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Investing and the Irrational Mind: Rethink Risk, Outwit Optimism, and Seize Opportunities Others Miss
Behavioral finance expert and bestselling author Robert Koppel shows traders and investors how to invest your money rationally, even in an irrational world"Investing," according to Robert Koppel, "Involves far more than specific analytical and strategic skills. It requires the development of habits, thought patterns and creative attitudes that influence the way to think and act in the market." In Investing and the Irrational Mind, Koppel, author of the classic bestseller, The Inner Game of Trading, uses the latest advancements in behavioral finance and neuroeconomics to help you gain these habits, as well as the deep understanding of market risk factors necessary to successful portfolio building. Armed with 30 years' experience as an analyst, and fund manager, and interviews with top traders, behavioral economists, risk managers and neuroscientists, Koppel lets you build a personal arsenal of risk management skills ("quantitative architecture") necessary for investors at any level to develop a focused, disciplined, confident, and profitable approach to investing. Filled with surprising insights into human behavior, and rock-solid financial advice, this is the guide you need to invest in today's markets.
Credit Risk Modeling Using Exc
It is common to blame the inadequacy of credit risk models for the fact that the financial crisis has caught many market participants by surprise. On closer inspection, though, it often appears that market participants failed to understand or to use the models correctly. The recent events therefore do not invalidate traditional credit risk modeling as described in the first edition of the book. A second edition is timely, however, because the first dealt relatively briefly with instruments featuring prominently in the crisis (CDSs and CDOs). In addition to expanding the coverage of these instruments, the book will focus on modeling aspects which were of particular relevance in the financial crisis (e.g. estimation error) and demonstrate the usefulness of credit risk modelling through case studies. This book provides practitioners and students with an intuitive, hands-on introduction to modern credit risk modelling. Every chapter starts with an explanation of the methodology and then the authors take the reader step by step through the implementation of the methods in Excel and VBA. They focus specifically on risk management issues and cover default probability estimation (scoring, structural models, and transition matrices), correlation and portfolio analysis, validation, as well as credit default swaps and structured finance. The book has an accompanying website, https: //creditriskmodeling.wordpress.com/, which has been specially updated for this Second Edition and contains slides and exercises for lecturers.
Essentials of the Dodd-Frank Act
An executive overview of the new Financial Regulations Act This book provides an executive summary of the newly passed Financial Regulations Act. It examines the most important sections of the Act, how it impacts the financial industry, as well as what executives must know and do in order to comply with the Act. One of the first books to provide an executive summary from a compliance perspective Presents responsibilities of senior level executives regarding this new Act Reveals what has changed within the regulatory environment Provides tips and techniques throughout Describing the government regulation of securities, securities markets, and securities transactions in the United States, this timely book succinctly defines, describes, and explains domestic securities regulation for compliance officers, accountants, and broker-dealers.
Financial Models with Levy Processes and Volatility Clustering
An in-depth guide to understanding probability distributions and financial modeling for the purposes of investment management In Financial Models with L矇vy Processes and Volatility Clustering, the expert author team provides a framework to model the behavior of stock returns in both a univariate and a multivariate setting, providing you with practical applications to option pricing and portfolio management. They also explain the reasons for working with non-normal distribution in financial modeling and the best methodologies for employing it. The book's framework includes the basics of probability distributions and explains the alpha-stable distribution and the tempered stable distribution. The authors also explore discrete time option pricing models, beginning with the classical normal model with volatility clustering to more recent models that consider both volatility clustering and heavy tails. Reviews the basics of probability distributions Analyzes a continuous time option pricing model (the so-called exponential L矇vy model) Defines a discrete time model with volatility clustering and how to price options using Monte Carlo methods Studies two multivariate settings that are suitable to explain joint extreme events Financial Models with L矇vy Processes and Volatility Clustering is a thorough guide to classical probability distribution methods and brand new methodologies for financial modeling.
Foreign Exchange Option Pricing
This book covers foreign exchange options from the point of view of the finance practitioner. It contains everything a quant or trader working in a bank or hedge fund would need to know about the mathematics of foreign exchange--not just the theoretical mathematics covered in other books but also comprehensive coverage of implementation, pricing and calibration. With content developed with input from traders and with examples using real-world data, this book introduces many of the more commonly requested products from FX options trading desks, together with the models that capture the risk characteristics necessary to price these products accurately. Crucially, this book describes the numerical methods required for calibration of these models - an area often neglected in the literature, which is nevertheless of paramount importance in practice. Thorough treatment is given in one unified text to the following features: Correct market conventions for FX volatility surface construction Adjustment for settlement and delayed delivery of options Pricing of vanillas and barrier options under the volatility smile Barrier bending for limiting barrier discontinuity risk near expiry Industry strength partial differential equations in one and several spatial variables using finite differences on nonuniform grids Fourier transform methods for pricing European options using characteristic functions Stochastic and local volatility models, and a mixed stochastic/local volatility model Three-factor long-dated FX model Numerical calibration techniques for all the models in this work The augmented state variable approach for pricing strongly path-dependent options using either partial differential equations or Monte Carlo simulation Connecting mathematically rigorous theory with practice, this is the essential guide to foreign exchange options in the context of the real financial marketplace.
The Financial Crisis of Our Time
In 2006 residential real estate prices peaked and started to fall, then threatened the world's financial institutions in 2007, and confronted the global economy with disaster in 2008. In the past few years, millions of people have lost very substantial portions of their wealth. And while the markets have rebounded considerably, they are still far from a full recovery. Now, professional economists, policy experts, public intellectuals, and the public at large are all struggling to understand the crisis that has engulfed us.In The Financial Crisis of Our Time, Robert W. Kolb provides an essential, comprehensive review of the context within which these events unfolded, arguing that while the crisis had no single cause, housing finance played a central role, and that to understand what happened, one must comprehend the mechanism by which the housing industry came into crisis. Kolb offers a history of the housing finance system as it developed throughout the twentieth century, and especially in the period from 1990 to 2006, showing how the originate-to-distribute model of mortgage financing presented market participants with a "clockwork of perverse incentives." In this system, various participants-simply by pursuing their narrow personal interests-participated in an elaborate mechanism that led to disaster. The book then gives a narrative of the crisis as it developed and analyzes all of the participants in the housing market, from the home buyers to investors in collaterialized debt obligations (CDOs). At each step, the book explains in a nontechnical manner the essential relationships among the market participants and zeroes in on the incentives facing each party. The book also includes an extensive glossary and a detailed, authoritative timeline of the subprime financial crisis.Offering a unique look at the participants and incentives within the housing finance industry and its role in the biggest financial catastrophe in recent history, Robert W. Kolb provides one of the most comprehensive and illuminating accounts of the events that will be studied for decades to come as the financial crisis of our time.
The Financial Crisis Inquiry Report
The definitive report on what caused America's economic meltdown and who was responsibleThe financial and economic crisis has touched the lives of millions of Americans who have lost their jobs and their homes, but many have little understanding of how it happened. Now, in this very accessible report, readers can get the facts. Formed in May 2009, the Financial Crisis Inquiry Commission (FCIC) is a panel of 10 commissioners with experience in business, regulations, economics, and housing, chosen by Congress to explain what happened and why it happened. This panel has had subpoena power that enabled them to interview people and examine documents that no reporter had access to. The FCIC has reviewed millions of pages of documents, and interviewed more than 600 leaders, experts, and participants in the financial markets and government regulatory agencies, as well as individuals and businesses affected by the crisis. In the tradition of The 9/11 Commission Report, "The Financial Crisis Inquiry Report" will be a comprehensive book for the lay reader, complete with a glossary, charts, and easy-to-read diagrams, and a timeline that includes important events. It will be read by policy makers, corporate executives, regulators, government agencies, and the American people.
The Mcgraw-Hill 36-Hour Course: Finance for Nonfinancial Managers
Make simple sense of complex financial information!The high-profile accounting scandals of recent years have made one thing clear: You can't know too much about the company for which you work. What are the numbers? Where do you find them? How do they affect you and your staff?This fully revised and updated third edition of The McGraw-Hill 36-Hour Course: Finance for Nonfinancial Managers provides a firm grasp on what all the numbers really mean. Designed to let you learn at your own pace, it walks you through: The essential concepts of finance, so you can askintelligent questions and understand the answersVital statements and reports, with sections on pro forma financial statements and expensing of stock optionsThe auditing process--what is measured, how it'smeasured, and how you can help ensure accuracy and completenessWith chapter-ending quizzes and an online final exam, The McGraw-Hill 36-Hour Course: Finance for Nonfinancial Managers serves as a virtual professor, providing the curriculum you need to crunch the numbers like a pro!
Business Valuation Demystified
Priceless business valuation methods made easy!Business valuation is one of the toughest classes in any business curriculum. And it's one of the most important. Master this critical topic, and you've removed a major obstacle standing between you and a 4.0, and taken a major step toward a successful career in business.Breaking down business valuation methods into easy-to-digest parts, this self-teaching guide provides all the skills you need to determine a company's worth--easily and accurately. Business Valuation DeMYSTiFieD offers expert insight from both buyers' and sellers' points of view and provides examples and exercises illustrating the concepts driving the practices.This fast and easy guide features: In-depth coverage of the three mainmethods of valuing businesses: discounted cash flow, price multiple, and liquidationEasy-to-understand descriptions of financial ratiosTools and techniques for deciphering valuation reports, financial statements, and guidelines for specific businessesChapter-ending practice exercises and a quiz for testing and reinforcing what you've learnedSimple enough for a beginner but challenging enough for a more advanced student, Business Valuation DeMYSTiFieD is your shortcut to building a solid foundation in this critical business topic.
The Takeovers Panel and Takeovers Regulation in Australia
The Takeovers Panel and Takeovers Regulation in Australia is the first detailed analysis of the Australian Takeovers Panel, the regulatory body for takeovers in Australia, whose key power is to declare circumstances relating to a takeover to be unacceptable. Although the first ten years of the Panel are regarded as unsuccessful (only four matters were considered by the Panel), since 2000, it has considered more than 300 matters. It is regarded as having made a very important contribution to the effective regulation of takeovers in Australia.Ian Ramsay brings together leading takeovers practitioners to consider the functions and powers of the Panel, explore why it was established, provide an assessment of its work, examine key issues and discuss possible reforms that would make the Panel even more effective.
Corporate Finance Demystified
The simple way to master corporate finance The math, the formulas, the problem solving . . . does corporate finance make your head spin? You're not alone. It's one of the toughest subjects for business students-which is why Corporate Finance DeMYSTiFieD is written in a way that makes learning it easier than ever. This self-teaching guide first explains the basic principles of corporate finance, including accounting statements, cash flows, and ratio analysis. Then, you'll learn all the specifics of more advanced practices like estimating future cash flows, scenario analysis, and option valuation. Filled with end-of-chapter quizzes and a final exam, Corporate Finance DeMYSTiFieD teaches you the ins-and-outs of this otherwise confounding subject in no time at all. This fast and easy guide features: An overview of important concepts, such as time value of money, interest rate conversion, payment composition, and amortization schedules Easy-to-understand descriptions of corporate finance principles and strategies Chapter-ending quizzes and a comprehensive final exam to reinforce what you've learned and pinpoint problem areas Hundreds of updated examples with practical solutions Simple enough for a beginner, but challenging enough for an advanced student, Corporate Finance DeMYSTiFieD is your shortcut to a working knowledge of this important business topic.
Quick Cash
Loan sharks may conjure up an image of tough guys in fedoras looking to make a profit off of desperate people in dire financial straits; but in reality, lenders who advance small sums of cash at high interest rates until payday existed long before organized crime entered the trade. Today the businesses that fill this niche in the credit market prefer the name "payday lenders" rather than loan sharks, but most large cities are still a hotbed of usurious lending, and the landscapes are dotted with their inviting and brightly colored storefronts. Despite their more respectable name, these predatory lenders have endured through regulation, prohibition, and the rise and fall of the mob since the late 1800s. In this intriguing and accessible book, Mayer aptly assesses the consequences of high-interest lending--both for the people who borrow at such steep prices and for society as a whole. He argues that although some consumers gain from borrowing at high rates, payday lending in its modern form consistently traps many of the wage earners who pawn their postdated checks, leaving them worse off than they were before. Because payday lending regulations vary widely throughout the country, Mayer chose to focus his story on Chicago, a city that serves as a fine representative of the legacy of loan sharking. Quick Cash will engage policy analysts, economists, and regional historians, as wells as general readers interested in the fascinating story behind these unscrupulous lending operations that feed off America's current tough economic times.
Ineffective Habits of Financial Advisors (and the Disciplines to Break Them)
A how to guide to avoiding the mistakes ineffective financial advisors most often make Based on a 15-year consulting program that author Steve Moore has led for financial advisors, Ineffective Habits of Financial Advisors (and the Disciplines to Break Them): A Framework for Avoiding the Mistakes Everyone Else Makes details proven techniques which allow advisors to transform their business into an elite practice: business analysis, strategic vision, exceptional client service, and acquiring high net worth clients. Told through the story of a purely fictional and completely average financial advisor, each chapter begins with an ineffective habit that is then countered with a discipline that improves business results and adds value. The book Details a step-by-step strategy for working through current clients, rather than relying on cold calling to form new relationships Includes anecdotes collected through both personal experience and stories relayed to him by clients and colleagues Provides question and answer segments, examples, and homework assignments Ineffective Habits of Financial Advisors (and the Disciplines to Break Them shows you how to deliver exceptional service while generating higher revenue per client.
Behavioral Finance
A definitive guide to the growing field of behavioral finance This reliable resource provides a comprehensive view of behavioral finance and its psychological foundations, as well as its applications to finance. Comprising contributed chapters written by distinguished authors from some of the most influential firms and universities in the world, Behavioral Finance provides a synthesis of the most essential elements of this discipline, including psychological concepts and behavioral biases, the behavioral aspects of asset pricing, asset allocation, and market prices, as well as investor behavior, corporate managerial behavior, and social influences. Uses a structured approach to put behavioral finance in perspective Relies on recent research findings to provide guidance through the maze of theories and concepts Discusses the impact of sub-optimal financial decisions on the efficiency of capital markets, personal wealth, and the performance of corporations Behavioral finance has quickly become part of mainstream finance. If you need to gain a better understanding of this topic, look no further than this book.
Probability and Statistics for Finance
A comprehensive look at how probability and statistics is applied to the investment process Finance has become increasingly more quantitative, drawing on techniques in probability and statistics that many finance practitioners have not had exposure to before. In order to keep up, you need a firm understanding of this discipline. Probability and Statistics for Finance addresses this issue by showing you how to apply quantitative methods to portfolios, and in all matter of your practices, in a clear, concise manner. Informative and accessible, this guide starts off with the basics and builds to an intermediate level of mastery. - Outlines an array of topics in probability and statistics and how to apply them in the world of finance - Includes detailed discussions of descriptive statistics, basic probability theory, inductive statistics, and multivariate analysis - Offers real-world illustrations of the issues addressed throughout the text The authors cover a wide range of topics in this book, which can be used by all finance professionals as well as students aspiring to enter the field of finance.
The Great American Stickup
In The Great American Stickup, celebrated journalist Robert Scheer uncovers the hidden story behind one of the greatest financial crimes of our time: the Wall Street financial crash of 2008 and the consequent global recession. Instead of going where other journalists have gone in search of this story--the board rooms and trading floors of the big Wall Street firms--Scheer goes back to Washington, D.C., a veritable crime scene, beginning in the 1980s, where the captains of the finance industry, their lobbyists and allies among leading politicians destroyed an American regulatory system that had been functioning effectively since the era of the New Deal.This is a story largely forgotten or overlooked by the mainstream media, who wasted more than two decades with their boosterish coverage of Wall Street. Scheer argues that the roots of the disaster go back to the free-market propaganda of the Reagan years and, most damagingly, to the bipartisan deregulation of the banking industry undertaken with the full support of "progressive" Bill Clinton.In fact, if this debacle has a name, Scheer suggests, it is the "Clinton Bubble," that era when the administration let its friends on Wall Street write legislation that razed decades of robust financial regulation. It was Wall Street and Democratic Party darling Robert Rubin along with his clique of economist super-friends--Alan Greenspan, Lawrence Summers, and a few others--who inflated a giant real estate bubble by purposely not regulating the derivatives market, resulting in the pain and hardship millions are experiencing now.The Great American Stickup is both a brilliant telling of the story of the Clinton financial clique and the havoc it wrought--informed by whistleblowers such as Brooksley Born, who goes on the record for Scheer--and an unsparing anatomy of the American business and political class. It is also a cautionary tale: those who form the nucleus of the Clinton clique are now advising the Obama administration.
Finance Ethics
A groundbreaking exploration of the critical ethical issues in financial theory and practice Compiled by volume editor John Boatright, Finance Ethics consists of contributions from scholars from many different finance disciplines. It covers key issues in financial markets, financial services, financial management, and finance theory, and includes chapters on market regulation, due diligence, reputational risk, insider trading, derivative contracts, hedge funds, mutual and pension funds, insurance, socially responsible investing, microfinance, earnings management, risk management, bankruptcy, executive compensation, hostile takeovers, and boards of directors. Special attention is given to fairness in markets and the delivery of financial services, and to the duties of fiduciaries and agents Rigorous analysis of the topics covered provides essential information and practical guidance for practitioners in finance as well as for students and academics with an interest in finance ethics Ethics in Finance skillfully explains the need for ethics in the personal conduct of finance professionals and the operation of financial markets and institutions.
Trade Like Bill O'neil
How two former traders of William J. O'Neil + Company made mad money using O'Neil's trading strategies, and how you can, too From the successes and failures of two William O'Neil insiders, Trade Like an O'Neil Disciple: How We Made Over 18,000% in the Stock Market in 7 Years is a detailed look at how to trade using William O'Neil's proven strategies and what it was like working side-by-side with Bill O'Neil. Under various market conditions, the authors document their trades, including the set ups, buy, add, and sell points for their winners. Then, they turn the magnifying glass on themselves to analyze their mistakes, including how much they cost them, how they reacted, and what they learned. Presents sub-strategies for buying pocket pivots and gap-ups Includes a market direction timing model, as well as updated tools for selling stocks short Provides an "inside view" of the authors' experiences as proprietary, internal portfolio managers at William O'Neil + Company, Inc. from 1997-2005 Detailing technical information and the trading psychology that has worked so well for them, Trade Like an O'Neil Disciple breaks down what every savvy money manager, trader and investor needs to know to profit enormously in today's stock market.
Taxation of U.S. Investment Partnerships and Hedge Funds
A new, lucid approach to the formulation of accounting policies for tax reporting Unraveling the layers of complexity surrounding the formulation of accounting policies for tax reporting, Taxation of US Investment Partnerships and Hedge Funds: Accounting Policies, Tax Allocations and Performance Presentation enables your corporation to implement sound up-front accounting and tax policies in order to reduce the overall cost of CFO and legal functions within a U.S. Investment partnership. Understand the pitfalls and optimize across legitimate policies that are consistent with the IRS regulations Presents a clear roadmap for accounting, tax policies, tax filing and performance presentation for US investment partnerships and hedge funds Providing tremendous understanding to a complex topic, Taxation of US Investment Partnerships and Hedge Funds is guaranteed to demystify the inner workings of the formulation of accounting policies for tax reporting.
The Definitive Guide to Government Contracts
The U.S. government is the biggest customer in the world! How can your small business get a piece of the pie? The Definitive Guide to Government Contracts begins at the beginning, and assumes no prior knowledge of the government marketplace. Written in a clear, easy-to-understand language by experienced sales and marketing professionals, it takes you through every step of the process--finding the opportunities; understanding the requirements; registering your company and submitting your bid; shipping, packaging, and invoicing requirements. The same step-by-step approach is used to explain the increasingly popular GSA contract, from researching the schedules, preparing the paperwork, and submitting your proposal, to the all-important marketing that is required once the contract has been awarded. Thinking about selling to the federal government but don't know where to begin? The Definitive Guide to Government Contracts is all the help you need.
The Ria’s Compliance Solution Book
Registered investment advisers are accustomed to regulatory scrutiny. But the pressure to understand changing compliance regulations and to meet the requirements they impose has never been more intense. A range of scandals and abuses--from the laundering of terrorist funds to mutual fund trading shenanigans--has caused the Securities and Exchange Commission to tighten regulation and step up enforcement. Unfortunately, definitive compliance information--the kind that can save advisers precious time and spare them serious trouble--has not been easy to find. Until now. The RIA's Compliance Solution Book gathers the information needed most and puts it all in one place. Here advisers will find plain-English translations of the rules that regulate such issues as: advisory contracts and fees advertising and client communications RIA compliance programs and codes of ethics custody of customer accounts completing, filing, and amending Form ADV selecting brokers and executing trades
Risk
Finance professionals grapple with risk every day--it's the inescapable partner of all financial market participants. As a result, high-stakes financial professionals are continually trying to streamline and perfect their risk management techniques. Financial risk management quantifies and controls risk (loss potential) and helps drive capital to its optimal use (profit seeking). This book is a much-needed guide for financial firms. It describes the latest risk management tools, financial instruments, and practical implementation strategies. And they're presented in a real-world, nonacademic manner. This book presents the latest information on Identifying risk: the spectrum of risks faced by market participants Measuring and quantifying risk: ways to track and value market and credit risks Managing risk: a practical framework for financial risk management implementation Also includes "The Ten Commandments of Financial Risk Management," how and when to use the latest financial instruments and derivatives, and setting up a trackable risk management initiative.
The CME Group Risk Management Handbook
Invaluable insights on trading today's futures market The CME Risk Management Handbook provides an accessible overview of the futures market in today's electronic world of trading. Page by page, it outlines the various CME products currently available and explains how those products can be used to manage risk. Financial professionals around the world will find this book to be a comprehensive reference to the most widely used risk management, trading, and hedging strategies. Editors John Labuszewski and John Nyhoff-two of the most highly-regarded names in futures and options research and risk management-put this discipline in perspective and offer readers invaluable insights into successfully operating within this environment. Chicago Mercantile Exchange Inc. is an international marketplace that brings together buyers and sellers on its trading floors and GLOBEX around-the-clock electronic trading platform. CME offers futures contracts and options on futures, primarily in four product areas: interest rates, stock indexes, foreign exchange, and commodities. John W. Labuszewski, MBA, is a Director of Clearing Development at CME. John Nyhoff, MBA, is a Director of Financial Research and Development at CME.
The Ppli Solution
Private placement life insurance (PPLI) was once the exclusive domain of wealthy investors willing to tackle the logistical challenges of the offshore insurance market. The investment portfolio, tax, and estate-planning applications, and ongoing investment potential of these policies made the effort worthwhile. In recent years, though, a number of U.S.-based insurance companies have developed similar policies that meet all U.S. insurance, investment, and tax regulations. PPLI is becoming a fundamental component of effective tax, trust, and estate planning, but few sources have been available to detail the best practices--until now. The PPLI Solution can serve as a resource for effective execution. Written by leading practitioners, the book will position advisers to capitalize as PPLI expands further into the high-net-worth market and becomes available to individuals with an investable net worth as low as $1 million. Few investors--whatever their net worth--will want to venture into the PPLI market without guidance. The PPLI Solution addresses the needs of investment managers, consultants, attorneys, and accountants who want to achieve the broad understanding of PPLI's applications required of those providing advice. It can serve as an authoritative source for anyone--including investors--seeking to know more about PPLI's nearly perfect tax efficiency, solid creditor protection, and powerful means of creating wealth.
Professional Financial Computing Using Excel and VBA
Often financial computing guidebooks provide only quick-and-dirty implementations of financial models, rarely related to real-world applications. Professional Financial Computing Using Excel and VBA provides reusable, flexible, real-world implementations of financial models. The book explores financial models, like derivatives pricings, market and credit risk modeling, and advanced interest rate modeling. With step-by-step instructions, this resource reviews fundamental financial theories and concepts, as well as alternative approaches to ensure a comprehensive understanding of the different techniques. This text is an ideal reference for graduate students studying financial engineering and computing.
Exotic Options and Hybrids
The recent financial crisis brought to light many of the misunderstandings and misuses of exotic derivatives. With market participants on both the buy and sell-side having been found guilty of not understanding the products they were dealing with, never before has there been a greater need for clarification and explanation. Exotic Options and Hybrids is a practical guide to structuring, pricing and hedging complex exotic options and hybrid derivatives that will serve readers through the recent crisis, the road to recovery, the next bull market and beyond. Written by experienced practitioners, it focuses on the three main parts of a derivative's life: the structuring of a product, its pricing and its hedging. Divided into four parts, the book covers a multitude of structures, encompassing many of the most up-to-date and promising products from exotic equity derivatives and structured notes to hybrid derivatives and dynamic strategies. Based on a realistic setting from the heart of the business, inside a derivatives operation, the practical and intuitive discussions of these aspects make these exotic concepts truly accessible. Adoptions of real trades are examined in detail, and all of the numerous examples are carefully selected so as to highlight interesting and significant aspects of the business. The introduction of payoff structures is accompanied by scenario analysis, diagrams and lifelike sample term sheets. Readers learn how to spot where the risks lie to pave the way for sound valuation and hedging of such products. There are also questions and accompanying discussions dispersed in the text, each exploited to illustrate one or more concepts from the context in which they are set. The applications, the strengths and the limitations of various models are highlighted, in relevance to the products and their risks, rather than the model implementations. Models are de-mystified in separately dedicated sections, but their implications are alluded to throughout the book in an intuitive and non-mathematical manner. By discussing exotic options and hybrids in a practical, non-mathematical and highly intuitive setting, this book will blast through the misunderstanding of exotic derivatives, enabling practitioners to fully understand and correctly structure, price and hedge theses products effectively, and stand strong as the only book in its class to make these "exotic" concepts truly accessible.
Lessons from the Financial Crisis
The world's best financial minds help us understand today's financial crisis With so much information saturating the market for the everyday investor, trying to understand why the economic crisis happened and what needs to be done to fix it can be daunting. There is a real need, and demand, from both investors and the financial community to obtain answers as to what really happened and why. Lessons from the Financial Crisis brings together the leading minds in the worlds of finance and academia to dissect the crisis. Divided into three comprehensive sections-The Subprime Crisis; The Global Financial Crisis; and Law, Regulation, the Financial Crisis, and The Future-this book puts the events that have transpired in perspective, and offers valuable insights into what we must do to avoid future missteps. Each section is comprised of chapters written by experienced contributors, each with his or her own point of view, research, and conclusions Examines the market collapse in detail and explores safeguards to stop future crises Encompasses the most up-to-date analysis from today's leading financial minds We currently face a serious economic crisis, but in understanding it, we can overcome the challenges it presents. This well-rounded resource offers the best chance to get through the current situation and learn from our mistakes.
Intelligent Trading Systems
This book deals with the issue of problematic market price prediction in the context of crowd behaviour affected by the psychology of the masses. It highlights the contrast between a phenomenon of mass psychology and the efficient market hypothesis, which is essentially based on a common economic theory. The basic assumption is that if there is a model of interaction between masses and agents participating in markets, then there also exist means for prediction of the whole market's behaviour, though nevertheless the behaviour of every single agent is not predictable. From a practical point of view, this book describes technical analysis methods used to predict price movements, and discusses a soft computing approach used in a composition of automated trading systems. This book brings alternative, soft computing computational models to trading strategies and innovatively combines two different areas of science - artificial intelligence and technical analysis. One of the main benefits of this book is a demonstration that the soft computing approach in a combination with the "soft" social sciences accounts more reliable results than the conventional mathematical models. This book is for anyone interested in trading, financial markets and security exchanges, as well as for those who have theoretical or practical knowledge from the fields of artificial intelligence and soft computing, and want to know how these topics can be applied in financial markets.
Credit Risk Measurement In and Out of the Financial Crisis
A classic book on credit risk management is updated to reflect the current economic crisis Credit Risk Management In and Out of the Financial Crisis dissects the 2007-2008 credit crisis and provides solutions for professionals looking to better manage risk through modeling and new technology. This book is a complete update to Credit Risk Measurement: New Approaches to Value at Risk and Other Paradigms, reflecting events stemming from the recent credit crisis. Authors Anthony Saunders and Linda Allen address everything from the implications of new regulations to how the new rules will change everyday activity in the finance industry. They also provide techniques for modeling-credit scoring, structural, and reduced form models-while offering sound advice for stress testing credit risk models and when to accept or reject loans. Breaks down the latest credit risk measurement and modeling techniques and simplifies many of the technical and analytical details surrounding them Concentrates on the underlying economics to objectively evaluate new models Includes new chapters on how to prevent another crisis from occurring Understanding credit risk measurement is now more important than ever. Credit Risk Management In and Out of the Financial Crisis will solidify your knowledge of this dynamic discipline.
The 21st-Century Case for a Managed EconomyThe21st-Century Case for a Managed EconomyThe R
This book argues that the scientific concept of feedback - the idea that change in some element of a system can cause further change in that element - represents a general concept of economic change. Positive feedback causes runaway change, such as a market bubble, inflation or long-run growth, while negative feedback causes stability and stasis. Emphasising both kinds of feedback stands in contrast to the equilibrium theories of classical economics which, in effect, emphasise negative feedback only. In practical terms, the feedback perspective implies a need for extensive government involvement in the economy to suppress undesirable feedback effects - such as those causing wild instability or self-perpetuating inequality - while supporting desirable feedback effects - such as those causing economic growth. -------------------- For decades, free-market economists have told a consistent story. Markets are rational, efficient, stable and fair, and even volatile financial markets should be left mostly to their own devices. The economic crisis that began in 2007 has, however, disproven such belief in the perfection of markets. The reason market fundamentalism fails is simple: it is built on economic theories that incorporate only one half of how the economy actually operates. These theories focus on a concept of long-run equilibrium that sees the economy as being continually drawn back to balance after any change from this position, in a form of what scientists would call negative feedback. However, there is also positive feedback; a process whereby a given change amplifies itself until the system is driven far from equilibrium, and this phenomenon is equally visible in the economy. Positive feedback drives economic growth, speculative bubbles, inflation, recessions, deflation and self-perpetuating inequality. It is what gives us the secular trends and cyclical fluctuations we observe in the real economy. And it deserves to be a central part of our economic theory. This book makes a first attempt at applying the concept of feedback to economic theory and economic policy. It recognises that the state must support desirable feedbacks while suppressing undesirable ones. But it also recognises that central planning leads to oppression and inefficiency. This leads us back to the common-sense idea of a mixed economic system in which the role of the state is almost as great as that of the market.
Fool's Gold
From award-winning Financial Times journalist Gillian Tett, who enraged Wall Street leaders with her news-breaking warnings of a crisis more than a year ahead of the curve, Fool's Gold tells the astonishing unknown story at the heart of the 2008 meltdown. Drawing on exclusive access to J.P. Morgan CEO Jamie Dimon and a tightly bonded team of bankers known on Wall Street as the "Morgan Mafia," as well as in-depth interviews with dozens of other key players, including Treasury Secretary Timothy Geithner, Gillian Tett brings to life in gripping detail how the Morgan team's bold ideas for a whole new kind of financial alchemy helped to ignite a revolution in banking, and how that revolution escalated wildly out of control. The story begins with the intense Morgan brainstorming session in 1994 beside a pool in Boca Raton, where the team cooked up a dazzling new idea for the exotic financial product known as credit derivatives. That idea would rip around the banking world, catapult Morgan to the top of the turbocharged derivatives trade, and fuel an extraordinary banking boom that seemed to have unleashed banks from ages-old constraints of risk. But when the Morgan team's derivatives dream collided with the housing boom--and was perverted through hubris, delusion, and sheer greed by titans of banking that included Citigroup, UBS, Deutsche Bank, and Merrill Lynch--catastrophe followed. Tett's access to Dimon and the J.P. Morgan leaders who so skillfully steered their bank away from the wild excesses of others sheds invaluable light not only on the untold story of how they engineered their bank's escape from carnage, but also on how possible it was for the larger banking world, regulators, and rating agencies to have spotted, and heeded, the terrible risks of a meltdown. A tale of blistering brilliance and willfully blind ambition, Fool's Gold is both a rare journey deep inside the arcane and wildly competitive world of high finance and a vital contribution to understanding how the worst economic crisis since the Great Depression was perpetrated.
Still Broken
The debate over health care policy in the U. S. did not end when President Obama signed the landmark Patient Protection and Affordable Care Act (PPACA) on March 23, 2010. Since then, half the states have sued and federal judges have issued conflicting rulings about the law's constitutionality. In addition, the new Republican-controlled House of Representatives voted to repeal it, and Republicans have pledged to bring it up again during negotiations over the 2012 federal budget. The continuing controversies over PPACA are only one reason that Still Broken: Understanding the U.S. Health Care System is a must-read for engaged citizens, policymakers, students, and scholars alike. The book takes a close look at our problems, proposes solutions to them, and explains how to navigate our political system to effect positive change. It will help readers: * Assess the arguments made by partisans on both sides of the continuing debate. * Understand why President Obama was able to get Congress to pass a comprehensive reform bill even though most of his predecessors tried and failed. * Understand why so many Americans are either confused about its value or actually oppose it. In the book's first part, Stephen M. Davidson paints a lucid picture of the way that the health system works and the forces that produced the monumental problems that we face today. Then, he makes a compelling case for overhauling our system, offering six elements for inclusion in any plan for change. Davidson devotes the last three chapters to a detailed examination of the politics of reform. This assessment will help readers to appreciate both the political achievement represented by passage of the new law and the reasons that opposition to the law remains so widespread, despite all the good it does for the public. Whatever compromises, if any, are accepted by negotiators in the end, the book makes clear why, to fully solve the system's problems, the underlying goal must be to change incentives for all players who participate in the system and, finally, why this goal cannot be achieved by relying solely on market-based solutions. Davidson's captivating and persuasive book demonstrates that only a solution with a large public-sector role can lead us to real reform.
Uncontrolled Risk
How Excessive Risk Destroyed Lehman and Nearly Brought Down the Financial Industry "Uncontrolled Risk will ruffle feathers--and for good reason--as voters and legislators learn thediffi cult lessons of Lehman's collapse and demand that we never forget them."Dr. David C. Shimko, Board of Trustees, Global Association of Risk Professionals"Uncontrolled Risk is a drama as gripping as any work of fiction. Williams's recommendations forchanges in the governance of financial institutions should be of interest to anyone concernedabout the welfare of global financial markets."Geoffrey Miller, Stuyvesant Comfort Professor of Law and Director, Center for the Study ofCentral Banks and Financial Institutions, New York University"The complex balance of free enterprise on Wall Street and the healthyregulation of its participants is the central economic issue of today.Williams's forensic study of Lehman's collapse may be the bestperspective so far on the issues that now face regulators."Jeffrey P. Davis, CFA, Chief Investment Officer, Lee Munder Capital Group"Provides a very perceptive analysis of the fl aws inherent in risk management systems and modernfi nancial markets. Mandatory reading for risk managers and financial industry executives."Vincent Kaminski, Professor in the Practice of Management, Jesse H. Jones Graduate School of Business, Rice University"Gives the reader much food for thought on the regulation of our financial system and its interplaywith corporate governance reform in the United States and around the world."Professor Charles M. Elson, Edgar S. Woolard Jr. Chair in Corporate Governance, University of DelawareThe risk taking behind Wall Street's largest bankruptcy . . .In this dramatic and compelling account ofLehman Brothers' spectacular rise and fall, author Mark T. Williams explains how uncontrolledrisk toppled a 158-year-old institution--and whatit says about Wall Street, Washington, D.C., and theworld financial system. A former trading floor executiveand Fed bank examiner, Williams sees Lehman's2008 collapse as a microcosm of the industry--aworst-case scenario of smart decisions, stupid mistakes, ignored warnings, and important lessons inmoney, power, and policy that affect us all.This book reveals: The Congressional inquisition of disgracedCEO Dick Fuld: Did he really deserve it?How the investment-banking money machinebroke down: Can it be fixed?The key drivers that caused the financialmeltdown: Can lessons be learnedfrom them?The wild risk taking denounced by PresidentObama: Is Washington to blame, too?The ongoing debate on reform andregulation: Can meaningful reform avertanother financial catastrophe?This fascinating account traces Lehman's historyfrom its humble beginnings in 1850 to its collapsein 2008. Lehman's story exemplifies the everchangingtrends in finance--from investmentvehicles to federal policies--and exposes thedanger and infectious nature of uncontrolled risk.Drawing upon first-person interviews with riskmanagement experts and former Lehman employees, Williams provides more than just a frontlinereport: it's a call to action for Wall Street bankers, Washington policymakers, and U.S. citizens--a livinglesson in risk management on which to build astronger fi nancial future. Williams provides a tenpointplan to implement today--so another Lehmandoesn't collapse tomorrow.Includes aten-point plan toensure a strongfinancial future forboth Wall Street andMain Street
The Match King
At the height of the roaring '20s, Swedish 'migr' Ivar Kreuger made a fortune raising money in America and loaning it to Europe in exchange for matchstick monopolies. His enterprise was a rare success story throughout the Great Depression. Yet after Kreuger's suicide in 1932, the true nature of his empire emerged. Driven by success to adopt ever-more perilous practices, Kreuger had turned to shell companies in tax havens, fudged accounting figures, off-balance-sheet accounting, even forgery. He created a raft of innovative financial products -- many of them precursors to instruments wreaking havoc in today's markets. When his Wall Street empire collapsed, millions went bankrupt. Frank Partnoy, a frequent commentator on financial disaster for the Financial Times, New York Times, NPR, and CBS's "60 Minutes," recasts the life story of a remarkable yet forgotten genius in ways that force us to re-think our ideas about the wisdom of crowds, the invisible hand, and the free and unfettered market.
FX Options and Smile Risk
The FX options market represents one of the most liquid and strongly competitive markets in the world, and features many technical subtleties that can seriously harm the uninformed and unaware trader. This book is a unique guide to running an FX options book from the market maker perspective. Striking a balance between mathematical rigour and market practice and written by experienced practitioner Antonio Castagna, the book shows readers how to correctly build an entire volatility surface from the market prices of the main structures. Starting with the basic conventions related to the main FX deals and the basic traded structures of FX options, the book gradually introduces the main tools to cope with the FX volatility risk. It then goes on to review the main concepts of option pricing theory and their application within a Black-Scholes economy and a stochastic volatility environment. The book also introduces models that can be implemented to price and manage FX options before examining the effects of volatility on the profits and losses arising from the hedging activity. Coverage includes: how the Black-Scholes model is used in professional trading activity the most suitable stochastic volatility models sources of profit and loss from the Delta and volatility hedging activity fundamental concepts of smile hedging major market approaches and variations of the Vanna-Volga method volatility-related Greeks in the Black-Scholes model pricing of plain vanilla options, digital options, barrier options and the less well known exotic options tools for monitoring the main risks of an FX options' book The book is accompanied by a CD Rom featuring models in VBA, demonstrating many of the approaches described in the book.
How to Make a Living Trading Foreign Exchange
Solid Forex strategies for capturing profits in today's volatile markets How to Make a Living Trading Foreign Exchange puts the world of Forex at your fingertips. Author Courtney Smith begins with an introduction to the Forex market-what it is and how it works. He then delves into six moneymaking techniques for trading Forex, including his unique Rejection Rule that doubles the profit of basic channel breakout systems. In addition to two specific methods for exiting positions at critical levels, Smith also discusses powerful risk management techniques and successful trading psychology strategies that will keep you one step ahead of the game. Reveals the secrets of the Forex market and how to create a lifetime of income trading it Offers advice on maximizing profits during the volatile swings that have increasingly become the norm Other titles by Smith: Option Strategies, Third Edition, Seasonal Charts For Futures Traders, Commodity Spreads, and Profits Through Seasonal Trading Make more from today's Forex market with How to Make a Living Trading Foreign Exchange.
Chain of Blame
An updated and revised look at the truth behind America's housing and mortgage bubbles In the summer of 2007, the subprime empire that Wall Street had built all came crashing down. On average, fifty lenders a month were going bust-and the people responsible for the crisis included not just unregulated loan brokers and con artists, but also investment bankers and home loan institutions traditionally perceived as completely trustworthy. Chain of Blame chronicles this incredible disaster, with a specific focus on the players who participated in such a fundamentally flawed fiasco. In it, authors Paul Muolo and Mathew Padilla reveal the truth behind how this crisis occurred, including what individuals and institutions were doing during this critical time, and who is ultimately responsible for what happened. Discusses the latest revelations in the housing and mortgage crisis, including the SEC's charging of Angelo Mozilo Two well-regarded financial journalists familiar with the events that have taken place chronicle the crisis in detail, showing what happened as well as what lies ahead Discusses how the world's largest investment banks, homeowners, lenders, credit rating agencies, underwriters, and investors all became entangled in the subprime mess Intriguing and informative, Chain of Blame is a compelling story of greed and avarice, one in which many are responsible, but few are willing to admit their mistakes.
Forex on Five Hours a Week
A top forex trader reveals how to ease into this market and excel Trading the forex market has become one of the most popular forms of trading, mainly because of its twenty-four-hour access and the fact that there is always a bull market available in this arena. But not everyone is interested in quitting their jobs and spending all day trying to make a living trading. That's where Forex in Five Hours a Week comes in. This book shows readers how they can master a few techniques, focus their efforts on their choice of time frame, and profit in the forex market. Readers with a day job and little time to dedicate to the market will learn all they need to know to capture consistent profits
Common Sense on Mutual Funds
John C. Bogle shares his extensive insights on investing in mutual funds Since the first edition of Common Sense on Mutual Funds was published in 1999, much has changed, and no one is more aware of this than mutual fund pioneer John Bogle. Now, in this completely updated Second Edition, Bogle returns to take another critical look at the mutual fund industry and help investors navigate their way through the staggering array of investment alternatives that are available to them. Written in a straightforward and accessible style, this reliable resource examines the fundamentals of mutual fund investing in today's turbulent market environment and offers timeless advice in building an investment portfolio. Along the way, Bogle shows you how simplicity and common sense invariably trump costly complexity, and how a low cost, broadly diversified portfolio is virtually assured of outperforming the vast majority of Wall Street professionals over the long-term. Written by respected mutual fund industry legend John C. Bogle Discusses the timeless fundamentals of investing that apply in any type of market Reflects on the structural and regulatory changes in the mutual fund industry Other titles by Bogle: The Little Book of Common Sense Investing and Enough. Securing your financial future has never seemed more difficult, but you'll be a better investor for having read the Second Edition of Common Sense on Mutual Funds.
Mastering the Currency Market
Make Volatility and Risk Work for You with Forex Trading! "This book should be in every trader/investor's library. As we come out of this depressed market . . . this book can be your companion, helping you avoid mistakes and enhance your trading/investment program." -Bill M. Williams, author of Trading Chaos "Whether you're just getting started trading the world's most exciting financial market, or you're looking to add to your trading edge, [the authors] have written an engaging book packed with powerful techniques that you can use right now." -Rob Booker, trader, author, educator, and founder and host of TraderRadio.net The foreign exchange market is the largest trading market in the world, with average daily volume well into the trillions. Because the market is always characterized by high liquidity, forex traders benefit most from volatile markets-making it the ideal investment approach today and well into the future. Mastering the Currency Market is a comprehensive guide to currency and futures trading strategies and techniques for both highly volatile and nonvolatile markets. Putting to work their vast and highly diverse experience in forex trading, the authors explain how to take advantage of the many benefits of foreign exchange trading, including its low cost of entry afforded by margin, and the dynamic pricing by nature of the competitive marketplace. Mastering the Currency Market is divided into five sections covering: The basics of trading currencies Fundamental analysis of price valuation Technical analysis and trading charts Trading philosophy and psychological discipline Volatility and risk management With four decades of combined experience, the authors clearly communicate to you a trading method that will give you the confidence to both analyze markets and execute trades successfully, regardless of underlying market conditions. As 2008 introduced nightmare scenarios for investors around the world, it was Al Gaskill's most productive period of his trading career. He used the same trading methods spelled out in this book. Apply the lessons inside and you'll see profits rise during periods of high market volatility, and when the market slows down, you can downshift to countertrending methods. It's a win-win investing method, and Mastering the Currency Market leads you through it every step of the way.
Market Consistency
Achieving market consistency can be challenging, even for the most established finance practitioners. In Market Consistency: Model Calibration in Imperfect Markets, leading expert Malcolm Kemp shows readers how they can best incorporate market consistency across all disciplines. Building on the author's experience as a practitioner, writer and speaker on the topic, the book explores how risk management and related disciplines might develop as fair valuation principles become more entrenched in finance and regulatory practice. This is the only text that clearly illustrates how to calibrate risk, pricing and portfolio construction models to a market consistent level, carefully explaining in a logical sequence when and how market consistency should be used, what it means for different financial disciplines and how it can be achieved for both liquid and illiquid positions. It explains why market consistency is intrinsically difficult to achieve with certainty in some types of activities, including computation of hedging parameters, and provides solutions to even the most complex problems. The book also shows how to best mark-to-market illiquid assets and liabilities and to incorporate these valuations into solvency and other types of financial analysis; it indicates how to define and identify risk-free interest rates, even when the creditworthiness of governments is no longer undoubted; and it explores when practitioners should focus most on market consistency and when their clients or employers might have less desire for such an emphasis. Finally, the book analyses the intrinsic role of regulation and risk management within different parts of the financial services industry, identifying how and why market consistency is key to these topics, and highlights why ideal regulatory solvency approaches for long term investors like insurers and pension funds may not be the same as for other financial market participants such as banks and asset managers.
Financial Derivatives
Essential insights on the various aspects of financial derivatives If you want to understand derivatives without getting bogged down by the mathematics surrounding their pricing and valuation, Financial Derivatives is the book for you. Through in-depth insights gleaned from years of financial experience, Robert Kolb and James Overdahl clearly explain what derivatives are and how you can prudently use them within the context of your underlying business activities. Financial Derivatives introduces you to the wide range of markets for financial derivatives. This invaluable guide offers a broad overview of the different types of derivatives-futures, options, swaps, and structured products-while focusing on the principles that determine market prices. This comprehensive resource also provides a thorough introduction to financial derivatives and their importance to risk management in a corporate setting. Filled with helpful tables and charts, Financial Derivatives offers a wealth of knowledge on futures, options, swaps, financial engineering, and structured products. Discusses what derivatives are and how you can prudently implement them within the context of your underlying business activities Provides thorough coverage of financial derivatives and their role in risk management Explores financial derivatives without getting bogged down by the mathematics surrounding their pricing and valuation This informative guide will help you unlock the incredible potential of financial derivatives.
Wisdom on Value Investing
Wisdom on Value Investing offers author Gabriel Wisdom's insights on succeeding in difficult markets. One of his favorite approaches-which is part classic value investing and part behavioral finance-is called "The Fallen Angels Investment Strategy," and it prepares investors to look past short-term value assumptions in order to capture profits. Throughout this book, Wisdom will show you how to capitalize on value plays where the fundamentals are actually strong, but the "general wisdom" surrounding the security has turned negative. He discusses how stocks with the most promise are ones that Wall Street has marked down without regard to their underlying value, and reveals how this type of intrinsic value discount provides a margin of safety during difficult times, and substantial upside rewards for those who find them early enough. Takes value investing one step further by mixing significant amounts of behavioral finance into the analysis Prepares investors to take advantage of other's mistakes A time-tested strategy for any type of market-up or down A classic look at value investing with a twist, this book will put you in a better position to succeed in both bull and bear markets. Includes a Foreword by Mary Buffett and David Clark, authors of Buffettology.
Cash in on the Obama $3 Trillion Spending Plan!
This book is destined to be a big seller. With unemployment climbing through the roof, the Federal government under Obama is pouring money into the economy and its budget will exceed $3 trillion dollars. This best seller will provide your customers with a step-by-step guide to making money from both Federal and state governments and will also show them how they can qualify for grants, loans and other assistance from the government. 3,000,000,000,000...it's a big number isn't it? To spend $3 trillion dollars in a year the government must spend over $340 million per hour or $95,000 per second! In the time it takes your customer reads this book, the government will give somebody else hundreds of millions of dollars. Why don't YOU give your customers an opportunity to get some of that money? This is a sure-fire seller! A few hours invested in this book studying this proven system will help your customers' cash in on your piece of President Obama's $3 trillion pie. This amazing book is designed for the individual who wants to learn how to cash in on the government bonanza. Among the contents, it shows your customers -The regulations covering government procurement;-Describes how federal and state government buy goods and services;-Illustrates where to find opportunities; and -Provides the reader with a step-by-step guide to preparing a successful proposal and grant request (using the same techniques which the author used to obtain over $12 billion in contract awards for his clients). This best seller comes with an attractive 50% bookseller trade discount. Don't delay . . . Order this best seller today!
Foundations and Applications of the Time Value of Money
Comprehensive coverage of the time value of money In this book, authors Pamela Peterson Drake and Frank Fabozzi fully expand upon the type of time value of money (TVM) concepts usually presented as part of overviews given in other general finance books. Various TVM concepts and theories are discussed, with the authors offering many examples throughout each chapter that serve to reinforce the tools and techniques covered. Problems and detailed solutions-demonstrated using two different financial calculators, as well as Excel-are also provided at the end of each chapter, while glossary terms are provided in an appendix to familiarize you with basic terms. Provides the basic foundations of the time value of money Covers issues ranging from an introduction of financial mathematics to calculating present/future values and understanding loan amortization Contains problem/solution sets throughout, so you can test your knowledge of the topics discussed Understanding the time value of money is essential, and this reliable resource will help you gain a firm grasp of its many aspects and its real-world applications.
Interest Rate Swaps and Their Derivatives
An up-to-date look at the evolution of interest rate swaps and derivatives Interest Rate Swaps and Derivatives bridges the gap between the theory of these instruments and their actual use in day-to-day life. This comprehensive guide covers the main "rates" products, including swaps, options (cap/floors, swaptions), CMS products, and Bermudan callables. It also covers the main valuation techniques for the exotics/structured-notes area, which remains one of the most challenging parts of the market. Provides a balance of relevant theory and real-world trading instruments for rate swaps and swap derivatives Uses simple settings and illustrations to reveal key results Written by an experienced trader who has worked with swaps, options, and exotics With this book, author Amir Sadr shares his valuable insights with practitioners in the field of interest rate derivatives-from traders and marketers to those in operations.
The Meltdown Years: The Unfolding of the Global Economic Crisis
The Meltdown Yearsoffers the most lucid and useful explanation todate about why home values, life savings, jobsecurity, and investments around the worldare in peril.Rather than focus on who is to blame, though, author Wolfgang M羹nchau takes themore practical approach of focusing on what isto blame. The fact that individuals were stupid, greedy, and corrupt should come as no surprise.What's remarkable is that our world'sfinancial systems--put in place to help staveoff such a crisis--failed so miserably.What is inherently wrong with the globalmonetary system? What happened to theregulatory process? What role did the creditmarket, hedge funds, and investment banksplay? These are the types of questions onemust answer in order to truly comprehendwhat caused the meltdown and, more importantly, to understand what must be done torepair it.M羹nchau dissects the global financial system, exposing its flaws and weaknesses in thecontext of the crisis. A decidedly global perspectiveof the greatest financial crisis of ourtime, The Meltdown Years examinesThe structure of the worldbanking systemGlobal events that led tofinancial collapseThe growth of speculative bubblesThe descent from financial crisisinto full-out recessionPointing to an unstable global economicsystem as the root of the problem, theauthor predicts how long the recession willand illustrates long-term consequences ofthe meltdown."Apportioning [individual] blame for thiscrisis may be fun," M羹nchau writes, "butit is a dead-end road for anyone who seeksan understanding of what happened." AIG, Alan Greenspan, Fannie Mae, Bear Stearns...Each is portrayed as a villain responsible forthe state of the economy. In truth, the blame ismuch broader and lies much deeper.The Meltdown Years is required readingfor anyone who wants to follow the ongoingdebate about economic recovery and understandwhat the collapse means for the future offinancial capitalism.
