Edited by Refet S. Gürkaynak, Professor of Economics, Bilkent University, Turkey and CEPR, CESIfo, and CFS and Jonathan H. Wright, Professor of Economics, Johns Hopkins University, US and NBER

• Contents: Introduction to the Research Handbook of Financial Markets 1Refet S. Gürkaynak and Jonathan H. WrightPART I CENTRAL BANKING1 The Federal Reserve balance sheet 6Kristopher Dawsey, William B. English and Brian Sack2 The balance sheet of the Eurosystem 33Oreste Tristani3 The Bank of Japan’s balance sheet 56Kosuke Aoki4 Central bank lending 79Brian Madigan and William Nelson5 The workings of liquidity lines between central banks 102Saleem Bahaj and Ricardo ReisPART II INTERMEDIARIES6 Banks 126Refet S. Gürkaynak, Jonathan H. Wright and Egon Zakrajšek7 Non-bank financial intermediaries and financial stability 147Sirio Aramonte, Andreas Schrimpf and Hyun Song Shin8 Government agencies: Fannie Mae and Freddie Mac 171Gillian Burgess, Wayne Passmore and Shane M. Sherlund9 Money market funds 194Antoine Bouveret, Antoine Martin and Patrick E. McCabePART III MONEY MARKETS10 The federal funds market, pre- and post-2008 220Eric T. Swanson11 The repo market 237Benjamin Munyan12 The foreign exchange market 253Alain Chaboud, Dagfinn Rime and Vladyslav SushkoPART IV CAPITAL MARKETS13 The Treasury and when-issued markets 277J. Benson Durham and Roberto Perli14 The municipal bond market 301Daniel Bergstresser15 Mortgage-backed securities 331Andreas Fuster, David Lucca and James Vickery16 Equity trading 358Caroline Fohlin17 Sovereign debt 378Leonardo Martinez, Francisco Roch, Francisco Roldán and Jeromin ZettelmeyerPART V DERIVATIVE MARKETS18 Interest rate swaps 407Bin Wei and Vivian Z. Yue19 Credit default swaps 429Antulio N. Bomfim20 Foreign exchange swaps and cross-currency swaps 451Angelo Ranaldo21 Inflation hedging products 470Stefania D’Amico and Thomas B. King22 Futures and options 490Refet S. Gürkaynak and Jonathan H. WrightIndex 509

‘Refet Gürkaynak and Jonathan Wright put together a comprehensive and thorough collection of chapters written by the best professionals. It is a gem and must-read for anybody who wants to take a deep dive into understanding the nuts and bolts of central banking, financial intermediaries, money, capital and derivatives markets.’

Edited by Refet S. Gürkaynak, Professor of Economics, Bilkent University, Turkey and CEPR, CESIfo, and CFS and Jonathan H. Wright, Professor of Economics, Johns Hopkins University, US and NBER

• Contents: Introduction to the Research Handbook of Financial Markets 1Refet S. Gürkaynak and Jonathan H. WrightPART I CENTRAL BANKING1 The Federal Reserve balance sheet 6Kristopher Dawsey, William B. English and Brian Sack2 The balance sheet of the Eurosystem 33Oreste Tristani3 The Bank of Japan’s balance sheet 56Kosuke Aoki4 Central bank lending 79Brian Madigan and William Nelson5 The workings of liquidity lines between central banks 102Saleem Bahaj and Ricardo ReisPART II INTERMEDIARIES6 Banks 126Refet S. Gürkaynak, Jonathan H. Wright and Egon Zakrajšek7 Non-bank financial intermediaries and financial stability 147Sirio Aramonte, Andreas Schrimpf and Hyun Song Shin8 Government agencies: Fannie Mae and Freddie Mac 171Gillian Burgess, Wayne Passmore and Shane M. Sherlund9 Money market funds 194Antoine Bouveret, Antoine Martin and Patrick E. McCabePART III MONEY MARKETS10 The federal funds market, pre- and post-2008 220Eric T. Swanson11 The repo market 237Benjamin Munyan12 The foreign exchange market 253Alain Chaboud, Dagfinn Rime and Vladyslav SushkoPART IV CAPITAL MARKETS13 The Treasury and when-issued markets 277J. Benson Durham and Roberto Perli14 The municipal bond market 301Daniel Bergstresser15 Mortgage-backed securities 331Andreas Fuster, David Lucca and James Vickery16 Equity trading 358Caroline Fohlin17 Sovereign debt 378Leonardo Martinez, Francisco Roch, Francisco Roldán and Jeromin ZettelmeyerPART V DERIVATIVE MARKETS18 Interest rate swaps 407Bin Wei and Vivian Z. Yue19 Credit default swaps 429Antulio N. Bomfim20 Foreign exchange swaps and cross-currency swaps 451Angelo Ranaldo21 Inflation hedging products 470Stefania D’Amico and Thomas B. King22 Futures and options 490Refet S. Gürkaynak and Jonathan H. WrightIndex 509

‘Refet Gürkaynak and Jonathan Wright put together a comprehensive and thorough collection of chapters written by the best professionals. It is a gem and must-read for anybody who wants to take a deep dive into understanding the nuts and bolts of central banking, financial intermediaries, money, capital and derivatives markets.’

Edited by Refet S. Gürkaynak, Professor of Economics, Bilkent University, Turkey and CEPR, CESIfo, and CFS and Jonathan H. Wright, Professor of Economics, Johns Hopkins University, US and NBER

• Contents: Introduction to the Research Handbook of Financial Markets 1Refet S. Gürkaynak and Jonathan H. WrightPART I CENTRAL BANKING1 The Federal Reserve balance sheet 6Kristopher Dawsey, William B. English and Brian Sack2 The balance sheet of the Eurosystem 33Oreste Tristani3 The Bank of Japan’s balance sheet 56Kosuke Aoki4 Central bank lending 79Brian Madigan and William Nelson5 The workings of liquidity lines between central banks 102Saleem Bahaj and Ricardo ReisPART II INTERMEDIARIES6 Banks 126Refet S. Gürkaynak, Jonathan H. Wright and Egon Zakrajšek7 Non-bank financial intermediaries and financial stability 147Sirio Aramonte, Andreas Schrimpf and Hyun Song Shin8 Government agencies: Fannie Mae and Freddie Mac 171Gillian Burgess, Wayne Passmore and Shane M. Sherlund9 Money market funds 194Antoine Bouveret, Antoine Martin and Patrick E. McCabePART III MONEY MARKETS10 The federal funds market, pre- and post-2008 220Eric T. Swanson11 The repo market 237Benjamin Munyan12 The foreign exchange market 253Alain Chaboud, Dagfinn Rime and Vladyslav SushkoPART IV CAPITAL MARKETS13 The Treasury and when-issued markets 277J. Benson Durham and Roberto Perli14 The municipal bond market 301Daniel Bergstresser15 Mortgage-backed securities 331Andreas Fuster, David Lucca and James Vickery16 Equity trading 358Caroline Fohlin17 Sovereign debt 378Leonardo Martinez, Francisco Roch, Francisco Roldán and Jeromin ZettelmeyerPART V DERIVATIVE MARKETS18 Interest rate swaps 407Bin Wei and Vivian Z. Yue19 Credit default swaps 429Antulio N. Bomfim20 Foreign exchange swaps and cross-currency swaps 451Angelo Ranaldo21 Inflation hedging products 470Stefania D’Amico and Thomas B. King22 Futures and options 490Refet S. Gürkaynak and Jonathan H. WrightIndex 509

‘Refet Gürkaynak and Jonathan Wright put together a comprehensive and thorough collection of chapters written by the best professionals. It is a gem and must-read for anybody who wants to take a deep dive into understanding the nuts and bolts of central banking, financial intermediaries, money, capital and derivatives markets.’