This book began life as a concise but complete textbook on financial market instruments and analysis, aimed at practitioners and graduate students. The third edition stays on this same course, but also includes a detailed assessment and analysis of the 2007-8 financial crisis or 'credit crunch'. Events during this period challenged banks and investors to re-evaluate erstwhile assumptions about the financial markets, which is why it is worth considering them in detail here. We have also updated chapters to account for the changes and developments that have occurred since the second edition was published. This is most significant in the chapter on credit derivatives, where among other things we describe the 'big bang' that occurred in April 2009, and which has resulted in North American contracts being traded under new cash flow arrangements