The Capital Markets

Preface xi Acknowledgments xiii About the Author & Executive Editor xv About the Contributors xvii PART ONE Introduction and Tools CHAPTER 1 The Early 21st-Century Evolution of Global Capital Markets 3 Jack Malvey CHAPTER 2 The Role of Global Capital Markets 20 Christian A. Edelmann and Shasheen Jayaweera CHAPTER 3 How the Global Financial Crisis Transformed the Industry 52 Christian A. Edelmann and Pete Clarke CHAPTER 4 Cash Bonds and Futures 64 Amir Sadr CHAPTER 5 Risk in Capital Markets 89 Peter Reynolds and Mike Hepinstall CHAPTER 6 Enablers for Robust Risk Management in Capital Markets 110 Swati Sawjiany CHAPTER 7 Making Markets Work 120 Eric Czervionke PART TWO Capital Markets Products CHAPTER 8 Money Markets 157 Randy Harrison and Paul Mandel CHAPTER 9 Repurchase Agreements 184 Karl Schultz and Jeffrey Bockian CHAPTER 10 U.S. Treasury and Government Agency Securities 205 Lee Griffin and David Isaac CHAPTER 11 Government-Sponsored Enterprises and Federal Agencies 210 David Isaac and Francis C. Reed, Jr. CHAPTER 12 Inflation-Linked Bonds 232 Henry Willmore CHAPTER 13 Mortgage-Backed Securities 239 Patrick Byrne CHAPTER 14 Corporate Bonds 254 Marvin Loh CHAPTER 15 Preferred Stock 286 Sarah Swammy CHAPTER 16 Distressed Debt Securities 296 Michael McMaster CHAPTER 17 Securitization 304 Daniel I. Castro, Jr. CHAPTER 18 Asset-Backed Securities 312 Daniel I. Castro, Jr. CHAPTER 19 Non-Agency Residential Mortgage-Backed Securities (RMBSs) 329 Daniel I. Castro, Jr. CHAPTER 20 Commercial Mortgage-Backed Securities (CMBSs) 348 Daniel I. Castro, Jr. CHAPTER 21 Collateralized Debt Obligations (CDOs) 361 Daniel I. Castro, Jr. CHAPTER 22 Structured Investment Vehicles (SIVs) 381 Daniel I. Castro, Jr. CHAPTER 23 Collateralized Loan Obligations (CLOs) 389 Mendel Starkman CHAPTER 24 Municipal Bonds 419 Fred Yosca CHAPTER 25 Equities 435 David Weisberger CHAPTER 26 Cash Equities in the Secondary Market 458 Eric Blackman and Robert Grohskopf CHAPTER 27 Exchange-Traded Funds

GARY M. STRUMEYER is the former president of BNY Mellon Capital Markets, LLC. He is the author of Investing in Fixed Income Securities and Keys to Investing in Municipal Bonds. Gary is a former adjunct professor at NYU's School of Professional Studies. SARAH SWAMMY is a managing director, business manager, and head of supervision for BNY Mellon Capital Markets. She is a member of BNY Mellon Capital Markets Board of Managers and serves as a member of New York Institute of Technology School of Management's executive council. Sarah is an adjunct instructor at NYU's School of Professional Studies.