Fixed Income Markets and Their Derivatives

Fixed Income Markets and Their Derivatives – Suresh Sundaresan

Fixed income markets, including government bonds, corporate bonds, mortgage-backed securities and money markets, are among the largest and most important financial markets in the world, and they are closely linked to a wide range of derivative instruments. Fixed Income Markets and Their Derivatives, by Suresh Sundaresan, a professor of finance at Columbia Business School, offers a comprehensive and rigorous introduction to these markets.

The book explains the institutional details of how fixed income markets work, including the roles of governments, central banks, dealers and investors, how securities are issued and traded, and how prices and yields are determined. It covers the major types of fixed income securities, such as Treasury securities, corporate bonds, mortgage-backed securities, asset-backed securities and money market instruments.

Sundaresan then develops the analytical tools used to value and manage fixed income securities and portfolios, including yield curves, the term structure of interest rates, duration and convexity, and credit risk. He also examines the derivatives associated with these markets, such as interest rate futures, forwards, swaps, options, caps and floors, and explains how they are priced and used for hedging and speculation.

Combining theory with real-world market practice, the book includes examples, data and exercises that help readers apply the concepts.

Thorough and authoritative, Fixed Income Markets and Their Derivatives is an essential textbook for graduate and advanced undergraduate students in finance, and a valuable reference for professionals in banking, investment management and risk management. Markets and regulations have evolved since publication. As a pre-owned textbook, it may contain notes or highlighting.