{"product_id":"treasury-finance-and-development-banking-a-guide-to-credit-debt-and-risk-website-wiley-finance-9781118729120","title":"Treasury Finance and Development Banking A Guide","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003eCredit and credit risk permeates every corner of the financial world. Previously credit tended to be acknowledged only when dealing with counterparty credit risk, high-yield debt or credit-linked derivatives, now it affects all things, including such fundamental concepts as assessing the present value of a future cash flow.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003cp\u003eList of Figures xiii\u003c\/p\u003e \u003cp\u003eList of Tables xvii\u003c\/p\u003e \u003cp\u003eAcknowledgments xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003eIntroduction xxi\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eI. 1 Treasury, Funding, and the Reasons behind This Book xxi\u003c\/p\u003e \u003cp\u003eI. 2 Funding Issues as Credit and Pricing Issues xxiii\u003c\/p\u003e \u003cp\u003eI. 3 Treasury Finance and Development Banking xxv\u003c\/p\u003e \u003cp\u003eI. 4 The Structure of the Book xxvi\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 An Introductory View to Banking, Development Banking, and Treasury 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 A Representation of the Capital Flow in a Financial Institution 2\u003c\/p\u003e \u003cp\u003e1.2 Lending 3\u003c\/p\u003e \u003cp\u003e1.3 Borrowing 7\u003c\/p\u003e \u003cp\u003e1.4 Investing and ALM 10\u003c\/p\u003e \u003cp\u003e1.5 The Basic Structure of a Traditional Financial Institution 12\u003c\/p\u003e \u003cp\u003e1.5.1 Private and Public Sides 12\u003c\/p\u003e \u003cp\u003e1.5.2 Sales and Trading Desks 13\u003c\/p\u003e \u003cp\u003e1.5.3 The Treasury Desk 14\u003c\/p\u003e \u003cp\u003e1.6 Development Banking 17\u003c\/p\u003e \u003cp\u003e1.6.1 The Different Types of Development Institutions 17\u003c\/p\u003e \u003cp\u003e1.6.2 The Structure of a Development Bank 19\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Curve Construction 21\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 What Do We Mean by Curve Construction? 22\u003c\/p\u003e \u003cp\u003e2.2 The Instruments Available for Curve Construction 24\u003c\/p\u003e \u003cp\u003e2.2.1 Discount Bonds and Cash Deposits 24\u003c\/p\u003e \u003cp\u003e2.2.2 Interest Rate Futures and Forward Rate Agreements 26\u003c\/p\u003e \u003cp\u003e2.2.3 FX Forwards 28\u003c\/p\u003e \u003cp\u003e2.2.4 Interest Rate Swaps 30\u003c\/p\u003e \u003cp\u003e2.2.5 Basis Swaps 34\u003c\/p\u003e \u003cp\u003e2.2.5.1 Tenor Basis Swaps 34\u003c\/p\u003e \u003cp\u003e2.2.5.2 Cross Currency Basis Swaps 35\u003c\/p\u003e \u003cp\u003e2.3 Using Multiple Instruments to Build a Curve 37\u003c\/p\u003e \u003cp\u003e2.4 Collateralized Curve Construction 42\u003c\/p\u003e \u003cp\u003e2.4.1 The Evolution of the Perception of Counterparty Credit Risk 42\u003c\/p\u003e \u003cp\u003e2.4.1.1 Overnight Index Swaps 43\u003c\/p\u003e \u003cp\u003e2.4.2 Discounting in the Presence of Collateral 46\u003c\/p\u003e \u003cp\u003e2.4.2.1 Collateral in a Foreign Currency 47\u003c\/p\u003e \u003cp\u003e2.4.3 Clearing, the Evolution of a Price, and the Impact of Discounting 48\u003c\/p\u003e \u003cp\u003e2.4.4 The Special Case of AAA-Rated Institutions 52\u003c\/p\u003e \u003cp\u003e2.5 Numerical Example: Bootstrapping an Interest Rate Curve 55\u003c\/p\u003e \u003cp\u003e2.5.1 The Short End of the Curve: Deposits and FRAs 56\u003c\/p\u003e \u003cp\u003e2.5.2 The Long End of the Curve: Interest Rate Swaps 58\u003c\/p\u003e \u003cp\u003e2.5.3 Interpolation and Extrapolation 62\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Credit and the Fair Valuing of Loans 67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Credit as an Asset Class 67\u003c\/p\u003e \u003cp\u003e3.1.1 The Underlyings 69\u003c\/p\u003e \u003cp\u003e3.1.2 Credit Default Swaps 71\u003c\/p\u003e \u003cp\u003e3.2 A Brief Overview of Credit Modeling 75\u003c\/p\u003e \u003cp\u003e3.2.1 Hazard Rates and a Spread-Based Modeling of Credit 78\u003c\/p\u003e \u003cp\u003e3.2.2 The Bootstrapping of a Hazard Rate Curve 81\u003c\/p\u003e \u003cp\u003e3.2.3 Different Quotations and Different Currencies 84\u003c\/p\u003e \u003cp\u003e3.3 Fair Value of Loans and the Special Case of Development Institutions 88\u003c\/p\u003e \u003cp\u003e3.3.1 The Argument around the Fair Valuing of Loans 88\u003c\/p\u003e \u003cp\u003e3.3.2 Prepayment Option and the Case of Development Institutions 91\u003c\/p\u003e \u003cp\u003e3.4 Numerical Example: Calculating the Fair Value of a Loan 95\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Emerging Markets and Liquidity 101\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 The Definition of Emerging Markets 101\u003c\/p\u003e \u003cp\u003e4.2 The Main Issues with Emerging Markets 103\u003c\/p\u003e \u003cp\u003e4.2.1 Liquidity 103\u003c\/p\u003e \u003cp\u003e4.2.2 Maturity 108\u003c\/p\u003e \u003cp\u003e4.2.3 Credit 110\u003c\/p\u003e \u003cp\u003e4.2.4 Capital Control 112\u003c\/p\u003e \u003cp\u003e4.3 Emerging Markets and Development Banking 116\u003c\/p\u003e \u003cp\u003e4.3.1 Borrowing 116\u003c\/p\u003e \u003cp\u003e4.3.2 Lending 118\u003c\/p\u003e \u003cp\u003e4.4 Case Studies of Development Projects 122\u003c\/p\u003e \u003cp\u003e4.4.1 Rural Development in X 122\u003c\/p\u003e \u003cp\u003e4.4.2 Development of Textile Exports in Y 124\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Bond Pricing 127\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 What Is a Bond? 127\u003c\/p\u003e \u003cp\u003e5.2 A Few Fundamental Concepts of the Bond World 129\u003c\/p\u003e \u003cp\u003e5.2.1 Par 129\u003c\/p\u003e \u003cp\u003e5.2.2 Yield 130\u003c\/p\u003e \u003cp\u003e5.2.3 Duration 134\u003c\/p\u003e \u003cp\u003e5.3 Expressing Credit Explicitly When Pricing a Bond 138\u003c\/p\u003e \u003cp\u003e5.3.1 Benchmarks and Z-Spreads 138\u003c\/p\u003e \u003cp\u003e5.3.2 Asset Swaps 142\u003c\/p\u003e \u003cp\u003e5.3.3 Constructing a CDS-Implied Credit Framework for Bond Pricing 146\u003c\/p\u003e \u003cp\u003e5.4 Illiquid Bonds 150\u003c\/p\u003e \u003cp\u003e5.4.1 Pricing at Recovery 151\u003c\/p\u003e \u003cp\u003e5.4.2 Case Study: The Default of Greece 155\u003c\/p\u003e \u003cp\u003e5.4.3 Building Proxies 161\u003c\/p\u003e \u003cp\u003e5.4.3.1 The Case of Missing Maturities 162\u003c\/p\u003e \u003cp\u003e5.4.3.2 The Case of Quasi Government Entities 162\u003c\/p\u003e \u003cp\u003e5.4.3.3 Similar Countries 162\u003c\/p\u003e \u003cp\u003e5.4.3.4 Similar Companies 163\u003c\/p\u003e \u003cp\u003e5.5 Numerical Example: Estimating the Coupon of an Emerging Market Debt Instrument 164\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Treasury Revisited 171\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 Funding as an Asset Swap Structure 171\u003c\/p\u003e \u003cp\u003e6.1.1 Asset Swaps Revisited 171\u003c\/p\u003e \u003cp\u003e6.1.2 The Impact of Discounting on Asset Swap Levels 177\u003c\/p\u003e \u003cp\u003e6.2 Funding Level Targets 179\u003c\/p\u003e \u003cp\u003e6.2.1 The Objective of Ever-Smaller Funding Levels 179\u003c\/p\u003e \u003cp\u003e6.2.2 Different Funding Levels for Different Types of Debt 182\u003c\/p\u003e \u003cp\u003e6.3 The Fundamental Differences between Investment Banking and Development Banking 187\u003c\/p\u003e \u003cp\u003e6.4 Benchmarks for Borrowing and Investing 189\u003c\/p\u003e \u003cp\u003e6.4.1 Borrowing 190\u003c\/p\u003e \u003cp\u003e6.4.2 Investing 195\u003c\/p\u003e \u003cp\u003e6.4.3 Case Study: A Note on the LIBOR Scandal 203\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Risk and Asset Liability Management 207\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 The Issue of Leverage 208\u003c\/p\u003e \u003cp\u003e7.2 Hedging 210\u003c\/p\u003e \u003cp\u003e7.2.1 Risk Neutrality and the Meaning of Hedging 210\u003c\/p\u003e \u003cp\u003e7.2.2 Static and Dynamic Hedging 214\u003c\/p\u003e \u003cp\u003e7.2.3 Valuation in the Absence of Dynamic Hedging 219\u003c\/p\u003e \u003cp\u003e7.3 Managing Risk Related to Financial Observables 224\u003c\/p\u003e \u003cp\u003e7.3.1 Interest Rate and FX Risk 225\u003c\/p\u003e \u003cp\u003e7.3.1.1 Hedging a Fixed or Structured Bond 225\u003c\/p\u003e \u003cp\u003e7.3.1.2 The Unhedgeable Nature of the Discount Spread 226\u003c\/p\u003e \u003cp\u003e7.3.1.3 Hedging a Fixed-Rate Loan 228\u003c\/p\u003e \u003cp\u003e7.3.1.4 Hedging a Foreign Currency Bond or Loan 230\u003c\/p\u003e \u003cp\u003e7.3.1.5 Hedging a Credit-Linked Instrument Such as an Asset-Backed Security 234\u003c\/p\u003e \u003cp\u003e7.3.1.6 Hedging an Equity Position 236\u003c\/p\u003e \u003cp\u003e7.3.1.7 Locking an Interest Rate Position 237\u003c\/p\u003e \u003cp\u003e7.3.2 Credit Risk 238\u003c\/p\u003e \u003cp\u003e7.4 Funding Risk 242\u003c\/p\u003e \u003cp\u003e7.4.1 Funding Gap Risk 242\u003c\/p\u003e \u003cp\u003e7.4.2 Refinancing Risk 246\u003c\/p\u003e \u003cp\u003e7.4.2.1 The Case of Constant Funding Level 250\u003c\/p\u003e \u003cp\u003e7.4.2.2 The Case of Funding Level Lower Than Expected 250\u003c\/p\u003e \u003cp\u003e7.4.2.3 The Case of Funding Level Higher Than Expected 251\u003c\/p\u003e \u003cp\u003e7.4.3 Numerical Example: Estimating Refinancing Risk 251\u003c\/p\u003e \u003cp\u003e7.4.4 Reset Risk 255\u003c\/p\u003e \u003cp\u003e7.4.5 Numerical Example: Estimating Reset Risk 257\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Conclusion 261\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 Credit Is Everywhere 261\u003c\/p\u003e \u003cp\u003e8.2 The Fundamental Steps to Borrowing, Lending, and Investing: A Summary 263\u003c\/p\u003e \u003cp\u003eAppendix A Implying Zero Rates from FX Forward Quotes 269\u003c\/p\u003e \u003cp\u003eAppendix B CDS Spreads and Default Probabilities 271\u003c\/p\u003e \u003cp\u003eAppendix C Modeling the Credit-Driven Prepayment Option of a Loan 273\u003c\/p\u003e \u003cp\u003eAppendix D The Relation between Macaulay and Modified Durations 275\u003c\/p\u003e \u003cp\u003eAppendix E The Impact of Discounting on an Asset Swap Spread 277\u003c\/p\u003e \u003cp\u003eAppendix F Replication Leading to Risk-Neutral Probabilities 279\u003c\/p\u003e \u003cp\u003eReferences 283\u003c\/p\u003e \u003cp\u003eAbout the Web Site 289\u003c\/p\u003e \u003cp\u003eIndex 293\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default Title","offer_id":48866376483159,"sku":"9781118729120","price":54.75,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9781118729120.jpg?v=1722278357","url":"https:\/\/bookcurl.com\/products\/treasury-finance-and-development-banking-a-guide-to-credit-debt-and-risk-website-wiley-finance-9781118729120","provider":"Book Curl","version":"1.0","type":"link"}