Preface

This book grew out of the lecture notes I used for corporate training programs in India and abroad. The feedback from participants has been invaluable in polishing and refining the exposition. The eventual flow and clarity that I believe I have been able to achieve is in no small measure due to the critical and incisive inputs of my students as well as professional acquaintances.

There is typically no course exclusively on financial instruments in most MBA curricula. Consequently, this topic invariably gets combined with material on financial institutions as a part of a course on financial markets. I believe, however, that there is a strong case for offering a comprehensive course on financial instruments for second-year MBA students. But care should be taken to ensure that material that is covered in traditional courses such as financial derivatives and fixed income securities is not repeated any more than is necessary. Many students who take such a course may not be majoring in finance and consequently may not take specialized courses such as derivatives. For them, therefore, the specter of substantial overlap is....