This jargon-busting book describes how the bond and money markets work and how they impact on everyday life. It assumes no specialised prior knowledge of finance theory and provides an authoritative and comprehensive run-down of the workings of the modern financial system.

It’s in the money markets where money, or the value of money, can be bought and sold. It’s the place where Treasury bills, deposits, repurchase agreements, short-lived mortgages etc, can be traded. These are crucial to the global economy because they provide liquidity funding for the global financial system.

Bond markets operate in the same way but are financial markets where participants can issue new debt or buy and sell existing debt – known as bonds. As with money markets, bond markets are key because they provide money where no money previously existed (think of your mortgage).

Using real world examples from media such as the Financial Times, bestselling author Glen Arnold gives an international perspective on these markets.

• Understand key bond and money market terms and banking products
• Explore the wide variety of types of markets and their functions eg. LIBOR, gilts, government debt
• Gain insight into the main factors influencing prices in the financial markets
• Learn how fluctuations in the money markets can affect you and your own money strategies

Contents:

Preface

Part 1: An Overview

Chapter 1 – Introduction to Bond and Money Markets

Part 2: Bond Markets

Chapter 2 – Government Bonds

Chapter 3 – Government Bonds around the World

Chapter 4 – Corporate Bonds

Chapter 5 – Credit Ratings for Bonds

Chapter 6 – High-yield and Hybrid Bonds

Chapter 7 – International Bonds

Part 3: Money Markets

Chapter 8 – Interbank and Euro Currency

Chapter 9 – Treasury Bills and Commercial Paper

Chapter 10 – Repurchase Agreements and Certificates of Deposit

Chapter 11 – Bills of Exchange and Banker’s Acceptances

Part 4: Valuing Bonds and Money Market Instruments

Chapter 12 – Financial Concepts and Mathematics

Chapter 13 – Bond Valuation

Chapter 14 – Money Market Securities Valuation

Part 5: Some Variations on a Bond Theme

Chapter 15 – Securitisation

Chapter 16 – Central Banking Influences on Interest Rates