Finance and the finance industry Books

Book SynopsisA much-needed practical guide, particularly suited for readers with engineering or science backgrounds, that provides the financial decision-making skills needed in the business world? For engineers with little or no business background this book provides the financial decision-making skills necessary for a management career. Based on materials used by students in a Masters of Engineering and Management program at Case Western Reserve University and informed by both classroom and industry experience, this essential guide can be used in courses or independent study. The chapters introduce and integrate key concepts relevant to basic management, accounting, and finance that will enhance the critical thinking and confidence necessary for success as a chief technology officer or in any business career.Trade Review"Drummond’s choice of emphasis is clearly informed by extensive practical experience teaching these topics. This book represents the creative synthesis of a very broad body of interdisciplinary knowledge." —Daniel Egger, Duke University"A comprehensive resource with every practical facet of accounting, finance, and engineering economy laid out for the engineer to consider. Important reading as the financial impacts of management become increasingly critical to success." —Eric H. Ledet, Rensselaer Polytechnic Institute

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Book SynopsisA riveting history of raw capitalism that exposes the unscrupulousness at its heart Vice is endemic to Western capitalism, according to this fascinating, wildly entertaining, often startling history of modern finance. Ian Klausâs Forging Capitalism demonstrates how international financial affairs in the nineteenth century were conducted not only by gentlemen as a noble pursuit but also by connivers, thieves, swindlers, and frauds who believed that no risk was too great and no scheme too outrageous if the monetary reward was substantial enough. Taken together, the grand deceptions of the ambitious schemers and the determined efforts to guard against them have been instrumental in creating the financial establishments of today. In a story teeming with playboys and scoundrels and rich in colorful and amazing events, Klaus chronicles the evolution of trust through three distinct epochs: the age of values, the age of networks and reputations, and, ultimately, in a world of increased technol

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Book SynopsisTable of ContentsPart I: The International Monetary Environment 1. The Foreign Exchange Market 2. International Monetary Arrangements 3. The Balance of Payments Part II: International Parity Conditions 4. Forward-Looking Market Instruments 5. Eurocurrency Markets and the LIBOR 6. Exchange Rates, Interest Rates, and Interest Parity 7. Prices, Exchange Rates, and Purchasing Power Parity Part III: Risk and International Capital Flows 8. Foreign Exchange Risk and Forecasting 9. Financial Management of the Multinational Firm 10. International Investment 11. International Lending and Crises Part IV: Modeling the Exchange Rate and Balance of Payments 12. Determinants of the Balance of Trade 13. The IS-LM-BP Approach 14. The Monetary Approach 15. Extensions and Challenges to the Monetary Approach

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Book SynopsisThe successful first edition provided an introduction to the valuation and risk management of modern financial instruments, formulated in a precise mathematical expression and comprehensively covering all relevant topics using consistent and exact notation.Trade ReviewReview of previous edition: 'Whether you are looking for a standard reference or a stand-alone learning guide, Derivatives and Internal Models deserves a place on your bookshelf.' - RiskTable of ContentsPART I: FUNDAMENTALS Introduction Legal Framework Fundamental Risk Factors of Financial Markets Financial Instruments Derivatives and Underlyings PART II: METHODS Overview of the Assumptions for Different Valuation Methods Arbitrage The Black-Scholes Differential Equation Integral Forms and Analytic Solutions in the Black-Scholes World Numerical Solutions of Differential Equations using Finite Differences Binomial and Trinomial Trees Monte-Carlo Simulations Hedging Martingale and Numeraire Interest rates and Term Structure Models PART III: INSTRUMENTS Spot Transactions on Interest Instruments Forward Rate Transactions Plain Vanilla Options Exotic Options Structured Products and Stripping PART IV: RISK Fundamentals The Variance-Covariance Method Simulation Methods Interest Rate Risk and Cash Flows Example VaR-Computation Backtesting: Checking the Applied Methods Organizational Implementation of Risk Management PART V: MARKET DATA Term Structure Volatilities Time Series Analysis Probability and Statistics

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Book SynopsisWhat happens when three financial industry whiz kids and certified baseball nuts take over an ailing major league franchise and implement the same strategies that fueled their success on Wall Street? In the case of the 2008 Tampa Bay Rays, an American League championship happens—the culmination of one of the greatest turnarounds in baseball history. In The Extra 2%, financial journalist and sportswriter Jonah Keri chronicles the remarkable story of one team’s Cinderella journey from divisional doormat to World Series contender. When former Goldman Sachs colleagues Stuart Sternberg and Matthew Silverman assumed control of the Tampa Bay Devil Rays in 2005, it looked as if they were buying the baseball equivalent of a penny stock. But the incoming regime came armed with a master plan: to leverage their skill at trading, valuation, and management to build a model twenty-first-century franchise that could compete with their bigger, stronger, richer rivals—an

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The financial crisis has exposed severe shortcomings in mainstream monetary economics and modern finance. It is surprising that these shortcomings have not led to a wider debate about the need to overhaul these theories. Instead, mainstream economists have closed ranks to defend existing theories and public authorities have expanded their interference in markets.This book investigates the problems associated with mainstream monetary economics and finance, and proposes alternatives based on the Austrian school of economics. This school emanated from the work of the nineteenth-century Austrian economist Carl Menger and was developed further by Eugen von BÃhm-Bawerk, Ludwig von Mises, and Friedrich August von Hayek. In monetary economics, the Austrian school regards the creation of money by banks through credit extension as a key source of economic instability. From this follows the need for a comprehensive reform of our present monetary system. In a new monetary order, m

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Book SynopsisAn entertaining and indispensable guide to the language of finance and economics by the writer hailed for “explain[ing] complex stuff in a down-to-earth and witty style” (The Economist).Trade Review"An idiosyncratic collection of short, sharp essays translating the jargon of finance with admirable concision and wit." -- Peter Sokolowski - New York Times Book Review"One of the world's great explainers of the financial crisis and its aftermath." -- Michael Lewis"Insightful and often funny… An invaluable primer." -- Ian Critchley - Sunday Times"A hugely enjoyable book… Lanchester is a kind of brainy Everyman, a brilliant communicator." -- Melanie Reid - The Times"An entertaining and informative read… Witty, provocative and engaging." -- Evening Standard"How to Speak Money is a wonderful and enlightening book. Refreshingly clear, sharp, and funny, it’ll help you understand not only what the language of finance means but also why it matters." -- James Surowiecki, best-selling author of The Wisdom of Crowds"Reading this book is like meeting an easy-going guy at a cocktail party who can explain everything that’s always mystified you about high finance—‘inverted yield curve,’ anyone?—with sparkle, wit, and crystal clarity. And if you’re already a finance-insider, you’ll get a kick out of Lanchester’s sly ironies." -- Jim Holt, best-selling author of Why Does the World Exist?"A terrific primer on financial jargon… Anyone who wants to understand the nightly news should keep this volume at hand." -- Publishers Weekly"Lays out the case for financial literacy and then provides an essential glossary of terms for those who would like to achieve this happy state." -- Sarah Lyall - New York Times

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Book SynopsisA leading financial economist takes a tough look at the ethics of modern finance.Trade Review"Something for Nothing joins and extends a worthy tradition dating back at least to Adam Smith-who was both an eminent philosopher and an eminent economist-in wrestling with how markets do or don't succeed in channeling some of our baser traits, greed and deception, in socially useful directions. Events surrounding the financial crisis and the ongoing project or crisis to construct a stable Euro zone have brought these always-present issues to the fore. Maureen O'Hara's distinction as an economist who knows what makes sophisticated 'high frequency' markets work lends especial credibility to her analysis. Getting these things right is important if the general public is to support wise regulation of these markets." -- Thomas J. Sargent, winner of the Nobel Prize in Economics and William R. Berkley Professor of Economics and Business at New York University "In Something for Nothing, Maureen O'Hara takes on the vitally important, and sometimes controversial, topic of 'legal vs ethical' for financial professionals and firms in a practical, balanced, educational, and most enjoyable way. This book should be mandatory reading for people entering our business and for anyone interested in how to restore-and retain-trust in the financial services industry and its people." -- Jack Brennan, former chairman and CEO of the Vanguard Group "Something for Nothing teaches finance from a moral perspective, integrating morals into the theory. This should be essential reading for people seeking an introduction to finance, who feel they can't really understand it properly if they can't square it with their deep values." -- Robert J. Shiller, winner of the Nobel Prize in Economics and Sterling Professor of Economics at Yale University

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Book SynopsisA clear, authoritative guide to the crisis of 2008, its continuing repercussions, and the needed reforms ahead.Trade Review"An excellent read. [Chinn and Frieden] anticipated a movement like Occupy Wall Street." -- Occupy Wall Street Forum"[An] important book, which deserves to be widely read and debated." -- Publishers Weekly"An invaluable resource in a time of great uncertainty. Intelligent yet accessible to non-experts, [it] fills a valuable niche in a debate often dominated by ideological talking heads who thrive on popular anger and drain the political system of sensible dialogue." -- Jon Rosen - USA Today"If you enjoy seeing the Gottmans as presenters, you will love their most recent book, 10 Principles for Doing Effective Couples Therapy. Extraordinary therapists and gifted researchers, it’s as if you can hear the authors’ voices emanate from the text. . . . [E]asy to read, while also providing useful concepts and a formula that works. . . . Of course, I recommend this book. It can be used as a resource guide, as well as one that offers immediate tools for working with clients. The research-based wisdom will no doubt become standardized knowledge because of how applicable it is for clinical work." -- Simon Johnson, MIT, co-author of 13 Bankers"[L]ike their previous books, 10 Principles attempts to break down a complex issue into something more tangible. . . . [T]he heart of this text focuses on well-crafted principles for effective therapy, and includes scientific research, assessments, exercises, and statistics. . . . Few things are more fascinating than when therapy and scientific research come together, which is precisely why any work produced by John or Julie Gottman makes for an interesting read." -- Ernesto Zedillo, Director of the Yale Center for the Study of Globalization Former President of Mexico"Known for their iconic research on couples, their prolific writings, and the development of a couples therapy informed by their research findings, Julie and John Gottman, in this well written and comprehensive book, gift their clinical wisdom and processes to couples therapists. Filled with clinical insight, coherent theory, case illustrations, various data gathering forms, and a treatment plan, this book should increase the competence and confidence of any clinician who is wise enough to read it." -- Dani Rodrik, author of The Globalization Paradox"In 10 principles, this book lays out in an eminently readable and accessible way the basic steps of effective couple therapy. It is a great contribution to the field and will guide numerous therapists onto the path of successful intervention." -- Nouriel Roubini, Stern School of Business, NYU

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Book SynopsisNaked Economics gives you the tools to engage with pleasure and confidence in the deeply relevant, not so dismal science.Trade Review"I recommend this book to anyone who wants to gain an understanding of basic economics with little pain and much pleasure." -- Gary Becker, 1992 Nobel Prize winner in Economics

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Book SynopsisA timely, counterintuitive defense of Wall Street and the big banks as the invisible—albeit flawed—engines that power our ideas, and should be made to work better for all of us Maybe you think the banks should be broken up and the bankers should be held accountable for the financial crisis in 2008. Maybe you hate the greed of Wall Street but know that it’s important to the proper functioning of the world economy. Maybe you don’t really understand Wall Street, and phrases such as “credit default swap” make your eyes glaze over. Maybe you are utterly confused by the fact that after attacking Wall Street mercilessly during his campaign, Donald Trump has surrounded himself with Wall Street veterans. But if you like your smart phone or your widescreen TV, your car or your morning bacon, your pension or your 401(k), then—whether you know it or not—you are a fan of Wall Street. William D. Cohan is no knee-jerk advocate for

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Book SynopsisInternational Financial Reporting Standards (IFRS), and the possibility of global accounting harmonization, have recently gained enormously in importance, both practically and from an academic and research perspective. Since 2005, European and Australian listed enterprises are required to use IFRS for Consolidated Financial Statements. Other countries - from New Zealand to China - are actively moving towards these standards. And now, the IFRS Board and the American Regulatory System are publicly committed to a convergence programme. This major work, edited by two leading experts in the field, is a timely appraisal of academic and regulatory work in relation to this whole process. These important volumes bring together â otherwise inaccessible â early material which is vital to the understanding of the historical perspective, both in terms of the current situation and of future developments. International Financial Reporting Standards provides a broad overview, in addition to detailed coverage, of this important and fascinating topic, including a discussion of the processes of change and developments which have led from a widely disparate starting position to the current situation. The four volumes are fully indexed and each includes an informative, contextual introduction by the editors.

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Book SynopsisThis is the first history of finance - broadly defined to include money, banking, capital markets, public and private finance, international transfers etc. - that covers Western Europe and half a millennium.Table of Contents1. Introduction Part 1: Money Introduction 2. The Evolution of Money in Western Europe 3. Bank Money 4. Bimetallism and the Emergence of Gold Standard Part 2: Banking Introduction 5. English and Scottish Banking 6. French Banking 7. German Banking 8. Italian and Spanish Banking Part 3: Finance Introduction 9. Government Finance 10. Private Finance, Individuals and Families 11. Private Finance - The Corporation 12. Foreign Investment - Dutch, British, French and German Experience to 1914 13. Transfer Cases 14. Foreign Lending - Political and Analytical Aspects 15. Financial Crises Part 4: The Interwar Period Introduction 16. War Finance, Reparations, War Debts 17. German Postwar Inflation 18. The Restoration of the Pound to Par 19. Stabilization of the Franc 20. The 1929 Depression 21. The 1930s Part 5: After World War II Introduction 22. German Finance In and After World War II 23. Lend-Lease, the British Loan, the Marshall Plan 24. European Financial Integration

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Book SynopsisThe LIBOR Market Model (LMM) is the first model of interest rates dynamics consistent with the market practice of pricing interest rate derivatives and therefore it is widely used by financial institution for valuation of interest rate derivatives. This book provides a full practitioner's approach to the LIBOR Market Model.Trade Review"The real contribution of the book to the existing literature is the hands-on description of the calibration algorithms." (Financial Markets Portfolio Management, 2007)Table of ContentsAcknowledgments ix About the Authors xi Introduction xiii Part I THEORY 1 1 Mathematics in a Pill 3 1.1 Probability Space and Random Variables 3 1.2 Normal Distributions 4 1.3 Stochastic Processes 4 1.4 Wiener Processes 5 1.5 Geometric Wiener Processes 5 1.6 Markov Processes 6 1.7 Stochastic Integrals and Stochastic Differential Equations 6 1.8 Ito’s Formula 7 1.9 Martingales 7 1.10 Girsanov’s Theorem 7 1.11 Black’s Formula (1976) 8 1.12 Pricing Derivatives and Changing of Numeraire 8 1.13 Pricing of Interest Rate Derivatives and the Forward Measure 9 2 Heath-Jarrow-Morton and Brace-Gatarek-Musiela Models 13 2.1 HJM and BGM Models Under the Spot Measure 13 2.2 Vasi¡cek Model 16 2.3 Cox-Ingersoll-Ross Model 17 2.4 Black-Karasi´nski Model 17 2.5 HJM and BGM Models under the Forward Measures 18 3 Simulation 21 3.1 Simulation of HJM and BGM Models under the Forward Measure 21 3.2 Monte Carlo Simulation of Multidimensional Gaussian Variables 22 3.3 Trinomial Tree Simulation of Multidimensional Gaussian Variables 25 4 Swaption Pricing and Calibration 27 4.1 Linear Pricing in the BGM Model 29 4.2 Linear Pricing of Swaptions in the HJM Model 30 4.3 Universal Volatility Function 31 4.4 Time Homogeneous Volatility 33 4.5 Separated Volatility 34 4.6 Parametrized Volatility 37 4.7 Parametric Calibration to Caps and Swaptions Based on Rebonato Approach 38 4.8 Semilinear Pricing of Swaptions in the BGM Model 40 4.9 Semilinear Pricing of Swaptions in the HJM Model 41 4.10 Nonlinear Pricing of Swaptions 43 4.11 Examples 43 5 Smile Modelling in the BGM Model 45 5.1 The Shifted BGM Model 46 5.2 Stochastic Volatility for Long Term Options 48 5.3 The Uncertain Volatility Displaced LIBOR Market Model 50 5.4 Mixing the BGM and HJM Models 52 6 Simplified BGM and HJM Models 55 6.1 CMS Rate Dynamics in Single-Factor HJM Model 55 6.2 CMS Rate Dynamics in a Single Factor BGM Model 57 6.3 Calibration 58 6.4 Smile 59 Part II CALIBRATION 63 7 Calibration Algorithms to Caps and Floors 67 7.1 Introduction 67 7.2 Market Data 67 7.3 Calibration to Caps 70 7.4 Non-Parametric Calibration Algorithms 78 7.5 Conclusions 86 8 Non-Parametric Calibration Algorithms to Caps and Swaptions 89 8.1 Introduction 89 8.2 The Separated Approach 90 8.3 The Separated Approach with Optimization 109 8.4 The Locally Single Factor Approach 117 8.5 Calibration with Historical Correlations of Forward Rates 120 8.6 Calibration to Co-Terminal Swaptions 125 8.7 Conclusions 129 9 Calibration Algorithms to Caps and Swaptions Based on Optimization Techniques 131 9.1 Introduction 131 9.2 Non Parametric Calibration to Caps and Swaptions 132 9.3 Parametric Method of Calibration 157 9.4 Conclusions 166 Part III SIMULATION 167 10 Approximations of the BGM Model 171 10.1 Euler Approximation 171 10.2 Predictor-Corrector Approximation 171 10.3 Brownian Bridge Approximation 172 10.4 Combined Predictor-Corrector-Brownian Bridge 173 10.5 Single-Dimensional Case 174 10.6 Single-Dimensional Complete Case 175 10.7 Binomial Tree Construction for LAn(t) 177 10.8 Binomial Tree Construction for LDN(t) 180 10.9 Numerical Example of Binomial Tree Construction 181 10.10 Trinomial Tree Construction for LAN(t) 188 10.11 Trinomial Tree Construction for LDN(t) 191 10.12 Numerical Results 192 10.13 Approximation of Annuities 192 10.14 Swaption Pricing 195 10.15 Lognormal Approximation 198 10.16 Comparison 200 10.17 Practical Example – Calibration to Co-terminal Swaptions and Simulation 200 11 The One Factor LIBOR Markov Functional Model 205 11.1 LIBOR Markov Functional Model Construction 205 11.2 Binomial Tree Construction – Approach 1 207 11.3 Binomial Tree Construction – Approach 2 215 12 Optimal Stopping and Pricing of Bermudan Options 219 12.1 Tree/Lattice Pricing 220 12.2 Stochastic Meshes 221 12.3 The Direct Method 221 12.4 The Longstaff-Schwartz Method 222 12.5 Additive Noise 224 12.6 Example of BGM Dynamics 228 12.7 Comparison of Methods 228 13 Using the LSM Approach for Derivatives Valuation 229 13.1 Pricing Algorithms 229 13.2 Numerical Examples of Algorithms 13.1–13.4 234 13.3 Calculation Results 252 13.4 Some Theoretical Remarks on Optimal Stopping Under LSM 253 13.5 Summary 257 References 259 Index 267

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Book SynopsisIn Understanding Islamic Finance Muhammad Ayub introduces all the essential elements of this growing market by providing an in-depth background to the subject and clear descriptions of all the major products and processes associated with Islamic finance.Table of ContentsList of Boxes and Figures xvii Foreword xix Preface xxi Acknowledgements xxv PART I FUNDAMENTALS 1 1 Introduction 3 1.1 Economic Scenario in the Neoclassical Framework 3 1.2 Conventional Debt: A Recipe for Exploitation 4 1.3 Growth per se May not Lead to Socio-economic Justice 6 1.4 Social Welfare Activities of the States 8 1.5 The Main Culprit 8 1.6 The Need of the Hour 9 1.7 Economics and Religion 10 1.8 Islamic Principles Can Make the Difference 11 1.9 Regulating Trade and Business 13 1.10 Islamic Finance Passing Significant Milestones 15 1.11 Could it Work to Achieve the Objectives? 16 1.12 About this Book 17 2 Distinguishing Features of the Islamic Economic System 21 2.1 Introduction 21 2.2 Islamic Sharî´ah and its Objectives 21 2.3 Why Study Islamic Economics? 25 2.4 Islamic Economics: What should it be? 30 2.5 Paraphernalia of Islamic Economics 32 2.6 Summary 41 3 The Main Prohibitions and Business Ethics in Islamic Economics and Finance 43 3.1 Introduction 43 3.2 The Basic Prohibitions 43 3.3 Business Ethics and Norms 64 3.4 Summary and Conclusion 70 4 The Philosophy and Features of Islamic Finance 73 4.1 Introduction 73 4.2 The Philosophy of Islamic Finance 73 4.3 Debt versus Equity 85 4.4 Islamic Banking: Business versus Benevolence 86 4.5 Exchange Rules 87 4.6 Time Value of Money in Islamic Finance 89 4.7 Money, Monetary Policy and Islamic Finance 90 4.8 Summary 96 PART II CONTRACTUAL BASES IN ISLAMIC FINANCE 99 5 Islamic Law of Contracts and Business Transactions 101 5.1 Introduction 101 5.2 Mâl (Wealth), Usufruct and Ownership 101 5.3 General Framework of Contracts 105 5.4 Elements of a Contract 106 5.5 Broad Rules for the Validity of Mu‘âmalât 110 5.6 W‘adah (Promise) and Related Matters 114 5.7 Types of Contracts 117 5.8 Commutative and Noncommutative Contracts 124 5.9 Conditional or Contingent Contracts 126 5.10 Summary 127 6 Trading in Islamic Commercial Law 129 6.1 Introduction 129 6.2 Bai‘ – Exchange of Values 130 6.3 Legality of Trading 131 6.4 Types of Bai‘ 133 6.5 Requirements of a Valid Sale Contract 133 6.6 Riba Involvement in Sales 142 6.7 Gharar – A Cause of Prohibition of Sales 143 6.8 Conditional Sales and “Two Bargains in One Sale” 144 6.9 Bai‘ al‘Arbûn (Downpayment Sale) 145 6.10 Bai‘ al Dayn (Sale of Debt) 146 6.11 Al ‘Inah Sale and the Use of Ruses (Hiyal) 147 6.12 Options in Sales (Khiyar) 150 6.13 Summary 152 7 Loan and Debt in Islamic Commercial Law 155 7.1 Introduction 155 7.2 The Terms Defined 155 7.3 Illegality of Commercial Interest 157 7.4 Loaning and the Banking System 158 7.5 Guidance from the Holy Qur’ân on Loans and Debts 159 7.6 The Substance of Loans 159 7.7 Repayment of the Principal Only 160 7.8 Time Value of Money in Loans and Debts 160 7.9 Instructions for the Debtor 161 7.10 Instructions for the Creditor 162 7.11 Husnal Qadha (Gracious Payment of Loan/Debt) 162 7.12 Remitting a Part of a Loan and Prepayment Rebate 163 7.13 Penalty on Default 165 7.14 Hawalah (Assignment of Debt) 167 7.15 Security/Guarantee (Kafalah) in Loans 168 7.16 Bai‘ al Dayn (Sale of Debt/Debt Instruments) 172 7.17 Impact of Inflation on Loans/Debts 172 7.18 Summary 174 PART III ISLAMIC FINANCE – PRODUCTS AND PROCEDURES 177 8 Overview of Financial Institutions and Products: Conventional and Islamic 179 8.1 Introduction 179 8.2 What is Banking or a Bank? 179 8.3 The Strategic Position of Banks and Financial Institutions 180 8.4 Categories of Conventional Financial Business 181 8.5 The Need for Islamic Banks and NBFIs 185 8.6 The Issue of Mode Preference 195 8.7 Islamic Investment Banking 199 8.8 Islamic Financial Markets and Instruments 199 8.9 Summary and Conclusion 211 9 Murabaha and Musawamah 213 9.1 Introduction 213 9.2 Conditions of Valid Bai‘ 214 9.3 Murabaha – a Bai‘ al Amânah 215 9.4 Bai‘ Murabaha in Classical Literature 215 9.5 The Need for Murabaha 216 9.6 Specific Conditions of Murabaha 217 9.7 Possible Structures of Murabaha 220 9.8 Murabaha to Purchase Orderer (MPO) 222 9.9 Issues in Murabaha 229 9.10 Precautions in Murabaha Operations 233 9.11 Musawamah (Bargaining on Price) 234 9.12 Summary 238 10 Forward Sales: Salam and Istisna‘a 241 10.1 Introduction 241 10.2 Bai‘ Salam/Salaf 241 10.3 Benefits of Salam and the Economic Role of Bai‘ Salam 242 10.4 Features of a Valid Salam Contract 243 10.5 Security, Pledge and Liability of the Sureties 249 10.6 Disposing of the Goods Purchased on Salam 250 10.7 Salam – Post Execution Scenarios 252 10.8 Salam-Based Securitization – Salam Certificates/Sukuk 254 10.9 Summary of Salam Rules 255 10.10 Salam as a Financing Technique by Banks 257 10.11 Istisna‘a (Order to Manufacture) 263 11 Ijarah – Leasing 279 11.1 Introduction 279 11.2 Essentials of Ijarah Contracts 280 11.3 General Juristic Rules of Ijarah 281 11.4 Modern Use of Ijarah 287 11.5 Islamic Banks’ Ijarah Muntahia-bi-Tamleek 291 11.6 Summary of Guidelines for Islamic Bankers on Ijarah 298 12 Participatory Modes: Shirkah and its Variants 307 12.1 Introduction 307 12.2 Legality, Forms and Definition of Partnership 308 12.3 Basic Rules of Musharakah 312 12.4 The Concept and Rules of Mudarabah 320 12.5 Mudarabah Distinguished from Musharakah 327 12.6 Modern Corporations: Joint Stock Companies 328 12.7 Modern Application of the Concept of Shirkah 330 12.8 Diminishing Musharakah 337 12.9 Diminishing Musharakah as an Islamic Mode of Finance 339 12.10 Summary and Conclusion 343 13 Some Accessory Contracts 347 13.1 Introduction 347 13.2 Wakalah (Agency) 347 13.3 Tawarruq 349 13.4 Ju‘alah 351 13.5 Bai‘ al Istijrar (Supply Contract) 355 14 Application of the System: Financing Principles and Practices 357 14.1 Introduction 357 14.2 Product Development 358 14.3 The Nature of Financial Services/Business 358 14.4 Prospects and Issues in Specific Areas of Financing 369 14.5 Islamic Banks’ Relationship with Conventional Banks 384 14.6 Fee-based Islamic Banking Services 384 14.7 Summary and Conclusion 386 Appendix: The Major Functions of a Sharî´ah Supervisory Board In the Light of the AAOIFI’s Sharî´ah Standard 387 15 Sukuk and Securitization: Vital Issues in Islamic Capital Markets 389 15.1 Introduction 389 15.2 The Capital Market in an Islamic Framework 390 15.3 Securitization and Sukuk 391 15.4 Summary and Conclusion 412 16 Takaful: An Alternative to Conventional Insurance 417 16.1 Introduction 417 16.2 The Need for Takaful Cover 417 16.3 The Sharî´ah Basis of Takaful 420 16.4 How the Takaful System Works 422 16.5 Takaful and Conventional Insurance Compared 427 16.6 Status and Potential of the Takaful Industry 428 16.7 Takaful Challenges 429 Appendix: Fatâwa (Juristic Opinions) on Different Aspects of Insurance 430 17 An Appraisal of Common Criticism of Islamic Banking and Finance 433 17.1 Introduction 433 17.2 The Common Myths and Objections 433 17.3 Appraisal of Conceptual Criticism 436 17.4 Appraisal of Criticism on Islamic Banking Practice 445 17.5 Conclusion 456 18 The Way Forward 457 18.1 Introduction 457 18.2 Agenda for the Policymakers 457 18.3 Potential, Issues and Challenges for Islamic Banking 461 18.4 Conclusion 479 Acronyms 481 Glossary 485 Bibliography English Sources 497 Arabic/Urdu Sources 503 Suggested Further Readings 505 Index 509

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Book SynopsisA comprehensive look at how probability and statistics is applied to the investment process Finance has become increasingly more quantitative, drawing on techniques in probability and statistics that many finance practitioners have not had exposure to before.Table of ContentsPreface xv About the Authors xvii Chapter 1 Introduction 1 Probability vs. Statistics 4 Overview of the Book 5 Part One Descriptive Statistics 15 Chapter 2 Basic Data Analysis 17 Data Types 17 Frequency Distributions 22 Empirical Cumulative Frequency Distribution 27 Data Classes 32 Cumulative Frequency Distributions 41 Concepts Explained in this Chapter 43 Chapter 3 Measures of Location and Spread 45 Parameters vs. Statistics 45 Center and Location 46 Variation 59 Measures of the Linear Transformation 69 Summary of Measures 71 Concepts Explained in this Chapter 73 Chapter 4 Graphical Representation of Data 75 Pie Charts 75 Bar Chart 78 Stem and Leaf Diagram 81 Frequency Histogram 82 Ogive Diagrams 89 Box Plot 91 QQ Plot 96 Concepts Explained in this Chapter 99 Chapter 5 Multivariate Variables and Distributions 101 Data Tables and Frequencies 101 Class Data and Histograms 106 Marginal Distributions 107 Graphical Representation 110 Conditional Distribution 113 Conditional Parameters and Statistics 114 Independence 117 Covariance 120 Correlation 123 Contingency Coefficient 124 Concepts Explained in this Chapter 126 Chapter 6 Introduction to Regression Analysis 129 The Role of Correlation 129 Regression Model: Linear Functional Relationship Between Two Variables 131 Distributional Assumptions of the Regression Model 133 Estimating the Regression Model 134 Goodness of Fit of the Model 138 Linear Regression of Some Nonlinear Relationship 140 Two Applications in Finance 142 Concepts Explained in this Chapter 149 Chapter 7 Introduction to Time Series Analysis 153 What Is Time Series? 153 Decomposition of Time Series 154 Representation of Time Series with Difference Equations 159 Application: The Price Process 159 Concepts Explained in this Chapter 163 Part Two Basic Probability Theory 165 Chapter 8 Concepts of Probability Theory 167 Historical Development of Alternative Approaches to Probability 167 Set Operations and Preliminaries 170 Probability Measure 177 Random Variable 179 Concepts Explained in this Chapter 185 Chapter 9 Discrete Probability Distributions 187 Discrete Law 187 Bernoulli Distribution 192 Binomial Distribution 195 Hypergeometric Distribution 204 Multinomial Distribution 211 Poisson Distribution 216 Discrete Uniform Distribution 219 Concepts Explained in this Chapter 221 Chapter 10 Continuous Probability Distributions 229 Continuous Probability Distribution Described 229 Distribution Function 230 Density Function 232 Continuous Random Variable 237 Computing Probabilities from the Density Function 238 Location Parameters 239 Dispersion Parameters 239 Concepts Explained in this Chapter 245 Chapter 11 Continuous Probability Distributions with Appealing Statistical Properties 247 Normal Distribution 247 Chi-Square Distribution 254 Student’s t-Distribution 256 F-Distribution 260 Exponential Distribution 262 Rectangular Distribution 266 Gamma Distribution 268 Beta Distribution 269 Log-Normal Distribution 271 Concepts Explained in this Chapter 275 Chapter 12 Continuous Probability Distributions Dealing with Extreme Events 277 Generalized Extreme Value Distribution 277 Generalized Pareto Distribution 281 Normal Inverse Gaussian Distribution 283 α-Stable Distribution 285 Concepts Explained in this Chapter 292 Chapter 13 Parameters of Location and Scale of Random Variables 295 Parameters of Location 296 Parameters of Scale 306 Concepts Explained in this Chapter 321 Appendix: Parameters for Various Distribution Functions 322 Chapter 14 Joint Probability Distributions 325 Higher Dimensional Random Variables 326 Joint Probability Distribution 328 Marginal Distributions 333 Dependence 338 Covariance and Correlation 341 Selection of Multivariate Distributions 347 Concepts Explained in this Chapter 358 Chapter 15 Conditional Probability and Bayes’ Rule 361 Conditional Probability 362 Independent Events 365 Multiplicative Rule of Probability 367 Bayes’ Rule 372 Conditional Parameters 374 Concepts Explained in this Chapter 377 Chapter 16 Copula and Dependence Measures 379 Copula 380 Alternative Dependence Measures 406 Concepts Explained in this Chapter 412 Part Three Inductive Statistics 413 Chapter 17 Point Estimators 415 Sample, Statistic, and Estimator 415 Quality Criteria of Estimators 428 Large Sample Criteria 435 Maximum Likehood Estimator 446 Exponential Family and Sufficiency 457 Concepts Explained in this Chapter 461 Chapter 18 Confidence Intervals 463 Confidence Level and Confidence Interval 463 Confidence Interval for the Mean of a Normal Random Variable 466 Confidence Interval for the Mean of a Normal Random Variable with Unknown Variance 469 Confidence Interval for the Variance of a Normal Random Variable 471 Confidence Interval for the Variance of a Normal Random Variable with Unknown Mean 474 Confidence Interval for the Parameter p of a Binomial Distribution 475 Confidence Interval for the Parameter λ of an Exponential Distribution 477 Concepts Explained in this Chapter 479 Chapter 19 Hypothesis Testing 481 Hypotheses 482 Error Types 485 Quality Criteria of a Test 490 Examples 496 Concepts Explained in this Chapter 518 Part Four Multivariate Linear Regression Analysis 519 Chapter 20 Estimates and Diagnostics for Multivariate Linear Regression Analysis 521 The Multivariate Linear Regression Model 522 Assumptions of the Multivariate Linear Regression Model 523 Estimation of the Model Parameters 523 Designing the Model 526 Diagnostic Check and Model Significance 526 Applications to Finance 531 Concepts Explained in this Chapter 543 Chapter 21 Designing and Building a Multivariate Linear Regression Model 545 The Problem of Multicollinearity 545 Incorporating Dummy Variables as Independent Variables 548 Model Building Techniques 561 Concepts Explained in this Chapter 565 Chapter 22 Testing the Assumptions of the Multivariate Linear Regression Model 567 Tests for Linearity 568 Assumed Statistical Properties about the Error Term 570 Tests for the Residuals Being Normally Distributed 570 Tests for Constant Variance of the Error Term (Homoskedasticity) 573 Absence of Autocorrelation of the Residuals 576 Concepts Explained in this Chapter 581 Appendix A Important Functions and Their Features 583 Continuous Function 583 Indicator Function 586 Derivatives 587 Monotonic Function 591 Integral 592 Some Functions 596 Appendix B Fundamentals of Matrix Operations and Concepts 601 The Notion of Vector and Matrix 601 Matrix Multiplication 602 Particular Matrices 603 Positive Semidefinite Matrices 614 Appendix C Binomial and Multinomial Coefficients 615 Binomial Coefficient 615 Multinomial Coefficient 622 Appendix D Application of the Log-Normal Distribution to the Pricing of Call Options 625 Call Options 625 Deriving the Price of a European Call Option 626 Illustration 631 References 633 Index 635

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Book SynopsisA guide to modeling analyses for financial and sports gambling markets, with a focus on major current events Addressing the highly competitive and risky environments of current-day financial and sports gambling markets, Forecasting in Financial and Sports Gambling Markets details the dynamic process of constructing effective forecasting rules based on both graphical patterns and adaptive drift modeling (ADM) of cointegrated time series. The book uniquely identifies periods of inefficiency that these markets oscillate through and develops profitable forecasting models that capitalize on irrational behavior exhibited during these periods. Providing valuable insights based on the author''s firsthand experience, this book utilizes simple, yet unique, candlestick charts to identify optimal time periods in financial markets and optimal games in sports gambling markets for which forecasting models are likely to provide profitable trading and wagering outcomes. FeaturiTrade Review"This book is a valuable reference for researchers and practitioners in the area of finance. It is also useful for graduate students in financial economics and time series analysis as well as for anyone who wants to profit from financial and sports gambling markets." (Zentralblatt MATH, 2011)Table of ContentsPreface. 1.Introduction. 1.1 Favorable Betting Scenarios. 1.2 Gambling Shocks. 1.3 The Dark Side of Sports: The Fixes. 2. Market Perspectives: Through a Glass Darkly. 2.1 Changing Paradigms. 2.2 Modeling Commentaries. 2.3 Sports Hedge Funds. 2.4 Gambling Markets: Prohibition, Repeal and Taxation. 2.5 Quantifying the Madness of Crowds in Sports Gambling Markets. 2.6 Statistical Shocks: Alias Variables. 3. Opacity and Present Day Variables. 3.1 Dilemmas between Social and Economic Efficiency. 3.2 Towards a More Visible Hidden Hand. 3.3 Hedge Funds and Galapagos. 3.4 Lotteries: Market for Losers. 4. Adaptive Modeling Concepts in Dynamic Markets. 4.1 Quant Funds and Algorithmic Trading. 4.2 Market Volatility and Fat-Trailed Distributions. 4.3 Adaptive ARMA(1,1) Drift Processes. 4.4 Time Varying Volatility. 5. Studies in Japanese Candlestick Charts. 5.1 Bullish and Bearish Patterns from Chartist Perspectives. 5.2 Black Monday. 5.3 A Matter of Alleged Insider Trading. 5.4 Commodity Bubbles and Volatility. 5.5 Short Selling. 5.6 Terrorist Attacks and the Markets. 5.7 A Hollywood Romance: Spiderman and Tinkerbell. 5.8 Copenhagen and Climate Change: Exxon Mobile Buys XTO Energy. 6. Pseudo Candlestick Graphics for Major League Baseball. 6.1 The 2008 World Series: Philadelphia Versus Tampa Bay. 6.2 The 2008 Chicago Cubs: Visions of 1908 Heroics. 6.3 A Strange Set of Coincidences: A Plate Umpire’s Affinity for a Pitcher. 7. Single Equation Adaptive Drift Modeling. 7.1 Adaptive ARMA Processes. 7.2 Variable Selection: Identifying the Reduced Model. 7.3 Reduced Model Estimation: Single Equations. 7.4 Reduced Model Empirical Bayesian Estimation: Single Equations. 7.5 Single Equation Volatility Modeling: Adaptive GARCH Processes. 7.6 Modeling Monetary Growth Data. 7.7 Modeling GNP Deflator Growth. 8. Single Equation Modeling: Sports Gambling Markets. 8.1 Effects of Interactive Gambling Shocks. 8.2 End of an Era: Modeling Profile of the 1988-89 Los Angeles Lakers. 8.3 Spread Betting. 8.4 Modeling Profile of a Dream Team: The 1989-90 San Francisco 49ers. 8.5 Major League Baseball: A Data Intensive Game. 8.6 While Still Under the Curse: Modeling Profile of the 1990 Red Sox. 8.7 Portrait of Controversy: Modeling Profile of Roger Clemens with the 1990 Red Sox. 8.8 Pitcher of the Year in 1990: Modeling Profile of the Oakland’s Bob Gibson. 9. Simultaneous Financial Time Series. 9.1 The Cruse of Higher Dimensionality. 9.2 From Candlesticks to Cointegration. 9.3 Cointegration in Terms of Autoregressive Processes. 9.4 Estimating Disequilibria through Factor Analysis. 9.5 Simultaneous Time Series: Adaptive Drift Modeling. 9.6 Simultaneous Time Series: Adaptive Volatility Modeling. 9.7 Exploratory Modeling: Marathon Oil Company. 9.8 The High Tech Bubble of 2000. 9.9 Twenty-Five Standard Deviation Moves. 9.10 The March 2009 Nadir. 10. Modeling Cointegrated Time Series Associated with NBA and NFL Games. 10.1 Modeling Transitions. 10.2 The 2007-08 NY Giants: As Unexpected as Katrina. 10.3 Misery for the Patriot Faithful. 10.4 The Pittsburgh Steelers in Super Bowl 2005. 10.6 Miami’s First NBA Title: 2005-06. 10.7 The 2006-07 San Antonio Spurs: Unexpected Titlists. 10.8 Monitoring MBA Referee Performances. 11. Categorical Forecasting. 11.1 Fisher’s Discriminant Function. 11.2 Bayesian Discriminant Analysis. 11.3 Logistic Regression Analysis. 11.4 Allocating Betting Monies in the Sports Gambling Markets. 12. Financial/Mathematical Illiteracy and Adolescent Problem Gambling: Epidemics More Damaging Than the 1918 Influenza Pandemic. 12.1 The Call for Financial/Mathematical Literacy in 21st Century America. 12.2 Data, Information and the Information Age. 12.3 The Companion Epidemic of Adolescent Problem Gambling. 12.4 Results of a Pilot Study on Adolescent Problem Gambling and Financial /Mathematical Literacy. 13. The Influenza Futures Markets. 13.1 Markets for Expert Information Retrieval. 13.2 Adaptive Seasonal Time Series Modeling. 13.3 Forecasting Weekly Influenza/Pneumonia Deaths. Index. List of Figures.

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Book SynopsisPersonal money management advice that make sense In The True Cost of Happiness, financial journalist Stacey Tisdale and expert financial planner Paula Boyer Kennedy combine their extensive financial experience with a powerful series of interviews and real-world stories to help you make personal money management decisions that make more sense. They begin by discussing how the factors that drive our financial choices and behavior not only run deep, but also represent the way we define ourselves. From there, they reveal how this truth will determine if you can create the kind of financial harmony that not only supports the life you want, but also makes an honest statement of who you really are. The questions they pose are challenging, but essential, because if your financial choices and behavior are not aligned with your true values, you''ll always feel like something is missing. And it is this disconnect that is at the root of most anxiety and unhappiness over monTable of ContentsAcknowledgments vii Preface xi Part I: A Look Inside Chapter 1 Working Together 3 Chapter 2 A Little Awareness Goes a Long Way 9 Chapter 3 The Big Picture: What You’re Planning for 13 Chapter 4 The Price of Pleasing Mom and Pop: Are Your Early Lessons Working for You or Against You? 19 Chapter 5 Social Messages 31 Chapter 6 The Songs We Play in Our Heads 53 Chapter 7 Life Planning for Two 69 Chapter 8 Teach Your Children Well 81 Chapter 9 The Truth about Change 95 Part II: The Numbers Chapter 10 Your Bottom Line 125 Chapter 11 Saving Money 139 Chapter 12 Debt: Wipe the Slate Clean 149 Chapter 13 Living Longer and Stronger: The New Retirement 165 Chapter 14 Covering Your Assets: How to Choose the Right Insurance 181 Chapter 15 Investing for Your Future 199 Chapter 16 The Real Cost of College 211 Chapter 17 Giving Back 225 Chapter 18 Estate Planning 237 Chapter 19 A Final Thought on Your Finances 245 Part III: Staying on Course Chapter 20 Staying on Course 249 Chapter 21 Change Happens 259 Chapter 22 Getting the Help You Need 265 A Final Thought 273 Index 275

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Book SynopsisA one-of-a-kind resource walking you through one complete fraud investigation, from the original tip to conviction in court Anatomy of a Fraud Investigation is an engrossing read and a valuable resource for fraud investigators, auditors, or anyone who suspects fraud may be occuring in their organizations and is unsure as to how to act.Table of ContentsAcknowledgments ix Introduction xi Chapter 1 First Indications (They're Doing What?) 1 Chapter 2 The Importance of Planning (Maximizing Desired Outcomes) 11 Chapter 3 Collecting the Evidence (a.k.a. ‘‘The Raid’’) 25 Chapter 4 Reviewing the Evidence (The Day After) 45 Chapter 5 Electronic Evidence Considerations (Computers, Files, and Communications) 57 Chapter 6 Interviewing (Responding to Tears) 69 Chapter 7 Importance of Documentation (Keeping Track of Things) 87 Chapter 8 Further Investigative Measures (Obtaining More Evidence) 101 Chapter 9 Tracking Down Leads (The Plot Thickens) 119 Chapter 10 Drawing Conclusions (What Does It All Show?) 131 Chapter 11 Confronting the Suspect (‘‘I Didn't Do Anything Wrong’’) 147 Chapter 12 Documenting the Investigation (Your Written Report) 159 Chapter 13 Working Toward a Resolution (‘‘I Don't Want to Go to Prison’’) 167 Chapter 14 Case Closed! 177 Epilogue Do You Want to Know the Outcome? 181 Notes 185 About the Author 187 Index 189

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Book SynopsisThe world''s best financial minds help us understand today''s financial crisis With so much information saturating the market for the everyday investor, trying to understand why the economic crisis happened and what needs to be done to fix it can be daunting. There is a real need, and demand, from both investors and the financial community to obtain answers as to what really happened and why. Lessons from the Financial Crisis brings together the leading minds in the worlds of finance and academia to dissect the crisis. Divided into three comprehensive sections-The Subprime Crisis; The Global Financial Crisis; and Law, Regulation, the Financial Crisis, and The Future-this book puts the events that have transpired in perspective, and offers valuable insights into what we must do to avoid future missteps. Each section is comprised of chapters written by experienced contributors, each with his or her own point of view, research, and conclusions Table of ContentsAcknowledgments xv Editor’s Note xvii Introduction xix PART I Overview of the Crisis 1 1 Leverage and Liberal Democracy 3George Bragues 2 A Property Economics Explanation of the Global Financial Crisis 9Gunnar Heinsohn and Frank Decker 3 Of Subprimes and Sundry Symptoms: The Political Economy of the Financial Crisis 17Ashok Bardhan 4 The Political Economy of the Financial Crisis of 2008 23Roger D. Congleton 5 The Global Financial Crisis of 2008: WhatWent Wrong? 31Hershey H. Friedman and Linda Weiser Friedman 6 The Roots of the Crisis and How to Bring It to a Close 37James K. Galbraith 7 Enron Rerun: The Credit Crisis in Three Easy Pieces 43Jonathan C. Lipson 8 The Global Crisis and Its Origins 51Peter L. Swan 9 Four Paradoxes of the 2008–2009 Economic and Financial Crisis 59John E. Marthinsen 10 Understanding the Subprime Financial Crisis 69Steven L. Schwarcz PART II Causes and Consequences of the Financial Crisis 77 11 The Origins of the Financial Crisis 79Martin N. Baily, Robert E. Litan, and Matthew S. Johnson 12 Ten Myths about SubprimeMortgages 87Yuliya Demyanyk 13 The Financial Crisis: How Did We Get Here and Where Do We Go Next? New Evidence on How the Crisis Spread Among Financial Institutions 95James R. Barth, Tong Li, Lu Wenling, and Glenn H. Yago 14 A Decade of Living Dangerously: The Causes and Consequences of theMortgage, Financial, and Economic Crises 103Jon A. Garfinkel and Jarjisu Sa-Aadu 15 Making Sense of the Subprime Crisis 109Kristopher S. Gerardi, Andreas Lehnert, Shane M. Sherlund, and Paul Willen 16 Miraculous Financial Engineering or Legacy Assets? 119Ivo Pezzuto 17 TheMaking and Ending of the Financial Crisis of 2007–2009 125Austin Murphy 18 The SubprimeMortgage Problem: Causes and Likely Cure 133Ronald D. Utt 19 Sequence of Asset Bubbles and the Global Financial Crisis 139Abol Jalilvand and A. G. (Tassos) Malliaris PART III Borrowers 147 20 The Past, Present, and Future of Subprime Mortgages 149Shane M. Sherlund 21 FHA Loans and Policy Responses to Credit Availability 155Dr. Marsha Courchane, Rajeev Darolia, and Dr. Peter Zorn 22 The Single-Family Mortgage Industry in the Internet Era: Technology Developments and Market Structure 163Forrest Pafenberg 23 Speed Kills? Mortgage Credit Boom and the Crisis 175Giovanni Dell’Ariccia, Deniz Igan, and Luc Laeven 24 SubprimeMortgages:What We Have Learned From a New Class of Homeowners 181Todd J. Zywicki and Satya Thallam 25 Rating Agencies: Facilitators of Predatory Lending in the SubprimeMarket 191David J. Reiss PART IV The Process of Securitization 197 26 A Primer on the Role of Securitization in the Credit Market Crisis of 2007 199John D. Martin 27 Incentives in the Originate-to-DistributeModel of Mortgage Production 209Robert W. Kolb 28 Did Securitization Lead to Lax Screening? Evidence from Subprime Loans 217Benjamin J. Keys, Tanmoy Mukherjee, Amit Seru, and Vikrant Vig 29 Tumbling Tower of Babel: Subprime Securitization and the Credit Crisis 225Bruce I. Jacobs 30 The Incentives of Mortgage Servicers and Designing Loan Modifications to Address the Mortgage Crisis 231Larry Cordell, Karen Dynan, Andreas Lehnert, Nellie Liang, and Eileen Mauskopf 31 The Contribution of Structured Finance to the Financial Crisis: An Introductory Overview 239Adrian A.R.J.M. van Rixtel and Sarai Criado 32 Problematic Practices of Credit Rating Agencies: The Neglected Risks ofMortgage-Backed Securities 247Phil Hosp 33 Did Asset Complexity Trigger Ratings Bias? 259Vasiliki Skreta and Laura Veldkamp 34 The Pitfalls of Originate-to-Distribute in Bank Lending 267Antje Berndt and Anurag Gupta PART V RiskManagement and Mismanagement 275 35 Behavioral Basis of the Financial Crisis 277J. V. Rizzi 36 Risk Management Failures During the Financial Crisis 283Dr. Michel Crouhy 37 The Outsourcing of Financial Regulation to Risk Models 293Erik F. Gerding 38 The Future of Risk Modeling 301Elizabeth Sheedy 39 What Happened to Risk Management During the 2008–2009 Financial Crisis? 307Michael McAleer, Juan-Angel Jim´enez-Martin, and Teodosio P´erez-Amaral 40 Risk Management Lessons from the Global Financial Crisis for Derivative Exchanges 317Jayanth Varma PART VI The Problem of Regulation 325 41 Regulation and Financial Stability in the Age of Turbulence 327David S. Bieri 42 The Financial Crisis of 2007–2009: Missing Financial Regulation or Absentee Regulators? 337George G. Kaufman and A. G. Malliaris 43 The Demise of the United Kingdom’s Northern Rock and Large U.S. Financial Institutions: Public Policy Lessons 345Robert A. Eisenbeis and George G. Kaufman 44 Why Securities Regulation Failed to Prevent the CDO Meltdown 355Richard E. Mendales 45 Curbing Optimism in Managerial Estimates Through Transparent Accounting: The Case of Securitizations 361Stephen Bryan, Steven Lilien, and Bharat Sarath 46 Basel II Put on Trial: What Role in the Financial Crisis? 369Francesco Cannata and Mario Quagliariello 47 Credit Rating Organizations, Their Role in the Current Calamity, and Future Prospects for Reform 377Thomas J. Fitzpatrick IV and Chris Sagers 48 Global Regulation for GlobalMarkets? 383Michael W. Taylor and Douglas W. Arner 49 Financial Regulation, Behavioral Finance, and the Global Financial Crisis: In Search of a New RegulatoryModel 391Emilios Avgouleas PART VII Institutional Failures 401 50 Why Financial Conglomerates Are at the Center of the Financial Crisis 403Arthur E. Wilmarth 51 Corporate Governance and the Financial Crisis: A Case Study from the S&P 500 411Brian R. Cheffins 52 Secondary-Management Conflicts 419Steven L. Schwarcz 53 The Financial Crisis and the Systemic Failure of Academic Economics 427David Colander, Michael Goldberg, Armin Haas, Alan Kirman, Katarina Juselius, Brigitte Sloth, and Thomas Lux 54 FannieMae and FreddieMac: Privatizing Profit and Socializing Loss 437David Reiss 55 Disclosure’s Failure in the SubprimeMortgage Crisis 443Steven L. Schwarcz PART VIII The Federal Reserve, Monetary Policy, and the Financial Crisis 451 56 Federal Reserve Policy and the Housing Bubble 453Lawrence H. White 57 The Greenspan and Bernanke Federal Reserve Roles in the Financial Crisis 461John Ryan 58 The Risk Management Approach to Monetary Policy: Lessons from the Financial Crisis of 2007–2009 467Marc D. Hayford and A. G. Malliaris 59 Reawakening the Inflationary Monster: U.S. Monetary Policy and the Federal Reserve 475Kevin Dowd and Martin Hutchinson 60 The Transformation of the Federal Reserve System Balance Sheet and Its Implications 483Peter Stella PART IX Implications of the Crisis for Our Economic Systems 493 61 Systemic Risk and Markets 495Steven L. Schwarcz 62 The Transmission of Liquidity Shocks During the Crisis: Ongoing Research into the Transmission of Liquidity Shock Suggests the Emergence of a Range of New Channels During the Credit Crisis 501Nathaniel Frank, Brenda Gonz´alez-Hermosillo, and Heiko Hesse 63 Credit Contagion From Counterparty Risk 509Philippe Jorion and Gaiyan Zhang PART X International Dimensions of the Financial Crisis 517 64 Only in America? When Housing Boom Turns to Bust 519Luci Ellis 65 The Equity Risk Premium Amid a Global Financial Crisis 525John R. Graham and Campbell R. Harvey 66 Australia’s Experience in the Global Financial Crisis 537Christine Brown and Kevin Davis 67 Collapse of a Financial System: An Icelandic Saga 545Tryggvi Thor Herbertsson 68 Iceland’s Banking Sector and the Political Economy of Crisis 551James A. H. S. Hine and Ian Ashman 69 The Subprime Crisis: Implications for Emerging Markets 559William B. Gwinner and Anthony B. Sanders PART XI Financial Solutions and Our Economic Future 569 70 The Long-Term Cost of the Financial Crisis 571Murillo Campello, John R. Graham, and Campbell R. Harvey 71 Coping with the Financial Crisis: Illiquidity and the Role of Government Intervention 579Bastian Breitenfellner and Niklas Wagner 72 Fiscal Policy for the Crisis 587Antonio Spilimbergo, Steven Symansky, Olivier Blanchard, and Carlo Cottarelli 73 The Future of Securitization 595Steven L. Schwarcz 74 Modification ofMortgages in Bankruptcy 601dam J. Levitin 75 The Shadow Bankruptcy System 609Jonathan C. Lipson 76 Reregulating FannieMae and FreddieMac 617Dwight M. Jaffee 77 Would Greater Regulation of Hedge Funds Reduce Systemic Risk? 625Michael R. King and Philipp Maier 78 Regulating Credit Default Swaps 633Houman B. Shadab Index 641

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Book SynopsisThis book is written for financial analysts who have a working knowledge of Excel and VBA and who wish to enhance their marketability by improving their modeling expertise. The goal of the book is to broaden the reader's VBA skills and at the same time to progressively integrate Access, PowerPoint, and Outlook into an existing model. Significant attention is also directed to the design and execution of an Excel/VBA interface employing detailed UserForms. In addition, the construction of various reports, first in Excel, then Access, and finally PowerPoint is undertaken. Regardless of your area of financial expertise, this book serves as an essential guide to mastering leveraging the effects of Microsoft products in whatever applications you choose to build. The focus of the book is a case study containing a structured finance model. The case study model was originally designed for the securitization of a portfolio of commercial small business loans. This model now needs to be expandTable of ContentsPreface xv Goals of the Book xv What You Should Know xvi Setting the Context for Learning xviii The Structure of the Book xix A Fish Story xxiii A Perspective on Modeling xxiii Approaching This Material xxiv Style xxv A Parting Remark xxv On the Web Site xxvii Acknowledgments xxxv PART 1 First Steps 1 CHAPTER 1 Introduction 5 Overview 5 Why Was This Book Written? 5 Who Is the Target Audience? 9 What Is the Purpose of the Book? 10 Expanding Your Software Skills 10 Expanding Your Model Design Skills 12 Expanding Your Finance Knowledge 12 Organized to Teach 14 Chapter Organization 15 Accompanying Web Site 17 Learning the “Hard” Way 18 Note 19 CHAPTER 2 The Existing Model 21 Overview 21 Deliverables 22 Under Construction 23 Crisis du Jour 23 Overview of the Current Model 24 Current Model Environment 51 On the Web Site 51 CHAPTER 3 Conventions and Advice 55 Overview 55 Deliverables 56 VBA Conventions 56 Common Sense 70 On the Web Site 72 CHAPTER 4 Segregation of the Existing Model’s Functionality 73 Overview 73 Deliverables 73 Under Construction 73 Deliverables Checklist 74 Breaking Up Is Hard to Do 74 Accommodating Our Design Needs 76 Advantages of Functional Segregation 76 Disadvantages of Functional Segregation 79 On the Web Site 80 CHAPTER 5 Creating the Base Asset Model 81 Overview 81 Deliverables 81 Under Construction 82 The Big Picture: “Just the Assets, Ma’am” 82 Stepping through the Model 84 Testing the Completed Base Asset Model 119 On the Web Site 121 CHAPTER 6 Building the Base Liabilities Model 123 Overview 123 Deliverables 123 Under Construction 124 Liabilities Side of the Model 125 What to Leave In 126 Stepping through the Model 126 Reading the Cash Flows and Assumptions from a File 151 Testing the Completed Base Liabilities Model 162 On the Web Site 164 CHAPTER 7 Establishing the Model Environment 167 Overview 167 Deliverables 168 Under Construction 168 Importance of a Standardized Directory Structure 168 Creating Directories and Defining Their Functions 168 Operating Directories 170 Administrative Directories 175 Creating New Directories for the Model as We Need Them 176 On the Web Site 177 PART 2 Building the New Assets Model 179 CHAPTER 8 Designing the New Collateral Cash Flow Generator 181 Overview 181 Deliverables 183 Under Construction 183 Improving the CCFG Menus: Conversion to UserForms 183 Improving the CCFG Data-Handling Capabilities 199 Improving the CCFG Collateral Selection Process 209 Improving the CCFG Cash Flow Generation Process 212 Improving the CCFG Report Generation Process 215 Improving the CCFG Messaging Process 220 On the Web Site 220 CHAPTER 9 Writing the CCFG Menus and Data Sheets 221 Overview 221 Deliverables 221 Under Construction 222 Menus and UserForms 222 Menus of the CCFG 241 Main Menu 242 Run Options Menu 243 Collateral Pool Menu 255 Collateral Geographic Selection Criteria Menu 259 Financial Selection Criteria Menu 288 Cash Flow Amortization Parameters Menu 299 Collateral Reports Menu 303 On the Web Site 316 CHAPTER 10 Writing the Collateral Data Handling Code 317 Overview 317 Deliverables 318 Under Construction 318 Managing Multiple Portfolio Files 320 Initial Data Screening 335 Writing the Screening Process VBA Code 343 Writing the Initial Data Screening Reports 351 Writing the Demographic Methodology Risk Reports 360 Building a Representative Line Generator Program 365 Building the Rep Line Generator Program 369 On the Web Site 387 CHAPTER 11 Writing the Collateral Selection Code 389 Overview 389 Deliverables 390 Under Construction 390 Building the Code 391 Financial and Demographic Selection Code 392 Financial Collateral Selection Process Reporting 398 Geographic Selection Code 416 Geographic Concentration Code 419 Introduction to Geographic Reporting 433 On the Web Site 458 CHAPTER 12 Writing the Collateral Cash Flow Amortization Code 459 Overview 459 Deliverables 459 Under Construction 460 Quick Review of Existing CF Generation Code 461 Adding New Mortgage Types 462 New Prepayment and Default Methodologies 473 Uniform Methodology 474 Geographic Methodology 478 Demographic Methodology 493 Reporting the Results of the Cash Flow Calculations 503 Writing the Assumptions Report Package 511 On the Web Site 518 CHAPTER 13 Writing the CCFG Reporting Capability 519 Overview 519 Deliverables 520 Under Construction 520 Recapping the CCFG Report Package 521 CCFG Activities and Reports 522 Eligible Collateral Assessment Process 524 Geographic/Demographic Reports 555 Presentation Reports 560 PART 3 Building the New Liabilities Model 583 CHAPTER 14 Designing the Liabilities Waterfall Model 585 Overview 585 Deliverables 585 Under Construction 585 Structure of the Deal: Sources and Uses of Funds 586 Design Elements of the LWM 589 Main Menu 590 Report Package Menu UserForm 590 Structure Inputs Menu 591 Liabilities Waterfall Worksheet 592 Performance Summary Page 600 VBA Code Modules 600 Report Template Files 604 On the Web Site 616 CHAPTER 15 Writing the Liabilities Waterfall Model Spreadsheet 617 Overview 617 Deliverables 617 Under Construction 618 Deal Structure Inputs 618 Building the Liabilities Waterfall Model 623 Period Factors Worksheet 650 Total Cash Flows Section 651 Results Page Worksheet 651 On the Web Site 657 CHAPTER 16 Writing the LWM VBA Code 659 Overview 659 Deliverables 660 Under Construction 660 VBA Requirements of the LWM 665 Menus of the LWM 666 Main Program 679 Error Checking the Main Menu Inputs 681 Importing the Liability Structure Inputs 682 Importing the Cash Flows of the CCFG 686 Loading and Running the LWM 693 Reporting the Results 696 Other Functionality 718 PART 4 Access, PowerPoint, and Outlook 721 CHAPTER 17 Access: An Introduction 723 Overview 723 Deliverables 724 Under Construction 724 Basics of Access 724 Opening Access and Creating a Database 726 Access Tables 728 Getting the Data In: Entering Data 731 Getting the Data Back Out: Queries 740 Basics of Structured Query Language 754 Concluding Remarks 762 On the Web Site 762 CHAPTER 18 Implementing Access in the CCFG and LWM 763 Overview 763 Deliverables 764 Under Construction 764 Access and the Collateral Cash Flow Generator 766 Collateral Portfolio Data 767 Geographic Selection Criteria 781 Geographic Concentration Criteria 794 Initial Data Screening Criteria 796 Custom Financial Selection Criteria 805 Run Options Elections 815 Generating the Loan Portfolio 818 Monthly Cash Flows Scenarios 822 Access in CCFG Reporting 825 Access and the Liabilities Waterfall Model 827 Connecting the LWM to the CCFG 827 Structure Worksheet Objects 828 Retrieving the Monthly Cash Flow Scenarios 831 Storing LWM Run Results in the Database 832 Concluding Remarks 843 On the Web Site 843 CHAPTER 19 Implementing PowerPoint and Outlook in the CCFG 845 Overview 845 Deliverables 845 Under Construction 846 Using PowerPoint in the CCFG 846 Data Requirements 851 Adding a New Class of Reports 856 Introduction to PowerPoint in VBA 860 Preparing the Data for Use 867 First Time Homeowners Slide 869 Creating the Null Report 874 MS Outlook 876 On the Web Site 882 PART 5 Running the CCFG and the LWM 885 CHAPTER 20 Running the Models 887 Overview 887 Deliverables 887 Under Construction 888 Running the CCFG, Analyzing the Asset Side of the Deal 888 Liabilities Side of the Deal 923 Preparing a PowerPoint Presentation about Geographic Concentration 933 On the Web Site 935 Afterword 941 Exhibits Index 943 Subject Index 975

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Book SynopsisSince first publishing Hulbert?s Financial Digest in 1979, Bill Bonner has taken an honest look at the challenges facing the economy. Ultimately, whether or not he was proven right or wrong, he always wrote with clarity and conviction. And, in doing so, he developed a following of 250,000 loyal readers.Table of ContentsIntroduction. Chapter 1: The Incompetence of Economists. Fight The Fed? May 17, 2001. The 17-Year Itch. August 30, 2001. From Funeral to Funeral. November 21, 2003. The Whacky World of Modern Economists. October 08, 2004. Disappearing on the Pampas. October 31, 2008. Inevitable and Disgraceful, But Still Unpredictable. November 28, 2008. Gonoism! December 05, 2008. 100 Years of Mismanagement. January 8, 2010 - Baltimore, Maryland. Three Out of Four Economists are Wrong. July 30, 2010 - Paris, France. The Patsy Revolt of 2010. March 12, 2010 - Mumbai, India. Junk Science. November 15, 2010. Chapter 2: The Maestro's Last Helipad - The Conspiracy of Greenspan and Bernanke. Greenspan's Put Is Shot. December 8, 2000. God, Man, and Alan Greenspan. June 8, 2001 - Paris, France Houses without Moats. September 20, 2002. Can Do Money. April 25, 2003. The World He Lives In. May 2, 2003. Poor House II - The miracle of No-Sweat Equity… October 10, 2003 - Paris, France. Take It Away, Maestro. January 26, 2006 - London, England. Incredible Threat. August 6, 2010 - Ouzilly, France. Plumbers Crack. November 05, 2010 - Delray Beach, Florida. Chapter 3: No Clairvoyants Need Apply. More Perfect Unions. April 4, 2001. Bad Bets. January 3, 2003. Misleading Knowledge, Part I. November 24, 2006. Little Big Bubbles. December 01, 2006. The Best Kind of Wealth. June 11, 2007. Our NEW Trade of the Decade! January 04, 2010 - Bethesda, Maryland. The Great Correction…Still Pending. April 6, 2010 - Baltimore, Maryland. Chapter 4: War and Waste. All Quiet on the Western Front. November 11, 1999. In Praise Of Group Thinking. September 25, 2000. The Dark Years. September 12, 2001. Tsar Of Arabie. October 29, 2001. Pearl Harbor. December 07, 2001. Too Big to Succeed. March 21, 2002 — Paris, France. Imperial Over-Stretch Marks. March 05, 2004. The Stain of Democracy. February 04, 2005 — Paris, France. The Good War. January 30, 2009 - London, England. Chapter 5: Borrowing Against the American Dream. Honor Insolvency. October 1, 2001. Playing the Game. December 27, 2001. Even More Unexplanatory. June 07, 2002 — Paris, France. Land of the Free. July 04, 2003. Fantasies. December 19, 2003 — Paris, France. Lost in Space. January 23, 2004. Hoorah for Capitalism! February 27, 2009 San Jose de los Perros, Nicaragua. Ready for the Shovels. February 20, 2009 - San Jose de los Perros, Nicaragua. “Aughts” Ruined by Wall Street. January 4, 2010 - Bethesda, Maryland. US Economy in a Self-Made Vise. June 16, 2010 - Delray Beach, Florida. Why Debt Does Matter. July 06, 2010 - Baltimore, Maryland. Chapter 6: The Zombie State: When Goverment Fails. Wealth, Poverty, and Blithering Idiots. September 9, 2005. In Gono We Trust: U.S. Inflation on its Zimbabwe Up. February 3, 2009 London, England. Welcome to Zombieland. October 5, 2009 - London, England. When Zombies Attack. July 03, 2009 - London, England. Central Planning and the Parasites It Creates. February 24, 2010 - Baltimore, Maryland. Government Growth Does Not Equal Economic Growth. February 24, 2010 - Baltimore, Maryland. The Zombie Economy. March 1, 2010 - New York, New York. Zombieland. March 5, 2010 - Baltimore, Maryland. Economic Zombies Shuffle Toward Bankruptcy. March 23, 10 - Paris, France. Tony Hayward Before Congress: No Sympathy for the Oil Man. June 21, 2010 - Baltimore, Maryland. Chapter 7: Back it with Bullion. The Dow in Gold Terms…where to from here… August 6, 1999. Under The Big Top, Part Deux. July 19, 2000 - Baltimore, Maryland. The Revenge of Gold. April 19, 2002 - London, England. A Goldbug's Life. December 2004. Faith in Faith. June 16, 2006 - London, England. Gold Says 'I Told You So'. January 17, 2008. A Look Forward at the Final Stage of the Gold Bull Market. November 9, 2010 - Baltimore, Maryland. Chapter 8: The Gaucho's Guide to Investing In Argentina. Earth's Bright Side. September 27, 2002. The Gaucho's Union. April 26, 2006. Hot Water. April 21, 2007 - Gaulfin, Argentina. Sowing the Wind, We Reap the Whirlwind. April 11, 2008 - Buenos Aires, Argentina. The Happiest Day in a Man's Life. April 23, 2010 - Hualfin, Argentina. Chapter 9: The Expatriate's Experiment Abroad. The Accidental Investor. February 19, 2001 - Ouzilly, France. Planting Trees. August 27, 2001. The Episcopalian's Guide to Airport Security. June 03, 2002 — Paris, France. Reformation. May 13, 2002 - Paris, France. All Saints' Day. October 31, 2003 — France. The Money Pit. January 14, 2005 — Paris, France. Exiles Eternal. July 7, 2006. Chapter 10: The One Appointment We Must All Keep. Momento Mori. January 26, 2000 – Paris, France. Thom Hickling, R.I.P.. December 28, 2005 – Rancho San Jose de los Perros, Nicaragua. Requiem for an Economist. September 12, 2007. Frank Laarman, R.I.P. December 1, 2009. Remembrance of Fanny. September 8, 2010. Life Goes On. April 23, 2010 - Gualfin, Argentina. Acknowledgments. About the Author. Index.

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Book SynopsisThe 5 th edition of Lerner's Venture Capital and Private Equity: A Casebook continues to present the important historical cases of private equity while incorporating a number of new relevant and timely cases from previous best-selling issues.Table of ContentsIntroduction1 PE today and tomorrow2 Iris Running Crane December 2009Module 1: Fundraising3 Yale University: July 20064 Altoona5 PE Partnership Agreements6 Grove Street Advisors II7 PE Fundraising Process8 CPPIBModule 2: Investing 9 Firm Strategy Vignettes10 Hardina Smythe and the Healthcare Conundrum11 Avid & Lighthouse Partners12 Metapath13 Valuation in PE Settings14 European PE15 Moneybookers & Investcorp16 PE in Developing Countries17 Hony18 Gobi & DMG19 PE SecuritiesModule 3: Exiting20 emgs21 Motilal22 IPO Process23 Rock & a Hard Place: Valuation & DistributionModule 4: New Frontiers24 Village Ventures25 Microsoft IPV26 Abraaj 27 Actis in 200828 Blackstone IPOAppendix: A note on PE Information Sources GlossaryIndex

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Book SynopsisStochastic Simulation and Applications in Finance with Matlab Programs begins by covering the basics of probability and statistics, which are essential to the understanding the later chapters on random processes and computational simulation techniques, it then goes on to discuss Monte Carlo simulations.Table of ContentsContents Preface 1 Introduction to Probability 1.1 Intuitive Explanation 1.2 Axiomatic Definition 2 Introduction to Random Variables 2.1 Random Variables 2.2 Random Vectors 2.3 Transformation of Random Variables 2.4 Transformation of Random Vectors 2.5 Approximation of the Standard Normal Cumulative Distribution Function 3 Random Sequences 3.1 Sum of Independent Random Variables 3.2 Law of Large Numbers 3.3 Central Limit Theorem 3.4 Convergence of Sequences of Random Variables 4 Introduction to Computer Simulation of Random Variables 4.1 Uniform Random Variable Generator 4.2 Generating Discrete Random Variables 4.3 Simulation of Continuous Random Variables 4.4 Simulation of Random Vectors 4.5 Acceptance-Rejection Method 4.6 Markov Chain Monte Carlo Method (MCMC) 5 Foundations of Monte Carlo Simulations 5.1 Basic Idea 5.2 Introduction to the Concept of Precision 5.3 Quality of Monte Carlo Simulations Results 5.4 Improvement of the Quality of Monte Carlo Simulations or Variance Reduction Techniques 5.5 Application Cases of Random Variables Simulations 6 Fundamentals of Quasi Monte Carlo (QMC) Simulations 6.1 Van Der Corput Sequence (Basic Sequence) 6.2 Halton Sequence 6.3 Faure Sequence 6.4 Sobol Sequence 6.5 Latin Hypercube Sampling 6.6 Comparison of the Different Sequences 7 Introduction to Random Processes 7.1 Characterization 7.2 Notion of Continuity, Differentiability and Integrability 7.3 Examples of Random Processes 8 Solution of Stochastic Differential Equations 8.1 Introduction to Stochastic Calculus 8.2 Introduction to Stochastic Differential Equations 8.3 Introduction to Stochastic Processes with Jump 8.4 Numerical Solutions of some Stochastic Differential Equations (SDE) 8.5 Application case: Generation of a Stochastic Differential Equation using the Euler and Milstein Schemes 8.6 Application Case: Simulation of a Stochastic Differential Equation with Control and Antithetic Variables 8.7 Application Case: Generation of a Stochastic Differential Equation with Jumps 9 General Approach to the Valuation of Contingent Claims 9.1 The Cox, Ross and Rubinstein (1979) Binomial Model of Option Pricing 9.2 Black and Scholes (1973) and Merton (1973) Option Pricing Model 9.3 Derivation of the Black-Scholes Formula using the Risk-Neutral Valuation Principle 10 Pricing Options using Monte Carlo Simulations 10.1 Plain Vanilla Options: European put and Call 10.2 American options 10.3 Asian options 10.4 Barrier options 10.5 Estimation Methods for the Sensitivity Coefficients or Greeks 11 Term Structure of Interest Rates and Interest Rate Derivatives 11.1 General Approach and the Vasicek (1977) Model 11.2 The General Equilibrium Approach: The Cox, Ingersoll and Ross (CIR, 1985) model 11.3 The Affine Model of the Term Structure 11.4 Market Models 12 Credit Risk and the Valuation of Corporate Securities 12.1 Valuation of Corporate Risky Debts: The Merton (1974) Model 12.2 Insuring Debt Against Default Risk 12.3 Valuation of a Risky Debt: The Reduced-Form Approach 13 Valuation of Portfolios of Financial Guarantees 13.1 Valuation of a Portfolio of Loan Guarantees 13.2 Valuation of Credit Insurance Portfolios using Monte Carlo Simulations 14 Risk Management and Value at Risk (VaR) 14.1 Types of Financial Risks 14.2 Definition of the Value at Risk (VaR) 14.3 The Regulatory Environment of Basle 14.4 Approaches to compute VaR 14.5 Computing VaR by Monte Carlo Simulations 15 VaR and Principal Components Analysis (PCA) 15.1 Introduction to the Principal Components Analysis 15.2 Computing the VaR of a Bond Portfolio Appendix A: Review of Mathematics A.1 Matrices A.1.1 Elementary Operations on Matrices A.1.2 Vectors A.1.3 Properties A.1.4 Determinants of Matrices A.2 Solution of a System of Linear Equations A.3 Matrix Decomposition A.4 Polynomial and Linear Approximation A.5 Eigenvectors and Eigenvalues of a Matrix Appendix B: MATLAB®Functions References and Bibliography Index

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Book SynopsisThis book is an introduction to the modelling of cash collateralised debt obligations (CDOs). It is intended that the reader have a basic understanding of CDOs and a basic working knowledge of Microsoft Office Excel. There will be written explanations of concepts along with understandable mathematical explanations and examples provided in Excel.Table of ContentsForeword. Acknowledgments. 1 Introduction. 1.1 To Excel or Not to Excel? 1.2 Existing Tools and Software. 2 What is a Cash CDOs? 2.1 Types of CDOs. 2.2 Description of a Cash Flow CDO. 2.3 Life Cycle of a Cash CDO. 2.4 Contribution to the “Credit Crunch”. 3 Introduction to Modelling. 3.1 Goals in Modelling. 3.2 Modelling Philosophies and Trade-Offs. 3.3 Flexibility. 3.4 Organization and Layout of a Model. 3.5 Life-Cycle Issues: Building an Adaptable Model. 4 Prerequisites to Cash Flow Modelling. 4.1 Modelling Dates. 4.2 Interest Rate Curve Modelling. 4.3 Present Value Modelling. 5 Getting Started. 5.1 Create the Input Sheet. 5.2 The Value of Labelling. 6 Modelling Assets. 6.1 Initial Asset Pool: Rep Line Modelling vs. Actual Assets. 6.2 The Collateral Sheet in the Cash Flow Model. 6.3 Modelling Defaults and Recoveries. 6.4 Amortization. 6.5 Modelling Reinvestment. 6.6 Reinvestment Cohorts. 6.7 Accounts. 6.8 Timing Models vs. Actual Timing. 6.9 Simple Warehouse Modelling. 7 Basic Waterfall Modelling. 7.1 Basic Waterfalls. 7.2 Layout and Design. 7.3 Avoiding Negative Values. 7.4 Timing Modelled vs. Actual Timing. 7.5 Liabilities Cash Flows. 7.6 Fees and Expenses Cash Flows. 7.7 Interest Waterfall. 7.8 Interest Waterfall (Available Funds after Payment). 7.9 Interest Waterfall Calculations. 7.10 Principal Waterfall. 7.11 Principle Waterfall (Available Funds after Payment). 7.12 Principal Waterfall Calculations. 7.13 Adding Over-Collaterization Tests. 7.14 Adding Interest Coverage Tests. 7.15 Technical Issues with Coverage Tests. 8 Outputs Sheet. 8.1 Purpose of the Outputs Sheet. 8.2 Collating Waterfall Outputs. 8.3 Present Value. 8.4 Duration. 8.5 Weighted Average Life and Internal Rate of Return. 8.6 Equity Analysis. 8.7 Basic Auditing. 9 Moody’s Rating Agency Methodology. 9.1 Introduction to Agency Methodologies. 9.2 The Bet Approach. 9.3 Evaluating the Collateral. 9.4 Creating the Moody’s Sheet and Related References in the Cash Flow Model. 9.5 Default Profiles. 9.6 Interest Rate Profiles. 9.7 Running the Analysis. 9.8 Variations on the BET. 9.9 2009 Methodology Update. 10 Standard & Poor’s Rating Methodology. 10.1 The S&P Approach. 10.2 Evaluating the Collateral. 10.3 Modelling Recovery Rates. 10.4 CDO Evaluator. 10.5 Default Rates. 10.6 Interest Rate Stresses. 10.7 Amortization. 10.8 Additional S&P Modelling Criteria. 10.9 Building the S7P Sheet and Related References. 10.10 Running the Stress Scenarios. 11 Advanced Waterfall Modelling. 11.1 Hedge Agreements. 11.2 Fixed Notes. 11.3 Variable Funding Notes. 11.4 Liquidity Facilities. 11.5 Interest Reserve Accounts. 11.6 Other Structural Features. 11.7 Combination Notes. 11.8 Collateral Manager Equity Analysis. 12 Maintaining the Cash Flow Model. 12.1 Adapting Your Model for Different Capital Structures. 12.2 Audit Sheet. 12.3 Debugging. 13 Advanced Structuring Issues. 13.1 Projecting Accrued Interest. 13.2 Collating Collateral Cash Flows. 14 Sourcing and Integrating Data From External Systems. 14.1 Data Requirements. 14.2 Trustee Reports. 14.3 Bloomberg. 14.4 Loan Level Information Sources. 15 Regulatory Applications of CDO Technology. 15.1 The Basel Accords. 15.2 Regulatory Capital Requirements for CDO Notes. 15.3 The Standardized Approach for CDOs. 15.4 The Internal Ratings-Based Approach for CDOs. 15.5 The Internal Ratings-Based Approach for CDOs: The Ratings-Based Approach. 15.6 The Internal Ratings-Based Approach for CDOs: The Supervisory Formula Approach. 15.7 The Internal Ratings-Based Approach: Liquidity Facilities, Overlapping Exposures, Credit Risk Mitigation and Early Amortization Features. 15.8 Supervisory Provisions. 15.9 Updates to Basel II. 16 CDO Valuation. 16.1 Introduction. 16.2 Basic Valuation Approaches. 16.3 Traditional Underwriter Analysis. 16.4 Fundamental Cash Flow Analysis. 16.5 Using Rating Agency Models. 16.6 Transition Matrices. 16.7 Conclusion. 17 In Conclusion. Index.

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Book SynopsisFinancial modelling Theory, Implementation and Practice with MATLAB Source Jörg Kienitz and Daniel Wetterau Financial Modelling - Theory, Implementation and Practice with MATLAB Source is a unique combination of quantitative techniques, the application to financial problems and programming using Matlab. The book enables the reader to model, design and implement a wide range of financial models for derivatives pricing and asset allocation, providing practitioners with complete financial modelling workflow, from model choice, deriving prices and Greeks using (semi-) analytic and simulation techniques, and calibration even for exotic options. The book is split into three parts. The first part considers financial markets in general and looks at the complex models needed to handle observed structures, reviewing models based on diffusions including stochastic-local volatility models and (pure) jump processes. It shows the possible risk-neutral densities, impliedTable of ContentsIntroduction 1 1 Introduction and Management Summary 1 2 Why We Have Written this Book 2 3 Why You Should Read this Book 3 4 The Audience 3 5 The Structure of this Book 4 6 What this Book Does Not Cover 5 7 Credits 6 8 Code 6 Part I Financial Markets and Popular Models 1 Financial Markets – Data, Basics and Derivatives 9 1.1 Introduction and Objectives 9 1.2 Financial Time-Series, Statistical Properties of Market Data and Invariants 10 1.2.1 Real World Distribution 15 1.3 Implied Volatility Surfaces and Volatility Dynamics 17 1.3.1 Is There More than just a Volatility? 19 1.3.2 Implied Volatility 22 1.3.3 Time-Dependent Volatility 22 1.3.4 Stochastic Volatility 23 1.3.5 Volatility from Jumps 23 1.3.6 Traders’ Rule of Thumb 24 1.3.7 The Risk Neutral Density 24 1.4 Applications 26 1.4.1 Asset Allocation 26 1.4.2 Pricing, Hedging and Risk Management 27 1.5 General Remarks on Notation 30 1.6 Summary and Conclusions 31 1.7 Appendix – Quotes 32 2 Diffusion Models 35 2.1 Introduction and Objectives 35 2.2 Local Volatility Models 35 2.2.1 The Bachelier and the Black–Scholes Model 37 2.2.2 The Hull–White Model 40 2.2.3 The Constant Elasticity of Variance Model 46 2.2.4 The Displaced Diffusion Model 50 2.2.5 CEV and DD Models 53 2.3 Stochastic Volatility Models 54 2.3.1 Pricing European Options 55 2.3.2 Risk Neutral Density 56 2.3.3 The Heston Model (and Extensions) 57 2.3.4 The SABR Model 67 2.3.5 SABR – Further Remarks 73 2.4 Stochastic Volatility and Stochastic Rates Models 81 2.4.1 The Heston–Hull–White Model 81 2.5 Summary and Conclusions 90 3 Models with Jumps 93 3.1 Introduction and Objectives 93 3.2 Poisson Processes and Jump Diffusions 94 3.2.1 Poisson Processes 94 3.2.2 The Merton Model 95 3.2.3 The Bates Model 99 3.2.4 The Bates–Hull–White Model 104 3.3 Exponential L´evy Models 105 3.3.1 The Variance Gamma Model 107 3.3.2 The Normal Inverse Gaussian Model 112 3.4 Other Models 118 3.4.1 Exponential L´evy Models with Stochastic Volatility 122 3.4.2 Stochastic Clocks 122 3.5 Martingale Correction 129 3.6 Summary and Conclusions 134 4 Multi-Dimensional Models 137 4.1 Introduction and Objectives 137 4.2 Multi-Dimensional Diffusions 137 4.2.1 GBM Baskets 137 4.2.2 Libor Market Models 139 4.3 Multi-Dimensional Heston and SABR Models 141 4.3.1 Stochastic Volatility Models 141 4.4 Parameter Averaging 143 4.4.1 Applications to CMS Spread Options 144 4.5 Markovian Projection 159 4.5.1 Baskets with Local Volatility 162 4.5.2 Markovian Projection on Local Volatility and Heston Models 162 4.5.3 Markovian Projection onto DD SABR Models 164 4.6 Copulae 172 4.6.1 Measures of Concordance and Dependency 174 4.6.2 Examples 175 4.6.3 Elliptical Copulae 175 4.6.4 Archimedean Copulae 177 4.6.5 Building New Copulae from Given Copulae 179 4.6.6 Asymmetric Copulae 179 4.6.7 Applying Copulae to Option Pricing 180 4.6.8 Applying Copulae to Asset Allocation 180 4.7 Multi-Dimensional Variance Gamma Processes 187 4.8 Summary and Conclusions 193 Part II Numerical Methods and Recipes 5 Option Pricing by Transform Techniques and Direct Integration 197 5.1 Introduction and Objectives 197 5.2 Fourier Transform 197 5.2.1 Discrete Fourier Transform 199 5.2.2 Fast Fourier Transform 200 5.3 The Carr–Madan Method 202 5.3.1 The Optimal α 207 5.4 The Lewis Method 210 5.4.1 Application to Other Payoffs 214 5.5 The Attari Method 215 5.6 The Convolution Method 216 5.7 The Cosine Method 220 5.8 Comparison, Stability and Performance 228 5.8.1 Other Issues 233 5.9 Extending the Methods to Forward Start Options 235 5.9.1 Forward Characteristic Function for L´evy Processes and CIR Time Change 238 5.9.2 Forward Characteristic Function for L´evy Processes and Gamma-OU Time Change 239 5.9.3 Results 242 5.10 Density Recovery 245 5.11 Summary and Conclusions 250 6 Advanced Topics Using Transform Techniques 253 6.1 Introduction and Objectives 253 6.2 Pricing Non-Standard Vanilla Options 253 6.2.1 FFT with Lewis Method 254 6.3 Bermudan and American Options 254 6.3.1 The Convolution Method 257 6.3.2 The Cosine Method 258 6.3.3 Numerical Results 266 6.3.4 The Fourier Space Time-Stepping 270 6.4 The Cosine Method and Barrier Options 277 6.5 Greeks 278 6.6 Summary and Conclusions 287 7 Monte Carlo Simulation and Applications 289 7.1 Introduction and Objectives 289 7.2 Sampling Diffusion Processes 289 7.2.1 The Exact Scheme 290 7.2.2 The Euler Scheme 290 7.2.3 The Predictor-Corrector Scheme 290 7.2.4 The Milstein Scheme 291 7.2.5 Implementation and Results 291 7.3 Special Purpose Schemes 292 7.3.1 Schemes for the Heston Model 294 7.3.2 Unbiased Scheme for the SABR Model 300 7.4 Adding Jumps 313 7.4.1 Jump Models – Poisson Processes 313 7.4.2 Fixed Grid Sampling (FGS) 315 7.4.3 Stochastic Grid Sampling (SGS) 315 7.4.4 Simulation – L´evy Models 322 7.4.5 Schemes for L´evy Models with Stochastic Volatility 330 7.5 Bridge Sampling 339 7.6 Libor Market Model 346 7.7 Multi-Dimensional L´evy Models 351 7.8 Copulae 352 7.8.1 Distributional Sampling Approach (DSA) 353 7.8.2 Conditional Sampling Approach (CSA) 356 7.8.3 Simulation from Other Copulae 358 7.9 Summary and Conclusions 359 8 Monte Carlo Simulation – Advanced Issues 361 8.1 Introduction and Objectives 361 8.2 Monte Carlo and Early Exercise 361 8.2.1 Longstaff–Schwarz Regression 362 8.2.2 Policy Iteration Methods 369 8.2.3 Upper Bounds 374 8.2.4 Problems of the Method 376 8.2.5 Financial Examples and Numerical Results 378 8.3 Greeks with Monte Carlo 382 8.3.1 The Finite Difference Method (FDM) 383 8.3.2 The Pathwise Method 385 8.3.3 The Affine Recursion Problem (ARP) 389 8.3.4 Adjoint Method 391 8.3.5 Bermudan ARPs 393 8.4 Euler Schemes and General Greeks 396 8.4.1 SDE of Diffusions 396 8.4.2 Approximation by Euler Schemes 397 8.4.3 Approximating General Greeks Using ARP 397 8.4.4 Greeks 404 8.5 Application to Trigger Swap 407 8.5.1 Mathematical Modelling 408 8.5.2 Numerical Results 410 8.5.3 The Likelihood Ratio Method (LRM) 413 8.5.4 Likelihood Ratio for Finite Differences – Proxy Simulation 416 8.5.5 Numerical Results 419 8.6 Summary and Conclusions 433 8.7 Appendix – Trees 434 9 Calibration and Optimization 435 9.1 Introduction and Objectives 435 9.2 The Nelder–Mead Method 437 9.2.1 Implementation 442 9.2.2 Calibration Examples 444 9.3 The Levenberg–Marquardt Method 449 9.3.1 Implementation 453 9.3.2 Calibration Examples 455 9.4 The L-BFGS Method 460 9.4.1 Implementation 463 9.4.2 Calibration Examples 464 9.5 The SQP Method 468 9.5.1 The Modified and Globally Convergent SQP Iteration 473 9.5.2 Implementation 475 9.5.3 Calibration Examples 477 9.6 Differential Evolution 482 9.6.1 Implementation 487 9.6.2 Calibration Examples 488 9.7 Simulated Annealing 493 9.7.1 Implementation 497 9.7.2 Calibration Examples 500 9.8 Summary and Conclusions 505 10 Model Risk – Calibration, Pricing and Hedging 507 10.1 Introduction and Objectives 507 10.2 Calibration 508 10.2.1 Similarities – Heston and Bates Models 508 10.2.2 Parameter Stability 511 10.3 Pricing Exotic Options 521 10.3.1 Exotic Options and Different Models 528 10.4 Hedging 528 10.4.1 Hedging – The Basics 531 10.4.2 Hedging in Incomplete Markets 533 10.4.3 Discrete Time Hedging 541 10.4.4 Numerical Examples 544 10.5 Summary and Conclusions 550 Part III Implementation, Software Design and Mathematics 11 Matlab – Basics 553 11.1 Introduction and Objectives 553 11.2 General Remarks 553 11.3 Matrices, Vectors and Cell Arrays 556 11.3.1 Matrices and Vectors 556 11.3.2 Cell Arrays 562 11.4 Functions and Function Handles 564 11.4.1 Functions 564 11.4.2 Function Handles 567 11.5 Toolboxes 570 11.5.1 Financial 570 11.5.2 Financial Derivatives 571 11.5.3 Fixed-Income 571 11.5.4 Optimization 573 11.5.5 Global Optimization 577 11.5.6 Statistics 578 11.5.7 Portfolio Optimization 581 11.6 Useful Functions and Methods 589 11.6.1 FFT 589 11.6.2 Solving Equations and ODE 589 11.6.3 Useful Functions 591 11.7 Plotting 593 11.7.1 Two-Dimensional Plots 593 11.7.2 Three-Dimensional Plots – Surfaces 595 11.8 Summary and Conclusions 597 12 Matlab – Object Oriented Development 599 12.1 Introduction and Objectives 599 12.2 The Matlab OO Model 599 12.2.1 Classes 599 12.2.2 Handling Classes in Matlab 606 12.2.3 Inheritance, Base Classes and Superclasses 607 12.2.4 Handle and Value Classes 609 12.2.5 Overloading 610 12.3 A Model Class Hierarchy 611 12.4 A Pricer Class Hierarchy 613 12.5 An Optimizer Class Hierarchy 618 12.6 Design Patterns 620 12.6.1 The Builder Pattern 621 12.6.2 The Visitor Pattern 624 12.6.3 The Strategy Pattern 626 12.7 Example – Calibration Engine 629 12.7.1 Calibrating a Data Set or a History 631 12.8 Example – The Libor Market Model and Greeks 634 12.8.1 An Abstract Class for LMM Derivatives 634 12.8.2 A Class for Bermudan Swaptions 637 12.8.3 A Class for Trigger Swaps 639 12.9 Summary and Conclusions 641 13 Math Fundamentals 643 13.1 Introduction and Objectives 643 13.2 Probability Theory and Stochastic Processes 643 13.2.1 Probability Spaces 644 13.2.2 Random Variables 644 13.2.3 Important Results 645 13.2.4 Distributions 649 13.2.5 Stochastic Processes 654 13.2.6 L´evy Processes 655 13.2.7 Stochastic Differential Equations 660 13.3 Numerical Methods for Stochastic Processes 665 13.3.1 Random Number Generation 665 13.3.2 Methods for Computing Variates 670 13.4 Basics on Complex Analysis 671 13.4.1 Complex Numbers 671 13.4.2 Complex Differentiation and Integration along Paths 672 13.4.3 The Complex Exponential and Logarithm 673 13.4.4 The Residual Theorem 674 13.5 The Characteristic Function and Fourier Transform 675 13.6 Summary and Conclusions 679 List of Figures 681 List of Tables 691 Bibliography 695 Index 705

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Book SynopsisThe text has been thoroughly updated to incorporate recent developments and includes three major new chapters on: time series modelling in the financial economics area, the Harvey approach to structural time series modelling and cointegration, and panel data models and non--stationary time series.Table of ContentsPreface. 1. Introduction and Overview. Some Initial Concepts. Forecasting. Outline of the Book. 2. Short- and Long-run Models. Long-run Models. Stationary and Non-stationary Time Series. Spurious Regressions. Cointegration. Short-run Models. Conclusion. 3. Testing for Unit Roots. The Dickey–Fuller Test. Augmented Dickey–Fuller Test. Power and Level of Unit Root Tests. Structural Breaks and Unit Root Tests. Seasonal Unit Roots. Structural Breaks and Seasonal Unit Root Tests. Periodic Integration and Unit Root-testing. Conclusion on Unit Root Tests. 4. Cointegration in Single Equations. The Engle–Granger (EG) Approach. Testing for Cointegration with a Structural Break. Alternative Approaches. Problems with the Single Equation Approach. Estimating the Short-run Dynamic Model. Seasonal Cointegration. Periodic Cointegration. Asymmetric Tests for Cointegration. Conclusion s. 5. Cointegration in Multivariate Systems. The Johansen Approach. Testing the Order of Integration of the Variables. Formulation of the Dynamic Model. Testing for Reduced Rank. Deterministic Components in the Multivariate Model. Testing of Weak Exogeneity and VECM with Exogenous I (l) Variables. Testing for Linear Hypotheses on Cointegration Relations. Testing for Unique Cointegration Vectors. Joint Tests of Restrictions on α and β Seasonal Unit Roots. Seasonal Cointegration. Conclusions. Appendix 1: Programming in SHAZAM. 6. Modelling the Short-run Multivariate System. Introduction. Estimating the Long-run Cointegration Relationships. Parsimonious VECM. Conditional PVECM. Structural Modelling. Structural Macroeconomic Modelling. 7. Panel Data Models and Cointegration. Introduction. Panel Data and Modelling Techniques. Panel Unit Root Tests. Testing for Cointegration in Panels. Estimating Panel Cointegration Models. Conclusion on Testing for Unit Roots and Cointegration in Panel Data. 8. Modelling and Forecasting Financial Times Series. Introduction. ARCH and GARCH. Multivariate GARCH. Estimation and Testing. An Empirical Application of ARCH and GARCH Models. ARCH-M. Asymmetric GARCH Models. Integrated and Fractionally Integrated GARCH Models. Conditional Heteroscedasticity, Unit Roots and Cointegration. Forecasting with GARCH Models. Further Methods for Forecast Evaluation. Conclusions on Modelling and Forecasting Financial Time Series. Appendix: Cointegration Analysis Using the Johansen Technique: A Practitioner’s Guide to PcGive 10.1. Statistical Appendix. References. Index.

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Book SynopsisInsight into collateral management and its increasing relevance in modern banking In the wake of recent financial crises, firms of all sizes have adjusted their policies to incorporate more frequent instances of collateral management.Table of ContentsForeword xvii Acknowledgements xix About the Author xxi Introduction xxiii Part 1 Introductory Elements Chapter 1 Fundamental Collateral Concepts 3 Chapter 2 The Nature and Characteristics of Collateral Types 7 Part 2 Sale & Repurchase (Repo) Trades and Collateral Chapter 3 Sale & Repurchase (Repo) Trades and Collateral – Introduction to Repo 29 Chapter 4 Sale & Repurchase (Repo) Trades and Collateral – Classic Repo Trades 33 Chapter 5 Sale & Repurchase (Repo) Trades and Collateral – The Repo Trade Lifecycle 79 Introduction 79 Chapter 6 Sale & Repurchase (Repo) Trades and Collateral – Stock-Based Classic Repo Trades 101 Chapter 7 Sale & Repurchase (Repo) Trades and Collateral – Repo Trade Variations 103 Chapter 8 Sale & Repurchase (Repo) Trades and Collateral – The Global Master Repurchase Agreement 121 Part 3 Securities Lending & Borrowing and Collateral Chapter 9 Securities Lending & Borrowing and Collateral – Introduction to SL&B 161 Chapter 10 Securities Lending & Borrowing and Collateral – Principles of SL&B 167 Chapter 11 Securities Lending & Borrowing and Collateral – The SL&B Trade Lifecycle 211 Chapter 12 Securities Lending & Borrowing and Collateral – Accessing the SL&B Marketplace 237 Chapter 13 Securities Lending & Borrowing and Collateral – The Global Master Securities Lending Agreement 253 Part 4a OTC Derivatives and Collateral Chapter 14 OTC Derivatives and Collateral – Transaction Types – Introduction 295 Chapter 15 OTC Derivatives and Collateral – Transaction Types – Generic Structural Aspects 303 Chapter 16 OTC Derivatives and Collateral – Transaction Types – Interest Rate Swaps 311 Chapter 17 OTC Derivatives and Collateral – Transaction Types – Credit Default Swaps 319 Chapter 18 OTC Derivatives and Collateral – Transaction Types – Foreign Exchange Swaps 329 Chapter 19 OTC Derivatives and Collateral – Transaction Types – Cross-Currency Swaps 341 Chapter 20 OTC Derivatives and Collateral – Legal Protection – Introduction 349 Chapter 21 OTC Derivatives and Collateral – Legal Protection – Master Agreement and Schedule 351 Chapter 22 OTC Derivatives and Collateral – Legal Protection – Credit Support Annex 361 Chapter 23 OTC Derivatives and Collateral – Static Data 401 Chapter 24 The OTC Derivative Collateral Lifecycle 413 Chapter 25 OTC Derivatives and Collateral – The Collateral Lifecycle – Pre-Trading – Legal Documentation 415 Chapter 26 OTC Derivatives and Collateral – The Collateral Lifecycle – Pre-Trading – Static Data 419 Chapter 27 OTC Derivatives and Collateral – The Collateral Lifecycle – Trading – Trade Execution 421 Chapter 28 OTC Derivatives and Collateral – The Collateral Lifecycle – Post-Trading – Trade Capture 429 Chapter 29 OTC Derivatives and Collateral – The Collateral Lifecycle – Post-Trading – Trade Confi rmation/Affi rmation 435 Chapter 30 OTC Derivatives and Collateral – The Collateral Lifecycle – Post-Trading – Trade/Portfolio Netting 439 Chapter 31 OTC Derivatives and Collateral – The Collateral Lifecycle – Throughout Lifetime of Trade – Portfolio Reconciliation 447 Chapter 32 OTC Derivatives and Collateral – The Collateral Lifecycle – Throughout Lifetime of Trade – Marking-to-Market 457 Chapter 33 OTC Derivatives and Collateral – The Collateral Lifecycle – Throughout Lifetime of Trade – Exposure Calculation 463 Chapter 34 OTC Derivatives and Collateral – The Collateral Lifecycle – Throughout Lifetime of Trade – Receiving Margin Calls 475 Chapter 35 OTC Derivatives and Collateral – The Collateral Lifecycle – Throughout Lifetime of Trade – Issuing Margin Calls 501 Chapter 36 OTC Derivatives and Collateral – The Collateral Lifecycle – Throughout Lifetime of Trade – Holding Collateral 515 Chapter 37 OTC Derivatives and Collateral – The Collateral Lifecycle – Throughout Lifetime of Trade – Post-Trade Execution Events – Introduction 531 Chapter 38 OTC Derivatives and Collateral – The Collateral Lifecycle – Throughout Lifetime of Trade – Post-Trade Execution Events – Novation 533 Chapter 39 OTC Derivatives and Collateral – The Collateral Lifecycle – Throughout Lifetime of Trade – Post-Trade Execution Events – Unwind 541 Chapter 40 OTC Derivatives and Collateral – The Collateral Lifecycle – Throughout Lifetime of Trade – Post-Trade Execution Events – Offset 547 Chapter 41 OTC Derivatives and Collateral – The Collateral Lifecycle – Throughout Lifetime of Trade – Post-Trade Execution Events – Credit Events 553 Chapter 42 OTC Derivatives and Collateral – The Collateral Lifecycle – Throughout Lifetime of Trade – Collateral Substitution 559 Chapter 43 OTC Derivatives and Collateral – The Collateral Lifecycle – Throughout Lifetime of Trade – Income & Corporate Action Events 567 Chapter 44 OTC Derivatives and Collateral – The Collateral Lifecycle – Trade Termination – Trade Termination 575 Part 4b OTC Derivatives and Collateral – Legal Documentation Chapter 45 OTC Derivatives and Collateral – Legal Documentation 579 Part 4c OTC Derivatives and Collateral – Regulatory Change and the Future Of Collateral Chapter 46 OTC Derivatives and Collateral – Regulatory Change and the Future of Collateral – Introduction 583 Chapter 47 OTC Derivatives and Collateral – Regulatory Change and the Future of Collateral – Centrally Cleared Trades 597 Chapter 48 OTC Derivatives and Collateral – Regulatory Change and the Future of Collateral – Non Centrally Cleared Trades 629 Glossary of Terms 657 Useful Websites 703 Further Reading 705 Index 707

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Book SynopsisThe complexity of business in economically demanding times makes finding constructive angels that much more challenging. The advice and tips in Attracting Capital from Angels are, therefore, invaluable. The wisdom offered here is not just for start-ups or neophytes, but is a well-timed companion to already existing resources and approaches to helping a business in all phases of development. It''s also a great manual for people who want to share their knowledge (and invest capital) as an angel. I plan to recommend Attracting Capital from Angels to every entrepreneur I run into in the future who asks for mentoring sources. Great job! Bob Bozeman, General Partner, Angel Investors, LP PENNIES FROM HEAVEN This book offers all the information entrepreneurs need for finding elusive angel investors. Comprehensive, eminently readable, and based on the authors'' years of experience dealing with venture capital firms, angels, and entrepreneurs, this book covers all the angles on aTable of ContentsForeword by Bob Bozeman. Foreword by Randy Haykin. WHAT IS AN ANGEL AND WHAT DO ANGELS WANT? CHAPTER 1: The Fascinating World of Angel Investors. CHAPTER 2: Trends in Angel Investing. CHAPTER 3: What Is an Angel Investor? CHAPTER 4: Why Do People Want to Be Angels? CHAPTER 5: The Challenges of Being an Angel. CHAPTER 6: Angels Compared to Venture Capitalists. CHAPTER 7: What Do Angels Want? CHAPTER Entrepreneur Characteristics That Attract Angels. TYPES OF ANGELS. CHAPTER 9: The Many, Many Types of Angels. CHAPTER 10: When Angels and Venture Capitalists Are on. CHAPTER 11: Devil in a Blue Suit: Spotting Frauds and Cheats. PREPARING FOR A GLIMPSE OF HEAVEN. CHAPTER 12: Why an Attorney Is an Absolute Must. CHAPTER 13: Putting Together Your Advisory Board. CHAPTER 14: The Poor, Misunderstood Business Plan. CHAPTER 15: The All-Important Marketing Plan. CHAPTER 16: Do Angels Put Any Credence in Business Plans? CHAPTER 17: Polishing Your Pitch. FINDING AN ANGEL. CHAPTER 18: How Do Angels Find the Deals? CHAPTER 19: Why Do Angels Band Together? CHAPTER 20: Behind Closed Doors 189 CHAPTER 21: Tracking the Flight Path of Angels Is Difficult: They Don't Show Up on Radar. CHAPTER 22: Making It Easy for an Angel to Find You. YOU'VE FOUND AN ANGEL - NOW WHAT? CHAPTER 23: To Invest or Not to Invest: That Is the Question. CHAPTER 24: The Mystery of Valuation. CHAPTER 25: Coming to Terms. CHAPTER 26: Entrepreneurs Who Attracted Angels to Their Company. LIVING WITH AN ANGEL. CHAPTER 27: Advantages of an Angel Investing in a Company. CHAPTER 28: Working with an Angel after the Close. CHAPTER 29: Tales from the Venture Vault. THE FUTURE OF ANGEL INVESTING. CHAPTER 30: Making the Angel Investment Market More Efficient. CHAPTER 31: Outlook: What a Wonderful World It Could Be. APPENDIX: Experts Who Contributed to Attracting Capital from Angels. Index.

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Book SynopsisAn engaging and comprehensive look at the intersection of financial innovation and the environment This unique book provides readers with a comprehensive look at the new markets being created to help companies manage environmental risks, including weather derivatives, catastrophe bonds, and emission trading permits.Table of ContentsCHAPTER 1: THE EMERGING WORLD OF ENVIRONMENTAL FINANCE. Introduction. An Emerging Field. Why Is It Happening at This Particular Time? Lessons Learned. How Might Environmental Finance Prepare Us for the Challenges Ahead? Conclusion. CHAPTER 2: CONCEPTS AND TOOLS FOR DEVELOPING ENVIRONMENTAL FINANCE. Introduction. Environmental Management and Shareholder Value Creation. Environmental Management Systems. Stakeholder Relationships. Looking Ahead: Scenarios and Simulations. Tools for Risk Transfer. Trading Atmospheric Emission Reduction Credits. Conclusion. CHAPTER 3: THE FINANCIAL SERVICES SECTOR. Introduction. Structure of the Global Market for Financial Capital. Forces Reshaping Financial Service Industries. Core Financial Services. Response of the Financial Services Sector to Deregulation. Financial Services' Approach to Environmental Issues. Conclusion. Endnotes. CHAPTER 4: BANKING. Introduction. Commercial Banking. Direct Liability of Contaminated Land. Brownfield Redevelopment. Risk Management. Environmental Products and Services. Niche Markets and Microcredit. Internal Environmental Management. UNEP Financial Institutions Initiative. Measurements and Reporting of Environmental Management. Investment Banking. Climate Change: Risks and Opportunities for the Banking Sector. Sustainable Energy Funds. The Price of Carbon. Reputational Risk. Conclusion. Web Sites. CHAPTER 5: INSURANCE. Introduction. Angus Ross, Invited Author's Comment. Contaminants in the Environment. Climate Change and Extreme Weather Events. Transferring Risk from the Insurance Industry to the Capital Markets. Regional Variations in the Response of Insurance Companies to the Environmental Challenge. Conclusion. Endnote. CHAPTER 6: INVESTMENTS. Introduction. Evolution of Screening for Social and Environmental Responsibility. The Relationship between Environmental and Financial Performance. Performance of Environmentally Screened Funds. Variation in Research Results. Socially Responsible Investment Portfolio Performance Ratings. Institutional Portfolio Managers. Environmental Products in Fund Management. Environmental Research and Rating Organizations. Weightings. Investable Indexes. Conclusion. Endnotes. Web Sites. CHAPTER 7: CLIMATE CHANGE AND FINANCIAL VULNERABILITY. Introduction. Accepting Climate Change as a Real Phenomenon. Physical Impacts of Climate Change. Vulnerability by Economic Sector. Anticipating Human Response to Climate Change. Critical Factors in Human Response to Climate Change. Conclusion. Web Sites. CHAPTER 8: Environmental Reporting and Verification. Introduction. Trends in Environmental Reporting. Main Types of Environmental Reporting. Pollution Release and Transfer Registers. Accounting Profession and Security Regulators. Environmental Reporting from the Preparer's Perspective. Environmental Reporting from the User's Perspective. Progress in Environmental Reporting. Alan Willis, Invited Author's Comment. Conclusion. Web Sites. CHAPTER 9: Strategies for Managing Environmental Change. Introduction Greenhouse Gas Emission Targets: Rationale, Types, and Methods. Green Housekeeping. Environmental Reporting. Global Monitoring. Climate Change Programs. New Weather-Related Products. Trading Pollution Reduction Credits. Conclusion. Endnotes. Web Sites. CHAPTER 10: THE WAY AHEAD. Introduction. Business and Environmental Change: What's New? The New Paradigm. Data Quality. Leadership. Environmental Change: From Challenge to Opportunity. The Environmental Learning Curve: Redefining Success. APPENDIX A. UNEP Statement by Financial Institutions on the Environment and Sustainable Development. List of Signatories to the UNEP Statement by Financial Institutions on the Environment and Sustainable Development. UNEP Statement of Environmental Commitment by the Insurance Industry. Status of the UNEP Statement of Environmental Commitment by the Insurance Industry. APPENDIX B. APPENDIX C. The Annex 1 Countries. ACRONYMS. REFERENCES. INDEX.

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Book SynopsisEverything you need to know to succeed in today''s fastest growingsector of the consulting market. Jim Ainsworth is an extremely successful financial planningprofessional with more than 30 years in the business. In How toBecome a Successful Financial Consultant, he tells you everythingyou need to know to move into financial consulting. He familiarizesyou with all the types of planning that financial consultants dealwith, as well as the various investment vehicles. And, based on hisown experiences and those of other successful financial consultantsacross the nation, he supplies you with a proven blueprint forsuccess. You get expert advice, guidance, and insiders'' tips on howto: * Get the education, experience, and licensing you need to qualify. * Get certified (and whether you need to). * Develop a surefire success plan. * Set up a practice and attract clients. * Network, market, and sell your services. * Set fees and collect other forms of compensationTable of ContentsThe Forces Creating Demand for Financial Planning. What Does a Financial Planner Do? Who Is Providing Financial Planning Today? How Consultants Select and Manage Investments. Meeting the Basic Requirements for Entry into FinancialPlanning. Getting Connected to the Profession. Building a Solid Financial Planning Practice. How Financial Planners Get Paid. Discoveries about People and Their Money. Financial Planning 2015 and a Few Final Words. Appendices. Index.

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Book SynopsisMany forces--from demographics to politics to business trends--shape the nonprofit sector and the practice of fund-raising, but little attention has been given to the premises underlying many of the decisions fund-raisers make in their daily professional lives. This book examines the impact of different factors on this growing and changing field.Table of ContentsPartial table of contents: PROFESSIONAS AND NONPROFITS. And We Will Teach Them How: Professional Formation and Public Accountability (P. Pribbenow). FUND RAISERS, ETHICS, AND EQUITY. The Fund Raising Profession (M. Duronio). Respecting the Individual, Valuing Diversity: Equity in Philanthropy and Fund Raising (M. Fischer). GIVING. The Demographics of Giving Patterns (J. Wolpert). Inclination, Obligation, and Association: What We Know and What We Need to Learn about Donor Motivation (P. Schervish). From Motivation to Mutual Understanding: Shifting the Domain of Donor Research (K. Kelly). FINANCIAL AND MANAGMENET PERFORMANCE. Costs and Performance Measurements (J. Greenfield). U.S. Models and International Dimensions of Philanthropic Fund Raising (L. Wagner). REGULATION. On the Regulation of Fund Raising (R. Steinberg). WHAT'S NEXT. Bowling Together: Fund Raising Practices and Civic Engagement (J. Pratt). Appendix. Index.

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Book SynopsisDivorce and Domestic Relations Litigation represents the accountant''s body of knowledge on divorce and domestic relations and how it relates to the divorce process, alimony, child support, and property. At once a reference tool and a training guide for firms entering this specialization, this book provides the financial professional with a single source of information regarding the financial impact, the practical course, and the underlying theories that impact domestic relations.Table of ContentsPreface. 1. THE FINANCIAL ADVISER'S IMPACT ON DIVORCE LITIGATION. Nature and Administration of the Practice. State of Law. Initial Meetings with Counsel or the Client. Child Support. Property Issues. Tracing of Assets. Division of Property. Other Issues. 2. THE FINANCIAL ADVISER'S ROLE IN DIVORCE LITIGATION. The Financial Adviser's Role. The Divorce Process. Trials. Neutral Roles. 3. THE DETERMINATION AND TAXATION OF DIVORCE PROPERTY DIVISIONS. Property Theory and Issues. Family-Limited Partnerships. Taxation of Property Transfers. Redemption of Stock in a Closely Held Corporation. 4. THE VALUATION OF BUSINESSES IN DIVORCE LITIGATION. Business Valuation. Standards. Valuation Methodologies. Analysis of the Business. Control versus Minority Interests and Other Discounts and Premiums. Determination of Value. 5. THE VALUATION AND DIVISION OF RETIREMENT PLANS IN DIVORCE LITIGATION. Retirement Plans. Types of Qualified Plans. Governmental Plans. Individual Retirement Accounts, Simplified Employee Pensions, and SIMPLE Plans. Transfer of Retirement Assets. Nonqualified Plans. 6. THE TAXATION AND DETERMINATION OF SUPPORT IN DIVORCE LITIGATION. Child Support. Spousal Support. Types of Spousal Support. Tax Treatment of Spousal Support. Recapture of Spousal Support. Spousal Support Treated as Child Support. Spousal Support Substituted for Property Awards. Allocation between Child Support and Spousal Support. 7. THE DIFFERENCES OF PROPERTY AND INCOME IN DIVORCE LITIGATION AND ISSUES OF THE MARITAL RESIDENCES. Property or Income. Marital Residence. 8. TAX ISSUES IN DIVORCE LITIGATION. Income Tax. Innocent Spouse Relief. Expanded Innocent Spouse Relief. Separate Liability Election. Equitable Relief. Miscellaneous Tax Issues. Tax Attributes in Divorce. 9. THE FINANCIAL ADVISER'S TESTIMONY. Testimony. Preparation for Trial. Direct Examination. Cross-Examination. Redirect Examination. Recross Examination. The Decision. Index.

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