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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Serie: Wiley Finance Editions
- Sprache: Englisch
The Capital Markets: evolution of the financial ecosystem is the new standard providing practical text book style coverage of this dynamic market and its products. Written by the former President of BNY Mellon Capital Markets, LLC for both financial professionals and novices, The Capital Markets provides a comprehensive macro view of the marketplace and how its products operate. The subject matter offers an authoritative discussion of the fundamentals of both, the fixed income and equity markets, underwriting, securitizations, derivatives, currency among other products through the lens of leading industry practitioners. Key Learning Concepts * Understand the impact of both global and domestic regulatory changes * Learn about the products that holistically make up the capital markets * Explore the components of the infrastructure that underpins these markets * Examine the tools used for trading and managing risk * Review new product innovations
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Seitenzahl: 1244
Veröffentlichungsjahr: 2017
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Table of Contents
Cover
Copyright
Dedication
Preface
Acknowledgments
About the Author & Executive Editor
Gary Strumeyer
Sarah Swammy
About the Contributors
Part One: Introduction and Tools
Chapter 1: The Early 21st‐Century Evolution of Global Capital Markets
Introduction
Capital Market Mission and Key Capital Market Questions
Post–Great Recession, Global Capital Markets Chart a More Conservative Course
Accurate Financial Era Definition Helps Chart Business and Portfolio Strategy
The Great Transition Age Unfolds
No Transitions Are Frictionless
The New Conservative Financial Consensus Speeds the Transition to the Next‐Generation Global Financial System
Sturdier Global Financial System Promotes World Economic Growth
Chapter 2: The Role of Global Capital Markets
Introduction
The Basic Products Offered in Capital Markets
Capital Markets as a Substitute for Bank Lending
Key Participants in Capital Markets
Types of Markets
Capital Markets Development
Chapter 3: How the Global Financial Crisis Transformed the Industry
The Situation Prior to the Global Financial Crisis
Overview of Regulation Introduced 2008–2015
Impacts on Business Models
How It Impacts the Functioning of Capital Markets
Chapter 4: Cash Bonds and Futures
Tools of the Trade
Discount Factors
Price‐Yield Formula
U.S. Treasury Debt Obligations
PV01, PVBP
Convexity
Yield Curve
Sample Trades
Forward Prices: Cash and Carry
Forward Rates
Extracting the Discount Factor Curve
Carry, Roll‐Down
U.S. Treasury Futures
Chapter 5: Risk in Capital Markets
Introduction
Overview of Risk Management in Capital Markets
Metrics Used to Measure and Monitor Risk
Brief Overview of Regulatory Landscape
Metrics for Major Risk Types
The Intersection between Risk and Strategy
Future Outlook
Chapter 6: Enablers for Robust Risk Management in Capital Markets
Introduction
Overview of Capital Markets Risk Management Processes
Technology Capabilities and IT Architecture to Support Capital Markets Risk
Data Capabilities to Support Capital Markets Risk
Looking Forward
Chapter 7: Making Markets Work
Introduction
Securities Market Infrastructure
Derivatives Market Infrastructure
Concluding Remarks
Part Two: Capital Markets Products
Chapter 8: Money Markets
Federal Funds Markets
Repurchase Agreements
U.S. Treasury Bills (T‐Bills)
Government‐Sponsored Enterprises/Federal Agency Securities
Commercial Paper
Certificates of Deposit
Eurodollar Deposits
Municipal Notes
Variable Rate Demand Notes
Money Market Funds
How the Financial Crisis of 2007 and 2008 Changed the Money Markets
Conclusion
Chapter 9: Repurchase Agreements
Introduction
Mechanics of a Repo Trade
Margining Trades
Market Participants
Risks Associated with Repo Transactions
Delivery Conventions
General Collateral and Specials
Determinants of Repo Rates
Availability of Collateral
The Federal Reserve and Repo
Repo and Bond Carry
Conclusion
Chapter 10: U.S. Treasury and Government Agency Securities
Features of U.S. Treasury Securities
Types of Treasury Securities
Treasury Auctions
Conclusion
Chapter 11: Government‐Sponsored Enterprises and Federal Agencies
Introduction
Agency Bonds
Overview of Government‐Sponsored Enterprises; Housing GSEs
History of Fannie Mae and Freddie Mac
Federal Home Loan Banks (FHLB)
Overview of Government‐Sponsored Enterprises; Non‐Housing GSEs
Overview of Federal Agencies
Types of Agency Debt
Cost‐Benefit Analysis of Callable Notes
The 2008 Financial Crisis
Conclusion
Chapter 12: Inflation‐Linked Bonds
Indexation
Real Yields and Inflation Breakevens
Seasonality of Consumer Prices
Diversification Properties
Tax Treatment
Risks
Issuance Schedule
I Bonds
Other Countries
Reasons for Issuing Inflation‐Linked Bonds
Bond Mathematics
Summary
Chapter 13: Mortgage‐Backed Securities
Mortgages: The Building Blocks of MBSs
What Are Mortgage‐Backed Securities?
The Issuing Agencies
Why Are MBSs Attractive?
Terminology
Types of Underlying Loans
Agency Pass‐through Trading
Prepayment Risk and Analysis
OAS Analysis and MBS
The Future of Fannie Mae and Freddie Mac Securitization
Chapter 14: Corporate Bonds
What Is a Corporate Bond?
Types of Bond Structures
How Are Corporate Bonds Priced?
Stakeholders in the Corporate Bond Market
Price Transparency
High‐Yield (“Junk”) Bonds
Emerging Bond Markets
What Is an Emerging Market?
Chapter 15: Preferred Stock
Perpetual Preferred Stock
Dividend‐Received Deduction (DRD)
Fixed to Float
Noncumulative Preferred Stock
Cumulative Preferred Stock
Convertible Preferred Stock
Features of Preferred Stock
Anticipating the Risks
Preferred Stock Issuance and Trading
Conclusion
Chapter 16: Distressed Debt Securities
Overview of Distressed Debt Securities
What Constitutes “Distress”
Trading Market for Distressed Debt
Trading Strategy on the Distressed Debt
Puerto Rico: A Distressed Situation
The Sovereign Debt Crisis
Greece
Final Thoughts on Distressed Debt Securities
Chapter 17: Securitization
Securitizations in General
Securitization Basics: Structures, Collateral Types, and Risks
TRACE Reporting
Chapter 18: Asset‐Backed Securities
Automobile Securitization
Credit Card Securitization
Chapter 19: Non‐Agency Residential Mortgage‐Backed Securities (RMBSs)
RMBS Overview
The Creation of RMBSs
Mortgage Quality Types
Participants in the Creation of an RMBS
Credit Ratings
Risk Factors Affecting RMBSs
Operation of the RMBS Market
RMBS Contracts
Representations and Warranties
Opacity and Complexity of Securities
Chapter 20: Commercial Mortgage‐Backed Securities (CMBSs)
Overview of Commercial Mortgage‐Backed Securities
CMBS Market Participants
Underlying Collateral
CMBS 2.0
CMBS Structures
Industry Practices for the Marketing and Sales of CMBSs
Chapter 21: Collateralized Debt Obligations (CDOs)
Introduction to CDOs
Priority of Payments
CDO Market Participants
Collateral Pricing
CDO Trading
Motivation for Issuing CDOs
Chapter 22: Structured Investment Vehicles (SIVs)
Introduction to SIVs
SIV Structure
Structural Protections
Chapter 23: Collateralized Loan Obligations (CLOs)
What Is a Collateralized Loan Obligation (CLO)?
Structures and Strudels: An Introduction to Structured Finance
\textit{Bon Appetit:} Reengineering for Risk Appetite
Chasing Waterfalls
The Capital Structure: The Intersection of Structured and Corporate Finance
Being Friendly: Debt versus Equity
CLO Coverage Tests: Take your PIK
The Life and Times of a CLO
The Loan Market
CLO Report Cards: Performance Metrics
The CLO Manager
Qualitative Analysis of a CLO
Quantitative Analysis of a CLO
A Whole New World: CLOs in the Post‐Crisis Regulatory Environment
Conclusion
Chapter 24: Municipal Bonds
Introduction
Municipal Bond Credit Analysis
The Erosion of the General Obligation Pledge
A Word about Puerto Rico
Types of Municipal Bond Structures
The Primary Market
The Secondary Market
Investing in Municipal Bonds
Municipal Bond Risk Factors
Case Study
Chapter 25: Equities
What Is an Equity?
Types of Equities
Why Do Companies Issue Equities?
Equity Market Participants
Equity Markets
Mechanics of Order‐Driven Markets
History of Equity Trading
Modern Market Structure—Order Types
Modern Market Structure—Complexity
Modern Market Structure—Market Data
High‐Frequency Trading
Chapter 26: Cash Equities in the Secondary Market
Introduction
The Institutional Client
The Portfolio Manager
The Research Analyst
The Buy‐Side Trader
The Broker‐Dealer (Sell‐Side)
Equity Research
The Research Analyst
Research Sales
Execution
Additional Products and Services
Conclusion
Chapter 27: Exchange‐Traded Funds (ETFs)
Constructing an ETF: Market Participants and Their Functions
ETF Regulations
Determining Net Asset Value of ETFs
Portfolio Disclosure
Understanding Different ETF Strategies
Portfolio Construction Methodology
Conclusion
Chapter 28: Equity Capital Markets
Securities Offering Reform of 2005
The Rise of Electronic Trading
The Great Recession
Growth of the ATM Market
ATM Financing versus Follow‐on Offering
Due Diligence Regimen
Transaction Participants and Typical ATM Documentation
The Selling Agent
Corporate Board and Management Oversight
Marketplace Acceptance
Sizing an ATM Program
Regulation M
Procedures and Mechanics of the ATM program
ATM Selling Strategies
Variations of the ATM Model
Summary
Chapter 29: Interest Rate Swaps
Plain‐Vanilla Fixed‐for‐Floating Swaps
Classical Single‐Curve World
The New World: Decoupled Discount and Forward Curves
OIS Market
Libor Market Instruments
Dual Curve Construction
Swap Trading—Rates or Spreads
Swap Spreads
Risk, PV01, Gamma Ladder
Credit Considerations: XVA
Chapter 30: Interest Rate Options
1‐Step Binomial Model
From 1 Time‐step to 2 to …
Normal Distribution
Modeling Asset Changes
Greeks
Call Is All You Need
Interest Rate Options
Market Players
Caplets/Floorlets: Options on Forward Rates
European‐Style Swaptions
Skews, Smiles
CMS Products
Bond Options
Chapter 31: Commodities
Introduction
Commodity Fundamentals
Types of Commodities
Commodities Exchanges
Commodity Contracts
Key Characteristics
Investment Vehicles
Future Trends
Boom to Bust and Back Again?
New Commodities
Chapter 32: Currency
The Emergence of a Foreign Exchange Market
The Mechanism
Who Uses the Foreign Exchange Market?
What Are the Main Currencies?
Exchange Rate Regimes
The Size of the Foreign Exchange Market
The Future of the Foreign Exchange Market
Chapter 33: Conclusion
Section 1: Safer Banks, but Is the Financial System Safer?
Section 2: Are There Any Unintended Implications of Recent Regulation?
Section 3: A Need for Reinvention
Index
End User License Agreement
List of Tables
Chapter 4: Cash Bonds and Futures
Table 4.1: U.S. Treasury
Currents
on 8‐Oct‐2015 Trade Date
Table 4.2: Inputs for Bootstrap Method
Table 4.3: Bootstrapped Discount Factor Curve
Table 4.4: 5y Delivery Basket; Trade Date: 8‐Oct‐2015, Fut Price: 120‐106; Last Del. Date: 6‐Jan‐2016; Repo Rate: 0.25%
Chapter 5: Risk in Capital Markets
Table 5.1: Metrics and Their Corresponding Equations
Chapter 7: Making Markets Work
Table 7.1: Example Contract Terms for a Soybean Futures Contract
Table 7.2: Five Most Actively Traded ETD Contracts by Underlying
Table 7.3: Open Interest and Traded Volume Calculation
Table 7.4: Major OTCD CCPs by Jurisdiction and OTCD Product Cleared
Table 7.5: Major OTC Derivatives Trade Repositories by Parent Company
Chapter 9: Repurchase Agreements
Table 9.1: Different Outcomes of the Subtractive and Additive Approaches
Chapter 11: Government‐Sponsored Enterprises and Federal Agencies
Table 11.1: Government‐Sponsored Enterprises and Federal Agencies
Chapter 12: Inflation‐Linked Bonds
Table 12.1: Average Month Change in the NSA CPI (2006–2015)
Chapter 13: Mortgage‐Backed Securities
Table 13.1: Amortization Principal and Interest
Table 13.2: TBA Markets
Chapter 14: Corporate Bonds
Table 14.1: Largest Non‐financial Corporate Borrowers (in $millions)
Table 14.2: Rating Categories
Table 14.3: Rapid Growth of USD EM Debt Markets (in billions)
Chapter 15: Preferred Stock
Table 15.1: Taxable Equivalent Yields with Dividend‐Received Deduction
Chapter 17: Securitization
Table 17.1: Representative Auto ABS Structure
Table 17.2: Basic Characteristics of ABS
Table 17.3: Structural Characteristics of ABS
Chapter 18: Asset‐Backed Securities
Table 18.1: Issuance of Credit Card ABS (in $ millions)
Table 18.2: Capital One Credit Card Portfolio
Table 18.3: Credit Card ABS Structural Innovations: Credit Card Owner Trust Structural Features
Chapter 19: Non‐Agency Residential Mortgage‐Backed Securities (RMBSs)
Table 19.1: Comparison of Ratings Grades by NRSRO
Table 19.2: Extension Is Favorable When Coupon > Discount Rate
Table 19.3: Extension Can Still Be Favorable with Principal Losses When Coupon > Discount Rate
Table 19.4: Extension Is Not Favorable When Coupon < Discount Rate
Chapter 20: Commercial Mortgage‐Backed Securities (CMBSs)
Table 20.1: Representative CMBS Conduit Structure
Chapter 21: Collateralized Debt Obligations (CDOs)
Table 21.1: Representative CDO Structure
Table 21.2: Comparison of 2007 Ratings Grades by NRSRO
Table 21.3: Par Credit Allowed by Rating
Chapter 23: Collateralized Loan Obligations (CLOs)
Table 23.1: Sample CLO Capital Structure
Table 23.2: WARF: Moody's Default Probability Ratings versus Moody's Rating Factors
Chapter 25: Equities
Table 25.1: Advantages/Disadvantages of Capital‐Raising Alternatives
Chapter 26: Cash Equities in the Secondary Market
Table 26.1: Institutional Client and Full‐Service Broker‐Dealer Roles
Chapter 28: Equity Capital Markets
Table 28.1: At‐the‐Market Filings and Value: 2015
Chapter 29: Interest Rate Swaps
Table 29.1: A Typical USD SEF/Broker Screen
Table 29.2: Partial Libor PV01's for a $100mm 5.5y Swap
Chapter 30: Interest Rate Options
Table 30.1: Black Log‐Normal Formulae
Table 30.2: Black Normal Formulae
Table 30.3: A Swaption Straddle Price Grid (Cents)
Table 30.4: Implied Black Normal Vols (bp)
Chapter 31: Commodities
Table 31.1: List of Main Traded Agricultural Commodities, along with Exchanges and Contract Sizes
Table 31.2: List of Main Traded Energy Commodities, along with Exchanges and Contract Sizes
Table 31.3: List of Primary Traded Metals, along with Exchanges and Units
Table 31.4: Key Commodity Exchanges Around the World
Table 31.5: Standardized Terms for an Example Crude Oil Futures Contract at the CME
List of Illustrations
Chapter 1: The Early 21st‐Century Evolution of Global Capital Markets
Figure 1.1: Capital markets: Growth industry; global financial asset choice set: May 31, 2016, and projected to 2050
Figure 1.2: Record low G4 10‐year interest rates (%): 1871 to June 27, 2016
Figure 1.3: Lessons Re‐learned from Great Recession (2007–2009)
Figure 1.4: Nominal global financial asset returns by decade: 1926 to May 31, 2016
Figure 1.5: Real global financial asset returns by decade: 1926 to May 31, 2016
Chapter 2: The Role of Global Capital Markets
Figure 2.1: Capital markets environment
Figure 2.2: Funding structure in selected economies (2014, total funding as a % of GDP, bubble size 2014 GDP)
Figure 2.3: World investment structure (2014, % of GDP)
Figure 2.4: Share of household financial assets held in investment companies
Figure 2.5: Basic trade flow example with and without a CCP
Figure 2.6: Simplified example of exchange‐based trade and the role of key intermediaries
Figure 2.7: Example of primary and secondary markets
Figure 2.8: U.S. equities trading and issuance volumes
Figure 2.9: U.S. fixed‐income trading and issuance volumes
Figure 2.10: Penetration of election trading by asset class (relevance of different trading models by asset class)
Figure 2.11: Global capital markets size, 1990–2014
Chapter 3: How the Global Financial Crisis Transformed the Industry
Figure 3.1: Possible investment banking portfolios, in absence of corrective action
Figure 3.2: Market share sacrifice is linked to strategic repositioning (2010–14 and going forward, %)
Chapter 4: Cash Bonds and Futures
Figure 4.1: Price‐yield graph for a 5% semi‐annual coupon bond for different maturities
Figure 4.2: Clean/Dirty price evolution for a 2y 5% semi‐annual coupon bond in unchanging yield scenarios
Figure 4.3: PV01, PVBP, Modified duration for a 5y 5% semi‐annual coupon bond
Figure 4.4: U.S. Treasury yield curve
Figure 4.5: 2y‐5y‐10y butterfly (bp)
Figure 4.6: Basis (/32nd's) of three sample bonds at last delivery date vs. parallel shift
Chapter 5: Risk in Capital Markets
Figure 5.1: Taxonomy of Risks
Figure 5.2: Illustrative Calculation of VaR
Chapter 6: Enablers for Robust Risk Management in Capital Markets
Figure 6.1: Illustrative process architecture for large capital markets risk management function
Figure 6.2: Illustrative processes for stress testing and CCAR exercise
Figure 6.3: Risk IT architecture
Chapter 7: Making Markets Work
Figure 7.1: Overview of major securities market infrastructure providers by activity
Figure 7.2: Illustrative securities post‐trade process
Figure 7.3: Case study: U.S. equity execution venues by type (as of August 2014)
Figure 7.4: Ten largest WFE stock exchanges by value of EOB shares traded (FY2015) and market capitalization (YE2015)
Figure 7.5: U.S. equity market share of traded volumes by trading center (1998 vs. 2013)
Figure 7.6: Historic and current role of the IDB in the bond markets
Figure 7.7: Illustration of impact of multilateral netting on settlement
Figure 7.8: Representative securities safekeeping chains that can exist for local and cross‐border settlement
Figure 7.9: Overview of major derivatives market infrastructure providers by activity
Figure 7.10: Major derivatives exchanges by number of contracts traded (2015)
Figure 7.11: Notional value traded at U.S. SEFs by product type
Figure 7.12: SEFs by notional value traded in 2015
Figure 7.13: European trade repository open OTC derivative positions by underlying
Chapter 8: Money Markets
Figure 8.1: ABCP volume
Figure 8.2: Market breakdown by ratings
Figure 8.3: Fed data of rates
Figure 8.4: Yield curve from Fed website
Figure 8.5: Historical rate spread
Figure 8.6: Outstanding commercial paper by issuer type
Figure 8.7: Two pie charts of breakdown of money market funds: three pies and six pies
Figure 8.8: Pie chart of products
Chapter 9: Repurchase Agreements
Figure 9.1: REPO Trade Example
Figure 9.2: Tri‐party flows
Chapter 11: Government‐Sponsored Enterprises and Federal Agencies
Figure 11.1: Map of Federal Home Loan Banks districts
Figure 11.2: Federal Farm Credit Debt Security issuance snapshot
Figure 11.3: Fannie & Freddie's shrinking retained portfolio
Chapter 12: Inflation‐Linked Bonds
Figure 12.1: Ten‐year inflation breakeven: Federal Reserve constant maturity series
Chapter 13: Mortgage‐Backed Securities
Figure 13.1: How a pass‐through security is created
Chapter 14: Corporate Bonds
Figure 14.1: Four years of record issuance propels corporate bond market (in trillions)
Figure 14.2: Percent of FRN to total issuance
Figure 14.3: High‐yield market grows in total issuance and importance
Figure 14.4: EM offers spread over comparable Treasuries (Barclays EM aggregated yield versus 10‐year Treasury)
Chapter 17: Securitization
Figure 17.1: Securitization with $500 million of issued securities
Figure 17.2: Overcollateralization
Chapter 18: Asset‐Backed Securities
Figure 18.1: U.S. ABS issuance
Figure 18.2: U.S. ABS outstanding
Figure 18.3: Auto ABS issuance (in millions)
Figure 18.4: Automobile ABS outstanding (in $ billions)
Figure 18.5: Auto loan ABS structure
Figure 18.6: Receivables Allocation
Figure 18.7: Basic credit card de‐linked structure
Chapter 19: Non‐Agency Residential Mortgage‐Backed Securities (RMBSs)
Figure 19.1: Non‐Agency RMBS Deal Structure
Figure 19.2: Typical hybrid ARM RMBS structure
Figure 19.3: Overcollateralization
Figure 19.4: Collateral
Figure 19.5: Effects on a Defaulted Loan
Chapter 20: Commercial Mortgage‐Backed Securities (CMBSs)
Figure 20.1: U.S. CMBS issuance
Figure 20.2: CMBS market participants
Chapter 22: Structured Investment Vehicles (SIVs)
Figure 22.1: SIV structure
Chapter 23: Collateralized Loan Obligations (CLOs)
Figure 23.1: Annual issuance of U.S. broadly syndicated loan CLOs, 1996–2015
Figure 23.2: Illustration of investment fund ownership and loss allocation
Figure 23.3: Interest waterfall excerpt from sample CLO payment date report
Figure 23.4: Illustration of hypothetical OC test curing calculation
Figure 23.5: CLO lifecycle illustration
Figure 23.6: Institutional loan outstanding amount, 2004–2015 ($ billions)
Figure 23.7: Percentage of annual primary first‐lien loan issuance by covenant‐lite loans, 2004–2015
Figure 23.8: Summary metrics from a sample CLO trustee report
Figure 23.9: Historical leveraged loan default and recovery rates, 1998–2015
Figure 23.10: Historical loan repayment rate, 2002–2015 (trailing 12‐month annualized rate)
Chapter 25: Equities
Figure 25.1: Total real return indexers
Figure 25.2: Example of data being transmitted across servers
Chapter 26: Cash Equities in the Secondary Market
Figure 26.1: Internal interactions at a large institutional investor
Figure 26.2: Interactions between full‐service broker‐dealer and large institutional client
Figure 26.3: Interactions between full‐service broker‐dealer and large institutional client
Chapter 28: Equity Capital Markets
Figure 28.1: At‐the‐market program filings: 2005–2015
Figure 28.2: 2015 At‐the‐market program filings ($MM)
Figure 28.3: Energy/MLP ATM filings ($MM)
Figure 28.4: Equity REIT filings: 2006–2015
Figure 28.5: Number of agents per program: 2005–2015
Figure 28.6: Forward‐ATM initial sale
Figure 28.7: Forward sale, physical settlement
Figure 28.8: Forward sale, cash settlement
Chapter 29: Interest Rate Swaps
Figure 29.1: Simplified cash‐flows of a 1y USD swap
Figure 29.2: Forward‐3m rates due to different curve interpolation methods
Chapter 30: Interest Rate Options
Figure 30.1: A 1‐step binomial model
Figure 30.2: Example of bond option pricing in a 2‐period setting
Figure 30.3: Comparison of normal versus log‐normal distribution functions with same mean, variance (
)
Figure 30.4: Gamma P&L versus time decay for a European call option
Figure 30.5: Common European‐style payoffs
Chapter 33: Conclusion
Figure 33.1: Shifting risks
Figure 33.2: Sources of competitive advantage
Figure 33.3: Sell‐side industry ROE outlook
Figure 33.4: Asset managers' economic profit evolution (2015 outlook, % of 2015 economic profit)
Figure 33.5: Four waves of anticipated Blockchain deployments
Figure 33.6: Industry structure scenarios
Guide
Cover
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The Capital Markets
Evolution of the Financial Ecosystem
GARY STRUMEYERWITHEXECUTIVE EDITOR,SARAH SWAMMY, Ph.D.
Copyright © 2017 by Gary Strumeyer. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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ISBN 978-1-119-22054-1 (Hardcover)
ISBN 978-1-119-22057-2 (ePDF)
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All royalties from this book will be donated to the Robin Hood Foundation.
Preface
Throughout my career in financial services as an author, educator, and sales executive, and president of a broker dealer, I continue to be amazed by the lack of understanding that the average person has about the evolution of our global capital markets ecosystem. This condition, if left unchecked, can easily become untenable and dangerous in our highly regulated, hyperconnected, tech‐saturated world. This book—the first of its kind post–Financial Crisis—will serve as an antidote to this condition. I have assembled the right team—practitioners, academics, and economists—to present clearly in these pages the fundamentals necessary for both professionals and nonprofessionals to learn about what makes up our capital markets ecosystem.
Gary Strumeyer
NOTE: Supplementary materials are available on www.wiley.com/go/strumeyer under “Downloads”.
Acknowledgments
First and foremost I wish to single out the driving force behind our literary adventure by expressing my deepest appreciation and unqualified gratitude to our consummate editor in chief, Dr. Sarah Swammy. Through her ability to find, recruit, and sign the best, most qualified authors, combined with her benevolent taskmaster persona and her laser‐like focus on submitting the final drafts well in advance of the original deadlines, she brought to life the vision of this book and ensured the high quality of its contents. She shares with me my belief in the power of thought leadership and motivated the host of talented writers and thinkers to bring this project home with efficiency, speed, and grace. Thank you, Sarah, for your many contributions to this work—chief among them keeping me ahead of schedule.
Specials thanks are due to Alberto Baptiste and Peter Borish. Al got the ball rolling by providing us with key resources early in our progress. He was integral in kicking off this endeavor, enabling us to attract industry leaders as contributors. I am also grateful to Peter for his guidance, insight, and connecting us with the Robin Hood Foundation.
I would also like to express my gratitude to all of my friends and colleagues who shared their experience, market insight, time, and contacts to make this book comprehensive and successful: Joe Gaziano, Larry Harris, Ron Hooey, Joe Keenan, Dena Mandara, Lenny Scotto, and Sam Schwartzman.
Thanks, again, to all of the contributors not only for their brilliant submissions but for helping us to identify the trends and subject matter relevant to the evolving financial ecosystem.
Gary Strumeyer
About the Author & Executive Editor
GARY STRUMEYER
Gary M. Strumeyer is the former president of BNY Mellon Capital Markets, LLC, a registered broker‐dealer subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”).
Gary spent over 30 years with BNY Mellon. He began his career in municipal bond sales before becoming sales manager of the newly formed Capital Markets subsidiary in 1996. In 2008, Gary was appointed president of BNY Mellon Capital Markets, LLC. Under his leadership, Capital Markets has evolved into a full‐service, multifaceted, institutional broker‐dealer.
Gary served on BNY Mellon Operating Committee and Executive Steering Committee of BNY Mellon's Women's Initiative Network where he was a mentor and sponsor. Formerly, Gary served on the board of directors of the Cambodian Children's Fund and was a member of the National Association of Securities Dealers (NASD) Corporate Debt Market Panel.
He is a former adjunct professor of economics and finance at New York University's School of Professional Studies, and author of Keys to Investing in Municipal Bonds, and Investing in Fixed Income Securities: Understanding the Bond Market.
Mr. Strumeyer holds a BS in Management and Economics, and an MBA in Finance from New York University.
SARAH SWAMMY
Sarah Swammy is a managing director, business manager, and head of supervision for BNY Mellon Capital Markets, LLC, a registered broker‐dealer subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”). Sarah's prior roles include CAO of Global Markets and principal overseeing the sales and trading businesses of BNY Mellon Capital Markets, LLC. Sarah joined Capital Markets from Deutsche Bank Securities, Inc., where she was an advisory compliance officer. She has also held compliance positions at both CSFB and Barclays Capital, Inc.
Sarah 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. She is a former member of the Touro College of Education's Graduate Advisory Board and a former member of the Executive Steering Committee for BNY Mellon's Women's Initiative Network.
Sarah holds a BS in Business Administration and an MS in Human Resources Management and Labor Relations from New York Institute of Technology, an MA in Business Education from New York University, and a Ph.D. in Information Studies from C.W. Post. She is also an adjunct instructor teaching C‐Suite Leadership in the Integrated Marketing Graduate program at New York University School of Professional Services.
About the Contributors
Eric Blackman
Partner, Gartland and Mellina Group, Regulatory & Compliance Practice
20 years of financial services experience in management consulting, corporate strategy, equity trading, regulatory compliance, risk management and control, cost take outs, acquisition due diligence, business process re‐engineering, program and project management and enterprise data management.
Prior to Gartland and Mellina, Eric spent eight years as an internal consultant for BYN Mellon, Bear Stearns Asset Management and Morgan Stanley driving strategic efforts which were intended to grow revenues, increase efficiencies and reduce costs. Prior to Morgan Stanley, Eric spent three years at KPMG Consulting focused on advisory and implementation services for front and back office projects. Prior to KPMG, Eric worked for three years as an equity trader and advisor to the specialists and market makers on the Pacific Stock Exchange floors. Eric began his career at Donaldson, Lufkin and Jenrette in their retail brokerage division.
Eric is a graduate of Muhlenberg College with a B.A. in Political Science. He has previously held the Series 7, 63 & 55 licenses and is a member of the Association for Strategic Planning (ASP), Association of Internal Management Consultants (AIMC), Financial Services Business Transformation Roundtable (FSBT) and The Data Management Association of NY (DAMA‐NY). Eric is a frequent speaker at Capital Markets conferences and Dodd Frank/Regulatory impact forums.
Jeffrey Bockian
Managing Director, BNY Mellon
Jeffrey Bockian is managing director of BNY Mellon Corporate Treasury's Funding and Short‐Term Investments Group. As part of his responsibilities, he oversees liquidity and collateral management activities, including trading of repurchase agreements. From 2012 to 2016, Bockian was global head of Securities Finance Portfolio Management at BNY Mellon. Prior to that, he was executive vice president and head of Finance Trading in the Capital Markets Division of Countrywide Financial Corporation, which he joined in 1998. Before joining Countrywide, Bockian was a vice president in the fixed‐income division at Morgan Stanley, New York, where he traded mortgage‐backed securities options and derivatives and other OTC and listed rates products. For the three years prior to joining the Trading Department, Bockian managed the Mortgage‐Backed Securities, Commodities, and Futures Operations Departments. He is a graduate of New York University.
Reginald M. Browne
Senior Managing Director, Cantor Fitzgerald
Reginald M. Browne is a senior managing director overseeing the exchange‐traded funds business at Cantor Fitzgerald, which facilitates about one trillion dollars in trades annually. Mr. Browne has been featured in major business publications and regularly speaks at industry conferences. He is widely known as “The Godfather of ETFs” because of his influence helping bring to market nearly 25 percent of the ETFs listed in the United States. Mr. Browne has more than three decades of Wall Street experience. Prior to joining Cantor Fitzgerald, Mr. Browne was managing director, co‐global head of the ETF group at Knight Capital Group and a senior vice president and co‐head of the ETF group at Newedge USA, a division of Société Générale and Crédit Agricole CIB. He also worked at Susquehanna International and O'Connor and Associates. Mr. Browne earned his bachelor's in business administration from La Salle University, where he currently serves as a trustee. In January 2015, Mr. Browne was appointed to the Equity Market Structure Advisory Committee.
Patrick Byrne
Managing Director and Senior Portfolio Manager, BNY Mellon
Patrick Byrne is a managing director and senior portfolio manager in the BNY Mellon Investment Portfolio Management Group. Prior to his current role Mr. Byrne was the Head of Institutional Fixed‐Income Asset Management and a chief investment officer (CIO) at BNY Asset Management. Mr. Byrne set strategy and oversaw all fixed‐income products. He was a member of the BNY Asset Management's Investment Policy Committee as well as the Fixed‐Income Strategy Committee. He began his career at Salomon Brothers working on the mortgage‐backed securities trading desk. Mr. Byrne also held mortgage trading positions at Chase Securities and Mabon Securities. He graduated with a BS in finance/economics from Fordham University, and obtained an MBA from the University of Notre Dame.
Daniel I. Castro, Jr.
President and Founder, Robust Advisors, Inc.
Daniel I. Castro, Jr. is the founder of Robust Advisors, Inc., an independent consulting company focusing on structured finance markets. Robust Advisors provides due diligence, valuation, expert witness, litigation support, and general consulting services to banks, broker‐dealers, hedge funds, insurance companies, issuers, originators, and trustees. Mr. Castro has been involved in the fixed‐income and structured finance markets for over 30 years. Mr. Castro has been on both the sell‐side and buy‐side of the market, and has a thorough understanding of both the big picture and the nuances. From 1991 to 2004, he ran Merrill Lynch's Structured Finance Research Group (1991–2004). He was the top‐ranked analyst for ABS strategy in the industry multiple times according to the Institutional Investor industry poll. Prior to founding Robust Advisors, Mr. Castro led structured finance teams at BTIG LLC, a FINRA registered broker‐dealer; GSC Group, an investment management firm that also served as a CDO fund manager; and Huxley Capital Management. He also served on the board of directors of the American Securitization Forum. Mr. Castro earned an MBA in finance from Washington University, preceded by a BA in government from the University of Notre Dame.
Daniel C. de Menocal, Jr.
Former Managing Director Equity Capital Markets, BNY Mellon Capital Markets, LLC (Retired)
Daniel C. de Menocal, Jr., is a former managing director, who headed the equity capital markets business of BNY Mellon Capital Markets, LLC, a broker‐dealer subsidiary of The Bank of New York Mellon Corporation. His principal business included managing primary and secondary market equity offerings for public corporations. Beginning in 2005, he was instrumental in developing the market for at‐the‐market equity offerings for the electric utility and REIT industries. Mr. de Menocal has had over 40 years' experience in banking, fixed‐income sales, public finance, and investment banking. He began his career at Irving Trust Company in 1975.
Eric M. Czervionke
Partner, Corporate and Institutional Banking, Finance & Risk, Oliver Wyman
Eric M. Czervionke is a Partner in Oliver Wyman's New York Office. As a member of the firm's Corporate and Institutional Banking and Finance & Risk practices, he advises global banks, broker‐dealers, custodians, and financial market infrastructure providers on strategy, mergers & acquisitions, product design, operations, regulatory change, and risk management.
Prior to joining Oliver Wyman, Eric held positions at the Bombay Stock Exchange, where he led the exchange's Corporate Strategy function and Information Products business, and at Merrill Lynch, where he was a member of the firm's Corporate Strategy and Business Development group. While at Merrill Lynch, Eric supported a number of strategic acquisitions, divestitures, and integrations, including the post‐merger integration efforts following Merrill Lynch's acquisition by Bank of America.
Eric holds a B.S.E. in Operations Research & Financial Engineering, magna cum laude, with certificates in Finance, Engineering Management Systems, and Applied Mathematics from Princeton University.
Simon Derrick
Managing Director and Head of Global Markets Strategy, BNY Mellon
Simon Derrick is a managing director of The Bank of New York Mellon and is head of the bank's Global Markets Strategy team. Mr. Derrick established the team 17 years ago and has been responsible for its development into one of the pre‐eminent voices in the FX markets. His views on “currency wars” and on developments within the Euro‐zone are frequently quoted in the financial media. Prior to heading up BNYM's currency strategy team, Simon ran The Bank of New York's European FX sales team for four years. Previously, he worked in sales and proprietary trading roles at Midland Bank (now part of HSBC), Banque Indosuez (now part of Crédit Agricole Corporate and Investment Bank), and Citibank. He is an honors graduate in geography from University College London.
Christian A. Edelmann
Partner, Global Head of Corporate & Institutional Banking, and Global Head Wealth & Asset Management, Oliver Wyman
Christian A. Edelmann is a partner based in the London office and the head of Oliver Wyman's Corporate & Institutional Banking (CIB) and Wealth & Asset Management (WAM) practices. Prior to his current role, Mr. Edelmann was based out of Hong Kong, running Oliver Wyman's business in Asia‐Pacific. He has worked in depth with major financial institutions in North America, Europe, Asia, and the Middle East, covering a broad range of sell‐ and buy‐side institutions as well as market infrastructure players. Among other projects, he has advised a broad set of clients on strategy and business model optimization. Mr. Edelmann is the author of various recent Oliver Wyman landmark publications, including the 2015 and 2016 editions of the annual publication with Morgan Stanley on Wholesale Banking & Asset Management as well as a joint report with the Fung Global Institute on Asia Finance 2020. He regularly acts as a speaker at leading industry events and is a recurrent commentator on CNBC and Bloomberg TV. Mr. Edelmann holds a master's degree in law (summa cum laude) and a master's degree in business and economics (insigni cum laude) from the University of Basel in Switzerland. He has also earned the CFA (Chartered Financial Analyst) and the FRM (Financial Risk Manager) designations.
Pete Clarke
Partner, Corporate & Institutional Banking, New York
Pete Clarke is a Partner in the Corporate & Institutional Banking practice in Oliver Wyman's New York office. Pete has over 10 years of experience in capital markets and consulting to leading financial institutions in the US and Europe, focusing on capital markets and investment banking. He has broad expertise in strategic reviews, responses to new regulation spanning risk capital, leverage, liquidity and funding, balance sheet efficiency and commercial due diligence for private equity and alternative investment firms, concentrating on capital markets and wholesale banking targets. Pete has also contributed to published articles and reports, co‐writing the annual joint Oliver Wyman‐Morgan Stanley outlook research report in 2012 and Financial Resource Management Point of View report in 2014. Pete holds a first class honours degree in Economics from the University of Warwick and a Licence in Economics (Erasmus Programme) from the Université Paris I Panthéon‐Sorbonne. Pete joined Oliver Wyman in 2010. He previously worked for Deutsche Bank in the Financial Institutions Group.
Lee Griffin
Senior Treasury Trader, BNY Mellon
Lee Griffin is a senior treasury trader at BNY Mellon Capital Markets LLC. Mr. Griffin has been Trading treasuries for five years. He was a senior rates trader for BNY Mellon Markets in Tokyo, and has previously traded USD denominated covered bonds and Supra Sovereign Agencies, as well investment grade corporates. Mr. Griffin currently focus on longer end of the rates curve. He provides market color, and analysis in addition to his role managing BNY Mellon Capital market's treasury market making strategy and rates hedging strategies. Mr Griffin attended New York University where he majored in Economics. He holds FINRA series 7 & 63 licenses.
Randy Harrison
Managing Director, BNY Mellon
Randy Harrison is managing director responsible for short‐term debt origination at BNY Mellon, where he started in November 2015. Before joining BNY Mellon, Mr. Harrison was a founding partner of Acacia Asset Management. From 2001 to 2014, Mr. Harrison was managing director, global head of Short‐Term Credit at Citigroup, where he led the U.S. commercial paper, euro commercial paper, and brokered CDs businesses for seven years. Prior to Citigroup, he was a vice president at Goldman Sachs in New York from 1987 until 2001, where initially, he was a financial institutions credit analyst in risk management and then lead asset backed commercial paper origination in the firm's fixed‐income division. He served as an executive‐in‐residence at the University of Richmond from 2014 to 2016. Mr. Harrison earned a BA in English Literature from the University of Virginia and an MBA from the University of Virginia's Darden School.
Mike Hepinstall
Partner, Oliver Wyman
Mike Hepinstall is a Partner in Oliver Wyman's Finance & Risk practice in New York. He works with leading US and global financial institutions to help them advance their risk analytics capabilities, and embed better risk information into decisions. His projects run from high‐level framework design or review/redesign, to sophisticated technical model development, including the management of large programs. He has led a variety of teams through the development of frameworks and models for credit, market and operational risk measurement, capital stress testing, balance sheet optimization for trading, marketing spend optimization for retail banking, and a variety of other applications. He earned dual bachelor's degrees from the University of Pennsylvania, where he studied International Studies and German Studies, and from the Wharton School, where he studied Finance and Public Policy.
David Isaac
David Isaac is the Head Government Agency Trader at BNY Mellon Capital Markets LLC. Mr. Isaac has been trading Government Agency and Supra Sovereign debt for 15 years. Prior to joining BNY Mellon, David worked at UBS Investment Bank and BNP Paribas. He received his BS in Business Administration from SUNY Maritime Colleges and his MBA from the École Nationale des Ponts et Chaussées in Paris, France. He holds FINRA series 7, 24 & 63 licenses.
Robert Grohskopf
Mr. Grohskopf has 25+ years of Financial Services experience in equity sales and trading and hedge fund management. Bob has held numerous senior executive positions, including Executive Member of the Global Equity Management Committee, Global Head of Cash Equities Trading and Sales Trading, and Hedge Fund Managing Member. He has a proven track record of managing complex and fragmented businesses in transition, recognizing operating inefficiencies, integrating acquired businesses, and developing and implementing strategies to maximize profitability. During his extensive front‐office career, Bob has developed in‐depth market function expertise. Bob holds a B.S. in Forest Management from Rutgers University and an M.B.A. from Virginia Tech. He previously held the Series 24, 7 and 63 licenses.
Shasheen Jayaweera
Principal, Corporate & Institutional Banking, Oliver Wyman
Shasheen Jayaweera is a principal in the financial services practice in Oliver Wyman's New York Office. Mr. Jayaweera has more than seven years of experience in consulting, primarily to leading financial institutions across the United States, Asia, and Australia, focusing on corporate and institutional banking, and specializing in capital markets infrastructure. Mr. Jayaweera's experiences and expertise range across capital markets infrastructure strategy and post‐trade processes, corporate banking strategy, transaction banking strategy, corporate front‐office organization, and regulation. Shasheen holds a first‐class honors degree in economics and a bachelor's degree in commerce (finance and accounting) from the University of New South Wales in Australia and has completed executive education at Wharton and INSEAD.
Marvin Loh
Managing Director and Senior Global Market Strategist, BNY Mellon
Marvin Loh is a managing director at BNY Mellon Markets Group, where he is the firm's senior market strategist. Mr. Loh monitors market, industry, and credit developments, and formulates their impact on a wide range of asset classes. Prior to joining BNY Mellon, he was the director of research at W.R. Hambrecht, a boutique investment bank that pioneered the auction IPO process. Mr. Loh assembled an Institutional Investor‐ranked research team that focused on identifying disruptive business models that could provide above‐average, long‐term investment returns. Mr. Loh has held senior analyst roles at Oppenheimer and Company, Decision Economics, Fidelity Investments, Financial Guaranty Insurance Company, and the Federal Reserve Bank of New York. His credit and equity coverage has included analysis of the finance, specialty finance, healthcare, technology, energy, and utility sectors. Mr. Loh graduated from New York University, where he obtained his MBA in finance and a BS in finance and economics.
Jack Malvey, CFA
Former Chief Global Markets Strategist, BNY Mellon
Jack Malvey is the former chief global markets strategist and director of the BNY Mellon Center for Global Investment and Market Intelligence for BNY Mellon Investment Management, two positions that were created when he joined BNY Mellon in March 2011. Mr. Malvey led a team responsible for capturing and researching investment trends, market activity, and economics. He focused on developing a global investment and market knowledge platform that helped capture and communicate investment opinions and analysis. In addition to holding the Chartered Financial Analyst designation, Jack belongs to the Financial Management Association, the New York Society of Security Analysts, the Fixed Income Analysts Society, Inc., and the Society of Quantitative Analysts. Jack is a former president of the Fixed Income Analysts Society and was inducted into the Fixed Income Analysts Society's Hall of Fame in November 2003. Jack received an AB in economics from Georgetown University and did graduate work in economics at the New School for Social Research in New York.
Paul Mandel
Paul Mandel spent his entire 33‐year career at J.P. Morgan Securities LLC, predominantly in the Short Term Fixed Income division. He ended his career as an Executive Director and Business Manager after serving as short term salesperson; national sales manager; short term loan trading manager; North America Fixed Income Business Manager; and Business Manager/Manager of eCommerce activities for Short Term Fixed Income. As Short Term Fixed Income Business Manager, Paul was responsible for developing eCommerce/eTrading strategies and systems and overseeing matters relating to P&L, compliance, legal/regulatory, new product development and audit. In addition, he was part of the team that led JPMS's response to the Global Financial Crisis of 2008. Paul received his BA from New York University, MA and Master of Philosophy from Columbia University and MBA from Columbia University Business School. Paul is now retired but engaged in part‐time eCommerce consulting work.
Michael McMaster
Managing Director and Chief Compliance Officer, BNY Mellon
Michael McMaster is a Managing Director and Chief Compliance Officer for BNY Mellon Capital Markets, LLC, a broker‐dealer affiliate of BNY Mellon, Chief Compliance Officer for BNY Mellon's Broker Dealer Services Division and is also the Head of BNY Mellon's Shared Services Compliance Group which services its broker‐dealer affiliates and swap dealer. Prior to joining BNY Mellon in 2010, Mr. McMaster was Counsel for Rabobank (a Dutch banking organization) handling securities regulatory matters and Rabobank's U.S. Medium‐Term Note Issuance Programs as well as Chief Compliance Officer for Rabo Securities USA, Inc., the U.S. broker‐dealer affiliate of Rabobank. From 1998 to 2002, Mr. McMaster worked for BNY Capital Markets, Inc.—a predecessor entity to BNY Mellon Capital Markets, LLC—and held the position of Chief Compliance Officer. Mr. McMaster also held positions as Counsel and Chief Compliance Officer for Libra Securities LLC and was an Assistant District Attorney in the King's County (Brooklyn, NY) District Attorney's Office. Prior to moving into legal and compliance positions, Mr. McMaster was a Collateralized Mortgage Obligation trader for Tucker Anthony. He graduated with an undergraduate degree in Finance from Manhattan College and received his J.D. from New York Law School. Mr. McMaster is an adjunct professor at New York Law School and is Chairman of the Compliance Committee for the New York City Bar Association.
Francis C. Reed, Jr.
Global Regulatory Strategist, FactSet Research Systems
Francis C. Reed, Jr., is an experienced capital markets professional with extensive fixed‐income trading, structuring, and sales expertise at top‐tier investment banks like Morgan Stanley, UBS, Lehman Brothers, and Barclays Capital. Presently, Mr. Reed is a global regulatory strategist at FactSet Research Systems. He is an industry author and speaker on topics including debt capital markets, financial regulatory reform, housing reform, and public policy matters. Mr. Reed has managed institutional trading and sales teams for large complex investors like U.S. government‐sponsored enterprises (GSEs), European Supranationals/Sovereigns/Agencies (SSAs), central banks, commercial banks, hedge funds, insurance companies, and asset managers. Mr. Reed holds an MBA in finance from Fordham University and a BS in marketing from Fairfield University. He is a founding board member of The Children's Fund for GSD Research, a 501c3 non‐profit charitable organization committed to finding a cure for GSD, a rare genetic condition afflicting his daughter: www.CureGSD.org.
Peter Reynolds
Partner, Financial Services Finance & Risk, Oliver Wyman
Peter Reynolds is a partner in the finance and risk practice based in Oliver Wyman's Hong Kong office. Mr. Reynolds has worked in depth with major financial institutions across Asia, the United States, Europe, and the Middle East, leading large engagements across the full spectrum of risk and finance topics for leading banks and insurers. He joined Oliver Wyman in February 2004 from a generalist strategy consulting firm. Peter holds a bachelor's degree from Oxford University in history and economics, and an MBA with distinction from INSEAD.
Karl Schultz
Vice President, BNY Mellon
Karl Schultz is a vice president on the funding and short‐term investments desk in the Corporate Treasury at BNY Mellon, where he trades repurchase agreements and other secured financing transactions. Prior to his current role, he spent close to eight years trading repo for MBS‐related products at Countrywide Securities Corporation and three years trading corporate investment grade bonds at Morgan Stanley Asset Management. Mr. Schultz holds an MBA from the Stern School of Business at New York University and is a CFA Charterholder.
Amir Sadr
Chief Operating Officer, Yield Curve Trading, LLC
Amir Sadr received his Ph.D. in 1990 from Cornell University with thesis work on the foundations of probability theory. After working at AT&T Bell Laboratories until 1993, he started his Wall Street career at Morgan Stanley, initially as a vice president in quantitative modeling and development of exotic interest rate models, and later on as an exotics trader in Derivative Product Group. He founded Panalytix, Inc., in 1997 to develop financial software for pricing and risk management of interest rate derivatives. He has worked at Greenwich Capital, HSBC, and Brevan Howard US Asset Management in Connecticut. Since 2009, he has been the COO of Yield Curve Trading, LLC, a boutique proprietary trading firm. Dr. Sadr is the author of Interest Rate Swaps and Their Derivatives: A Practitioner's Guide (Wiley, 2009), and has been an adjunct professor at NYU School of Professional Studies, where he taught courses on swaps and derivatives.
Swati Sawjiany
Partner, Oliver Wyman
Swati Sawjiany is a partner in Oliver Wyman's financial services practice, based out of their New York office. Ms. Sawjiany has worked on client engagements in North America, Europe, and Asia, primarily across corporate and institutional banking, market infrastructure, and retail banking with a focus on finance and risk technology and operations. Ms. Sawjiany has an MBA from INSEAD, a master's in information systems management from Carnegie Mellon University, and a bachelor's in engineering from Mumbai University.
Mendel Starkman
Managing Director, BNY Mellon
Mendel Starkman, CFA, is a managing director at BNY Mellon Corporate Treasury, where he co‐manages the bank's investments in collateralized loan obligations (CLOs) and supports investment activities in other U.S. and European structured credit products. In addition, Mr. Starkman works on the integration of various regulatory requirements that pertain to Corporate Treasury's investment activities. Prior to joining BNY Mellon, Mr. Starkman was a senior structured credit analyst at Dynamic Credit Partners, LLC (DCP), where he analyzed and invested in subordinate tranches of CLOs and in complex or distressed structured credit products, and participated in the origination and management of eight structured credit vehicles. During the financial crisis, Mr. Starkman helped manage DCP's consulting business and continued in that role when the business was acquired by Duff and Phelps. Prior to joining DCP, Mendel worked at at Corinthian Partners, LLC, and E. Magnus Oppenheim and Company, Inc. Mendel holds an MBA in finance and investments from Baruch College of the City University of New York, and has earned the right to use the Chartered Financial Analyst designation.
Bob Swarup
Principal, Camdor Global
Bob Swarup is a respected international expert on financial markets, investment strategy, alternatives, asset‐liability management, and regulation. He is the founder of Camdor Global, an advisory firm that works with institutions and investors around the world on strategic investment, risk management, ALM, and business issues. Dr. Swarup was formerly a partner at Pension Corporation, and chief risk officer at Thought Leadership. Dr. Swarup holds a Ph.D. in cosmology from Imperial College London and an MA (Hons) from the University of Cambridge. He has written extensively on diverse topics, and edited Asset‐Liability Management for Financial Institutions: Balancing Financial Stability with Strategic Objectives. His latest book is the internationally acclaimed bestseller Money Mania, which covers two millennia of financial crises and the lessons to learn (Bloomsbury, 2014).
David Weisberger
Managing Director, IHS Markit
