| An Introduction (and Survival Guide) to
Wholesale Global Banking, Trading Desks and The Capital Markets |
| The Book's
Table of Contents as published
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|
Table
of Contents |
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|
5 |
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| Preface |
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| 13 |
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| Section
1 |
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| 15 |
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| Bank
Structure and Overview |
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| 15 |
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| Introduction |
| 16 |
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| The Major Product
Groups | 22 |
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| The People and Their
Jobs | 23 |
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| Glossary |
| 28 |
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| Section
2 |
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| 31 |
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| Some
Principles of Trading |
|
| 31 |
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| TradingConcepts |
| 36 |
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| Determining Relative
Value | 47 |
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| Units of Relative Values | 48 |
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| Macaulay Duration | 48 |
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| Modified Duration | 49 |
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| Yield Value of 1/32 | 49 |
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| Convexity | 49 |
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| Delta | 50 |
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| Uses of Yield Curves |
| 50 |
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| DefiningRelative
Cheapness | 50 |
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| To Define Curve Plays | 52 |
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| Riding the Curve | 54 |
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| Parallel Market Spread Arbitrage | 55 |
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| Zero and Other Curves | 56 |
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| Equity Market |
| 57 |
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| Index Tracking | 59 |
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| Beta | 61 |
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| The Book |
| 62 |
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| Positional Risk |
| 63 |
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| Supply or cancellation of new securities | 63 |
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| Interest Rates Risk | 64 |
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| Financing Risk | 64 |
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| Liquidity Risk | 65 |
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| Basis Point Risk | 66 |
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| Contagion Risk | 66 |
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| Volatility and Gearing Risk | 66 |
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| Credit Rating Risk | 67 |
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| Opportunity Risk | 68 |
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| Computer and Analysis Modelling Failure | 68 |
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| Operational Risk | 70 |
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| Reputational Risk | 70 |
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| Primary and
Secondary Markets | 71 |
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| Fixed Income Primary Markets | 71 |
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| Auctions | 72 |
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| Syndication | 73 |
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| Equities | 73 |
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| Underwriting | 74 |
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| Salescredits |
| 74 |
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| One Side etc. | 74 |
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| Technical Analysis |
| 77 |
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| A Morning on the
Trading Floor | 82 |
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| Glossary |
| 94 |
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| Section
3 |
|
| 105 |
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| The
Product Divisions |
|
| 105 |
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| The
Treasury |
|
| 106 |
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| Introduction |
| 106 |
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| Foreign Exchange or
Forex or FX | 107 |
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| Basic FX Terms | 107 |
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| Cross Rates | 108 |
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| Forward Pricing and Cross Currency Interest Rate
Arbitrage | 108 |
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| Non Deliverable Forwards | 110 |
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| Short Debt Market
and the Money Markets | 110 |
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| Standard Money
Market Products | 112 |
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| Non- negotiable
Instruments | 112 |
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| Depos | 112 |
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| FRAs | 113 |
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| Repos | 113 |
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| Fed Funds | 113 |
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| Negotiable Instruments |
| 114 |
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| CDs | 114 |
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| Acceptances,Bills etc | 115 |
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| Glossary |
| 116 |
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| Fixed Income Markets |
| 120 |
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| Introduction | 120 |
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| Bringing Bonds to
Market | 122 |
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| Primary Market and Secondary Markets | 122 |
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| Auctions | 122 |
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| Syndication a.k.a. Selling Group | 125 |
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| Product List |
| 126 |
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| Bills, Bonds, Notes | 127 |
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| Perpetuals | 128 |
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| FRNs | 128 |
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| Indexed Lin | 129 |
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| Zeros Coupons and STRIPS | 130 |
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| ABSs,PassThro's etc. | 132 |
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| Corporate Issuers | 135 |
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| MTNs | 135 |
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| Equity Hybrid Bonds | 135 |
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| Preference Shares | 136 |
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| Euro Markets |
| 136 |
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| Euro Issues – Market Practice | 138 |
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| Syndicated Loans | 138 |
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| Repos and Security
Lending | 139 |
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| Repo Product Types | 140 |
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| General Collateral | 140 |
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| Special Collateral | 140 |
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| Tri-party Repos | 140 |
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| HIC Repos | 141 |
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| Term Repos and To Maturity Repos | 141 |
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| Repo Dealing
Structures | 141 |
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| Matched Book | 141 |
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| Prime Brokerage | 141 |
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| Security Lending | 142 |
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| Major FI Markets – Issue Types | Shorthand and
Descriptions | 143 |
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| Glossary |
| 147 |
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| Derivatives |
|
| 153 |
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| Introduction |
| 153 |
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| Futures and Forwards |
| 155 |
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| Options |
| 157 |
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| Swaps |
| 160 |
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| Interest Rate Swaps – IRSs | 161 |
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| FX Swaps | 163 |
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| Commodity Swaps | 164 |
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| Swaptions | 164 |
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| Credit Derivatives |
| 165 |
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| Asset Swaps | 165 |
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| Total Return Swaps | 165 |
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| Credit Default Swaps CDSs | 165 |
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| Contract for
Differences | 166 |
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| Glossary | | 167 |
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| Commercial
Banking |
|
| 172 |
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| Introduction |
| 172 |
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| Setting Up a Facility | 173 |
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| The Loan Agreement | 175 |
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| Products Providing
Working Capital: | 180 |
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| Overdraft/Credit Line | 180 |
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| Revolving Credit | 180 |
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| Swingline Credit/Bridging Finance | 180 |
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| Standby Letter of Credit | 180 |
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| Debenture | 180 |
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| Long-Term Borrowings | 181 |
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| Project Finance | 181 |
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| Products Providing
Trade Finance | 181 |
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| Bankers Acceptance | 181 |
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| Letters of Credit | 182 |
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| Revocable LC | 182 |
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| Irrevocable LC | 182 |
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| Unconfirmed LC | 182 |
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| Confirmed LC | 182 |
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| Revolving LC | 182 |
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| Transferable LC | 182 |
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| Client Lending Money Market Funds to Bank | 183 |
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| Asset Sales and CDOs | 183 |
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| Factoring | 183 |
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| Leasing | 183 |
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| Glossary |
| 184 |
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| Section
4 |
|
| 187 |
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| The
Service Divisions |
|
| 187 |
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| Introduction |
| 188 |
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| Legal and Compliance |
| 188 |
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| Finance Department |
| 188 |
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| Financial Accounting Reports | 189 |
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| Management Accounting | 190 |
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| Risk Department |
| 193 |
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| Basle 1 | 196 |
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| Basle 2 | 197 |
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| Glossary |
| 200 |
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| Section
5 |
|
| 203 |
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| Planning
and Change |
|
| 203 |
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| Introduction |
| 204 |
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| Projects |
| 205 |
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| Project Management | 205 |
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| RAD v Waterfall | 205 |
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| Project Start-up or Initiation Phase | 210 |
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| Major Project
Deliveries | 212 |
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| The Project Plan | 212 |
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| The Mandate | 212 |
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| The Feasibility Study | 212 |
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| The Business Case | 213 |
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| The Overview | 213 |
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| The Roadmap | 215 |
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| The Middle Phase | 220 |
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| The Closing Phase | 221 |
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| Modelling |
| 225 |
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| UML 2.0 | 226 |
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| Use Cases | 226 |
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| Class Diagrams | 228 |
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| Object Diagrams and Package (Scope) Diagrams | 230 |
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| ‘OO’ Principles | 231 |
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| Databases |
| 236 |
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| Relational Databases | 236 |
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| Data warehouses | 242 |
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| Slicing and Dicing a Hyper-Cube | 246 |
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| Data Mining | 249 |
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| Trading Systems |
| 250 |
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| Glossary |
| 253 |
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| Section
6 |
|
| 258 |
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| Postscript |
|
| 258 |
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| Postscript |
| 259 |
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| Further
Reading – Bibliography |
|
| 262 |
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| Index |
|
| 264 |
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