Finance and accounting Books

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Book SynopsisA behind-the-scenes look at the underlying roles of each player in a mergers and acquisitions transaction Mergers and Acquisitions Dealmaker explores the roles of the buyers and sellers involved in mergers and acquisitions as well as executive management, line management, and the corporate development team. Now in a second edition, this book provides readers with a behind the scenes look into the roles, approaches, and motivations of each key player in a strategic transaction, and provides strategies on building a successful team. Providing a unique insight into the various professionals that drive mergers and acquisitions, Mergers and Acquisitions Dealmakers is a valuable reference destined to become essential reading for anyone trying to understand how mergers and acquisitions actually work. Michael E.S. Frankel (Chicago, IL) is a seasoned corporate development executive with extensive experience in mergers and acquisitions, corporate strategy, and business development trTrade Review"….is an excellent reference for finance officers, with specific advise for them on all aspects of M&A.." (Accounting Today; Sept 24-Oct 7, 2007)Table of ContentsPREFACE xi CHAPTER 1 Buyers and Sellers and Their People 1 Sellers 2 Buyers 11 CHAPTER 2 Deal Player Ecosystem 31 Key Supporting Players 31 Supporting Players Interacting with the Principals 33 CHAPTER 3 Executive Management 37 What’s Their Role? 40 The People and What They Do 43 Economic Model and Their Incentives/Biases 49 Management of or Interaction with Executive Management 52 CHAPTER 4 In-House Corporate Development Staff 59 What’s Their Role? 60 The People and What They Do 76 Economic Model and Their Incentives/Biases 79 Management of or Interaction with Corporate Development Staff 80 CHAPTER 5 Line Management 85 What’s Their Role? 86 The People and What They Do 87 Economic Model and Their Incentives/Biases 92 Management of or Interaction with Line Management 95 CHAPTER 6 Board of Directors 99 What’s Their Role? 100 The People and What They Do 102 Economic Model and Their Incentives/Biases 104 Management of or Interaction with the Board of Directors 106 CHAPTER 7 Equity Holders 109 Founders 109 Public and Institutional Shareholders 117 CHAPTER 8 Private Investors 129 What’s Their Role? 131 The People and What They Do 136 Economic Model and Their Incentives/Biases 146 Management of or Interaction with Private Investors 149 CHAPTER 9 Lawyers 153 What’s Their Role? 156 The People and What They Do 165 Economic Model and Their Incentives/Biases 167 Management of or Interaction with Lawyers 168 Variations 169 CHAPTER 10 Investment Bankers 177 What’s Their Role? 177 The People and What They Do 186 Economic Model and Their Incentives/Biases 188 Management of or Interaction with Investment Bankers 191 Variations 193 CHAPTER 11 Other Advisors 199 Consultants/Auditors 199 Public Relations/Communications Firm 202 Proxy/Shareholder Services Firm 203 Financial Printers 204 CHAPTER 12 Regulators and The Press 207 Regulators 207 The Press 212 Index 217

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a huge range and FREE tracked UK delivery on ALL orders.

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Book SynopsisExamine the changing nature of foreign investments in Latin America!Generously enhanced with easy-to-understand charts, tables, and graphs, this book covers the ins and outs of foreign direct investment in the established and emerging markets of Latin America. In addition to an overview of direct investment for the entire Latin American region in the 1990s, this valuable book examines specific countriesâ experiences with FDI in that decade. These include Argentina, Chile, Mexico, Brazil, Peru, Ecuador, Paraguay, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.Spending on environmental projects is on the rise, and Latin American nations are at the forefront of this financial whirlwind in the developing world. Foreign Direct Investment in Latin America: Its Changing Nature at the Turn of the Century examines the difficulties of assessing environmental investments. It analyzes the role of international capital in Latin-American environmental issues and discusses the major pTable of ContentsContents Preface Introduction Foreign Direct Investment in Latin America in the 1990s: Old Patterns, New Trends, and Emerging Issues FDI in Argentina During the 1990s Foreign Direct Investment in Mexico and Chile: A Critical Appraisal Foreign Direct Investment in the Age of Globalization: The Case of Brazil The Increased Role of Foreign Capital in the Peruvian Financial System: 1990-1998 Internationalization of Capital in a Small and Vulnerable Economy: The Case of Ecuador Paraguay: Output Growth and Foreign Investment Foreign Direct Investment in Central America: A Comparative History of Incentives, Local-Economy Linkages, and Payment Flows International Capital and the Environment in Latin America: Preparing for the Next Century Index Reference Notes Included

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Book SynopsisEllie Franklin is Senior Lecturer in Finance at Middlesex University Business School, and has worked for Barclays and Deloitte. She is a member of the British Accounting and Finance Association, where for a number of years she was part of the Accounting Education Special Interest Group executive committee. John R. Dyson was formerly Director of Studies of the Heriot-Watt University Management Programme, Edinburgh. Contributor for Instructor's Manual: Agnes Grondin is Programme Leader, BA Business Management (Finance) at Middlesex University.

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Book SynopsisThis volume presents the latest scholarly research on the practice of public corruption. The authors explore the causes and methods of fraud-related crime, as well as how it can be detected. The book also investigates the best strategies to prevent corruption, as well as convention punishments for those convicted. Intended for criminal justice students and practitioners, Public Corruption: Regional and National Perspectives on Procurement Fraud is a valuable resource for all stages of fraud investigation.  Table of ContentsPublic CorruptionRegional and National Perspectives on Procurement FraudIntroduction. Petter Gottschalk and Perry StanislasPART I Theoretical PerspectivesChapter 1. Convenience Theory of White-Collar Crime. Petter GottschalkChapter 2. Neutralization Theory of Public Corruption. Petter GottschalkChapter 3. Public Service Motivation Theory. Michael Benson and Petter GottschalkPART II EuropeChapter 4. Public and Police Corruption in Eastern Europe. James F. AlbrechtChapter 5. Whistleblowers in Corruption Detection in Norway. Petter GottschalkChapter 6. Corruption the Noble Way. Norway. Harald RøstvikPART III Other NationsChapter 7. Governance and Public Corruption in Nigeria. Oyesoji AremuChapter 8. Corruption and Anti-Corruption in Pakistan. Fasihuddin, Imran Ahmad Sajid, Farhat UllahChapter 9. Government Corruption and Authoritarian Rule in Turkey. Hasan Arslan, Aydogan Vatandas

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Book SynopsisA properly structured financial model can provide decision makers with a powerful planning tool that helps them identify the consequences of their decisions before they are put into practice. Introduction to Financial Models for Management and Planning, Second Edition enables professionals and students to learn how to develop and use computer-based models for financial planning. This volume provides critical tools for the financial toolbox, then shows how to use them tools to build successful models.Table of ContentsAn Overview of Financial Planning and Modeling. Part I: Tools for Financial Planning and Modeling: Financial Analysis. The Tools for Financial Planning I: Financial Analysis. Appendix A: Using Names in the Excel Spreadsheet. Appendix B: Constructing a Data Table. The Tools for Financial Planning II: Growth and Cash Flows. Part II: Tools for Financial Planning and Modeling: Simulation. Financial Statement Simulation. Monte Carlo Simulation. Part III: Introduction to Forecasting Methods. Forecasting I: Time Trend Extrapolation. Forecasting II: Econometric Forecasting. Forecasting III: Smoothing Data for Forecasts. Part IV: A Closer Look at the Details of a Financial Model. Modeling Value. Modeling Long-Term Assets. Debt Financing. Modeling Working Capital Accounts. PART V: Modeling Security Prices and Investment Portfolios. Modeling Security Prices. Constructing Optimal Security Portfolios. Options. Part VI: Optimization Models. Optimization Models for Financial Planning. Planning and Managing Working Capital with LP. References. Index

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Book Synopsis'An inspiring success story.' Baroness Rona Fairhead, CBEA RINGSIDE SEAT ON SOME OF THE BIGGEST DEALS AND BIGGEST PERSONALITIES IN BUSINESS AND GLOBAL POLITICS.They are just four letters on an electronic ticker tape, but FTSE has become a byword for money, power, influence and - crucially, after numerous financial crises - trust. How this organisation, FTSE International, brought order to the financial system over several decades, is a story of how capitalism globalized and a data revolution transformed the investment industry. It is a story of how a team of innovators seized an opportunity to build a business that today leads its field and guides the fortunes of an astonishing $16 trillion of funds. It is a story that Mark Makepeace, founding Chief Executive of FTSE International, knows better than anybody.FTSE is a ringside seat on some of the biggest deals and biggest personalities in business and global politics, chronicling how the FTSE 100 was born, behind-the-scenes rows with chief executives of some of the world's largest companies, political in-fighting, diplomatic incidents, and the ferocious dealmaking that followed over 35 years of market boom and bust. 'FTSE is a story which should inform and fascinate anyone interested in capital markets.' Sir Donald Brydon, CBETrade ReviewMark Makepeace takes us on a 35-year journey from a sedentary world of top hats, long lunches and fixed commissions to a dynamic global marketplace dominated by computers and algorithms, a marketplace of infinite choice. In the process he not only tells the story of a brilliant British company that kept pace with this dizzy change but he charts the development of financial markets transformed within a generation by the forces of technology and globalization. -- John Makinson, founder of Makinson & Cowell, former CFO of Pearson, and former CEO of PenguinFTSE and Mark have had a ring-side seat for every major change in the UK stock market - and have been active players in many of the deals and mergers that have re-shaped the sector internationally. It is a fascinating story of a crucial phase in the investment landscape. -- John Ridding, CEO of the Financial Times Group and former editor of the Financial Times, AsiaFTSE is a story which should inform and fascinate anyone interested in capital markets. -- Sir Donald Brydon CBE, chairman of the Sage Group and former chairman of the London Stock Exchange GroupAn inspiring success story; how a clear vision, relentless commitment and two great British brands combined to create a global leader. -- Rona Fairhead, Baroness Fairhead CBE, former chief executive of the Financial Times Group and former Minister of State at the Department for International TradeRichly detailed, and written with an attractively light touch, bringing out personalities as well as indices, this is an important contribution to our understanding of how the modern City has developed. -- David Kynaston, social historian and author of City of London: The History and Austerity Britain 1945–1951

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Book SynopsisA RINGSIDE SEAT ON SOME OF THE BIGGEST DEALS AND BIGGEST PERSONALITIES IN BUSINESS AND GLOBAL POLITICS.They are just four letters on an electronic ticker tape, but FTSE has become a byword for money, power, influence and - crucially, after numerous financial crises - trust.How this organisation, FTSE International, brought order to the financial system over several decades, is a story of how capitalism globalized and a data revolution transformed the investment industry. It is a story of how a team of innovators seized an opportunity to build a business that today leads its field and guides the fortunes of an astonishing $16 trillion of funds. It is a story that Mark Makepeace, founding Chief Executive of FTSE International, knows better than anybody.FTSE is a ringside seat on some of the biggest deals and biggest personalities in business and global politics, chronicling how the FTSE 100 was born, behind-the-scenes rows with chief executives of some of the world's largest companies, political in-fighting, diplomatic incidents, and the ferocious dealmaking that followed over 35 years of market boom and bust.'FTSE is a story which should inform and fascinate anyone interested in capital markets.' Sir Donald Brydon, CBETrade Review"Mark Makepeace takes us on a 35-year journey from a sedentary world of top hats, long lunches and fixed commissions to a dynamic global marketplace dominated by computers and algorithms, a marketplace of infinite choice. In the process he not only tells the story of a brilliant British company that kept pace with this dizzy change but he charts the development of financial markets transformed within a generation by the forces of technology and globalization." -- John Makinson, founder of Makinson & Cowell, former CFO of Pearson, and former CEO of Penguin"FTSE and Mark have had a ring-side seat for every major change in the UK stock market - and have been active players in many of the deals and mergers that have re-shaped the sector internationally. It is a fascinating story of a crucial phase in the investment landscape." -- John Ridding, CEO of the Financial Times Group and former editor of the Financial Times, Asia"FTSE is a story which should inform and fascinate anyone interested in capital markets." -- Sir Donald Brydon CBE, chairman of the Sage Group and former chairman of the London Stock Exchange Group"An inspiring success story; how a clear vision, relentless commitment and two great British brands combined to create a global leader." -- Rona Fairhead, Baroness Fairhead CBE, former chief executive of the Financial Times Group and former Minister of State at the Department for International Trade"Richly detailed, and written with an attractively light touch, bringing out personalities as well as indices, this is an important contribution to our understanding of how the modern City has developed." -- David Kynaston, social historian and author of City of London: The History and Austerity Britain 1945–1951

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Book SynopsisThe study of decision-making in foodservice is still a relatively new area of scholarly interest. The application of cost-benefit analysis and behavioral finance and economics in the foodservice context is rare. This volume, Financial Decision-Making in the Foodservice Industry: Economic Costs and Benefits,fills that gap and focuses on cost-benefit analysis, decision-making, behavioral finance, economic theories, and their application in foodservice and restaurant industry. The volume synthesizes these major themes by developing new theoretical foundations and presenting findings from the investigation of managerial practice. The authors cover an abundance of topical issues, including ethical obligations in foodservice, sustainability issues in the foodservice/restaurant industry, farm-to-school and local food expenditures in school foodservice settings, managerial traits and behavior in the foodservice industry, and more. Trade Review“Professor Sharma’s new book on provides a welcome addition to the blossoming literature in this relatively new area of research. Our societies are becoming more complex, people’s lives more rushed, and food choices have shifted dramatically. This book captures this trend exceptionally well, with a collection of chapters that transcend research disciplines and touch on topics at macro-, meso-, and micro-level perspectives. Although the title reflects the most important focus of the book, financial decision-making, it equally reflects nonfinancial aspects of decision-making, including cultural influences, the impact of sustainability on food choices, industry structure aspects, and behavioral economics. This brings a much-needed deeper understanding of how cost-benefit analysis happens in the consumer’s mind and how consumers can be helped in making the right food choices and lead healthier lives.” —Xander D. Lub, Professor of Hospitality Management and Experience Design, Academy of Hotel & Facility Management, Breda University of Applied Sciences, Netherlands“Professor Sharma’s book takes a deeper dive into financial decision-making in foodservice. Each chapter presents important topics ranging from ethics, sustainability, food safety, nutrition, trends, local foods, and leadership needs applicable for today’s foodservice enterprise. This book opens up a needed discussion on the bundle of needs, values, and outcomes that drive decision-making and, ultimately, survival of a foodservice operation in the food ecosystem. This approach pushes the boundaries beyond traditional notions of cost control-based decisions and outdated definitions of foodservice.” —Robert J. Harrington, Professor and Associate Director, School of Hospitality Business Management, Washington State UniversityTable of Contents1. Consumer Agency and the Ethical Obligations of Food Service Providers in an Era of Cheap Food, Racial Inequality, and Neoliberal Governance 2. To Be Green or Not to Be Green: Costs and Benefits Related to Sustainability Decision-Making in the Restaurant Industry 3. Food Safety: Integrating Behavior Change and Motivation Design 4. Promoting More Sustainable Consumers Decisions in Foodservice Settings: Effectiveness of the “Nudges” Approach 5. Nutritional Status of Children Participating in the Supplementary Nutritional Programme (SNP) and Mothers’ Perceptions of Services Provided 6. Foodservice Employees’ Knowledge of Healthy Alternative Meals Based on Out-of-Home Eating Trends in South Africa 7. The Impact of Farm-to-School and Local Food Expenditures on School Foodservice Revenues 8. The Influence of Managerial Traits and Behavior in the Foodservice Industry 9. U. S. Trends in Food Away from Home 10. Processing Fluency: An Approach to Look for Nudge Interventions 11. Cost-Benefit Assessment of Local Foods in Independent Restaurants 12. The Tradeoff Model: An Agency Perspective to Understanding the Process of Everyday Food Choice Transactions

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Book SynopsisLassen sich gute Aktien finden oder sind ETFs das Mittel der Wahl? Nützen nachhaltige Fonds? Warum liefert die Finanzindustrie so viele teure Eskapaden und so wenig gute Ergebnisse? Können technischer Fortschritt und die Dominanz der USA die Börsengewinne noch einmal steigern? Wie kann man Vermögen dauerhaft sichern: Mit KI oder gesundem Menschenverstand? Bei all diesen Fragen zeigt die Praxis: Auch Finanzprofis machen Fehler, die sich psychologisch beschreiben lassen und nachhaltigen Erfolg verhindern. Wissenslücken und falsche Anreize erledigen den Rest. Die Folgen: Unnötige Kosten, Verluste und Risiken. Wir können Banken und Vermögensverwalter, die für uns arbeiten, überwachen und auch unsere eigenen Finanzentscheidungen besser verstehen. Um Vermögen effektiv anzulegen brauchen wir tiefere Einblicke in die Funktionsweise der Kapitalmärkte, die Praxis der professionellen Geldanlage und in uns selbst! Wir müssen uns gerade vor denjenigen Kapitalfehlern schützen, die sog

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Book SynopsisWenn Sie Controller sind, verbringen Sie mit Excel viele, viele Stunden. Dieses Buch zeigt Ihnen, wie Sie Excel professionell einsetzen. Lernen Sie, wie Sie Pivot-Tabellen und -Charts erstellen, wie Sie Daten importieren oder exportieren, wie Sie Diagramme erstellen und wie Sie wichtige Excel-Formeln anwenden. Mit diesem Buch sind Planung, Budgetierung und Vorschaurechnung viel leichter und schneller erledigt. Sie werden Excel lieben!Table of ContentsEinführung 15 Über dieses Buch 15 Wie Sie dieses Buch lesen 16 Was Sie nicht lesen müssen 16 Törichte Annahmen über den Leser 16 Wie dieses Buch aufgebaut ist 16 Teil I: Excel-Basics für Planung, Reporting und Analyse 17 Teil II: Analyse, Reporting und Dashboard 17 Teil III: Planung, Budetierung und Forecasting 17 Teil IV: Strategisches Controlling 17 Teil V: Der Top-Ten-Teil 17 Konventionen in diesem Buch 17 Symbole, die in diesem Buch verwendet werden 18 Wie es weitergeht 18 Teil I: Excel-Basics für Planung, Reporting und Analyse 19 Kapitel 1 Controlling und Excel – geschaffen füreinander 21 Die Erfolgsgeschichte 21 Für welches Problem das richtige Werkzeug? 22 Die Grenzen von Excel 25 Die »sieben Todsünden« und was man dagegen machen kann 26 Ein Spreadsheet auf die Schnelle 26 Überladen von Excel 28 Wenn Referenzen ins Leere führen ... 29 Excel als Datenbank 31 Excel als Kollaborationswerkzeug 31 Kopieren ohne System 32 Makros first 37 Makros – im Zweifelsfall ohne 37 Aufzeichnen von Makros 38 Die Makro-Analyse 40 Ein wenig VBA 42 Die Worksheet-Funktionen 46 Kapitel 2 Die Jahre kommen und gehen – Excel bleibt 51 Excel 2007 51 Excel 2010 54 Excel 2013, 2016 und 2019 57 Apps und Add-Ins 63 Unterschiedliche Excel-Versionen 65 Datenbankunterstützung – der Turbolader für Excel 66 Teil II: Analyse, Reporting und Dashboards 67 Kapitel 3 Druckbetankung: Das Füllen von Excel mit externen Daten 69 Die Importmöglichkeiten 69 Textdateien 70 ODBC 77 Datenexport 86 Kapitel 4 Datenfriedhöfe vermeiden: Aus Rohdaten verständliche Übersichten erstellen 87 Die Ausgangsbasis: Ungeordnete Datenmengen 87 Filtern, Gruppieren, Gliedern und mehr: Den Fokus auf das Wesentliche legen 88 Filtern 88 Gruppieren 91 Die Renner- und Penner-Liste 93 Aggregieren der Informationen 94 Sortieren der Daten 95 Selektieren 97 Veranschaulichen der Ergebnisse mit dynamischen Diagrammen 98 Die ABC-Analyse: Der Blick auf das Wesentliche 101 Die Ampelliste: Bedingte Formatierung 103 Vordefinierte Symbole 105 Beispiel Wettbewerbsvergleich 105 Darstellung mit Grafiken 107 Manuelle Erstellung der bedingten Formatierung 107 Kapitel 5 Stufe um Stufe: Die Deckungsbeitragsrechnung 111 Das Arbeiten mit Deckungsbeiträgen 111 Wo lohnt sich’s: Deckungsbeitragsstufen 112 Die Datenbefüllung 113 Noch etwas mehr Dynamik 116 Vom »Slicen« und »Dicen«: Die Deckungsbeitragsrechnung als Pivot-Tabelle 117 Von 0 auf 100 – Pivot-Tabellen auf Datenbanktabellen 118 Rechnen in Pivot-Tabellen 123 Unsinnige Berechnungen 129 Noch mehr Komfort: Eingebaute Berechnungen 132 Formatierungen 136 Renner oder Penner – Top- und Flop-Listen 138 Pivot-Tabellen und tagesgenaue Daten 142 Das neue Referenzieren 146 Pivot-Grafiken erstellen 149 Ins Detail: Drill-down 150 Tabellen mit Excel verbinden 153 Kapitel 6 Jenseits von Pivot: Die Cube-Funktionen und PowerPivot 159 Die Analysis Services in Excel 159 Was wäre, wenn … 164 Rechnen und Gruppieren mit den Analysis Services 166 Zelle für Zelle – die Cube-Funktionen 170 Nicht mal eine Pause im Flieger – die Offline-Funktion 177 Und es geht noch besser – PowerPivot 181 Arbeiten mit mehreren Tabellen 187 DAX 190 Exkurs: Installation des Analysis-Würfels 191 Kapitel 7 Statt 1000 Worten: Diagramme richtig genutzt 199 Ganz einfach: Das erste Liniendiagramm 199 Kombination aus Balken- und Liniendiagrammen 201 Dynamische Grafiken 203 Gar nicht so einfach: Wasserfalldiagramme 208 Sunburst und Treemap 213 Und noch einer: Portfolio-Diagramme 215 Kapitel 8 In der Kürze liegt die Würze: Das Dashboard 225 Man nehme einfach ein Dashboard 225 Ihr Dashboard 228 Drill-through 232 Und Excel kann es doch: Tachografiken 239 Mehr Arbeitsblatt-Ökonomie: Sparklines 248 Integration in PowerPoint 250 Teil III: Planung, Budetierung und Forecasting 255 Kapitel 9 Cash is not everything but … Planung der Finanzen 257 Integrierte Erfolgs- und Finanzplanung 257 Der Cashflow 258 Zusammenhang zwischen Finanzflussrechnung, GuV und Bilanz 258 Die Gewinn-und-Verlust-Rechnung 260 Die Bewegungsbilanz 264 Die Finanzflussrechnung 266 Verknüpfung von GuV, Bilanz und Finanzflussrechnung 269 Ableitung von Zahlungsströmen aus GuV und Bilanz mittels Geldwerdungsfaktoren 271 Economic Value Added:Unternehmenswertorientierte Planung 276 Hierarchische Struktur dank Werttreiberbäumen 276 Verwendung von Referenzfunktionen und Namen 279 Ganz schön komfortabel: Schieberegler 282 Kapitel 10 Geld rein und wieder raus: Investition und Finanzierung 287 Rechnet sich das? Investitionsplanung 287 Die Break-even-Analyse: Zukunft mit Perspektive 287 Der Break-even-Punkt 288 Welcher Break-even-Punkt bei welchem Preis? 288 Die Investitionsfunktionen 292 Abschreibungen und (kalkulatorische) Zinsen für die Planung 296 Die lineare Abschreibung 296 Die degressive Abschreibung 297 Übergang von der degressiven zur linearen Abschreibung 297 Erstellen eines Plan-Anlagenspiegels 299 Finanzierung 302 Funktionen zur Finanzierung in Excel 302 Annuitätenrechnung mit Rückzahlungsplan 303 Kapitel 11 So budgetieren Sie richtig 307 Excel und das verteilte Budgetieren – immer wieder eine Herausforderung 307 Der Budgetierungsprozess: Top-down und wieder zurück 308 Erstellung von Budgetmasken: Woher kommt die Ausgangsbasis? 309 Ermittlung des voraussichtlichen Jahresendwerts 315 Erstellung von Planungshilfen 317 Wie kriege ich’s verteilt? So gelangen die Arbeitsmappen zu den Planern 326 Wie kriege ich’s wieder zusammen? Die Konsolidierung der Ergebnisse 329 Kapitel 12 Die Kosten im Griff: Betriebsabrechnungsbogen und Soll-Ist-Vergleich 335 Aufbau eines Betriebsabrechnungsbogens mit Excel 335 Umlage und Leistungsverrechnung 339 Das Problem der zyklischen Umlage 341 Es wird ernst: Der Soll-Ist-Vergleich 344 Der Soll-Ist-Vergleich als Grafik 349 Kapitel 13 Vorschaurechnungen – verstehen, was kommen könnte 359 Arbeit sparen: Die Trendfunktionen 359 Jeden Monat aufs Neue: Rollierende Berichte 364 Die Logik des Rollierens 364 Die Datenbasis 365 Mal wieder Datenaufbereitung 366 Speichern von Daten 370 Analyse des Forecasts 373 Teil IV: Strategisches Controlling 377 Kapitel 14 (Strategische) Pläne werden Realität: mit der Balanced Scorecard 379 Mehr als nur Kennzahlen: Das BSC-Reporting 380 Wie erreiche ich das Ziel? Die strategische Landkarte 388 Drill-through in die Details 395 Kapitel 15 Den Überblick behalten: Strategische Projektrechnungen 399 Mehrjahresplanung 399 Projektplanung 407 Multiprojektplanung 409 Projektfinanzierung 412 Wertorientierte Kalkulationen 414 Simulationsvergleiche 415 Kapitel 16 Planung intensiv: Simulieren und Optimieren 419 Der Szenario-Manager 419 Zielwertsuche 423 Der Solver 425 Was alles schiefgehen kann: Die Monte-Carlo-Simulation 432 Teil V: Der Top-Ten-Teil 443 Kapitel 17 Die zehn häufigsten Controller-Fragen 445 Ist die neueste Version immer die beste? 445 Muss ich alle Funktionen beherrschen? 445 Wie vermeide ich, dass meine Excel-Sheets im Lauf der Zeit immerkomplexer werden? 446 Wie vermeide ich fehlerhafte Berechnungen? 446 Was habe ich da eigentlich vor einigen Wochen gemacht? 446 Kann ich Excel auch mobil einsetzen? 447 Wie arbeite ich am besten mit Excel im Team? 447 Wie werde ich in Excel besser? 447 Löse ich mein Problem mit Excel oder besser mit anderen Programmen? 447 Wo bekomme ich Hilfe, wenn das Buch einmal nicht weiterhilft? 448 Stichwortverzeichnis 449

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Book SynopsisWie funktioniert eigentlich eine Börse und vor allem: Wie kann ich sie als Otto Normalverbraucher nutzen, um mein Erspartes zu vermehren? Dr. Christine Bortenlänger, Geschäftsführender Vorstand des Deutschen Aktieninstituts, und Ulrich Kirstein, Pressereferent der Bayerische Börse AG, erklären in diesem Buch Grundlegendes zu Angebot und Nachfrage an der Börse und stellen die unterschiedlichen Anlageformen vor: Aktien, Derivate, Zertifikate, festverzinsliche Wertpapiere, Fonds & Co. Sie zeigen, wo Sie sich die nötigen Informationen beschaffen können, um eine kluge Anlagestrategie zu entwickeln, die je nach Risikobereitschaft ganz unterschiedlich aussehen kann.Table of ContentsÜber die Autoren 7 Dr Christine Bortenlänger 7 Ulrich Kirstein 7 Einführung 23 Über dieses Buch 23 Konventionen in diesem Buch 25 Was Sie nicht lesen müssen 25 Törichte Annahmen über den Leser 26 Wie dieses Buch aufgebaut ist 26 Teil I: Börse, Kurse und ich – eine Analyse zum Start 26 Teil II: Aktien, Derivate, Zertifikate & Co. 27 Teil III: Festverzinsliche Wertpapiere – Kursschwankungen nicht ausgeschlossen 27 Teil IV: Investmentfonds für jeden Anleger – ein Kessel Buntes 27 Teil V: Mit den richtigen Informationen zur erfolgreichen Strategie 27 Teil VI: Der Top-Ten-Teil 28 Symbole, die in diesem Buch verwendet werden 28 Wie es weitergeht 28 Teil I: Börse, Kurse und ich – eine Analyse zum Start 29 Kapitel 1 Wo sich Angebot und Nachfrage begegnen 31 Wie alles begann: Börsen als Marktplätze 32 Von Tulpenzwiebeln zum Internet 32 Jacke wie Hose, Hauptsache, Geld im Sack 33 Ohne Aktiengesellschaften war’s langweilig 33 Erholung und Wirtschaftswunder 35 Organisation ist Trumpf 35 Wie Börsen heute funktionieren 37 Von der Präsenzbörse zum Computerhandel 37 Kennzeichen einer Wertpapierbörse 37 Spielen Sie die Börsen aus, zu Ihrem Vorteil! 39 Hauptstadtallüren 39 Nordlichter 40 Neu im Dreigestirn 40 Münchner Kindl 41 Schwäbische Sparfüchse 41 Youngster mit Börsenreife 42 Schweizer Käse 42 Händler an der Börse 42 Ausgemakelt 43 Leere Taschen bei ruhiger Börse 44 Wie es im Buch steht 45 Fein sortiert in Segmenten: das Börsengesetz 45 Wir sind so frei 46 Jedes Segmentchen will sein Quäntchen 46 Kurse und wie sie entstehen 47 Übersetzen aus dem Fachchinesischen 48 Gesetzliche Bestimmungen und Aufsicht 50 Wie es auch ohne Börse funktionieren kann 51 Aktien kaufen, bevor sie an der Börse notieren 53 Von Schweinehälften, Strom und edlen Metallen 54 Börsen nicht nur für Wertpapiere 54 Mit der Zeit handeln 55 Mit Umweltschutz verdienen (Emissionshandel) 56 Voll unter Strom 57 Vater Staat immer dabei 57 Börsen als Unternehmen 57 Aktien an und von einer Börse 58 Groß, größer, am größten: internationaler Wettbewerb 58 Indizes als Fieberkurve 59 Je besser die Wirtschaft, je höher der Index 60 Punkte sammeln 61 Tierisches 62 Kapitel 2 Kurse in Bewegung 63 Zwischen Hoch und Tief 63 Auf und nieder, immer wieder … 64 »Alles andere ist Psychologie« 65 Konkurrenz belebt das Geschäft 66 Bullen und Bären unterwegs 66 Von Trendsettern und denen, die gegen den Strom schwimmen 67 Kein Bärendienst: der Bärenmarkt 68 Das alte Spiel: Angebot und Nachfrage 69 Hörst du das Gras wachsen? 69 Wir sind alle nur Menschen 70 Nur eins steht fest: der Wandel 71 Märkte verändern sich 72 Manche reagieren früh, andere später 72 Und bist du nicht willig … 74 Lesen bildet 74 Den Kurs im Auge 76 Politik mit Einfluss 77 Spekuliere nie gegen die Zentralbank 78 Psychofallen überall 80 »Behavioral Finance« auf dem Vormarsch 80 »The trend is your friend« 83 Zeit für das richtige Timing 84 Kapitel 3 Die Börse steht kopf – Einmal Krise, immer Krise 87 Vom Traumhaus zum Albtraum – oder wie Schulden schön verpackt wurden 88 Geschäft mit Miesen 88 Banken leihen mehr aus, als sie haben 89 Lehman oder das Kartenhaus wackelt 90 Schuldenberg 90 Trennung mit Verlust 92 Der Staat als Bankenretter 93 USA – Verstaatlichung statt reinem Kapitalismus 94 Deutschland – Garantie für Sparer und Anleihe bei Marx 94 Quer durch Europa – von Bankpleiten zu Staatspleiten 95 Vom Boom in die Krise – den Unternehmen laufen die Kunden weg 96 Rasende Talfahrt 97 Verhoben 98 Börsenfieber 99 Gießkannen im Ausverkauf – Konjunkturpakete massenweise 100 Internationaler Paketdienst 101 Deutsches Postpaket 101 Einmal Kohle, immer Kohle 102 1929–2009: was uns die Vergangenheit über die Zukunft sagt 102 Krisenlehre 105 Kann man Krisen eigentlich wegregulieren? 106 Kapitel 4 Wer bin ich – und wie komme ich am besten zu Wohlstand und Vermögen? 109 Gewinnstreben ist menschlich – Psychologie des Geldes 110 Wer ist der geborene Aktionär? 110 Wer legt das Geld lieber unter die Matratze? 111 Ist das nicht alles furchtbar kompliziert? 112 Von guten und von schlechten Dingen 113 Gier macht blind 113 Keine Panik auf dem Parkett 114 Seltene Philanthropen 115 Ein gutes Gewissen – mehr als ein gutes Ruhekissen 116 Spare in der Zeit, so hast du in der Not 117 Private Altersvorsorge muss sein 117 Eine Frage des Typs – Wer bin ich? 118 Anlegertypen im Vergleich 118 Vorsicht ist die Mutter der Porzellankiste (Anlegertyp 1) 119 Echt cool, Mann (Anlegertyp 2) 120 Ohne Furcht und Zagen (Anlegertyp 3) 120 Blick in die Zukunft – Ziele müssen sein 120 Erst denken, dann handeln 121 Alles Aktien oder was? 121 Zerstreuter Anleger 122 Nie auf Pump! 122 Die Gretchenfrage – Wie hältst du’s mit dem Risiko? 123 Make or buy – Muss ich mich um alles selbst kümmern? 123 Nicht verzagen – ja wen denn fragen? 124 Teil II: Aktien, Derivate, Zertifikate & Co. 125 Kapitel 5 Aktien – Königsklasse des Kapitalmarkts 127 Als Unternehmer direkt oder still beteiligt 128 Reiche Artenvielfalt 128 Das Grundkapital 128 Die Dividende: Gewinnbeteiligung im Cent-Bereich 129 Mitwirkung möglich! Stammaktien 129 Wirklich bevorzugt? Vorzugsaktien 130 Die Inhaberaktie: Eigentum verpflichtet – aber zu was? 131 Die Aktie gehört mir! Namensaktien 131 ’ne Aktie für ’nen Euro: Nennwertaktien 132 Anteil in Prozenten: nennwertlose Stückaktien 132 Aktionärsrechte 133 Nicht nur Würstchen bei der Hauptversammlung 134 Mehr Aktien im Spiel 134 Ohne Moos nix los – Neuemissionen 135 Kursgewinn schon am ersten Tag 138 Der erste Börsenpreis 140 Mit zusätzlichem Geld durchstarten – Kapitalerhöhung 140 Aus eins mach mehr: der Aktiensplit 142 Fusionen und Übernahmen 143 Wenn Aktionäre von Bord gehen 144 Neue Eigentümer räumen auf 146 Abschied von der Börse 147 Aktien aller Art 149 Rund um die Welt 150 Anlegen mit Genuss: Genussscheine 151 Märkte und Branchen 153 Auch an der Börse menschelt es 154 Aktien kaufen – aber wie? 155 Ohne Depot geht nix 155 Okay, ich brauche ein Depot, aber wo? 155 Nicht nur die Aktie selbst will bezahlt sein 156 Anruf genügt 157 Kapitel 6 Derivate: nur für Profis 159 Abgeleitete Instrumente und ihre Möglichkeiten 159 Bunte Vielfalt mit und ohne Hebel 160 Wenn die Chemie stimmt 161 Zum sanften Start: Warrants 162 Und wie viel ist es wert? 162 Soll ich oder soll ich nicht, soll ich … 163 Mal kurz, mal lang: Optionen 163 Moneyness bei Optionsscheinen 165 Moneyness bei Call-Optionen 166 Moneyness bei Put-Option 166 Und wie viel ist es wert? 167 Futures – die Wette gilt 167 Wer nicht wagt, der nicht gewinnt 168 Und wie viel ist es wert? 168 Hebelwirkung – aus wenig wird viel (leider auch umgekehrt) 169 Auf der Spur der Griechen 170 Portfolio-Grundregeln 171 Kapitel 7 Zertifikate: im Hintergrund die Bank 173 Zertifikate-Dschungel 173 Boomender Markt eines neuen Produkts 175 Wie Zertifikate funktionieren 177 In Sekunden an der Börse 178 Für jeden etwas dabei 178 Im Zertifikate-Dschungel unterwegs 179 Ganze Märkte im Programm (Indexzertifikate) 179 Garantiert ohne Verlust (Garantiezertifikate) 181 Strukturiert unstrukturiert – strukturierte Anleihen 181 Was ins Körbchen gehört (Themen- und Basketzertifikate) 182 Aktien & Co mit Rabatt (Discountzertifikate) 182 Mit Risikopuffer (Bonuszertifikate) 183 Und dann noch Spezialzertifikate 184 1, 2, 3 und los 184 Gipfelstürmer 185 Eine Chance pro Jahr 185 Schnell ausgezählt – Knock-out-Zertifikate 185 Nicht nur aus Brehms Tierleben 186 Teil III: Festverzinsliche Wertpapiere – Kursschwankungen nicht ausgeschlossen 187 Kapitel 8 Das Geld zum »Leiharbeiter« machen 189 Wenn die Einnahmen von Unternehmen oder Staaten nicht reichen 190 Ich habe etwas Geld übrig und könnte es verleihen 190 Aber dafür möchte ich schon etwas sehen 190 Wer will mein Geld? 191 Und Zinsen will ich auch 192 Wiedersehen macht Freude – auch beim Geld 192 »Fresh money« für den Staatshaushalt (Bundeswertpapiere) 194 Auf Nummer sicher – Bundesanleihen 195 Serienweise anlegen – Bundesobligationen 196 Zur Sache, Schätzchen 197 Zwischen Argentinien und Zaire (internationale Staatsanleihen) 198 Auf dem Sprung (Emerging Markets) 199 Besser als Geld von der Bank (Unternehmensanleihen) 201 Dreimal A 202 Im Wandel liegt die Kraft 202 Firmenzins in fremder Währung 202 Die Katze im Sack: Aktienanleihen 203 Zins und mehr – Wie finde ich das richtige Papier? 203 Mal fest, mal in Stufen 205 Am Tropf der Marktzinsen: Floater 205 Blitzstart oder starkes Finish (auf- und abgezinst) 206 Sicher ist sicher – Regulierung statt Anlegerschutz 206 Portfolio-Grundregeln 208 Kapitel 9 Steigende Zinsen, sinkende Kurse 209 Heilloses Durcheinander (Zinsen und Kurse) 209 Aktien und Zinsen? 210 Notenbanken und ihre Zinspolitik 211 Wer ist denn der Leithammel? 212 Wer ist der Leitwolf? 213 Zwischen Konjunktur und Staatsverschuldung 214 Die Rolle der Staatsverschuldung 215 Zinstrends und ihre Auswirkungen 216 Zinskopfstand 216 Niedrigzinsphase 218 Nicht ohne meinen Taschenrechner (schwierige Renditeberechnung) 218 Dauerbrenner: Kontensparformen 219 Nominell und effektiv 219 Stückzinsen auf den Tag genau 220 Auch Anleihen schwanken 221 Triple A – die Königsklasse (Rating als Orientierung) 222 Nicht nur billig in den Urlaub – wie sich Währungsschwankungen auswirken 223 Teil IV: Investmentfonds für jeden Anleger – ein Kessel Buntes 225 Kapitel 10 Fonds: das Rundum-sorglos-Paket? 227 Faszinierende Fondsidee 227 Die richtige Wahl 228 Wer legt Fonds auf? 228 Wo gibt’s Fonds zu kaufen? 230 Auf dem Parkett gibt’s nicht nur Aktien 230 Und nun ans Eingemachte 231 Was ist Ihr Fonds gerade wert? 232 Die Guten ins Töpfchen 232 Was macht eigentlich ein Fondsmanager und wer beurteilt ihn? 233 Wann gibt’s denn Geld aus dem Fonds? 233 Sammeln in der ganzen Welt 234 Eine Zulassung gehört dazu (Fondszulassung und Aufsicht) 235 Artenvielfalt – die Fondstypen von A bis Z 237 Aktienfonds 237 Branchenfonds 238 Dachfonds 238 Garantiefonds 239 Geldmarktfonds 239 Geschlossene Fonds 239 Hedgefonds 240 Immobilienfonds 242 Indexfonds 243 Länderfonds 243 Laufzeitfonds 244 Nachhaltigkeitsfonds 244 Mischfonds 245 Offene Fonds (Publikumsfonds) 245 Rentenfonds 246 Total-Return-Fonds und Absolute-Return-Fonds 246 Währungsfonds 246 Zertifikatefonds 247 Zielsparfonds 247 Fonds oder nicht Fonds 248 Kapitel 11 Strukturiert vorgehen, Kosten sparen, Rendite steigern 249 Planung ist (fast) alles 249 Wie Fondssparpläne funktionieren 250 Geliebter Durchschnitt (Cost Average) 251 Der Staat hilft mit 252 Fürs Alter sorgen 252 Gemischt erfolgreich – AS-Fonds 253 Lebenslang – die Riester-Rente 253 Mit der Versicherung im Rücken – Fonds-Policen 254 Wieder ans Geld kommen 255 Ungeliebte Aufschläge 255 Ausgabeaufschlag 255 Managementgebühr 256 Depotkosten 256 Auch ohne Zusatzkosten 256 Discountbroker und Direktbanken 256 Fondsvermittler 258 Fondshandel an der Börse 258 ETFs: echt oder synthetisch? 259 ETCs: warum nicht auf Öl setzen? 260 Smarte Neuheiten 260 Pro und kontra ETFs 261 Bewährtes bleibt beliebt 262 Ratings und Rankings 262 Faire Vergleichsmöglichkeiten für Anleger 263 Portfolio-Grundregeln 264 Teil V: Mit den richtigen Informationen zur erfolgreichen Strategie 265 Kapitel 12 Viele Informationen, viele Möglichkeiten 267 Auf der Jagd nach Gelegenheiten 267 Von der Brieftaube zum Internet 268 Tägliches Blättern – Zeitungen 269 Manchmal auch hintergründig – Zeitschriften und Magazine 269 Flair der großen Welt – internationale Medien 272 Am Heim-PC 273 Blogs – auf Du und Du 276 Seriös – aber teuer 278 Vor der Glotze – Börsenmagazine im TV 278 Klingt persönlich – Börsenbriefe 279 Börsengeflüster 280 Fundiert: die Wirtschaftswissenschaft 281 Zugedeckelt: Bücher 282 Informationen als Rohstoff 283 Nur für Aktionäre 283 Verständliche News 284 Nicht ohne Hintergedanken 285 Verbände und Verbraucherschutzorganisationen 286 Die Schutzgemeinschaft der Kapitalanleger e V (SdK) 286 Die Deutsche Schutzvereinigung für Wertpapierbesitz (DSW) 287 Der Dachverband der kritischen Aktionärinnen und Aktionäre 287 Verbände rund um Aktien, Derivate oder Fonds 287 Kapitel 13 Alles drin: Indizes für Märkte, Branchen und Ideen 289 Im Index-Dschungel 290 Der DAX und seine Brüder 292 Gewichtige Probleme 294 Wundersame DAX-Vermehrung 296 In Europa und der ganzen Welt 301 Good old America 301 Nicht immer gewinnt der Bessere 303 Willkommen im Kapitalismus 303 Ein Index für die ganze Welt 304 Unübersichtliche Vielzahl 305 Mit Strategie oder Rohstoffen – die Deutsche Börse baut Indizes 306 Wer nicht zahlen will, baut sich lieber selber einen 307 Die Schwankungen messen, Index für die Achterbahn 307 Renten wollen auch in den Index 307 Auch ein gutes Gewissen braucht Orientierung 308 Es geht noch exotischer 308 Schwergewichte können täuschen 309 Index ist nicht gleich Index – wie ein Index gebaut wird 309 Regular Exit 40/40 310 Regular Entry 30/30 310 Fast Exit 45/45 310 Fast Entry 25/25 310 Von gewichtig bis unwichtig 311 Kapitel 14 Statt des Blicks in die Kristallkugel: Analyse von Kursen und Entwicklungen 313 Mal so, mal so 314 Fundamentalanalyse zum Start 315 Sehen wir’s global 315 Schauen wir erst mal auf die Konjunktur 316 Die Wellen der Konjunktur 316 Die Zinsen dürfen wir auch nicht aus den Augen verlieren 317 Investieren in die Zukunft und neue Mitarbeiter 317 Der Nachbar von nebenan hat auch Einfluss 318 Und das Ausland redet auch noch mit 318 Ran an die Aktien(bewertung) 319 Wie viel wirft das Unternehmen ab? 319 Hat das Unternehmen Substanz? 319 Welche Daten wichtig sind 320 Ziehen wir Bilanz 320 Und rechnen wir den Gewinn und den Verlust aus 322 Methodenkritik 326 Chartanalyse – wenn die Kurse Widerstand bieten 327 Wie überall: Was sagt der Trend? 327 Was Charles Dow und Murphy verbindet 328 Charts en gros 329 Hilfreiche Hilfslinien 330 Bekannte, bewährte Muster 333 Große Welle: die Elliott-Wave-Theorie 334 Schön aufgereiht nach Fibonacci 335 Methodenkritik 336 Markttechnische Analyse – mit Formeln zum Ziel 337 Dürfen es ein paar Indikatoren mehr sein? 337 Gleitende Durchschnitte 338 Average Directional Movement Index oder ADX 338 Verschaukelt? 338 Methodenkritik 339 Einzelanalyse – Quantität und Qualität 339 Wenn die Kurse schwanken – Volatilität 339 Alpha, Beta – Beta-Faktor 340 Welche Informationen wichtig sind 340 Taschenrechner, Kopf oder Bauch? 341 Kapitel 15 Immer schön strategisch vorgehen – Anlagestrategien im Überblick 343 Verschiedene Wege zum Ziel 344 Zwischen Sicherheit und Wachstum 345 Von Terrasse zu Terrasse oder der römische Brunnen 347 Zeit ist Geld 348 Die Mischung macht’s 349 Aktiv oder passiv 350 Strategen an die Front 351 Fragen Sie einen Fachmann 352 Hin und Her macht Taschen leer 353 Dividendenstrategie 355 Stur nach Schema F 355 Die Dividendenstrategie auf dem Prüfstand 356 Momentumstrategie 358 Die Momentumformel 359 Momentum in der Kritik 360 Gegen die Masse anlegen 360 Die Umkehrstrategie auf dem Prüfstand 361 Strategischer Wirrwarr 362 Teil VI: Der Top-Ten-Teil 363 Kapitel 16 Zehn Börsenweisheiten, die zwar oft, aber leider nicht immer stimmen 365 Regel 1: Verlieren Sie nie Ihren gesunden Menschenverstand! 365 Regel 2: The trend is your friend 365 Regel 3: Hin und Her macht Taschen leer 366 Regel 4: Nicht alle Eier in einen Korb legen 366 Regel 5: Verluste begrenzen und Gewinne laufen lassen 366 Regel 6: Kaufen, wenn die Kanonen donnern 366 Regel 7: Greife nie in ein fallendes Messer 367 Regel 8: Die Hausse nährt die Hausse 367 Regel 9: Die Hausse stirbt mit der Euphorie 367 Regel 10: Sell in May and go away 368 Kapitel 17 Zehn Psychofehler an der Börse, die Geld kosten können 369 Gier 369 Angst 369 Selbstüberschätzung 370 Trotzreaktion 370 Vogel-Strauß-Prinzip 370 Ungeduld 370 Wahrnehmungsknick 370 Aldi-Reflex 371 Rosa Brille 371 Heimatliebe 371 Kapitel 18 Vorsicht! Guru am Werk 373 André Kostolany 374 Warren Edward Buffett 374 Bernard M Baruch 375 Peter Lynch 376 Sir John Templeton 376 George Soros 377 Roland Leuschel 377 Heiko Thieme 378 Wolfgang Gerke 379 Gurus schriftlich 379 Kapitel 19 Zehn Aspekte, die Anleger in puncto Steuer immer beachten sollten 381 Zur Quelle 381 Simpel 382 Gnadenfrist 382 Grundlage 382 Auf den Paragrafen genau 382 Fondsallerlei 383 Verluste 383 Fürs Alter 383 Nicht allein 383 Besser oder nicht? 384 Stichwortverzeichnis 385

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Book SynopsisMit dem richtigen Mindset und dem nötigen Wissen können auch Sie reich werden. Beides vermittelt Ihnen dieses Buch. Es unterstützt Sie dabei, Macher-Qualitäten zu entwickeln, Chancen zu bewerten, kalkulierbare Risiken einzugehen und dann Ihr Geld für sich arbeiten zu lassen. Und es macht Sie schlau zu gewinnträchtigen Investment-Möglichkeiten: Immobilien, Aktien, Sachwerte, Kryptowährungen und Co. Erfahren Sie, wie Sie mit »Betongold« Geld machen können und wie Sie mithilfe der Technischen Analyse und der Fundamentalanalyse renditestarke Aktien kaufen. Entwickeln Sie Ihre persönliche Reichmach-Strategie!Table of ContentsÜber die Autoren 19 Einführung 21 Über dieses Buch 21 Konventionen in diesem Buch 22 Was Sie nicht lesen müssen 22 Törichte Annahmen über unsere Leser 23 Wie dieses Buch aufgebaut ist 23 Teil I: Das richtige Mindset: Nur wer denkt wie ein Millionär, kann auch einer werden 23 Teil II: Weichenstellung für Ihren Weg zum Reichtum 24 Teil III: Kalkulierbare Formen der Geldanlage: wo Ihr Geld am besten für Sie arbeitet 25 Teil IV: Ihr Weg zum Reichtum: So investieren Sie erfolgreich in Aktien und Co 26 Teil V: Das Beste aus beiden Welten – unsere Reichmach-Strategie 27 Teil VI: Der Top-Ten- Teil 27 Symbole, die wir in diesem Buch verwendet haben 27 Wie es weitergeht 28 Teil I: Das richtige Mindset: Nur wer denkt wie ein Millionär, kann auch einer werden 29 Kapitel 1 Viele Wege führen zum Reichtum 31 Zufallswege: Lotto, Toto, Rennquintett und andere Glücksspiele 32 Lotto: sehr geringe Chancen auf den Höchstgewinn 32 Roulette: Die Bank gewinnt immer 33 Kartenspiele: etwas für Könner 33 Fluchtwege: Auswandern 34 Gründe für die Auswanderung 34 Die Top-Ten- Auswanderziele der Deutschen 35 Motivation zum Auswandern 36 Bei diesen Deutschen hat es geklappt: ausgewandert und reich geworden 37 Für Risikofreudige: Existenzgründung 38 Wichtig: eine gute Vorbereitung 39 Businessplan – eine Pflichtaufgabe 39 Unverzichtbar: gute Beratung 40 Kostenlos: Informationen rund um das Thema Existenzgründung 41 Rückläufig: Zahl der Existenzgründer in Deutschland 41 Kalkulierbare Wege: Geldanlage 42 Bargeld auf dem Girokonto 43 Das klassische Sparbuch 44 Renten-und Kapitallebensversicherungen 45 Bausparverträge 45 Immobilien als Geldanlage 47 Investmentfonds 49 Riester-Rente 51 Tagesgeld, Festgeld, Termingeld 53 Aktien 54 Festverzinsliche Wertpapiere 57 Kapitel 2: Nehmen Sie Ihr Schicksal selbst in die Hand 59 Die Reichtumsstudie verrät: So stehen wir Deutschen zum Reichtum 60 Reichtumsstudie mit interessanten Ergebnissen 61 Entwickeln Sie eine Macher-Mentalität 62 Risikoanalyse: Lernen Sie, Risiken zu bewerten 63 Allgemeine Tipps zur Risikoeinschätzung 63 Die SWOT-Analyse: Risiko-und Chanceneinschätzung bei Gründungsvorhaben 65 Das magische Dreieck – Risiken und Chancen bei der Geldanlage 66 Erfolgreiche Investments bringen Glück und Zufriedenheit 68 Kapitel 3: Denken Sie groß – von den Reichsten lernen 69 Reichenranking: die Forbes-Liste der Milliardäre 69 Gründer dominieren die Top Ten 70 Die zehn reichsten Deutschen in der Forbes-Liste 70 Nur wer denkt wie ein Reicher, kann auch reich werden 72 Jedes Problem ist auch eine Chance – aus Fehlern lernen 73 Gute Vorbereitung als Basis des Erfolgs 75 Tipps zur Vorbereitung einer Auswanderung 75 Tipps zur effektiven Vorbereitung einer Existenzgründung 76 Reiche Menschen als Vorbild nehmen 79 In diese Bereiche investieren die Superreichen 79 Aktien kaufen, wenn Insider zuschlagen 79 Oder kopieren Sie einfach die Strategien der Superreichen 81 Teil II: Weichenstellung für Ihren Weg zum Reichtum 83 Kapitel 4: Überblick über Ihre persönliche Vermögenssituation 85 Das Haushaltsbuch – oder: wie Sie Ihre Finanzen in den Griff bekommen 86 Diese Spielregeln sollten Sie beachten 86 Schritt 1: Einnahmen zusammenstellen 87 Schritt 2: Ausgaben gegenüberstellen 88 Schritt 3: Saldo ermitteln 89 Unser Tipp: Nutzen Sie kostenlose Haushaltsbuch-Vorlagen oder –Apps 90 Kapitel 5: Einsparpotenziale entdecken, Einnahmen optimieren 91 Ausgaben, auf die Sie gut und gerne verzichten können 91 Minimieren Sie Ihre Steuerlast 92 Versicherungs-Check: was Sie brauchen – und was nicht 95 Energiekosten: wie Sie die steigenden Energiekosten in den Griff kriegen 96 Anschaffungen »auf Pump« vermeiden 98 So können Sie Ihre Einnahmen steigern 99 Nutzen Sie die zahlreichen Fördertöpfe 99 Gehaltsverhandlungen: Sprechen Sie mit Ihrem Chef 101 Wie Sie mit Nebeneinkünften Ihr Gehalt aufstocken können 104 Kapitel 6: Feintuning am eigenen Ego 107 So steigern Sie Ihr Selbstwertgefühl 107 Acht Tipps, wie Sie Ihr Selbstbewusstsein stärken 108 Machen Sie sich schlau(er) – bilden Sie sich weiter 111 Verkaufen (auch sich selbst) gehört zum Geschäft 113 Zehn Tipps, mit denen Sie sich im Beruf gut verkaufen 113 Karriereplanung: Definieren Sie Ziele 115 Ermitteln Sie Ihren beruflichen Status quo 115 Legen Sie Ihre Karriereziele fest 116 Ziehen Sie Ihre Schlüsse und werden Sie aktiv 117 Teil III: Kalkulierbare Formen der Geldanlage: wo Ihr Geld am besten für Sie arbeitet 119 Kapitel 7: Betongold: Immobilien als Geldanlage 121 Darum lohnt sich ein Investment in Immobilien 121 Massiver Preisanstieg bei Immobilien 122 Immobilieninvestments für den kleinen Geldbeutel 123 Aktien von Wohnungsbaugesellschaften 123 Aktien von Real Estate Investment Trusts (REITs) 124 Offene/geschlossene Immobilienfonds 126 Immobilien-Crowdinvestments 127 Immobilien als Geldanlage für Gutbetuchte 129 Eine Investition in Immobilien muss gut vorbereitet sein 129 Kapitel 8: Rohstoffinvestments: wie Sie in Aluminium, Weizen und Zink investieren 133 Der Rohstoffhandel: von Aluminium bis Zink 134 Warenterminbörsen: Hier werden Rohstoffe gehandelt 135 So investieren Sie in Rohstoffe 136 Rohstoff-Futures: eher etwas für erfahrene Investoren 137 Rohstoff-Fonds, ETFs, ETCs: auch für Anfänger geeignet 138 Die Wertentwicklung auf den Rohstoffmärkten 141 Kapitel 9: Was es sonst noch so gibt: alternative Anlageformen 143 Neue Anlageformen: Kryptowährungen und Crowdinvesting 143 Kryptowährungen – mehr als nur Bitcoins 143 Crowdinvesting – Investieren im Schwarm 151 Geldanlage in Sachwerten – Klunker, Kunst und Krempel 154 Teil IV: Ihr Weg zum Reichtum: So investieren Sie erfolgreich in Aktien und Co. 157 Kapitel 10: Das Rüstzeug für Ihren Börsenerfolg 159 Trauen Sie sich! Die Börse ist kein Casino 159 Orientieren Sie sich an den Strategien der großen Börsengurus 160 Historischer DAX-Verlauf: Langfristig geht es immer bergauf 161 Der erste Schritt: den richtigen Broker finden 162 Diese Wertpapiere können Sie über einen Broker handeln 164 So eröffnen Sie ein Depotkonto 165 Anmeldung in Ihrer Bankfiliale 165 Online-Anmeldung 166 Wertpapierdepots sind gut abgesichert 167 Welche Rolle die Steuer spielt 168 Die Kapitalertragsteuer 168 Altbestände sind steuerfrei 170 Freistellungsauftrag stellen 170 Geringverdiener: Nichtveranlagungs-Bescheinigung beantragen 170 Besonderheit: ausländische Kapitalerträge 170 Kapitel 11: Die Basics des Aktienhandels 171 So kaufen und verkaufen Sie Aktien und Fonds 171 Bevor es richtig losgeht: Verrechnungskonto füttern 171 Wichtig: keine übereilten Käufe und Verkäufe 172 Vor dem Kauf: Geschäftsberichte und Fundamentalzahlen prüfen 172 Kaufen und Verkaufen vor Ort im Beratungsgespräch 173 Kaufen und Verkaufen über ein Online-Depot 173 Wie Sie den richtigen Börsenplatz finden 176 Regionalbörsen 177 Deutsche Börsen-und Handelsplätze: Vor-und Nachteile 178 Diese Orderzusätze sollten Sie kennen 182 Billigst-/ Bestens-Order (oder auch: Market-Order) 184 Limit-Order 184 Start-Buy- / Stop-Loss- Order ohne Limit 185 Start-Buy- / Stop-Loss- Order mit Limit 186 Dynamische Start-Buy- Order und dynamische Stop- Loss- Order 187 Kombilimit (OCO) 189 Was es sonst noch gibt 190 Gültigkeit 191 Kapitel 12: Fundamentalanalyse: Eine Zahl sagt mehr als tausend Worte 193 Das Kurs-Gewinn- Verhältnis (KGV): die bekannteste, aber auch oft überschätzte Kennzahl 194 KGV als Kennzahl (zu Recht) nicht unumstritten 194 Das Kurs-Cashflow- Verhältnis (KCV) 195 Price-Earnings- to- Growth- Ratio (PEG) 196 Das Kurs-Umsatz- Verhältnis (KUV) 197 Das Kurs-Buchwert- Verhältnis (KBV) 197 Die Dividendenrendite 198 Die Kapitalstruktur und die Eigenkapitalquote 199 Der Geschäftsbericht 200 Aktiv-und Passivseite einer Bilanz 200 Ein detaillierter Blick auf die beiden Seiten einer Bilanz 201 Berechnung und Bedeutung von EBIT und EBITDA 202 EBIT: Gewinn vor Zinsen und Steuern 202 EBITDA: Gewinn vor Zinsen, Steuern und Abschreibungen 202 Kapitel 13: Technische Analyse – der Markt im Fokus 205 Die Grundprinzipien der Technischen Analyse 206 Im Börsenkurs ist alles drin 206 Aktienkurse bewegen sich in Trends 207 Die Geschichte wiederholt sich 207 Der Chart – die Fieberkurve des Marktes 207 Der Linien-Chart: sehr puristisch 208 Der Balken-Chart: Darf’s etwas mehr Information sein? 209 Der Candlestick-Chart: bildhafte japanische Kerzen 209 Weitere Chart-Arten 211 Lineare und logarithmische Charts 212 Der zentrale Begriff der Technischen Analyse: der Trend 214 Die Indizes diskontieren alles 215 Im Markt gibt es drei Trends 215 Primärtrends haben drei Phasen 216 Indizes müssen sich bestätigen 216 Das Volumen muss den Trend bestätigen 216 Ein Trend gilt bis zur definitiven Umkehr 217 Wie Sie den Trend bestimmen 217 Mit Stift und Lineal: Trendlinien 217 Das Prinzip von Unterstützung und Widerstand 219 Gleitende Durchschnitte glätten die Kursentwicklung 220 Die wichtigsten Trendindikatoren 223 Trendumkehr-und Fortsetzungsformationen 227 Trendumkehrformationen 229 Trendfortsetzungsformationen 231 Candlestick-Formationen 233 Aktienmarkt-Indikatoren: Achten Sie auf die Gesundheit des Marktes 236 Kapitel 14: Psychologie: eine zentrale Hürde auf dem Weg zum Erfolg 241 Menschen entscheiden oft nicht rational 241 Die Erkenntnisse der Behavioral Finance 242 Anleger orientieren sich am Einstandspreis 243 Anleger nehmen Verluste stärker wahr 243 »Gewinne laufen lassen, Verluste begrenzen« – oder doch eher umgekehrt? 244 Anleger überschätzen sich 245 Der Ankereffekt beeinflusst unsere Entscheidungen 245 Das Herdenverhalten – Anleger laufen dem Markt hinterher 246 Der Survivorship Bias 247 Anleger unterschätzen Risiken 247 Selektive Wahrnehmung 247 Wie Sie die Psychofallen umgehen 248 Hören Sie auf die Signale des Marktes 249 Wie Sie die Fehler anderer Anleger zu Ihrem eigenen Vorteil nutzen 249 Mit einem mechanischen Handelssystem zum Börsenerfolg 250 Kapitel 15: Systematisch handeln: verschiedene Investmentstrategien 253 Die Wachstums-oder Growth-Strategie 254 Die Fundamental-oder Value-Strategie 256 Value-Investing: von der Zigarrenstummel-Strategie zum Burggraben-Ansatz 256 Die Dividendenstrategie 258 Besonders interessant: die Dividenden-Aristokraten 260 Dogs of the Dow – die wohl bekannteste Dividendenstrategie 260 Die antizyklische Strategie 261 Das Ei des Kostolany – ein antizyklischer Ansatz 262 Relative-Stärke- Ansätze: Gewinner-Aktien bleiben Gewinner-Aktien 263 Der Momentum-Effekt funktioniert seit über 200 Jahren 263 Keine Raketenwissenschaft: das Momentum berechnen 264 Doppelt hält besser: zwei Arten von Momentum 264 Weitere Relative-Stärke- Ansätze 265 Momentum-Strategien schlagen den Markt 265 Überdurchschnittliche Performance unterliegt hohen Schwankungen 267 Teil V: Das Beste aus beiden Welten – unsere Reichmach-Strategie 269 Kapitel 16: Fundi oder Techno? Warum nicht beides?! 271 Treffen Sie eine Vorauswahl mithilfe fundamentaler Kriterien 271 Nutzen Sie die Technische Analyse für die Aktienauswahl 273 Setzen Sie systematisch auf die trendstärksten Aktien 273 Beispiele für kombinierte Handelsstrategien 274 Kapitel 17: Was Sie vor Ihrem Handelsstart wissen sollten 279 Schritt für Schritt zur richtigen Strategie 279 Der richtige Mittelweg zwischen Streuung und Konzentration 280 Systematisches und unsystematisches Risiko 281 Den Markt können Sie nicht kontrollieren – Ihr Risiko schon 282 Handeln Sie mit der Wahrscheinlichkeit 282 Kontrollieren Sie Ihr Risiko 282 Der Schlüssel zum Erfolg: Risiko-und Money-Management 283 Wie Sie Risiken identifizieren – und kontrollieren 283 Money-Management – die Frage nach dem Wieviel 285 Backtesting schafft Vertrauen in eine Strategie 286 Testen Sie, ob Ihre Strategie funktioniert 286 Darauf sollten Sie bei Backtests achten 287 Folgen Sie einer Strategie und setzen Sie sie konsequent um 288 Kapitel 18: Unser strategischer Ansatz – Ihre Reichmach-Strategie 289 Teil 1 Ihrer Reichmach-Strategie: Investieren Sie nach fundamentalen Kriterien 290 Kriterium Nummer 1: Kurs-Umsatz- Verhältnis unter zehn 291 Kriterium Nummer 2: durchschnittliches Gewinnwachstum der vergangenen fünf Jahre mindestens 10 Prozent 291 Kriterium Nummer 3: Eigenkapitalquote über 42 Prozent 291 Kriterium Nummer 4: Shareholder Yield bei mindestens 2,5 Prozent 292 Kriterium Nummer 5: EBIT-Marge von mindestens 15 Prozent 294 Beta als Filter für die Top-Ten- Auswahl 294 Einmal im Monat anpassen 295 Fallbeispiel: Berkshire Hathaway 295 Teil 2 Ihrer Reichmach-Strategie: Investieren Sie in die stärksten Momentum-Aktien 297 Mit einem Trendfilter zur richtigen Zeit investieren 299 Die Positionsgröße – die Frage nach dem Wieviel 300 Was Sie von unserer Reichmach-Strategie erwarten können 301 Teil 1: Fundamentaler Ansatz bringt 16,8 Prozent jährliche Rendite 301 Teil 2: Momentum-Ansatz bringt 24,9 Prozent jährliche Rendite 303 Teil VI: Der Top-Ten- Teil 307 Kapitel 19: Die zehn größten Börsenlegenden 309 Warren Buffett – der wohl bekannteste Börsenguru 309 Charlie Munger – der kongeniale Partner von Buffett 310 Benjamin Graham – der Vater des Value-Investing 311 Sir John Templeton – der geadelte Investor 312 Peter Lynch – der erfolgreiche Fondsmanager 313 Jim Rogers – der Indiana Jones der Wall Street 314 George Soros – der Zockerkönig 315 André Kostolany – der Wanderprediger der Börse 316 Carl Icahn – der aktivistische Investor 317 Charles Henry Dow – der Vater der Technischen Analyse 318 Kapitel 20: Zehn Tipps für Ihren Erfolg an der Börse 321 Nehmen Sie sich Zeit für Ihre Investments 321 Schwimmen Sie gegen den Strom 322 Investieren Sie nur Geld, das Sie übrig haben 324 Rücklagen bilden 324 Keine kreditfinanzierten Investments tätigen 324 Streuen Sie das Risiko 326 Investieren Sie nicht in Dinge, von denen Sie nichts verstehen 327 Kaufen Sie keine Aktien von Hightech-Start- ups 327 Suchen Sie in Ihrem Umfeld nach Investitionsmöglichkeiten 328 Ganz oder gar nicht 329 Seien Sie geduldig mit Ihren Investments 330 Überprüfen Sie Ihre Investments regelmäßig 331 Lernen Sie aus Ihren Fehlern 332 Andere lohnenswerte Investments 333 Kapitel 21: Zehn nützliche Internetseiten für Ihren Investmenterfolg 335 Unternehmensnachrichten 335 Aktienkurse 336 Fundamentalkennzahlen 336 Chartanalyse 336 Online-Broker/- Depots 337 Rohstoffhandel 337 Fonds 337 Übernahmen beziehungsweise M&A (Mergers & Acquisitions) 338 Musterdepots 338 Börsenlexika 338 Abbildungsverzeichnis 339 Stichwortverzeichnis 343

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Book SynopsisFür mehr Leichtigkeit in Ihren Finanzen Um sich im Finanzdschungel zurechtzufinden brauchen Sie nicht viel Geld, viel Zeit und viel Wissen, sondern lediglich ein paar Euro pro Monat, drei Stunden pro Jahr, die Bereitschaft, etwas Neues zu lernen und dieses Buch. Hier finden Sie konkrete Tipps für Ihre Alltagsfinanzen, Wissenswertes über Versicherungen und Steuern. Sie erhalten Hinweise, wie Sie mit Finanzen in der Beziehung umgehen und finanziell für Ihre Kinder und Ihr Alter vorsorgen. Und selbstverständlich kommt auch das Thema Vermögensaufbau mit Immobilien, Börseninvestitionen und alternativen Investitionsformen nicht zu kurz. Sie erfahren Wie Sie hilfreiche Alltagsgeldgewohnheiten entwickelnWie Sie Ihre Altersvorsorge in Altersvorfreude umwandelnWie Vermögensaufbau funktioniertWissenswertes über Versicherungen, Krypto-währungen und Steuern

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Book SynopsisAlles unter Kontrolle Controller haben oftmals das Image vom bösen Überwacher und Geizkragen. Dieses Buch zeigt, dass Controlling sehr vielseitig und für Unternehmen enorm wichtig ist ist. Anhand anschaulicher Beispiele erklären die Autoren die unterschiedlichen Formen des Controllings und dessen Aufgabenbereiche. Sie erfahren, was es mit Gewinn-und-Verlust-Rechnung, Deckungsbeitragsrechnung und Predictive Forecast auf sich hat und wozu Benchmarking, Kennzahlen und Target Costing gut sind. Ein gelungenes Buch für alle, die sich beruflich mit dem Controlling beschäftigen müssen oder einfach ihren Controller besser verstehen möchten. Sie erfahren Warum gute Planung und Kontrolle im Unternehmen so wichtig sind Welche Werkzeuge Controller einsetzen Welche Rolle Bilanzen und Berichte im Controlling spielen Wie Sie die Digitalisierung im Controlling umsetzen Table of ContentsÜber die Autoren 7 Einführung 21 Teil I: Definition und Planung 25 Kapitel 1: Von Erbsenzählern und Controllern 27 Kapitel 2: Gut geplant ist halb gewonnen 33 Kapitel 3: Planung ist gut – Kontrolle ist besser 51 Teil II: Die Werkzeugkiste des Controllers 59 Kapitel 4: Wohin nur mit den Kosten? 61 Kapitel 5: Hochspannung: Interne Verrechnungspreise 75 Kapitel 6: Die Stunde der Wahrheit: Die Gewinn-und-Verlust-Rechnung (GuV) 83 Kapitel 7: Der Showdown: Die Bilanz 95 Kapitel 8: Das Geheimnis der Deckungsbeitragsrechnung 113 Kapitel 9: Wie teuer darf’s denn sein? Target Costing 123 Kapitel 10: Digitalisierung im Controlling 133 Kapitel 11: Berichtswesen: Tue Gutes und berichte darüber 141 Teil III: Bereichscontroller 159 Kapitel 12: In-, Through-und Output-Controlling 161 Kapitel 13: Wo Controller sonst noch gebraucht werden 183 Teil IV: Kennzahlen über Kennzahlen 203 Kapitel 14: Von Äpfeln und Birnen – Kennzahlen 205 Kapitel 15: Von Obstplantagen – Kennzahlensysteme 221 Kapitel 16: Benchmarking oder: Wer ist der Beste im ganzen Land 229 Kapitel 17: Balanced Scorecard: Vier gewinnt 237 Teil V: Controlling für Fortgeschrittene 247 Kapitel 18: Strategisches Controlling 249 Kapitel 19: Beteiligungscontrolling 263 Kapitel 20: Verhaltenes Controlling 269 Teil VI: Der Top-Ten-Teil 279 Kapitel 21: Zehn Webseiten für Controller 281 Kapitel 22: Zehn Microsoft-Office-Tipps für Controller 285 Kapitel 23: Zehn Begriffe, die Ihnen über den Weg laufen könnten 291 Anhang: Glossar 299 Abbildungsverzeichnis 305 Stichwortverzeichnis 307

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Book SynopsisDenn intelligent investieren ist eine Kunst! Künstliche Intelligenz ist allgegenwärtig und auch an der Wall Street nicht mehr wegzudenken. Paul Mladjenovic weist Ihnen den Weg durch den Dschungel der neuen Möglichkeiten, die KI Ihnen bietet, und zeigt Ihnen, wie Sie mithilfe von KI Ihre persönlichen Anlageziele erreichen. Sie lernen, wie KI Sie bei der Auswahl der richtigen Aktien und ETFs unterstützt, wie Sie ChatGPT und Robo Advisor gewinnbringend einsetzen und wie KI Ihnen Hilfestellung bei technischer und Fundamentalanalyse leisten kann. Gleichzeitig werden auch die Risiken und Gefahren von KI am Aktienmarkt beleuchtet. Sie erfahren Welche KI-Tools Ihnen wirklich weiterhelfenWie Sie effektive Prompts formulierenWie Sie mit KI Ihre Chancen auf dem Arbeitsmarkt verbessernIn welche Aktien im KI-Sektor Sie sinnvoll investieren können

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Book SynopsisDie Kostenrechnung liefert Schlüsselinformationen für Entscheider in Unternehmen. Die Autoren zeigen, wie eine solche Rechnung ausgestaltet werden kann. Sie beleuchten die Grundlagen von Vollkosten-, Teilkosten- und Plankostenrechnung und die strategischen Erweiterungen der Rechnung. Durch Zusammenfassungen, Wiederholungsfragen und Übungsaufgaben mit Lösungen zu jedem Kapitel ist das Buch auch zum Selbststudium geeignet. Es wendet sich an Leser, die sich einen verständlichen Einstieg in das Gebiet wünschen.Table of ContentsAufbau der Kosten- und Leistungsrechnung am Beispiel der Vollkostenrechnung.- Teilkostenrechnung.- Plankostenrechnung.- Strategische Erweiterungen der Kostenrechnung.

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Book SynopsisFirst Published in 2008. With contributions from a range of leading experts in this rapidly changing field, the book will be of particular value to economists, national and international institutes, banks and other financial institutions and the academic world. For ease of reference, the text is supported with charts and table, and there is a complete index.Table of ContentsPart 1 -- Overview. 1. Introduction Lars Jonung, Christoph Walkner and Max Watson 2. Financial Markets in the Euro Area: Realising the Full Benefits of Integration Klaus Regling and Max Watson Part 2 -- Monetary Integration: Convergence and Adjustment 2a -- Moving to a Monetary Union 3. Catch-up, the Transition to Full Participation in EMU and Financial Stability Iain Beg 4. Adjusting to the Euro Gabriel Fagan and Vitor Gaspar 5. Booms, Busts and Crisis: Experiences with External and Internal Adjustment Reiner Martin and Ludger Schuknecht 6. Financial Stability in Emerging Europe Piroska M. Nagy and Richard Fox Part 2b -- Living Inside A Monetary Union 7. A model-based analysis of country experiences Sven Langedijk and Werner Roeger 8. Housing markets and adjustment in monetary union Peter Hoeller and David Rae Part 3 -- Financial Integration: Convergence And Adjustment Part 3a -- Setting The Scene 9. Regional Interest Rates Within a Monetary Union: Lessons From the United States John Landon-Lane and Hugh Rockoff 10. Where Does Capital Flow? A Comparison of U.S. States and EU Countries 1950-2000 Sebnem Kalemli-Ozcan, Bent Sorensen and Belgi Turan 11. Declining Home Bias and the Increase in International Risk Sharing: Lessons from European Integration Michael Artis and Mathias Hoffmann Part 3b -- Banking Across Borders 12. Economic Integration and Financial Stability: A European Perspective Gianni De Nicolo and Alexander Tieman 13. Banking Integration and Co-Movements in EU Banks' Fragility Andrea Brasili and Giuseppe Vulpes 14. Stability Challenges Raised by EU Banking Integration Christoph Walkner Part 4 -- Policy Challenges 15. Financial Supervision In Europe: A Proposal for a New Architecture? Dirk Schoenmaker and Sander Oosterloo 16. Cross-Border Banking: Challenges for Deposit Insurance and Financial Stability in the European Union Robert A. Eisenbeis and George G. Kaufman 17. The Search for the Elusive Twin Goals of Monetary and Financial Stability Claudio Borio.

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Book SynopsisThe past three decades have been characterized by vast change and crises in global financial markets and not in politically unstable countries but in the heart of the developed world, from the Great Recession in the United States to the banking crises in Japan and the Eurozone. As we try to make sense of what caused these crises and how we might reduce risk factors and prevent recurrence, the fields of finance and economics have also seen vast change, as scholars and researchers have advanced their thinking to better respond to the recent crises. A momentous collection of the best recent scholarship, After the Flood illustrates both the scope of the crises' impact on our understanding of global financial markets and the innovative processes whereby scholars have adapted their research to gain a greater understanding of them. Among the contributors are Jose Scheinkman and Lars Peter Hansen, who bring up to date decades of collaborative research on the mechanisms that tie financial mar

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Book SynopsisTrade ReviewPenman's book...contains gems on every page - to the point that no one who deals with the market in any capacity should pass by this text until they have committed to memory as many points therein as their limited, mark one, human brains, can hold. -- Anthony Harrington QFinance Blog I highly recommend the essential and fundamentals oriented book Accounting for Value by Stephen Penman, to anyone who is serious about investing in sound, fundamental stocks. This book will benefit the beginning or experienced investor, accountants, and anyone interested in the coupling of accounting with equity valuation. Blog Business World For a practical book that will help you understand the use of accounting in understanding stock valuation, Accounting for Value is the resource you are looking for you. Stocker BlogTable of ContentsIntroduction Chapter 1 Return to Fundamentals (and an Accounting for the History of Investment Ideas) Chapter 2 Anchoring on Fundamentals (and How Accounting Supplies the Anchor) Chapter 3 Challenging Market Prices with Fundamentals (and Deploying Accounting for the Challenge) Chapter 4 Accounting for Growth from Leverage (and Protection from Paying Too Much for Growth) Chapter 5 Accounting for Growth in the Business (and More Protection from Paying Too Much for Growth) Chapter 6 Accounting for Risk and Return (and a Remedy for Ignorance About the Cost-of-Capital) Chapter 7 Pricing Growth (and a Revision to Value Versus Growth Investing) Chapter 8 Fair Value Accounting and Accounting for Value Chapter 9 Adding Value to Accounting Chapter 10 The Intelligent Investor and the Intelligent Accountant

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Book SynopsisElectricity Markets: Pricing, Structures and Economics provides a descriptive and cross-disciplinary approach to the electricity markets, allowing traders and analysts to understand the market, its policies and how they drive prices, emissions and security - something that affects all stakeholders.Table of ContentsPreface xix Acknowledgements xxi Introduction 1 1 The Basics 7 1.1 How electricity works 7 1.2 Early development of the Electricity Supply Industry (ESI) 10 1.3 The lifecycle of electric power 12 1.4 Development, structure, coordination, legislation of the ESI 14 1.5 New ownership structure 15 1.6 Selected country examples 16 1.6.1 Europe 16 1.6.2 Development in the Americas 18 1.6.3 Australasia 19 1.6.4 Asia 20 1.6.5 Africa and the Middle East 20 2 Structure, Operation and Management of the Electricity Supply Chain 21 2.1 Energy sources 21 2.1.1 Fossil fuel 22 2.1.2 Nuclear 26 2.1.3 Renewable combustible matter 26 2.1.4 ‘Hot’ natural energy 26 2.1.5 ‘Cold’ natural energy 27 2.1.6 Hydrogen 27 2.1.7 Stored 27 2.1.8 Consumables 28 2.1.9 Integration of energy sourcing and power generation 28 2.2 Power generation 29 2.2.1 Turbine generation 30 2.2.2 Open cycle 31 2.2.3 Conventional thermal generation 31 2.2.4 Combined cycle 34 2.2.5 Combined heat and power (CHP) 34 2.2.6 Turbines driven by water 34 2.2.7 Wind 36 2.2.8 Non turbine generation 36 2.2.9 Distributed power generation 36 2.2.10 The production of environmental and amenity impact factors 37 2.2.11 Abating the production of environmental impact factors 40 2.2.12 Constructing the emission abatement stacks 44 2.2.13 Stock management 49 2.2.14 Flexibility 50 2.2.15 Reliability and availability 55 2.2.16 Reactive power 55 2.2.17 Three phase 55 2.2.18 Efficiency 56 2.2.19 Cost 58 2.2.20 Generation mix 59 2.2.21 Requirements for ancillary services 60 2.2.22 Plant dynamics 60 2.2.23 The relative value of the different forms of plant service 60 2.2.24 Generator hedging 61 2.3 High voltage transmission, network operation, system operation 62 2.3.1 Electrical networks 62 2.3.2 Functions associated with network operation 72 2.3.3 Coordinated planning of generation and transmission build 74 2.3.4 Signals to build 76 2.3.5 Interconnection 78 2.3.6 Charging mechanisms available to the grid and system operators 79 2.4 Distribution 81 2.4.1 The roles of the distribution network operator 82 2.4.2 Entry connection cost 83 2.5 Metering 84 2.5.1 Metering and the consumer experience 85 2.5.2 The metering lifecycle 85 2.5.3 Meter types 86 2.6 Supply 87 2.6.1 Billing 88 2.6.2 Consumer segmentation 89 2.6.3 Regulatory requirements 89 2.6.4 Consumer agreements 90 2.6.5 Supplier profit and loss profile in relation to wholesale price 93 2.6.6 Retail pricing 93 2.6.7 Hedging 95 2.6.8 Supplier risk and supplier charges 101 2.6.9 Swing in industrial and commercial contracts 102 2.6.10 Demand side management 102 3 Policy – Issues, Priorities, Stakeholders, Influencers 105 3.1 Agendas and policy formation 106 3.2 Policy issues and drivers 107 3.3 Policy outcomes and instruments 110 3.4 Energy policies 112 3.4.1 Policy trends 112 3.4.2 Formation of policy 115 3.5 Framework 116 3.6 Domestic institutional players 117 3.7 The role and influence of international players 118 4 Liberalisation, Deregulation and Regulation 121 4.1 The liberalisation paradigm 122 4.2 Steps 122 4.2.1 Unbundling (and de-integration) 123 4.2.2 Corporatisation 125 4.2.3 Ring fence some activities under state control 126 4.2.4 Forced divestment and fragmentation of the incumbents 127 4.2.5 Privatisation 127 4.2.6 Deregulation 127 4.2.7 Reregulation 128 4.2.8 Further fragmentation 128 4.2.9 Cross industry horizontal integration 128 4.2.10 Re-consolidation 128 4.2.11 Entry of financial institutions 128 4.2.12 Pressure on retail deregulation 128 4.2.13 Further deregulation of networks and metering 129 4.2.14 Revise model 129 4.3 Conditions for reform 129 4.4 The role of the state 130 4.4.1 The national macroeconomy 131 4.4.2 Mechanisms of government influence 131 4.5 Measures of liberalisation and deregulation 132 4.6 Regulation 134 4.6.1 Quid pro quo model for regulatory change 135 4.6.2 Prescriptive model for regulation 135 4.6.3 Regulatory engagement 137 4.6.4 Economic regulation 137 4.7 Regulators 137 4.7.1 Regulatory indicators 139 4.7.2 Market monitoring by the regulator 139 4.7.3 Price regulation 139 4.7.4 Rate of return regulation 140 4.8 Industry key performance indicators 140 5 Market Structures for Electricity 141 5.1 The basics of plant dispatch 143 5.1.1 Acquiring the information on demand 143 5.1.2 Management of variation in demand in the centrally managed system 145 5.1.3 Acquiring the basic information on generation capability 146 5.1.4 Construction of the first trial schedule 149 5.1.5 Schedule feasibility and adjustment 150 5.1.6 Ancillary services 158 5.1.7 Profiles within commitment periods 158 5.1.8 Generator failure 159 5.2 The centrally managed model 160 5.2.1 Information and behaviour in centrally managed systems 160 5.2.2 Introduction of Independent Power Producers (IPP’s) 163 5.2.3 Consumers in the centrally managed system 164 5.3 The single buyer 164 5.4 The pool model 165 5.4.1 The trial schedule in the pool 166 5.4.2 Subsequent trial schedules and final initial schedule 167 5.4.3 Demand 168 5.4.4 Power capacity 168 5.4.5 Penalty for failure 169 5.4.6 Pool index 169 5.4.7 Contracts for difference 169 5.4.8 Supplier price 170 5.4.9 Fixed cost recovery in the pool 171 5.4.10 Price caps in static schedule 171 5.4.11 Market power in the pool 171 5.4.12 Information and communication in the pool 172 5.4.13 Renewable and other generation with special treatment 172 5.4.14 Offering and contracting strategy for generation plant in the pool 172 5.4.15 Interpool relationships 175 5.5 The bilateral model 176 5.5.1 Contracting in the bilateral system 176 5.5.2 Physical notification in the bilateral system 176 5.5.3 The market operator in the bilateral market 177 5.5.4 Operational strategy for contracted plant in the bilateral market 177 5.5.5 Hybrid pool/bilateral markets 178 5.6 Imbalance and balancing 178 5.6.1 Market structure for balancing and imbalance 178 5.6.2 Imbalance charging 179 5.6.3 Provision of balancing 179 5.6.4 Transmission effects in balancing 180 5.6.5 Profile effects within the balancing period 180 5.6.6 Transaction strategy 181 5.6.7 Transaction cost minimisation 181 5.6.8 Imbalance revenue distribution 181 5.6.9 Auction choices 181 5.6.10 Issues with balancing mechanisms 182 5.7 Reserve contracts 182 5.8 Wholesale markets 183 5.9 Power exchanges 184 5.9.1 The journey to power exchanges 184 5.9.2 Specifics of power exchanges 187 5.10 Advanced pool markets 189 6 Power Capacity 191 6.1 The definition of capacity 191 6.2 Requirements for Capacity 193 6.2.1 Generator failure 193 6.2.2 Demand variation 196 6.2.3 Network failure 196 6.3 The basic economics of provision of capacity and reserve by generators 197 6.3.1 Representation of generation capacity on the power stack 197 6.3.2 Provision of capacity by a unit 197 6.4 Modelling the capability of generation capacity 200 6.4.1 Capacity effect of take or pay fuel supply contracts 200 6.4.2 Capacity effect of annual emission limits 202 6.4.3 Capacity effect of port and other infrastructure contracts 203 6.4.4 Capacity effect of coal stocking 203 6.4.5 Capacity effect of plant life usage optimisation 204 6.4.6 The role of outage management in capacity 205 6.4.7 Generation above normal maximum capacity 205 6.4.8 Long term capacity 206 6.4.9 Hydro 207 6.4.10 Pumped storage 207 6.5 Modelling capacity capability from the consumer side 208 6.5.1 Modelling value of lost load as a capacity capability 209 6.6 Commercial mechanisms – the generator perspective 209 6.6.1 Day ahead capacity payments in pool markets 210 6.6.2 Fixed cost subsidy, marginal cost energy provision 214 6.6.3 Traded options and capacity contracts 214 6.6.4 Self insurance for generator shortfall 217 6.6.5 Mutual insurance 218 6.6.6 Value from rare but highly priced energy contracts 219 6.6.7 Reserve contracts 220 6.7 Capacity provision – the supplier’s perspective 220 6.7.1 Requirements to secure capacity by load serving entities 220 6.8 Capacity provision – the network operator’s perspective 223 6.9 The system operator’s perspective 224 6.9.1 Cost to consumers 224 6.9.2 Placing capacity obligation with the system operator 226 6.9.3 Placing the capacity obligation with the regulator or ministry 226 6.10 Capacity facilitation – contractual instruments 226 6.10.1 Generator cover 227 6.10.2 Insurance and reinsurance 227 6.10.3 Traded options 235 6.11 Use of options to convey probability information 235 6.12 Effect of price caps on capacity and prices 237 7 Location 239 7.1 Infrastructure costs to be recovered 240 7.1.1 Build and maintain 240 7.1.2 Losses 241 7.1.3 Reactive power 241 7.1.4 Redundancy and security 241 7.1.5 Cost of constraint 242 7.1.6 Commercial losses 242 7.1.7 Wheeling and interconnection 242 7.2 Counterparties for payment and receipt 242 7.3 Basic charging elements for location related charging 243 7.3.1 Connection charges 243 7.3.2 Use of system charges 243 7.3.3 Calculation of capacity cost in relation to system capacity need 245 7.3.4 Losses 245 7.3.5 Locational element of balancing 247 7.3.6 Locational element of reserve and security 247 7.3.7 Regional structure for cross subsidy 247 7.3.8 Constraints 248 7.3.9 Reactive power 248 7.4 Models for designation of electrical location 249 7.4.1 Postage stamp 249 7.4.2 Zonal 250 7.4.3 Postage stamp with market splitting 250 7.4.4 Nodal 251 7.4.5 Implicit locational differentials 253 7.4.6 Control area 253 7.4.7 Position in voltage hierarchy 253 7.5 Nodal energy prices, virtual transmission and nodal market contracts 254 7.5.1 Market models 254 7.5.2 Transmission allocation at system borders 258 7.5.3 Connection allocation 260 7.5.4 Integration of location based charging elements 260 7.6 The energy complex 260 7.6.1 Case examples 260 7.6.2 Global opinion 262 7.7 Environmental borders 263 8 Environment, Amenity, Corporate Responsibility 265 8.1 Environmental pressure 265 8.2 Definitions 266 8.2.1 Definition of production of potential impact factors 268 8.2.2 Definition of impact 269 8.2.3 Definition of sensitivity of impact factors once produced 272 8.3 The policy debate 273 8.4 Regulation and incentive for restricting emissions and other impacts 274 8.4.1 Continuous limits 274 8.4.2 Non instantaneous limits 275 8.4.3 Environmental tolerance limits and translators 276 8.4.4 Technology prescription or limits 276 8.4.5 Self regulation 277 8.4.6 Annual limits (caps) 277 8.4.7 Cap and trade 279 8.4.8 Emission allowance auctions 283 8.4.9 Trade no Cap 283 8.4.10 Taxes 283 8.4.11 Cap and tax 284 8.5 Other policy tools for environmental enhancement 285 8.5.1 Feed in renewable generation 285 8.5.2 Renewable obligation 285 8.6 Fuel labelling and power content labelling 286 8.6.1 Physical power labeling 292 8.7 The cost of environmental enhancement 292 8.8 Valuation of environmental factors 292 8.9 Corporate responsibility 293 8.10 The environmental impact of consumption 294 9 Price and Derivatives Modelling 295 9.1 Price processes and distributions 296 9.1.1 Price processes 296 9.1.2 Random walk 296 9.1.3 Terminal distributions and price returns 298 9.1.4 Transformation of process and Ito’s Lemma 298 9.1.5 Normal and lognormal distributions 299 9.1.6 Skewness 301 9.1.7 The Poisson process 301 9.1.8 Jump diffusion 302 9.1.9 Central limit theory 303 9.1.10 Extreme value theory 303 9.1.11 Mean reversion 304 9.1.12 Mean reversion with jump diffusion 306 9.1.13 Regime switching 307 9.1.14 Markov processes 309 9.1.15 Spot and Forward price processes 310 9.1.16 The choice between spot and forward price processes 317 9.1.17 n factor processes 318 9.1.18 Correlation 318 9.1.19 Co-integration 321 9.1.20 Conditional expectations 321 9.1.21 The denominator 325 9.1.22 Cost of risk 325 9.1.23 Transaction cost 327 9.2 Volatility modelling 328 9.2.1 Term structure of volatility – TSOV 328 9.2.2 Smile and skew 335 9.3 Correlation modelling 337 9.3.1 Cross commodity correlation modelling 337 9.3.2 Commodity spread modelling 338 9.3.3 Correlation between long and short duration contracts 339 9.3.4 Correlation measurement using historic data 340 9.3.5 Correlation models 341 9.3.6 Principal components 344 9.4 Pricing electricity derivatives 346 9.4.1 Average rate contracts 347 9.4.2 European options 347 9.4.3 American options 348 9.4.4 Swing options 349 9.4.5 Monte Carlo Simulation 349 9.4.6 Modelling with trees 350 9.4.7 Modelling swing contracts using semi-analytic methods 357 9.4.8 Volume options 357 9.4.9 Imbalance pricing 358 9.5 Establishing fundamental relationships 359 9.5.1 The exogenous and endogenous worlds 361 9.5.2 Price Growth 364 9.5.3 Weather, climate, daylight 365 9.5.4 Consumer contracts 370 9.5.5 Valuation of physical assets and risks 372 9.5.6 Pricing using world views 375 9.6 Market completeness 376 9.6.1 The completeness of markets with options 377 9.7 Emission permit prices 378 9.7.1 Forward price profile 378 9.7.2 Banking and borrowing 378 9.7.3 Volatility of permit prices 379 9.8 Network price volatility 379 10 Economic Principles in Relation to the ESI 381 10.1 Basic economic principles in an ESI context 381 10.1.1 Microeconomics and macroeconomics 381 10.1.2 Classical economics 382 10.1.3 Neoclassical economics 383 10.1.4 The economics of the margin 385 10.1.5 The demand function 387 10.1.6 The production function 391 10.1.7 Surplus 392 10.1.8 Pareto optimisation 393 10.1.9 Utility 396 10.1.10 Welfare 401 10.1.11 Preference 402 10.1.12 Contingent valuation 406 10.1.13 Valuation approaches to mortality and morbidity 407 10.1.14 Policy 407 10.1.15 Discriminatory pricing 408 10.1.16 Problems with cross subsidy and redistribution of wealth 411 10.1.17 Public goods and private goods 413 10.1.18 Existence value 414 10.1.19 Goods and bads 414 10.1.20 Externalities 414 10.1.21 Equilibrium 415 10.1.22 Trade 416 10.1.23 Fixed and marginal costs 419 10.1.24 Cost of capital 420 10.1.25 Fundamental measures 422 10.1.26 Hedonic and shadow prices 423 10.1.27 Price growth 423 10.2 Optimal pricing by asset owners 424 10.2.1 The privately owned monopoly operator 424 10.2.2 Forward hedging – timing effects 425 10.2.3 Fixed cost recovery 425 10.3 Regulated prices 433 10.4 Taxes and subsidies 434 10.4.1 Deadweight loss of taxes 435 10.4.2 The role of the ESI in the fiscal structure of the macroeconomy 435 10.5 Games, interaction and behaviour 436 10.5.1 Use of information without interaction 437 10.5.2 Local consolidation 438 10.5.3 Collaboration 438 10.5.4 Repeated games 439 10.5.5 Interactive behaviour of mid merit plant 439 10.5.6 Interactive behaviour of low merit plant 440 10.5.7 Reaction curves 440 10.5.8 Sequential quantity response – Stackelberg game 441 10.5.9 Simultaneous volume response – Cournot game 442 10.5.10 Comparison of Stackelberg and Cournot outcomes 443 10.5.11 Price leadership – Bertrand game 443 10.5.12 Gaming and payoff matrices 444 10.5.13 Nash equilibria 445 10.5.14 Repeated games and cooperative games 448 10.5.15 New entrance – pre-emption and optionality 449 10.5.16 Gaming by institutions 450 10.5.17 Auctions 451 10.5.18 Focal points 452 10.5.19 Supply function equilibria 452 10.6 Environmental economics 455 10.6.1 Valuation 455 10.6.2 Environmental taxes 456 10.6.3 Property rights 459 10.7 Market failure 461 10.8 Shocks 462 10.9 The political economics of liberalisation 464 11 Financial Modelling of Power Plant 467 11.1 Power plant financial model 467 11.2 The baseload contract 469 11.2.1 Contracts on failure 470 11.3 The planned flexibility contract 470 11.4 The vanilla option contract 470 11.4.1 Cost of the reliability contract on the option contract 471 11.5 Extra flexibility 471 11.6 Finance and hedging 472 11.6.1 Plant failure as a limiting factor in growth and return 472 11.6.2 Cost of risk 474 11.6.3 Value at Risk – VAR 475 11.6.4 Corporate financial measures 475 11.7 Accounting 476 12 Security of Supply 477 12.1 Supply chain 477 12.1.1 Sources 478 12.1.2 Power generation capacity 479 12.1.3 Transmission 480 12.1.4 Distribution 480 12.1.5 Suppliers 480 12.1.6 Consumers 481 12.2 Reserve margin 481 12.2.1 Scenario approach concept of reserve margin 481 12.2.2 Probability approach to reserve margin 482 12.2.3 The effect of import, export and transit 483 12.3 The responsibility for security of supply 484 Appendix 485 A.1 Plant life usage 485 A.2 Power plant failure and physical risk 487 A.2.1 Causes of failure 487 A.2.2 Combinatorial analysis 487 A.2.3 Monte Carlo modelling 488 A.2.4 Cost of failure 488 A.2.5 Hedging return to service 488 A.2.6 State space modelling of power plant 489 A.3 Reactive power 491 A.4 Direct current load flow modelling 493 A.4.1 Calculating transmission charges from DC load flow 495 A.4.2 Calculation of losses 495 References 497 Index 507

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Book SynopsisDespite a profound lack of information, interest in fixed income investment is very high. Fund managers are looking to improve their knowledge and capabilities in this area to ensure they can measure the effects of their decisions have adequate risk control and hedging capabilities and keep up with their competitors. This work covers this topic.Table of ContentsPreface xiii Acknowledgements xv A Note on Notation xvii PART I: CONCEPTS OF ATTRIBUTION 1 1 Attribution in the Investment Process 3 1.1 Introduction 3 1.2 The problem 3 1.3 Adding value to portfolios 4 1.4 Skill in investment 5 1.5 Picking the good from the bad 5 1.6 Insight from attribution 6 1.7 Example 7 1.8 Living without attribution 8 1.9 Why is attribution difficult? 9 1.10 What does this book not cover? 9 1.11 What are we aiming for? 9 2 Calculation of Returns 11 2.1 Introduction 11 2.2 Getting it right 11 2.3 Rate of return 12 2.4 Linking performance over multiple intervals 12 2.5 Performance of single securities in the presence of cash flows 12 2.6 Performance of portfolios without cash flows 13 2.7 Performance of portfolios with cash flows 13 2.8 Portfolio cash flow assumptions 14 2.9 Example 1 15 2.10 Performance contribution 16 2.11 Bringing it all together 16 2.12 The effects of futures on performance 17 2.13 Short position 17 2.14 Example 2: Some unusual asset allocations 17 2.15 Example 3: A pathological case 18 2.16 Example 4: A portfolio with zero market value 19 2.17 Geometric compounding 19 2.18 Performance from several sources of return 20 3 Simple Attribution 23 3.1 Introduction 23 3.2 Equity attribution 23 3.3 Additive attribution 24 3.4 Basic attribution: top-down or bottom-up? 25 3.5 Which assumptions to use? 26 3.6 Example 27 3.7 Attribution at the sector level 28 3.8 Attribution for single stocks 29 3.9 Combining attribution returns over time 31 3.10 Self-consistency across time 32 3.11 Summary 33 4 Yield Curves in Attribution 35 4.1 Introduction 35 4.2 Yield curves 35 4.3 What is a yield curve? 36 4.4 Why yield curves matter in attribution 36 4.5 Different types of yield 37 4.6 Zero-coupon yield 38 4.7 Sovereign and credit curves 38 4.8 What should a curve look like? 38 4.9 Different types of curve – advantages and disadvantages 39 4.10 Comparing different curve types 40 4.11 How do yield curves behave? 40 4.12 Credit curves 43 4.13 Finding yield curve data 43 5 Interest Rate Risk and Portfolio Management 45 5.1 Introduction 45 5.2 Return in fixed income portfolios 45 5.3 Risk numbers and interest rate sensitivity 45 5.4 Aggregating risk numbers 46 5.5 Hedging risk 47 5.6 Portfolio structure 47 5.7 Risk immunization 48 6 Measuring Changes in Yield Curves 51 6.1 Introduction 51 6.2 Curve shapes 51 6.3 Curves – the raw data 51 6.4 A typical curve movement 51 6.5 Describing curve changes 53 6.5.1 Should one go any further? 55 6.5.2 Can one use other movement descriptions? 55 6.6 Worked examples 55 6.7 Model-free representations of curves 56 6.8 Fitted model representations 57 6.9 Shift and curve positioning analysis 57 6.10 Polynomial term structure models 58 6.10.1 Example 1: Worked example for polynomial model 59 6.11 Nelson–Siegel term structure models 60 6.12 Principal component analysis 63 6.13 Fitting data to models 64 6.14 Constraints in curve fitting 64 7 Converting Yield Movements into Performance 65 7.1 Pricing from first principles 65 7.2 Measuring the effects of yield curve shifts 66 7.3 Perturbational pricing 67 PART II: SOURCES OF ATTRIBUTION RETURN 71 8 The Hierarchy of Fixed Income Returns 73 8.1 Subjectivity in attribution 73 8.2 Excess precision 73 9 Yield Return and Coupon Return 75 9.1 Yield return 75 9.2 Decomposition into coupon and convergence return 75 9.3 Coupon return 75 9.4 Convergence return 76 9.5 Decomposition into systematic and specific return 76 9.6 Calculating yield return 77 10 Treasury Curve Return 79 10.1 Movements in the Treasury curve 79 10.2 No curve analysis 79 10.3 Shift/twist/butterfly 79 10.4 Duration attribution 80 11 Roll Return 83 11.1 Introduction 83 11.2 Maximizing roll return 83 11.3 Measuring roll return 84 11.4 Measuring the effect of roll 85 11.5 Separating roll return from yield curve return 85 12 Credit Return 87 12.1 Introduction 87 12.2 Credit spread and security-specific return 87 12.3 Curves and securities 88 12.4 Fine structure credit curve movement 88 12.5 Different types of credit attribution 89 12.6 Swap curve attribution 89 12.7 Credit curve attribution 89 12.8 Sector curve attribution 92 12.9 Country attribution 93 13 Optionality Return 95 14 Asset Allocation Return 97 14.1 Case 1 97 14.2 Case 2 98 14.3 Case 3 98 15 Other Sources of Return 101 15.1 Convexity return 101 15.2 Liquidity (security-specific) return 101 15.3 Trading and price return 102 15.4 Residual return 103 16 Worked Examples 105 16.1 Example 1: Yield return and term structure return 105 16.1.1 Decomposing returns 106 16.2 Example 2: Yield return and detailed term structure return 106 PART III: FIXED INCOME ATTRIBUTION IN PRACTICE 109 17 Implementing an Attribution System 111 17.1 Build or buy? 111 17.2 Match to existing investment process 111 17.3 Can the attribution approach be extended? 111 17.4 Performance calculation engine 111 17.5 Integration with other systems 112 17.6 Benchmark and data issues 112 17.7 Reporting 112 17.8 IT requirements 113 17.9 Cost 113 17.10 Time 113 17.11 Management support 113 17.12 Intellectual capital 113 17.13 Interface to legacy systems 114 17.14 User expectations 114 17.15 In general . . . 114 18 Fixed Income Benchmarks 115 18.1 Introduction 115 18.2 Benchmark replication 116 18.3 Availability of data 117 18.4 Replicating benchmark returns from data 118 18.5 Treatment of cash 119 19 Presenting Attribution Results 121 19.1 Introduction 121 19.2 Reporting formats 121 19.3 Presenting numerical data 122 19.4 Presenting graphical data 126 19.5 Report design 131 20 Beyond Fixed Income Attribution 133 20.1 Fixed income attribution in the investment process 133 20.2 Conclusion 136 AppendixA Derivation of the Normal Equations for a Least Squares Fit 137 A.1 Polynomial functions 137 A.2 Nelson–Siegel functions 137 References 139 Index 141

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Book SynopsisTrustees are responsible for the stewardship of assets and for implementing the mission of their endowment or foundation. Almost invariably trustees delegate the management of those assets to agents who are investment professionals.Table of ContentsForeword ix Preface xi Acknowledgments xvii 1 Introduction 1 1.1 Endowment fund characteristics 2 1.2 Constraints on endowments 4 1.3 History rhymes 6 1.4 The US endowment experience 8 1.5 Structure of the book 12 2 Language of Return 17 2.1 Economic return 17 2.2 Investment return 18 2.3 ‘Other income’ not return 20 2.4 Income, capital and ‘total return’ 21 2.5 Real and nominal return 23 2.6 Absolute and relative return 26 2.7 Arithmetic and geometric return 28 2.8 Time-weighted return and money-weighted return 31 3 Elements of Return 35 3.1 Deriving return 35 3.2 Risk-free return 37 3.3 Premium for risk 38 3.4 Equity risk premium 41 3.5 The eighth wonder of the world 43 3.6 Valuation change 44 3.7 Drivers of return 48 3.8 Scenario analysis 49 4 Understanding Risk 53 4.1 Description of risk 53 4.2 Pascal’s Wager 54 4.3 Chance 56 4.4 Co-movement and common factors 58 4.5 The Greek alphabet 62 4.6 Confidence 63 4.7 Consequences 64 4.8 Endowment fund risk 65 5 Spending Rules 69 5.1 The endowment dilemma 69 5.2 Micawber’s rule 71 5.3 Pattern of flows 73 5.4 More scenario analysis 75 5.5 Determining an operating rule 76 6 Assets for Strategy 79 6.1 Back to the future 79 6.2 Investment approach 81 6.3 Classification of assets 82 6.3.1 Operational assets 84 6.3.2 Intergenerational assets 85 6.4 Asset categories 86 6.4.1 Cash 87 6.4.2 Short-dated and intermediate-term bonds 88 6.4.3 Long-dated bonds 89 6.4.4 High-yield bonds 90 6.4.5 Inflation-indexed bonds 91 6.4.6 Convertible bonds 92 6.5 Equities 93 6.6 Private equity 95 6.7 Real estate 96 6.8 Commodities 98 6.9 Hedge funds 99 7 Legal, Social and Ethical 103 7.1 Quis custodiet ipses custodies? 103 7.2 Tax matters 106 7.3 Extra-financial issues 106 7.4 Corporate governance 107 7.5 Corporate social responsibility 109 7.6 Socially responsible investment 111 7.7 Program-related investment 113 7.8 Global view 114 7.9 Reality check 115 8 Understanding Strategy 117 8.1 Resource assessment 118 8.2 Defining needs 119 8.3 Quantifying needs 122 8.4 Spending rule 123 8.5 Operational assets 124 8.6 Intergenerational assets 126 8.7 Review 134 9 Implementing Strategy 137 9.1 Investment policy statement 137 9.2 Trustees of an endowment 139 9.3 Investment committee 141 9.4 Investment staff 144 9.5 Risk tolerance and control 146 9.6 Operational asset management 147 9.7 Intergenerational asset allocation 148 9.8 Benchmarks and performance 150 9.9 Consultants 152 9.10 Selection of asset managers 153 9.11 Costs 156 9.12 Custody 159 10 Synopsis 161 References and Reading Matter 165 Glossary 171 Index 221

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Book SynopsisIn recent times, venture capital and private equity funds have become household names, but so far little has been written for the investors in such funds, the so--called limited partners. There is far more to the management of a portfolio of venture capital and private equity funds than usually perceived.Trade Review"...highlights why limited partners are bad performers and provides guidance for investments..." (Financial Times, 1st August 05) "...an interesting book on a fascinating subject" (Professional Investor, Dec/Jan 05/06)Table of ContentsList of Boxes xv Acknowledgements xvii Disclaimer xviii Part I Private Equity Environment 1 1 Introduction 3 1.1 Routes into private equity 3 1.2 The limited partner's viewpoint 4 1.3 The challenge of venture capital fund valuation 4 1.4 Hard figures or gut instinct? 5 1.5 Managing with fuzzy figures 5 1.6 Making the grades 5 1.7 Outline 7 2 Private Equity Market 9 2.1 Funds as intermediaries 10 2.2 The problem of predicting success 15 2.3 Broad segmentation of investment universe 18 2.4 Private equity market dynamics 22 2.5 Conclusion 26 3 Private Equity Fund Structure 27 3.1 Key features 29 3.2 Conflicts of interest 38 3.3 Finding the balance 38 4 Buyout and Venture Capital Fund Differences 41 4.1 Valuation 43 4.2 Business model 44 4.3 Deal structuring 45 4.4 Role of general partners 45 5 Funds-of-funds 47 5.1 Structure 47 5.2 Value added 48 5.3 Costs 51 5.4 Private equity investment programme 52 Part II Investment Process 57 6 Investment Process 59 6.1 Key performance drivers 59 6.2 Process description 61 6.3 Risk management 65 6.4 Tackling uncertainty 68 7 Risk Framework 73 7.1 Market value 75 7.2 Market or credit risk? 77 7.3 Conclusion 78 8 Portfolio Design 81 8.1 Portfolio design framework 81 8.2 Portfolio construction techniques 83 8.3 Risk–return management approaches 88 9 Case Study 95 9.1 Looking for the optimal programme size 95 9.2 Overcoming entry barriers: long-term strategies 104 10 The Management of Liquidity 115 10.1 Liquidity management problem 115 10.2 Liquidity management approaches 123 10.3 Investment strategies for undrawn capital 130 10.4 Cash flow projections 133 10.5 Conclusion 145 Part III Design Tools 151 11 Established Approaches to Fund Valuation 153 11.1 Bottom-up approach to private equity fund valuation 154 11.2 Inconsistency of valuations 157 11.3 NAVs do not tell the full picture 157 11.4 Portfolio companies cannot be valued in isolation 159 11.5 Conclusion 162 12 Benchmarking 165 12.1 Specific issues 165 12.2 Individual funds 166 12.3 Portfolio of funds 170 13 A Prototype Internal Grading System 173 13.1 Grading of private equity funds 173 13.2 The NAV is not enough 174 13.3 Existing approaches 176 13.4 New approach to internal fund-grading system 180 13.5 Summary—NAV- and grading-based valuation 188 13.6 Conclusion 189 14 Fund Manager Selection Process 193 14.1 Relevance of fund manager selection 193 14.2 Why due diligence? 194 14.3 The due diligence process 195 14.4 Fund manager selection process 197 14.5 Decision and commitment 201 15 Qualitative Fund Scoring 219 15.1 Scoring approach 219 15.2 Scoring dimensions 221 16 Grading-based Economic Model 233 16.1 Approach 233 16.2 Internal age adjustment 237 16.3 Private equity fund IRR projections 238 16.4 Expected portfolio returns 239 16.5 Discussion 241 16.6 Conclusion 242 17 Private Equity Fund Discount Rate 253 17.1 The capital asset pricing model 253 17.2 Private equity fund betas 257 17.3 The alternatives to the capital asset pricing model 264 17.4 Summary and conclusion 266 Part IV Management Tools 269 18 Monitoring 271 18.1 Approach to monitoring 272 18.2 The monitoring objectives 273 18.3 Information gathering 276 18.4 Evaluation 282 18.5 Actions 285 19 Case Study: Saving Your Investments—Approaches to Restructuring 287 19.1 The valley of tears 288 19.2 The report to the board 289 19.3 The terms of the restructuring 291 19.4 Epilogue 293 20 Secondary Transactions 297 20.1 Sellers and their motivations 297 20.2 Buyers and their motivations 299 20.3 Secondary market prices 300 20.4 Transactional issues 307 20.5 The fund manager perspective 308 Part V Embracing Uncertainty 311 21 Deviating from Top Funds 313 21.1 Strategic investments 313 21.2 Policy objectives 314 22 Real Options 319 22.1 Real options in private equity 319 22.2 Real option analysis 321 22.3 An expanded strategy and decision framework 322 23 Beyond the J-curve 327 23.1 Some do it better 327 23.2 Deadly sins 327 23.3 Structure instead of "gut instinct" 328 23.4 Patience is a virtue 328 23.5 Turning water into wine 329 Glossary 331 Bibliography 341 Abbreviations 351 Index 353

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Book SynopsisThere are many books covering Fibonacci from an artistic and historical point of view and almost as many suggesting that Fibonacci retracements and numbers can be successfully applied to financial market time series. What is missing is a book that addresses the common errors in using screen based Fibonacci (and Gann and other tools). The book is a critical exploration of Fibonacci numbers, retracements, projections, timeframes and fanlines and their current usage within the financial markets by technical analysts. Although they can be extremely effective analytical tools when used appropriately, mistakes in usage can be extremely costly from a financial and credibility viewpoint. George MacLean takes a brief look at the history of Fibonacci and Gann, before providing a full account of their applications in financial markets, including fixed income, equity, foreign exchange, commodities and indexes. In particular, he draws attention to the overuse and misuse of easily applied comput

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Book SynopsisThis new book on retail banking is both readable and innovative. Its analysis is unusually accessible in its style, and the book''s conclusions and predictions will be rightly thought provoking. The customer is gaining real power and this new book''s insights on the importance of leadership, the need to unleash creativity and to make a bank''s IT and people resource work together more effectively for customer satisfaction are important pointers to the shape of future competitive differentiation. --Sir Mervyn Pedelty, Recently retired Chief Executive, The Co-operative Bank plc, smile, CIS and Co-operative Financial Services A stimulating read. A readable and lively book that is always informative, sometimes controversial and invariably challenging. The authors don''t expect readers to agree with it all, but the readers will undoubtedly gain some fresh insights and perspectives on the multiple issues facing management in a rapidly changing industry. --Chris LendrTable of ContentsPreface xiii Background and Acknowledgements xxiii About the Authors xxv Part I Setting The Scene 1 1 Introduction 3 1.1 Objective 3 1.2 Science and engineering 5 1.3 Science, art and engineering 6 1.4 A brief look back, and the culture of retail banking 8 1.5 The view from the bridge 10 1.6 We have to start from where we are 11 1.7 Are banks ‘unpopular’? 12 1.8 The path to popular popularity 13 1.9 And get this too . . . 14 1.10 Change is in the air – confidence, simplicity, speed 15 2 The Basic Model 17 2.1 Profit and return on equity 18 2.2 Capital requirements 19 2.3 Interest spread and interest margin 21 2.4 Non-interest income (fees and commissions) 24 2.5 Costs and the cost/income ratio 25 2.6 Loan losses 26 2.7 Taxation 26 2.8 Our loan of £1000 26 2.9 Performance measurements 28 2.10 The different businesses within banking 30 2.11 Assets, liabilities, treasury, capital markets 31 2.12 Caveat – definitions 32 2.13 To really understand it without it hurting 33 2.14 Some further points 33 3 Accounts, Services and Channels 37 3.1 Accounts 37 3.1.1 Current accounts 37 3.1.2 Savings accounts 38 3.1.3 Loan accounts 39 3.2 Payments 39 3.3 Services – fee-based and commissions 40 3.4 Delivery channels 42 3.4.1 Branches 43 3.4.2 ATMs 44 3.4.3 Digital 45 3.4.4 Postal banking 45 3.5 Bank cooperative channels 45 3.6 And some other points 46 3.6.1 Account variations 46 3.6.2 Bank cost allocation methodologies 48 3.6.3 And on product performances 49 4 Real Banks and Challenges 57 4.1 Some lists of banks – international banks 57 4.2 Globalisation 62 4.3 UK banks 63 4.3.1 HSBC 66 4.3.2 Royal Bank of Scotland 66 4.3.3 HBOS 67 4.3.4 Barclays Bank 67 4.3.5 Lloyds TSB 67 4.3.6 Abbey National 67 4.3.7 Standard Chartered 68 4.3.8 Alliance & Leicester 68 4.3.9 Northern Rock 68 4.3.10 Bradford & Bingley 68 4.3.11 Yorkshire Bank 68 4.3.12 The Co-operative Bank 69 4.3.13 Clydesdale Bank 69 4.3.14 Egg 69 4.3.15 Northern Bank 69 4.4 A little more detail on some UK banks 69 4.5 Building societies 73 4.6 The challenges for banks 74 4.7 Costs and the cost/income ratio 76 4.8 Risks 77 4.8.1 Credit risk 79 4.8.2 Treasury risks 80 4.8.3 Operational risk 81 4.8.4 Other risks 81 4.8.5 The risk about risks 82 4.9 Differentiators 83 4.10 Acquaintanceships 84 4.11 Trends 85 4.12 Competition 88 4.12.1 The Y2K experience 90 4.12.2 Competitive business models 90 4.12.3 Offset accounts 90 4.12.4 Super retailers 90 4.13 Pricing 92 4.14 Roundup 93 4.14.1 The realisations 94 4.15 Key observations 96 5 Systems and Information Technology (IT) 99 5.1 Legacy systems 100 5.2 Banks are dependent on data and information processing 102 5.3 Information technology will become a major differentiator 105 5.4 IT and the retail banking industry 107 5.4.1 There are additional pressures now 109 5.5 The IT industry is not without blame 111 5.6 Resolving the legacy systems problem 113 5.7 A new approach from the IT industry and from banks 115 5.8 Applications solution/software licensing 118 Part II The Propositions 119 6 The Real World 121 6.1 Basic findings on business strategy 121 6.2 Investment intensity – a big difference 130 6.2.1 Balance sheet differences 131 6.3 The people, processes and technology of capital investment 133 6.4 Product/service fitness-for-purpose 135 6.5 Brand, service, fitness-for-purpose, price 137 6.6 Products and price 143 6.7 Reinvention and invention 146 6.7.1 Simplification 148 6.7.2 Straight through processing 148 6.7.3 Customer centricity 148 6.7.4 Electronic manufacturing 148 6.7.5 Risk management 148 6.7.6 Capitalising on technology 148 6.7.7 Delivery strategy 148 6.7.8 Total cost of ownership 149 6.7.9 Regulation and compliance 149 6.7.10 Speed and responsiveness 149 6.8 How big is the opportunity? 149 7 The Propositions 151 7.1 Customers 151 7.1.1 Does the customer want a mortgage? 155 7.1.2 Does the customer want a savings account? 156 7.1.3 Does the customer want a current account? 157 7.1.4 Does the customer want an insurance policy? 157 7.1.5 The point is . . . 158 7.2 Customers – life events management and lifestyle choices 158 7.2.1 There are many opportunities to simplify 161 7.2.2 The pity of it all 163 7.3 The very different starting points of banks 163 7.3.1 For established banks 164 7.3.2 For new banks and small banks 165 7.3.3 So, nothing is new then? 166 7.3.4 How ambitious do we have to be? 168 7.3.5 It’s not enough for an established bank . . . 168 7.3.6 . . . But it is enough for a new or small bank 172 7.4 The strategies 175 7.5 For established banks 176 7.6 For new banks 178 7.7 SWOT summary 179 7.7.1 If the costs are ‘right’, the rest can follow 179 7.8 The starting point 180 8 Preparing for the Future 187 8.1 Evolution, tactics, limits – the obvious stuff 187 8.2 The critical stuff 189 8.3 Customers 190 8.4 Marketing and brand power 193 8.5 Costs 196 8.6 Staff 198 8.7 Deciding on the change itself 198 8.7.1 Differently 199 8.7.2 New and small banks 200 8.7.3 Established banks 201 8.8 Establishing the basic inputs 202 8.9 Discovery process 203 8.10 Establishing the business model 204 8.10.1 New model 204 8.10.2 Enhancement model 205 8.10.3 Change model 207 8.11 Establishing the business plan 208 8.12 Big banks in particular 209 8.13 Is there really a choice? 210 8.14 Much of the writing is on the wall 212 9 Predictions for Retail Banking 215 9.1 A framework for the ‘simple’ predictions 216 9.2 Simple ‘we know that already’ predictions 217 9.2.1 Competition 218 9.2.2 Customers 219 9.2.3 Government and regulation 220 9.2.4 Investors, and mergers and acquisitions 220 9.2.5 Leadership 223 9.2.6 The balance of art, science and engineering 224 9.2.7 Products, services, solutions 224 9.2.8 Staff, costs, customers, marketing 226 9.2.9 Information technology and the real dot.com revolution in banking 227 9.2.10 IT application software architectures 228 9.2.11 Treasury and securitisation 229 9.2.12 Payments solutions 230 9.2.13 Disruptors 231 9.3 Meeting customer needs at the lowest cost 231 9.4 Research and development 234 9.5 Winners and losers 234 9.6 A look over the horizon – some braver predictions 236 9.6.1 Customers – their trust, confidence and respect 236 9.6.2 Regulation 237 9.6.3 Customers 237 9.6.4 Staff 238 9.6.5 IT engineering 239 9.6.6 Financial engineering 239 9.6.7 Risk 240 9.6.8 Outsourcing 241 9.6.9 Payments 242 9.6.10 Industry consolidation 242 9.6.11 Investors and banks – the end game 243 10 Conclusions 245 Appendix A: List of Acronyms 249 Appendix B: Glossary 253 References 257 Index 259

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Book SynopsisAnalysis of Financial Data teaches basic methods and techniques of data analysis to finance students. It covers many of the major tools used by the financial economist i.e. regression and time series methods including discussion of nonstationary models, multivariate concepts such as cointegration and models of conditional volatility.Table of ContentsPreface ix Chapter 1 Introduction 1 Organization of the book 3 Useful background 4 Appendix 1.1: Concepts in mathematics used in this book 4 Chapter 2 Basic data handling 9 Types of financial data 9 Obtaining data 15 Working with data: graphical methods 16 Working with data: descriptive statistics 21 Expected values and variances 24 Chapter summary 26 Appendix 2.1: Index numbers 27 Appendix 2.2: Advanced descriptive statistics 30 Chapter 3 Correlation 33 Understanding correlation 33 Understanding why variables are correlated 39 Understanding correlation through XY-plots 40 Correlation between several variables 44 Covariances and population correlations 45 Chapter summary 47 Appendix 3.1: Mathematical details 47 Chapter 4 An introduction to simple regression 49 Regression as a best fitting line 50 Interpreting OLS estimates 53 Fitted values and R2: measuring the fit of a regression model 55 Nonlinearity in regression 61 Chapter summary 64 Appendix 4.1: Mathematical details 65 Chapter 5 Statistical aspects of regression 69 Which factors affect the accuracy of the estimate βˆ? 70 Calculating a confidence interval for β 73 Testing whether β =0 79 Hypothesis testing involving R2: the F-statistic 84 Chapter summary 86 Appendix 5.1: Using statistical tables for testing whether β =0 87 Chapter 6 Multiple regression 91 Regression as a best fitting line 93 Ordinary least squares estimation of the multiple regression model 93 Statistical aspects of multiple regression 94 Interpreting OLS estimates 95 Pitfalls of using simple regression in a multiple regression context 98 Omitted variables bias 100 Multicollinearity 102 Chapter summary 105 Appendix 6.1: Mathematical interpretation of regression coefficients 105 Chapter 7 Regression with dummy variables 109 Simple regression with a dummy variable 112 Multiple regression with dummy variables 114 Multiple regression with both dummy and non-dummy explanatory variables 116 Interacting dummy and non-dummy variables 120 What if the dependent variable is a dummy? 121 Chapter summary 122 Chapter 8 Regression with lagged explanatory variables 123 Aside on lagged variables 125 Aside on notation 127 Selection of lag order 132 Chapter summary 135 Chapter 9 Univariate time series analysis 137 The autocorrelation function 140 The autoregressive model for univariate time series 144 Nonstationary versus stationary time series 146 Extensions of the AR(1) model 149 Testing in the AR( p) with deterministic trend model 152 Chapter summary 158 Appendix 9.1: Mathematical intuition for the AR(1) model 159 Chapter 10 Regression with time series variables 161 Time series regression when X and Y are stationary 162 Time series regression when Y and X have unit roots: spurious regression 167 Time series regression when Y and X have unit roots: cointegration 167 Time series regression when Y and X are cointegrated: the error correction model 174 Time series regression when Y and X have unit roots but are not cointegrated 177 Chapter summary 179 Chapter 11 Regression with time series variables with several equations 183 Granger causality 184 Vector autoregressions 190 Chapter summary 203 Appendix 11.1: Hypothesis tests involving more than one coefficient 204 Appendix 11.2: Variance decompositions 207 Chapter 12 Financial volatility 211 Volatility in asset prices: Introduction 212 Autoregressive conditional heteroskedasticity (ARCH) 217 Chapter summary 222 Appendix A Writing an empirical project 223 Description of a typical empirical project 223 General considerations 225 Appendix B Data directory 227 Index 231

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Book SynopsisThis book is about championing a move away from simply evaluating physical assets to understanding and evaluating the intangible value of an entity. It means moving beyond economic theory to reprioritise and change the organisation so that further value can be created via processes, systems, measures, skills, knowledge and strategy. It is also about mapping the intangible value chain. The book looks at value networks and, using real-life projects asks questions such as: What do company value networks look like How are they used to create value How can one value' the value chain What lessons can be learnt from companies with high value networks as opposed to companies with low value networks What is the impact on finance disciplines, processes, measures, systems and skills. These answers to these questions as provided by the case studies and interviews with CFOs from the companies involved will help to improve focus, impTable of Contents1. Today’s Challenges, Tomorrow’s AspirationToday’s Aspirations. Riding the two-headed monster. Getting “back in the saddle”. Coping with governance and reporting. Creating value and growth. Shaping the new agenda. Straight from the CFO. 2. Reshaping Finance. Centralization: where to draw the line? The quest for standardization. The new fi nancial management model. Process optimization and reporting. Streamlining corporate structure. Lessons from private equity. Straight from the CFO. 3. Making Change Happen. Change, in a hurry. Champions of change. Transforming the public sector. Pulling all change levers. From CFO to COO. Talent for the future. Straight from the CFO. 4. Releasing Intangible Value. Execution not valuation. The goodwill dilemma. Value centers. Managing intellectual property. Selecting valuation techniques. Brands: the missing half of the balance sheet! Treating customers as assets. Value tiering. Moving from back offi ce to the front. Structural and human capital. Straight from the CFO. 5. Driving Growth and Innovation. Sustainable advantage. Decision support takes center stage. New ways of working. In-market innovation. From the outside, in. Innovation centers: a “win–win”. Straight from the CFO. 6. Looking Forward, Not Backward. Expect the unexpected. Closing the strategy gap in pharmaceuticals. Optimizing value through integration. Rolling forecasts. Monitoring reality. Connecting the dots through systems. Straight from the CFO. 7. Innovative Business Partnering. Finance of the future. Working in partnership. Effective investment in brands. Decision making under uncertainty. Finance and innovation. Dynamic performance management. The finance academy. Conclusion. Straight from the CFO. 8. Promoting Global Connectivity. Building global partnerships. Integrating shared services by region. Creating a worldwide center. Seamless support: near-shore or off-shore? Connectivity through technology. Straight from the CFO. 9. Leveraging Risk and Regulation. The misery of regulation. Leveraging Sarbanes-Oxley. Multiple listings, multiple standards. Implementation overload. The case for dual accounting. Enterprise-wide risk management. The role of Chief Risk Offi cer (CRO). Straight from the CFO. 10. Becoming a Sustainable Corporation. Case for corporate responsibility. Investor perspective. Ethics and value creation. A multi-stakeholder approach. Best practices: corporate reporting. Triple bottom line. Reality check. Becoming the good corporation! Straight from the CFO. Index.

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Book SynopsisTraditional actuarial risk theory focuses on independence between the different random variables. However in recent years the actuarial profession has recognized that efficient risk management increasingly requires an understanding of the strength of dependence between different risks. This book deals with dependent risks in insurance markets.Table of ContentsForeword xiii Preface xv PART I THE CONCEPT OF RISK 1 1 Modelling Risks 3 1.1 Introduction 3 1.2 The Probabilistic Description of Risks 4 1.2.1 Probability space 4 1.2.2 Experiment and universe 4 1.2.3 Random events 4 1.2.4 Sigma-algebra 5 1.2.5 Probability measure 5 1.3 Independence for Events and Conditional Probabilities 6 1.3.1 Independent events 6 1.3.2 Conditional probability 7 1.4 Random Variables and Random Vectors 7 1.4.1 Random variables 7 1.4.2 Random vectors 8 1.4.3 Risks and losses 9 1.5 Distribution Functions 10 1.5.1 Univariate distribution functions 10 1.5.2 Multivariate distribution functions 12 1.5.3 Tail functions 13 1.5.4 Support 14 1.5.5 Discrete random variables 14 1.5.6 Continuous random variables 15 1.5.7 General random variables 16 1.5.8 Quantile functions 17 1.5.9 Independence for random variables 20 1.6 Mathematical Expectation 21 1.6.1 Construction 21 1.6.2 Riemann–Stieltjes integral 22 1.6.3 Law of large numbers 24 1.6.4 Alternative representations for the mathematical expectation in the continuous case 24 1.6.5 Alternative representations for the mathematical expectation in the discrete case 25 1.6.6 Stochastic Taylor expansion 25 1.6.7 Variance and covariance 27 1.7 Transforms 29 1.7.1 Stop-loss transform 29 1.7.2 Hazard rate 30 1.7.3 Mean-excess function 32 1.7.4 Stationary renewal distribution 34 1.7.5 Laplace transform 34 1.7.6 Moment generating function 36 1.8 Conditional Distributions 37 1.8.1 Conditional densities 37 1.8.2 Conditional independence 38 1.8.3 Conditional variance and covariance 38 1.8.4 The multivariate normal distribution 38 1.8.5 The family of the elliptical distributions 41 1.9 Comonotonicity 49 1.9.1 Definition 49 1.9.2 Comonotonicity and Fréchet upper bound 49 1.10 Mutual Exclusivity 51 1.10.1 Definition 51 1.10.2 Fréchet lower bound 51 1.10.3 Existence of Fréchet lower bounds in Fréchet spaces 53 1.10.4 Fréchet lower bounds and maxima 53 1.10.5 Mutual exclusivity and Fréchet lower bound 53 1.11 Exercises 55 2 Measuring Risk 59 2.1 Introduction 59 2.2 Risk Measures 60 2.2.1 Definition 60 2.2.2 Premium calculation principles 61 2.2.3 Desirable properties 62 2.2.4 Coherent risk measures 65 2.2.5 Coherent and scenario-based risk measures 65 2.2.6 Economic capital 66 2.2.7 Expected risk-adjusted capital 66 2.3 Value-at-Risk 67 2.3.1 Definition 67 2.3.2 Properties 67 2.3.3 VaR-based economic capital 70 2.3.4 VaR and the capital asset pricing model 71 2.4 Tail Value-at-Risk 72 2.4.1 Definition 72 2.4.2 Some related risk measures 72 2.4.3 Properties 74 2.4.4 TVaR-based economic capital 77 2.5 Risk Measures Based on Expected Utility Theory 77 2.5.1 Brief introduction to expected utility theory 77 2.5.2 Zero-Utility Premiums 81 2.5.3 Esscher risk measure 82 2.6 Risk Measures Based on Distorted Expectation Theory 84 2.6.1 Brief introduction to distorted expectation theory 84 2.6.2 Wang risk measures 88 2.6.3 Some particular cases of Wang risk measures 92 2.7 Exercises 95 2.8 Appendix: Convexity and Concavity 100 2.8.1 Definition 100 2.8.2 Equivalent conditions 100 2.8.3 Properties 101 2.8.4 Convex sequences 102 2.8.5 Log-convex functions 102 3 Comparing Risks 103 3.1 Introduction 103 3.2 Stochastic Order Relations 105 3.2.1 Partial orders among distribution functions 105 3.2.2 Desirable properties for stochastic orderings 106 3.2.3 Integral stochastic orderings 106 3.3 Stochastic Dominance 108 3.3.1 Stochastic dominance and risk measures 108 3.3.2 Stochastic dominance and choice under risk 110 3.3.3 Comparing claim frequencies 113 3.3.4 Some properties of stochastic dominance 114 3.3.5 Stochastic dominance and notions of ageing 118 3.3.6 Stochastic increasingness 120 3.3.7 Ordering mixtures 121 3.3.8 Ordering compound sums 121 3.3.9 Sufficient conditions 122 3.3.10 Conditional stochastic dominance I: Hazard rate order 123 3.3.11 Conditional stochastic dominance II: Likelihood ratio order 127 3.3.12 Comparing shortfalls with stochastic dominance: Dispersive order 133 3.3.13 Mixed stochastic dominance: Laplace transform order 137 3.3.14 Multivariate extensions 142 3.4 Convex and Stop-Loss Orders 149 3.4.1 Convex and stop-loss orders and stop-loss premiums 149 3.4.2 Convex and stop-loss orders and choice under risk 150 3.4.3 Comparing claim frequencies 154 3.4.4 Some characterizations for convex and stop-loss orders 155 3.4.5 Some properties of the convex and stop-loss orders 162 3.4.6 Convex ordering and notions of ageing 166 3.4.7 Stochastic (increasing) convexity 167 3.4.8 Ordering mixtures 169 3.4.9 Ordering compound sums 169 3.4.10 Risk-reshaping contracts and Lorenz order 169 3.4.11 Majorization 171 3.4.12 Conditional stop-loss order: Mean-excess order 173 3.4.13 Comparing shortfall with the stop-loss order: Right-spread order 175 3.4.14 Multivariate extensions 178 3.5 Exercises 182 PART II DEPENDENCE BETWEEN RISKS 189 4 Modelling Dependence 191 4.1 Introduction 191 4.2 Sklar’s Representation Theorem 194 4.2.1 Copulas 194 4.2.2 Sklar’s theorem for continuous marginals 194 4.2.3 Conditional distributions derived from copulas 198 4.2.4 Probability density functions associated with copulas 201 4.2.5 Copulas with singular components 201 4.2.6 Sklar’s representation in the general case 203 4.3 Families of Bivariate Copulas 204 4.3.1 Clayton’s copula 205 4.3.2 Frank’s copula 205 4.3.3 The normal copula 207 4.3.4 The Student copula 208 4.3.5 Building multivariate distributions with given marginal from copulas 210 4.4 Properties of Copulas 213 4.4.1 Survival copulas 213 4.4.2 Dual and co-copulas 215 4.4.3 Functional invariance 216 4.4.4 Tail dependence 217 4.5 The Archimedean Family of Copulas 218 4.5.1 Definition 218 4.5.2 Frailty models 219 4.5.3 Probability density function associated with Archimedean copulas 220 4.5.4 Properties of Archimedean copulas 221 4.6 Simulation from Given Marginals and Copula 223 4.6.1 General method 223 4.6.2 Exploiting Sklar’s decomposition 224 4.6.3 Simulation from Archimedean copulas 224 4.7 Multivariate Copulas 225 4.7.1 Definition 225 4.7.2 Sklar’s representation theorem 225 4.7.3 Functional invariance 226 4.7.4 Examples of multivariate copulas 226 4.7.5 Multivariate Archimedean copulas 229 4.8 Loss–Alae Modelling with Archimedean Copulas: A Case Study 231 4.8.1 Losses and their associated ALAEs 231 4.8.2 Presentation of the ISO data set 231 4.8.3 Fitting parametric copula models to data 232 4.8.4 Selecting the generator for Archimedean copula models 234 4.8.5 Application to loss–ALAE modelling 238 4.9 Exercises 242 5 Measuring Dependence 245 5.1 Introduction 245 5.2 Concordance Measures 246 5.2.1 Definition 246 5.2.2 Pearson’s correlation coefficient 247 5.2.3 Kendall’s rank correlation coefficient 253 5.2.4 Spearman’s rank correlation coefficient 257 5.2.5 Relationships between Kendall’s and Spearman’s rank correlation coefficients 259 5.2.6 Other dependence measures 260 5.2.7 Constraints on concordance measures in bivariate discrete data 262 5.3 Dependence Structures 264 5.3.1 Positive dependence notions 264 5.3.2 Positive quadrant dependence 265 5.3.3 Conditional increasingness in sequence 274 5.3.4 Multivariate total positivity of order 2 276 5.4 Exercises 279 6 Comparing Dependence 285 6.1 Introduction 285 6.2 Comparing Dependence in the Bivariate Case Using the Correlation Order 287 6.2.1 Definition 287 6.2.2 Relationship with orthant orders 288 6.2.3 Relationship with positive quadrant dependence 289 6.2.4 Characterizations in terms of supermodular functions 289 6.2.5 Extremal elements 290 6.2.6 Relationship with convex and stop-loss orders 290 6.2.7 Correlation order and copulas 292 6.2.8 Correlation order and correlation coefficients 292 6.2.9 Ordering Archimedean copulas 292 6.2.10 Ordering compound sums 293 6.2.11 Correlation order and diversification benefit 294 6.3 Comparing Dependence in the Multivariate Case Using the Supermodular Order 295 6.3.1 Definition 295 6.3.2 Smooth supermodular functions 296 6.3.3 Restriction to distributions with identical marginals 296 6.3.4 A companion order: The symmetric supermodular order 297 6.3.5 Relationships between supermodular-type orders 297 6.3.6 Supermodular order and dependence measures 297 6.3.7 Extremal dependence structures in the supermodular sense 298 6.3.8 Supermodular, stop-loss and convex orders 298 6.3.9 Ordering compound sums 299 6.3.10 Ordering random vectors with common values 300 6.3.11 Stochastic analysis of duplicates in life insurance portfolios 302 6.4 Positive Orthant Dependence Order 304 6.4.1 Definition 304 6.4.2 Positive orthant dependence order and correlation coefficients 304 6.5 Exercises 305 PART III APPLICATIONS TO INSURANCE MATHEMATICS 309 7 Dependence in Credibility Models Based on Generalized Linear Models 311 7.1 Introduction 311 7.2 Poisson Credibility Models for Claim Frequencies 312 7.2.1 Poisson static credibility model 312 7.2.2 Poisson dynamic credibility models 315 7.2.3 Association 316 7.2.4 Dependence by mixture and common mixture models 320 7.2.5 Dependence in the Poisson static credibility model 323 7.2.6 Dependence in the Poisson dynamic credibility models 325 7.3 More Results for the Static Credibility Model 329 7.3.1 Generalized linear models and generalized additive models 329 7.3.2 Some examples of interest to actuaries 330 7.3.3 Credibility theory and generalized linear mixed models 331 7.3.4 Exhaustive summary of past claims 332 7.3.5 A posteriori distribution of the random effects 333 7.3.6 Predictive distributions 334 7.3.7 Linear credibility premium 334 7.4 More Results for the Dynamic Credibility Models 339 7.4.1 Dynamic credibility models and generalized linear mixed models 339 7.4.2 Dependence in GLMM-based credibility models 340 7.4.3 A posteriori distribution of the random effects 341 7.4.4 Supermodular comparisons 342 7.4.5 Predictive distributions 343 7.5 On the Dependence Induced by Bonus–Malus Scales 344 7.5.1 Experience rating in motor insurance 344 7.5.2 Markov models for bonus–malus system scales 344 7.5.3 Positive dependence in bonus–malus scales 345 7.6 Credibility Theory and Time Series for Non-Normal Data 346 7.6.1 The classical actuarial point of view 346 7.6.2 Time series models built from copulas 346 7.6.3 Markov models for random effects 348 7.6.4 Dependence induced by autoregressive copula models in dynamic frequency credibility models 349 7.7 Exercises 350 8 Stochastic Bounds on Functions of Dependent Risks 355 8.1 Introduction 355 8.2 Comparing Risks With Fixed Dependence Structure 357 8.2.1 The problem 357 8.2.2 Ordering random vectors with fixed dependence structure with stochastic dominance 358 8.2.3 Ordering random vectors with fixed dependence structure with convex order 358 8.3 Stop-Loss Bounds on Functions of Dependent Risks 360 8.3.1 Known marginals 360 8.3.2 Unknown marginals 360 8.4 Stochastic Bounds on Functions of Dependent Risks 363 8.4.1 Stochastic bounds on the sum of two risks 363 8.4.2 Stochastic bounds on the sum of several risks 365 8.4.3 Improvement of the bounds on sums of risks under positive dependence 367 8.4.4 Stochastic bounds on functions of two risks 368 8.4.5 Improvements of the bounds on functions of risks under positive quadrant dependence 370 8.4.6 Stochastic bounds on functions of several risks 370 8.4.7 Improvement of the bounds on functions of risks under positive orthant dependence 371 8.4.8 The case of partially specified marginals 372 8.5 Some Financial Applications 375 8.5.1 Stochastic bounds on present values 375 8.5.2 Stochastic annuities 376 8.5.3 Life insurance 379 8.6 Exercises 382 9 Integral Orderings and Probability Metrics 385 9.1 Introduction 385 9.2 Integral Stochastic Orderings 386 9.2.1 Definition 386 9.2.2 Properties 386 9.3 Integral Probability Metrics 388 9.3.1 Probability metrics 388 9.3.2 Simple probability metrics 389 9.3.3 Integral probability metrics 389 9.3.4 Ideal metrics 390 9.3.5 Minimal metric 392 9.3.6 Integral orders and metrics 392 9.4 Total-Variation Distance 393 9.4.1 Definition 393 9.4.2 Total-variation distance and integral metrics 394 9.4.3 Comonotonicity and total-variation distance 395 9.4.4 Maximal coupling and total-variation distance 396 9.5 Kolmogorov Distance 396 9.5.1 Definition 396 9.5.2 Stochastic dominance, Kolmogorov and total-variation distances 397 9.5.3 Kolmogorov distance under single crossing condition for probability density functions 397 9.6 Wasserstein Distance 398 9.6.1 Definition 398 9.6.2 Properties 399 9.6.3 Comonotonicity and Wasserstein distance 400 9.7 Stop-Loss Distance 401 9.7.1 Definition 401 9.7.2 Stop-loss order, stop-loss and Wasserstein distances 401 9.7.3 Computation of the stop-loss distance under stochastic dominance or dangerousness order 401 9.8 Integrated Stop-Loss Distance 403 9.8.1 Definition 403 9.8.2 Properties 403 9.8.3 Integrated stop-loss distance and positive quadrant dependence 405 9.8.4 Integrated stop-loss distance and cumulative dependence 405 9.9 Distance Between the Individual and Collective Models in Risk Theory 407 9.9.1 Individual model 407 9.9.2 Collective model 407 9.9.3 Distance between compound sums 408 9.9.4 Distance between the individual and collective models 410 9.9.5 Quasi-homogeneous portfolios 412 9.9.6 Correlated risks in the individual model 414 9.10 Compound Poisson Approximation for a Portfolio of Dependent Risks 414 9.10.1 Poisson approximation 414 9.10.2 Dependence in the quasi-homogeneous individual model 418 9.11 Exercises 421 References 423 Index 439

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Book SynopsisThis book covers key topics on the subject of exotic option pricing and modeling, including model risk, Monte-Carlo simulation issues, pricing and hedging of American-style exotics, convertible bonds, and more. It will serve as a leading reference for anyone working in probability theory and financial mathematics. .Table of ContentsContributors. Preface. About the Editors. About the Contributors. 1. Levy Processes in Finance Distinguished by their Coarse and Fine Path Properties Andreas E. Kyprianou and R. Loeffen. 1.1 Introduction. 1.2 Levy Processes. 1.3 Examples of Levy Processes in finance. 1.4 Path properties. 1.5 Examples revisited. 1.6 Conclusions. References. 2. Simulation Methods with Levy Processes Nick Webber. 2.1 Introduction. 2.2 Modelling price and rate movements. 2.3 A basis for a numerical approach. 2.4 Constructing bridges for Levy Processes. 2.5 Valuing discretely reset path-dependant options. 2.6 Valuing continuously reset path-dependent options. 2.7 Conclusions. 3. Risks in Returns: A Pure Jump Perspective Helyette Geman and Dilip B. Madan. 3.1 Introduction. 3.2 CGMY model details. 3.3 Estimation details. 3.4 Estimation results. 3.5 Conclusions. References. 4. Model Risk for Exotic and Moment Derivatives Wim Schoutens, Erwin Simons and Jurgen Tistaert. 4.1 Introduction. 4.2 The models. 4.3 Calibration. 4.4 Simulation. 4.5 Pricing of exotic options. 4.6 Pricing of moment derivatives. 4.7 Conclusions. References. 5. Symmetries and Pricing of Exotic Options in Levy Models Ernst Eberlein and Antonis Papapantoleon. 5.1 Introduction. 5.2 Model and assumptions. 5.3 General description of the method. 5.4 Vanilla options. 5.5 Exotic options. 5.6 Margrabe-type options. References. 6. Static Hedging of Asian Options Under Stochastic Volatility Models using Fast Fourier Transform Hansjorg Albrecher and Wim Schoutens. 6.1 Introduction. 6.2 Stochastic volatility models. 6.3 Static hedging of Asian options. 6.4 Numerical Implementation. 6.5 Numerical illustrations. 6.6 A model-independent static super-hedge. 6.7 Conclusions. References. 7. Impact of Market Crises on Real Options Pauline Barrieu and Nadine Bellamy. 7.1 IOntroduction. 7.2 The model. 7.3 The real option characteristics. 7.4 Optimal discount rate and average waiting time. 7.5 Robustness of the inverstment decision characters. 7.6 Contiuos models versus discontinuous model. 7.7 Conclusions. References. 8. Moment Derivatives and Levy-type Market Completion Jose Manuel Corcuera, David Nualart and Wim Schoutens. 8.1 Introduction. 8.2 Market completuion in the descrete-time setting. 8.3 The Levy market. 8.4 Enlarging the Levy market model. 8.5 Arbitrage. 8.6 Optimal portfolios. References. 9. Pricing Perpetual American Options Driven by Spectrally One-sided Levy Processes Terence Chan. 9.1 Introduction. 9.2 First-passage distributions and other results for spectrally positive Levy. 9.3 Description of the model, basic definitions and notations. 9.4 A renewal equation approach to pricing. 9.5 Explicit pricing formulae for American puts. 9.6 Some specific examples. Appendix: use of fast fourier transform. References. Epilogue. Further references. 10. On Asian Options of American Type Goran Peskir and Nadia Uys. 10.1 Introduction. 10.2 Formulation of the problem. 10.3 The result and proof. 10.4 Remarks on numerics. Appendix. References. 11. Why be Backward? Forward Equations for American Options Peter Carr and Ali Hirsa. 11.1 Introduction. 11.2 Reveiw of the backward free boundary problem. 11.3 Stationarity and domain extension in the maturity direction. 11.4 Additivity and domain extension in the strike direction. 11.5 The forward free boundary problem. 11.6 Summary and future research. Appendix: Discretization of forward equation for American options. References. 12. Numerical Valuation of American Options Under the CGMY Process Ariel Almendral. 12.1 Introduction. 12.2 The CGMY process as a Levy process. 12.3 Numerical Valuation of the American CGMY price. 12.4 Numerical experiments. Appendix: Analytic formula for European option prices. References. 13. Convertible Bonds: Financial Derivatives of Game Type Jan Kallsen and Christoph Kuhn. 13.1 Introduction. 13.2 No-arbitrage pricing for game contigent claims. 13.3 Convertible bonds. 13.4 Conclusions. References. 14. The Spread Option Optimal Stopping Game Pavel V. Gapeev. 14.1 Introduction. 14.2 Formulation of the problem. 14.3 Solution of the free-boundary problem. 14.4 Main result and proof. 14.5 Conclusions. References. Index.

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Book SynopsisAn Introduction to Fund Management introduces readers to the economic rationale for the existence of funds, the different types available, investment strategies and many other related issues from the perspective of the investment manager.Table of ContentsPreface xi About the author xiii 1 INTRODUCTION 1 Economic background 3 ‘Money makes the world go round’ 4 ‘Money doesn’t grow on trees’ 5 Risks and rewards 6 Considerations 9 Markets 10 Investment instruments 11 ‘Neither a borrower nor a lender be’ 12 2 ROLE OF FUNDS 13 Definitions 14 Investment businesses 15 Types of fund 16 Open-ended and closed-ended funds 23 Uses of funds 24 Associated packaging 25 Features and characteristics 25 Purpose, providers and players 25 Costs, benefits and comparisons 27 How to invest 31 Sales, marketing and disclosure 31 Categories, sectors and statistics 32 Investor protection 33 ‘Be it enacted by the Queen’s most Excellent Majesty . . .’ 33 Regulation in practice 42 Establishing a fund 47 Who wants one and why? 47 Options and approaches 48 Documents and authorisations 50 Launching the fund 51 3 PORTFOLIO MANAGEMENT 53 Strategies, styles, objectives and policies 54 Meeting investors’ requirements 56 Risks to be managed 57 Hedging 59 ‘Please don’t ask for credit . . .’ 62 ‘You can’t do that!’ 63 Asset allocation versus stock selection 65 Choosing the investments 66 ‘First, pick your markets’ 66 Portfolio weightings and profiles 68 Income and growth 69 Liquidity 70 Evaluating alternatives 71 Data, ratios and measurements 75 Dealing with events 78 News and announcements 79 New issues and underwriting 81 Rights, splits and scrip 83 Breaches of regulations 85 4 PORTFOLIO ADMINISTRATION 87 ‘Day by day in every way . . .’ 88 Buying and selling 88 Delivery and settlement 89 Registration 89 Custody 91 Use of nominees 91 Stock exchange reporting 93 Records and regulations 93 Portfolio accounting and controls 94 Profits, income and taxation 96 Valuation and pricing 98 5 INVESTOR ADMINISTRATION 103 Agents, agreements and delegation 104 Investor transactions 105 Registration 108 Communicating with investors 109 6 PERFORMANCE MEASUREMENT 115 Sector comparisons – ‘my fund is better than your fund’ 116 Yields and returns 119 Time- and money-weighted returns 123 Indices and benchmarking 127 Volatility and risk adjustments 130 7 INVESTMENT MATHEMATICS 133 The arithmetic of indices 134 Standard deviation 137 Capital Asset Pricing Model 139 Glossary 147 List of abbreviations 155 Index 157

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Book SynopsisCredit rating agencies play a critical role in capital markets, guiding the asset allocation of institutional investors as private capital moves freely around the world in search of the best trade-off between risk and return. However, they have also been strongly criticised for failing to spot the Asian crisis in the early 1990s, the Enron, WorldCom and Parmalat collapses in the early 2000s and finally for their ratings of subprime-related structured finance instruments and their role in the current financial crisis. This book is a guide to ratings, the ratings industry and the mechanics and economics of obtaining a rating. It sheds light on the role that the agencies play in the international financial markets. It avoids the sensationalist approach often associated with studies of rating scandals and the financial crisis, and instead provides an objective and critical analysis of the business of ratings. The book will be of practical use to any individual who has to deal wiTable of ContentsForeword ix Preface xiii 1 Introduction 1 1.1 Context and Premises 1 1.1.1 The Benchmarking of Default Prospects Remains Deeply Rooted in Business Analysis 1 1.1.2 Credit Ratings Play a Unique Role in Overcoming Information Asymmetries on the Information Exchanges 9 1.1.3 Under the Spotlight as Unique Infomediaries, the CRAs became Strictly Regulated 13 1.2 Book Chapters 17 1.3 Supporting Materials 18 Part A Credit Rating Foundations 21 2 Credit Ratings 23 2.1 The World of Corporate Defaults 24 2.1.1 What are Corporate Defaults? 27 2.1.2 The Drivers of Corporate Defaults 35 2.1.3 Recovery Rates from Defaults 39 2.2 Credit Rating Scales 40 2.2.1 Fundamental Ordinal Credit Rating Scales 43 2.2.2 Rating Scales and Observed Bond Market Credit Spreads 64 2.2.3 Market-Implied Cardinal Rating Scales and Default Probabilities 72 2.3 The Interpretation of Credit Ratings 74 2.3.1 Interpreting from the Scale 75 2.3.2 Correctly Interpreting versus Misinterpreting Ratings 78 2.3.3 Special Issues 85 2.4 Credit Ratings: Summary and Conclusions 88 3 The Raison d’Etre ˆ of Credit Ratings and their Market 89 3.1 Needs for Credit Ratings – or the Demand Side of Ratings 89 3.1.1 Principals: Issuers/Borrowers 91 3.1.2 Principals: Fixed Income Investors 99 3.1.3 Prescribers 104 3.2 Credit Ratings as a Solution to Information Asymmetry: Economic Analysis 111 3.2.1 Economics of Ratings: Intuition 111 3.2.2 Economics of Ratings: Analysis 113 3.2.3 The Economic Analysis of Ratings: Summary and Implications 124 3.3 Credit Rating Segments – or Scale and Scope of the Rated Universe 126 3.3.1 Industry Segments or Type of Rated Issuers 126 3.3.2 Product Segments or Types of Rated Issues 138 3.3.3 Geographical Segments or Location of the Obligor 149 3.4 Summary 158 3.5 Technical Appendix 158 4 How to Obtain and Maintain a Credit Rating 161 4.1 The Rating Preparation 161 4.1.1 The Issuer Client 163 4.1.2 The Rating Adviser-Intermediary 165 4.1.3 The Credit Rating Agency Supplier 168 4.2 The Rating 170 4.2.1 The Rating Action 170 4.2.2 Rating Follow-Up 174 4.2.3 The Rating Agreement 179 4.3 Quality of the Rating Process 187 4.3.1 Objectivity 188 4.3.2 Diligence 189 4.3.3 Transparency 191 Part B Credit Rating Analysis 195 5 The France Telecom Credit Rating Cycle: 1995–2004 197 5.1 From Sovereign Status to Near Speculative Grade (1995–2002) 198 5.1.1 How Sovereign Aaa Status of June 1995 Adjusts to Corporate Aa1 in July 1996 198 5.1.2 A Company that went Public on Aa1 Status in October 1997 is Downgraded to Aa2 in December 1999 200 5.1.3 Rapid Extension of FT’s Reach and Two Notches Downgrade to A1 in September 2000 202 5.1.4 A Wake-up Call: the Orange IPO and Surprise Two Notches Downgrade to A3 in February 2001 211 5.1.5 The Slide Downward to Baa1 in September 2001 219 5.1.6 Looming Crisis and Two Notches Downgrade to Baa3 in June 2002 222 5.2 Turning Point and Rating Recovery (Fall 2002–Winter 2004) 229 5.2.1 Improvement in Outlook in September 2002 229 5.2.2 A New Start in October 2002 and Recovery Actions 238 5.2.3 Recovery Implementation and the Sequence of Rating Upgrades through February 2005 244 5.3 Analysis and Evaluation 247 5.3.1 Risk Shifting at France Telecom and its Fundamental and MarketImplied Ratings 248 5.3.2 The Restraint of the CRAs during the 2002 Crisis 253 5.3.3 The Value of Ratings to Issuers 254 6 Credit Rating Analysis 257 6.1 Fundamental Corporate Credit Ratings 257 6.1.1 Corporate Credit Risk2 257 6.1.2 Credit Risk of Corporate Debt Instruments 260 6.1.3 Putting it All Together: the Rating8 265 6.2 Corporate Ratings Implied by Market Data 274 6.2.1 The Concept 274 6.2.2 Mechanics of Extracting Default Probabilities from Market Prices21 276 6.2.3 Market-Implied Ratings 284 6.3 Special Sector Ratings 286 6.3.1 Sovereign Ratings 286 6.3.2 Financial Strength Ratings 291 6.3.3 Structured Finance Instruments Ratings 296 6.4 Technical Appendix 304 6.4.1 Step 1: Computing the Implied Market Value of Assets and Asset Volatility 305 6.4.2 Step 2: Computing the Distance to Default 305 6.4.3 Step 3: Calculating the Default Probability Corresponding to the Distance to Default 306 7 Credit Rating Performance 307 7.1 Relevance: Ratings and Value 307 7.1.1 Structural Relevance: Rating and Credit Spreads 310 7.1.2 Impact Relevance: Rating Actions and Security Price Changes 325 7.1.3 Evaluation: How Relevant are Fundamental Credit Ratings? 331 7.2 Preventing Surprise in Defaults: Rating Accuracy and Stability 332 7.2.1 Metrics of Accuracy and Stability 334 7.2.2 Analysis of the Prevention of Surprise in Defaults 353 7.2.3 Summary, Evaluation and Conclusion 356 7.3 Efficiency Enhancement: Stabilization in Times of Crisis? 356 7.3.1 The Asian Macroeconomic Financial Crisis 356 7.3.2 The Western Microeconomic Equity Crisis 363 7.3.3 The Subprime Mortgage Related Crisis 364 7.3.4 Criticisms: the Ratings in Crisis? 369 Part C The Credit Rating Business 371 8 The Credit Rating Industry 375 8.1 The Rise of the Credit Rating Agencies 375 8.1.1 Origins 375 8.1.2 Macroeconomic Forces Shaping the Current Industry 378 8.1.3 The Current Structure of the Industry 384 8.2 Industry Specifics and How They Affect Competition 407 8.2.1 Agencies Compete for the Market rather than in the Market 407 8.2.2 The Business Model and Profit Drivers 411 8.2.3 Some Dynamic Aspects of Competition among CRAs: A Small Number of Players can be Consistent with Intense Rivalry 418 8.3 Industry Performance 419 8.3.1 Performance for CRA Shareholders 419 8.3.2 Performance of Ratings as a Public Good 420 8.3.3 Performance for Issuers 427 8.3.4 Performance for Investors 427 8.4 Conclusion 428 9 Regulatory Oversight of the Credit Rating Industry 429 9.1 The Regulatory Uses of Ratings 430 9.1.1 Prudence 435 9.1.2 Market Access 436 9.1.3 Investor Protection 439 9.2 The Regulation of the Industry 440 9.2.1 The Regulatory Options 440 9.2.2 Worldwide Regulatory Initiative: the 2004 IOSCO Code of Conduct 443 9.2.3 The 2005 European Union Policy on Credit Rating Agencies 444 9.2.4 The US ‘Credit Rating Agency Reform Act of 2006’ 448 9.3 Analysis and Evaluation 455 9.3.1 The EU and the US Approaches Compared 455 9.3.2 The Positions of the Main Stakeholders 461 9.3.3 Comments and Evaluation on Regulatory Options 466 10 Summary and Conclusions 469 10.1 The Challenges Facing Rating Agencies Today 469 10.1.1 From Regulatory Legitimacy to Market Legitimacy 469 10.1.2 Financial Innovation 472 10.1.3 Growth and Globalization 473 10.2 Conclusion 473 References 475 Index 495

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Book SynopsisThis entertaining book describes the global history of economic fluctuations and business cycle theory over more than 300 years. It explains the core of the problem and shows how cycles can be forecast and how they are managed by central banks. The book concludes with detailed studies of how sub-sectors of stocks, bonds, hedge funds, private equity funds, gold, exchange rates, real estate, commodities, art and collectibles fluctuate over different categories of business cycles.Table of ContentsList of Figures and Tables vii Preface xiii Part I The Discovery of Business Cycles 1 1. Gambling Man 3 2. Cash Payment 19 3. The Dream Team of Money 27 4. The Napoleon of Finance 47 5. Jay and the Phantom Gold 57 6. Seven Pioneers 67 Part II The First Business Cycle Theories 81 7. The Golden Era 83 8. The Archeologists 101 9. Fisher and Babson 107 10. Keynes and the Austrians 117 11. The Great Depression 127 12. Lover, Horseman, Economist 141 13. The Problem with Money 153 Part III A Hidden World 165 14. The Simulators 167 15. Brains of Steel 189 16. Fat Tails and All That 199 17. Monkey See, Monkey Do 213 18. Dot Bomb 231 Part IV The Essence 239 19. The State of the Art 241 20. Three Questions 251 21. The Five Main Drivers of Cycles 257 22. The Ten Challenges of Central Banking 271 Part V Business Cycles and Asset Prices 305 23. The Mother of All Cycles: Property 307 24. When Art was In 333 25. All That Glitters 349 26. What Things are Made of: Commodities 367 27. Bonds, Stocks and Funds 379 28. The World’s Biggest Market: Foreign Exchange 391 29. Business Cycles and Market Rotation 399 Afterword: The Beat of the Heart 421 Appendix 1: List of Important Events in Business Cycle Theory 423 Appendix 2: List of the Largest Financial Crises in History 429 Chapter Notes 433 Bibliography 449 Index 471

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Book SynopsisA compilation of technical papers from the first year of "Wilmott" magazine, complementing the lectures presented at the Quantitative Finance Review in November 2003. This work includes articles from such researchers as Hyungsok Ahn and Jean Philippe Bouchaud.Table of ContentsIntroduction (Paul Wilmott). I. Education in Quantitative Finance (Riaz Ahmad). II. FinancialCAD (Owen Walsh). III, Quantitative Finance Review 2003 (Dan Tudball). Chapter 1: Rewind (Dan Tudball) Chapter 2: In for the Count (Dan Tudball). Chapter 3: A Perspective on Quantitative Finance: Models for Beating the Market (Ed Thorp). Chapter 4: Psychology in Financial Markets (Henriëtte Prast). Chapter 5: Credit Risk Appraisal: From the Firm Structural Approach to Modern Probabilistic Methodologies (Hugues E. Pirotte Spéder). Chapter 6: Modelling and Measuring Sovereign Credit Risk (Ephraim Clark). Chapter 7: The Equity-to-credit Problem (or the Story of Calibration, Co-calibration and Re-calibration) (Elie Ayache). Chapter 8: Measuring Country Risk as Implied Volatility (Ephraim Clark). Chapter 9: Next Generation Models for Convertible Bonds with Credit Risk (E. Ayache, P. A. Forsyth and K. R. Vetzal). Chapter 10: First to Default Swaps (Antony Penaud and James Selfe). Chapter 11: Taken to the Limit: Simple and Not-so-simple Loan Loss Distributions (Philipp J. Schönbucher) Chapter 12: Sovereign Debt Default Risk: Quantifying the (Un)Willingness to Pay (Ephraim Clark). Chapter 13: Chord of Association (Aaron Brown). Chapter 14: Introducing Variety in Risk Management (Fabrizio Lillo, Rosario N. Mantegna, Jean-Philippe Bouchaud and Marc Potters). Chapter 15: Alternative Large Risks Hedging Strategies for Options (F. Selmi and Jean-Philippe Bouchaud). Chapter 16: On Exercising American Options: The Risk of Making More Money than You Expected (Hyungsok Ahn and Paul Wilmott). Chapter 17: Phi-alpha Optimal Portfolios and Extreme Risk Management (R. Douglas Martin, Svetlozar (Zari) Rachev, and Frederic Siboulet). Chapter 18: Managing Smile Risk (Patrick S. Hagan, Deep Kumar, Andrew S. Lesniewski and Diana E. Woodward). Chapter 19: Adjusters: Turning Good Prices into Great Prices (Patrick S. Hagan). Chapter 20: Convexity Conundrums: Pricing CMS Swaps, Caps, and Floors (Patrick S. Hagan). Chapter 21: Mind the Cap (Peter Jäckel). Chapter 22: The Art and Science of Curve Building (Owen Walsh). Chapter 23: Stochastic Volatility Models: Past, Present and Future (Peter Jäckel). Chapter 24: Cliquet Options and Volatility Models (Paul Wilmott). Chapter 25: Long Memory and Regime Shifts in Asset Volatility (Jonathan Kinlay). Chapter 26: Heston’s Stochastic Volatility Model: Implementation, Calibration and Some Extensions (Sergei Mikhailov and Ulrich Nögel). Chapter 27: Forward-start Options in Stochastic Volatility Models (Vladimir Lucic). Chapter 28: Stochastic Volatility and Mean-variance Analysis (Hyungsok Ahn and Paul Wilmott). Index.

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Book SynopsisFundamentals of Global Operations Management, Second Edition provides an overview of the fundamentals of an organisation's operations functions for employees working in any corporate environment.Table of ContentsPreface. About the author. 1 OPERATIONS MANAGEMENT. 2 MARKETS. Equity securities. Debt securities. Derivative markets. Foreign exchange and money markets. Retail and other products. Other products. Market and product knowledge. Market structure and membership. Products traded. Structure and characteristics of the products. Clearing mechanisms, membership and the clearing house role. Structure of securities clearing and settlement conventions. Regulation, accounting and tax issues. Policy, procedures and controls. 3 BANKING, BROKING AND INSTITUTIONAL CLIENTS. What are the issues for the operations managers in these scenarios? 4 CONCEPTS OF RISK. Settlement risk. System risk. Counterparty and agent risk. Personnel risk. Regulatory risk. Legal risk. Reputational risk. Infrastructure risk. Financial risk. Disaster risk. 5 CLEARING AND SETTLEMENT. Fixed rate bonds. Floating rate notes. The role of the clearing house. The concept of margining, collateral and treasury management. Margin. Collateral. Treasury management. OTC derivatives. Products. Swaps. OTC options. Settlement of OTC products. Event calendar. Communication/Information. Other settlement issues. Accounting and regulatory issues. SwapClear. SwapsWire. Summary. Suggested further reading. Checklists. 6 CUSTODY. 7 TECHNOLOGY. 8 REGULATION AND COMPLIANCE. Basel II, Sarbanes–Oxley and UCITS Directive. 9 CLIENT SERVICES. The approach to customer relationships and the ‘client culture’. Structure of client services within the operations team. Responsibility. Measuring performance. Escalation procedures. Client liaison programmes. Front-office client team. Industry issues. Analysing the competition. Developing the service. What are the potential problems in customer relationships? Managing risk within the customer relationship. Client visits. 10 OPERATIONS IN THE FUTURE. Appendices. A UCITS III: INTRODUCTION. B EXTRACTS FROM SARBANES–OXLEY ACT OF 2002. C THE G30 TWENTY RECOMMENDATIONS. D SOUND PRACTICES FOR THE MANAGEMENT AND SUPERVISION OF OPERATIONAL RISK (February 2003). Glossary. Useful websites and selected further reading. Index.

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