The Professional Risk Managers' Guide to Financial Instruments

by Professional Risk Managers' International Association (PRMIA)

2007 · McGraw Hill Professional

Techniques for pricing, hedging and trading The Professional Risk Managers' Guide to Financial Instruments will show you how manage the risk of the complex instruments offered to investors. Sponsored by PRMIA and edited by risk management experts Carol Alexander and Elizabeth Sheedy, this authoritative resource features contributions from eleven global experts who explore the major financial instruments, the valuation methods most appropriate for each, and strategies for assessing the associated market risks. The Professional Risk Managers' Guide to Financial Instruments offers step-by-step guidance in: The main types of bonds Futures and forward contracts Caps, floors, and interest rate options Swaps and swaptions Convertible bonds and other hybrid instruments Options, including exotic and path dependent pay-offs Using instruments for hedging and speculation

The Professional Risk Managers' Guide to Finance Theory and Application

by Professional Risk Managers' International Association (PRMIA)

2007 · McGraw Hill Professional

This comprehensive reference brings together ten of the world's leading scholars and practitioners, who provide invaluable perspectives on all aspects of finance theory and how they are applied to the process of risk management. The book begins with an overview of risk and risk aversion, introducing utility functions and the mean-variance criterion. It then delivers a thorough introduction to portfolio mathematics, including discussion of the efficient frontier, portfolio theory, and portfolio diversification. Written to help you fortify your defenses against extreme, unanticipated outcomes, and to ensure that returns are an adequate reward for risks taken, The Professional Risk Managers' Guide to Finance Theory and Application covers key issues such as: The theory of capital allocation Capital structure, that is, debt versus equity financing The CAPM and multifactor models Interest rate models The term structure of interest rates No-arbitrage pricing of futures and forwards Risk-neutral valuation of options Offering a global view not found elsewhere, The Professional Risk Managers' Guide to Finance Theory and Application arms institutional investors, professional financial analysts and traders, auditors, corporate treasurers, regulators and actuaries with the practical tools to master any financial field.