The following popular Reading is now available free of charge. 

Note on Discrete and Continuous Compounding   
This note explains the mathematics underlying discrete and continuous time interest rates, future value compounding, and present value calculations.  The note explains how to use various financial calculators and Excel to make these calculations.  Exercises and answers are included in the note.

Price:  FREE
12 pages
Revised October 2000

The following popular Readings are now available for purchase.  Additional Readings will be added to this list periodically.

Corporate Exposure Management and Derivatives Ideas  
This reading explores the nature of corporate exposures and exposure management.  The note focuses on identifying opportunities to use derivatives to modifying operating exposures that impact cash flows, managing the value of existing and expected future assets and liabilities, facilitating capital markets transactions, monetizing contractual opportunities, and leveraging special tax, accounting, or regulatory situations.

Price: $9.95
12 pages
Revised October 2000

Financial Houses of Horror:  Risk Mismanagement in Investment Banking
Over the last decade or so, numerous investment banks have mismanaged the critical and ever-present tradeoff of risk and reward.  Some did so to catastrophic failure; others only suffered loss and embarrassment.  This note reviews critical risk mismanagement (often multiple issues within a single institution) at a variety of investment banks, including Drexel Burnham Lambert, Barings, Peregrine, Yamaichi, Union Bank of Switzerland, NatWest, Deutsche Morgan Grenfell, and J.P. Morgan.

Price:  $9.95
13 pages
Revised February 1999

Introduction to Capital Markets   
This comprehensive reading introduces and reviews capital markets by exploring the various players, products, places, and processes involved.  The note identifies major categories of issuers and investors and their motivations in markets.  Products covered include:  equity, equity-linked, commercial paper, bank loans, and bonds.  In addition, the typical underwriting process for capital markets issues is explained.

Price:  $9.95                                                              
29 pages
Revised May 1999

Introduction to Foreign Exchange 
This note provides an overview of the world’s foreign exchange markets.  Market mechanics such as spot quotation conventions, reciprocal quotations, bid – offer quotations, and triangular arbitrage are explained.  Forward foreign exchange rate calculations and market conventions are illustrated.  Covered interest rate parity is reviewed.  Foreign exchange options terminology and mechanics are introduced.

Price:  $9.95
12 pages
Revised June 1999

Introduction to Interest Rate Derivatives
Available soon.

Investment Banking in the New Millennium 
By the end of the 1990s, the world’s investment bankers had been working for over two decades to cope in a rapidly-changing industry.  Dramatic changes through most of the world’s financial markets had been accompanied by ever-intensifying competition among the securities houses serving as agents for government and corporate issuers as well as for institutional and individual investors.  Continued participation in traditional lines of business, as well as entry into newer markets – whether product, service, or geographic­ – promised high returns, but demanded unprecedented amounts of capital and involved exposure to growing levels of risk.  The industry has been characterized by vigorous internal expansion efforts and aggressive purchases/mergers of existing firms.  This note reviews the types of investment banking businesses and the inherent risks and rewards in doing this business.  In addition, the note provides a comparative study of the history and current strategy of five top international investment banking firms.

Price:  $14.95
24 pages
Revised May 2000

The Investment-Grade Corporate Bond Market  
This reading reviews the various alternatives that investment-grade issuers have for raising money in the corporate bond market.  Markets discussed include:  U.S. public bonds, medium-term note programs, traditional private placements, 144A “quasi public” placements, Eurobonds, and international bonds.  The reading includes numerous tables and exhibits summarizing volume statistics and other market characteristics.  In addition, common derivatives applications associated with issuing bonds are reviewed.

Price:  $9.95
21 pages
Revised May 1999

Note on Bond Duration
Available soon.

Note on Collateralized Loan Obligations and the Mathematics of Credit Risk
Available soon.  

Note on Cross-Currency Swaps
This note summarizes the terminology and mechanics of cross-currency swaps.  A detailed example is given for a company that issues a fixed-rate bond in one currency and wishes to swap the debt into a fixed rate in another currency.  The note describes how to link and combine single currency interest rate swaps in both currencies with a cross-currency floating Libor basis swap.  A short-cut method is given for converting basis points in one currency to another currency in order to adjust swap rates to match bond costs.

Price:  $9.95
4 pages
Revised April 2000 

Note on Financial Math 
Available soon.

Note on Interpreting the Black – Scholes Formula
Available soon.

Note on the IPO Process
Initial public offerings (IPOs) of equity in the United States comprise the registration, listing, and sale of new (and possibly some previously existing) shares of a company.  The offering process for an IPO typically consumes about 3 to 4 months, including time devoted to preparing required offering documents, concluding needed agreements, and conducting “due diligence,” marketing and bookbuilding, the sale of the issue to investors, closing of the transaction, and post-close activities.  This note reviews in detail the major steps in this process, de-mystifying terminology and market practices.

Price:  $9.95
10 pages
Revised July 2000

Note on Put – Call Parity
Available soon.

Note on Stochastic Processes
Available soon.

Note on Value at Risk
Available soon.

If you do not want to use our secure online order form, please call (805) 962-5150 ext.100 to place your order over the phone.

All readings can be delivered to you via electronic mail in PDF format within 2 business days of ordering.  You must have Adobe Acrobat Reader 4.0 to view the documents.  To download the free software click on the following.

Terms and Conditions of Readings Sales

Global Markets Consultants, Ltd. reserves all rights to the Readings material.  Readings may not be reproduced or distributed except as permitted by law for personal use.

All Readings have been created for instructional purposes only and should not be used as a basis for executing financial transactions.

Volume discounts for instructional use are available.

If you are not completely satisfied with any Reading purchased from Global Markets Consultants, Ltd., please email us for a complete refund. 

.