side and sell-side, across asset classes/ regions.

This book targets people who need a rapid orientation in finance, and need to apply the concepts right away. Key features include:

  • Self-published by a professor at a top institution and an industry veteran, thus providing inexpensive access to distilled content.
  • Adopted by top universities and Wall Street firms, and endorsed by leading faculty and industry practitioners.
  • Meant to help students and practitioners understand the essentials of capital markets, quickly.
  • The book emphasizes brevity and compactness, ideally suited to current learning and pedagogy styles.
  • Discusses the structure of various financial institutions, and the roles they play in the allocation of capital.
  • Requires no specific prerequisites, except possibly some fluency in high school/ undergraduate math.
  • Basic information on financial statements, macroeconomics, statistics and Bloomberg are included in self-contained annexures at the end. The annexures can help bridge any gaps in background that readers may have to understand the content in the body of the book thoroughly and build on it.

Practitioners currently employed in the finance profession will find this book useful in refreshing basic concepts in a part of the market they do not deal with regularly. Students of finance will find the book useful in teaching them preliminary/ intermediate ideas, putting facts in context and ❝connecting the dots.❞ Because of the book❜s introductory nature, it is heavy on principles, mechanics, details, etc., apart from some perspective. This book gives readers the tools to formulate opinions and evaluate the opinions of others, but it does not offer direct opinions on the current market.

Professionals who will find it useful include:

  • Finance professionals needing a quick refresher on a market that they do not deal with regularly.
  • Professionals with qualifications in other disciplines looking to switch careers into finance.
  • Students with prior background in another discipline joining a Masters degree program, specializing in finance (MBA, quantitative finance, etc.)
  • Advanced undergraduate (or even high school!) students deciding whether finance is right for them.
  • Mid-career professionals in another industry, serving financial services clients, need to understand the basics of financial markets better. For example, Fintech professionals with a technology background are looking to connect more with mainstream finance companies.
  • Or, it may be a curious individual who simply wants to understand the financial periodicals better, and possibly make more sensible investment decisions!
1127037281
Capital Markets and Investments: Essential Insights and Concepts for Professionals

This intermediate book on the financial capital markets goes beyond basic financial concepts, and discusses the plumbing and the mechanics of the markets. It requires no prior background, and is accessible to students, practitioners, journalists and enthusiasts.

This book covers the basics of financial institutions, instruments (debt, equity and options) and mentions new developments such as fintech and regulation. Compared to other books, this book is more concise and goes beyond the theory. It delves into institutional details rather than only discussing conceptual issues; the plumbing in the markets does matter!

The book also introduces tools such as Bloomberg and has annexures on accounting, macroeconomics and statistics for introductory students. In that sense, it lies somewhere in between a traditional textbook and a reference book, and requires no prior finance background.

Dr. Sid Dastidar (www.columbia.edu/ sgd2002) teaches at Columbia University, at the IEOR Department and earlier at the Graduate School of Business. Sid has two decades of industry experience, buy-side and sell-side, across asset classes/ regions.

This book targets people who need a rapid orientation in finance, and need to apply the concepts right away. Key features include:

  • Self-published by a professor at a top institution and an industry veteran, thus providing inexpensive access to distilled content.
  • Adopted by top universities and Wall Street firms, and endorsed by leading faculty and industry practitioners.
  • Meant to help students and practitioners understand the essentials of capital markets, quickly.
  • The book emphasizes brevity and compactness, ideally suited to current learning and pedagogy styles.
  • Discusses the structure of various financial institutions, and the roles they play in the allocation of capital.
  • Requires no specific prerequisites, except possibly some fluency in high school/ undergraduate math.
  • Basic information on financial statements, macroeconomics, statistics and Bloomberg are included in self-contained annexures at the end. The annexures can help bridge any gaps in background that readers may have to understand the content in the body of the book thoroughly and build on it.

Practitioners currently employed in the finance profession will find this book useful in refreshing basic concepts in a part of the market they do not deal with regularly. Students of finance will find the book useful in teaching them preliminary/ intermediate ideas, putting facts in context and ❝connecting the dots.❞ Because of the book❜s introductory nature, it is heavy on principles, mechanics, details, etc., apart from some perspective. This book gives readers the tools to formulate opinions and evaluate the opinions of others, but it does not offer direct opinions on the current market.

Professionals who will find it useful include:

  • Finance professionals needing a quick refresher on a market that they do not deal with regularly.
  • Professionals with qualifications in other disciplines looking to switch careers into finance.
  • Students with prior background in another discipline joining a Masters degree program, specializing in finance (MBA, quantitative finance, etc.)
  • Advanced undergraduate (or even high school!) students deciding whether finance is right for them.
  • Mid-career professionals in another industry, serving financial services clients, need to understand the basics of financial markets better. For example, Fintech professionals with a technology background are looking to connect more with mainstream finance companies.
  • Or, it may be a curious individual who simply wants to understand the financial periodicals better, and possibly make more sensible investment decisions!
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Capital Markets and Investments: Essential Insights and Concepts for Professionals

Capital Markets and Investments: Essential Insights and Concepts for Professionals

by Siddhartha Dastidar
Capital Markets and Investments: Essential Insights and Concepts for Professionals

Capital Markets and Investments: Essential Insights and Concepts for Professionals

by Siddhartha Dastidar

Paperback(New Edition)

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Overview

This intermediate book on the financial capital markets goes beyond basic financial concepts, and discusses the plumbing and the mechanics of the markets. It requires no prior background, and is accessible to students, practitioners, journalists and enthusiasts.

This book covers the basics of financial institutions, instruments (debt, equity and options) and mentions new developments such as fintech and regulation. Compared to other books, this book is more concise and goes beyond the theory. It delves into institutional details rather than only discussing conceptual issues; the plumbing in the markets does matter!

The book also introduces tools such as Bloomberg and has annexures on accounting, macroeconomics and statistics for introductory students. In that sense, it lies somewhere in between a traditional textbook and a reference book, and requires no prior finance background.

Dr. Sid Dastidar (www.columbia.edu/ sgd2002) teaches at Columbia University, at the IEOR Department and earlier at the Graduate School of Business. Sid has two decades of industry experience, buy-side and sell-side, across asset classes/ regions.

This book targets people who need a rapid orientation in finance, and need to apply the concepts right away. Key features include:

  • Self-published by a professor at a top institution and an industry veteran, thus providing inexpensive access to distilled content.
  • Adopted by top universities and Wall Street firms, and endorsed by leading faculty and industry practitioners.
  • Meant to help students and practitioners understand the essentials of capital markets, quickly.
  • The book emphasizes brevity and compactness, ideally suited to current learning and pedagogy styles.
  • Discusses the structure of various financial institutions, and the roles they play in the allocation of capital.
  • Requires no specific prerequisites, except possibly some fluency in high school/ undergraduate math.
  • Basic information on financial statements, macroeconomics, statistics and Bloomberg are included in self-contained annexures at the end. The annexures can help bridge any gaps in background that readers may have to understand the content in the body of the book thoroughly and build on it.

Practitioners currently employed in the finance profession will find this book useful in refreshing basic concepts in a part of the market they do not deal with regularly. Students of finance will find the book useful in teaching them preliminary/ intermediate ideas, putting facts in context and ❝connecting the dots.❞ Because of the book❜s introductory nature, it is heavy on principles, mechanics, details, etc., apart from some perspective. This book gives readers the tools to formulate opinions and evaluate the opinions of others, but it does not offer direct opinions on the current market.

Professionals who will find it useful include:

  • Finance professionals needing a quick refresher on a market that they do not deal with regularly.
  • Professionals with qualifications in other disciplines looking to switch careers into finance.
  • Students with prior background in another discipline joining a Masters degree program, specializing in finance (MBA, quantitative finance, etc.)
  • Advanced undergraduate (or even high school!) students deciding whether finance is right for them.
  • Mid-career professionals in another industry, serving financial services clients, need to understand the basics of financial markets better. For example, Fintech professionals with a technology background are looking to connect more with mainstream finance companies.
  • Or, it may be a curious individual who simply wants to understand the financial periodicals better, and possibly make more sensible investment decisions!

Product Details

ISBN-13: 9780998814506
Publisher: Reading Light Publication
Publication date: 08/15/2017
Edition description: New Edition
Pages: 304
Product dimensions: 8.50(w) x 11.00(h) x 0.64(d)

Table of Contents

1. THE FINANCIAL SYSTEM – INTRODUCTION

2. MAJOR ASSET CLASSES AND MARKETS

Major types of instruments, Major asset classes (Fixed Income, Equities, Commodities, Currencies, Emerging Markets), Connections between different markets

3. THE ANATOMY OF THE SELL SIDE

Structure of a Bulge Bracket Sell-side Firm, Investment Banking Division, Capital Markets, Prime Brokerage, Support Functions, Basic Market Microstructure

4. OVERVIEW OF BUY SIDE FIRMS

Investment Styles, Mutual Funds, Exchange Traded Funds (ETFs), Alternative Investments, Liquid Alts

Separately Managed Accounts, High-Frequency Algorithmic Trading Products, Sell-side Index Swaps, Institutional allocators, Intermediation – Consultants, OCIO, Fund of Funds

5. INDICES, BENCHMARKING, RISK MODELS AND PERFORMANCE EVALUATION

Index Mechanics and Terminology, Measuring Risk – Risk Models, Role of Risk Models in Portfolio Construction, Performance Evaluation

6. TOPICAL ISSUES IN CAPITAL MARKETS

Market Microstructure, FinTech, Big Data in Investment Management, Quantitative Investing, Factor-based investing, Crowdfunding, Marketplace Lending, Robo-advisors, Blockchaining, Payment Mechanisms and Cryptocurrencies, Central Bank Policy, Regulation, Compliance Software

7. INTRODUCTION TO BONDS – TREASURY PRICING AND INSTITUTIONAL DETAILS

Treasuries, Financing Treasury Purchases – the Repo Market, Microstructure of the US Treasury Market,

Bootstrapping – from bond prices/ yields to spot rates, Forward curves, Expected patterns in bond price movements

8. FACTORS AFFECTING TREASURY BOND PRICES

Reviewing Bond Price-Yield Relationship, Quantifying Interest Rate Risk in Treasuries, Price Sensitivity (Risk) of Bonds – Modified Duration, DV01, Interest Rate Risk of Portfolios of Treasury bonds, Hedging Interest rate risk, Yield curve movements – parallel versus non-parallel movements, Convexity

9. FURTHER TOPICS IN INTEREST RATE MARKETS

Why do yields / interest rates move? Term Structure of Interest Rates, Interest rate volatility and Interest Rate Models, Investing in Treasury Markets - Expressing views using Treasuries (Leverage,

Carry Trades, Steepeners and Flatteners, Relative Value Trades, Forward Rate Agreements, Treasury Futures, TIPS (Treasury Inflation Protected Securities), LIBOR-based instruments, EuroDollar Futures, Interest Rate Swaps, ETFs related to Treasury Markets

10. OTHER FIXED INCOME MARKETS

US Mortgages, Municipal Bonds, Corporate Credit, Capital Structure, Bankruptcy, Securitization

11. EQUITIES - VALUATION

Equities and the Capital Structure, Corporate Governance, Valuing Equities, Fundamental versus Quantitative Investing, Value Investing

12. PORTFOLIO THEORY, ASSET ALLOCATION AND FACTOR MODELS

Expected Return and Risk, Diversification, Capital Asset Pricing Model (CAPM), Factor Models, Equity Risk management, Black-Litterman Model, Risk Parity

13. INTRODUCTION TO OPTIONS

Call and put options, Using options in trade construction, Directional trades with Call and Put options

Volatility Trades with Straddles and Strangles, Call spread, Put spread, Calendar spread, Put-call parity, Exotic Options

14. OPTIONS VALUATION

Option Pricing Overview, Binomial model of Stock Prices, Call Option - Pricing mechanics, American Options, Black Scholes formula, Volatility-based option trades, VIX

ANNEXURES - Return calculation, Accounting, Macroeconomics, Statistics, Bloomberg Terminal

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