Fixed Income Securities Valuation, Risk, and Risk Management 1st by Pietro Veronesi
By: Pietro Veronesi
Publisher: Wiley
Print ISBN: 9780470109106, 0470109106
eText ISBN: 9780470586891, 0470586893
Copyright year: 2011
The product description is not available yet.
Additional ISBNs
9780470534823, 9780470732229, 0470534826, 0470732229
It is now the middle of 2009 and finally this book is completed. It has been very exciting
to write a text on the risk and return of fixed income securities, and their derivatives, in the
middle of what many consider the biggest financial crisis since the Great Depression. In
these three years of work the world of finance changed, as many key players in fixed income
markets either collapsed (e.g., the investment banks Bears Steams and Lehman Brothers),
have been acquired by the U.S. government (e.g., the two mortgage giant agencies Freddie
Mac and Fannie Mae), or have been acquired by other banks (e.g., the investment bank
Merrill Lynch). In this turmoil, the U.S. government has taken the center stage: On the one
hand, the Federal Reserve decreased its reference short-term interest rate, the Federal Funds
target rate, to almost zero, and acted swiftly to set up lending facilities to provide liquidity
to the financial system. On the other hand, the U.S. Treasury used Congress-approved
funds to bail out a number of financial institutions, while the Federal Deposit Insurance
Corporation (FDIC) extended guarantees on the short-term debt of banks in risk of default.
