Description
Book SynopsisThe comprehensive guide to creating, valuing, and trading today''smost innovative fixed-income securities . Financial marketsworldwide are being flooded with a wealth of innovative andincreasingly complex securities. Now, more than ever, fixed-incomeprofessionals must understand how these synthetic instruments arestructured and traded, and how to profitably integrate them into anoverall financial strategy. Fixed-Income Synthetic Assets suppliesthis crucial working knowledge. This results-driven primer deliversthe proven tools and techniques for packaging, pricing, and tradingthese innovative products. From A-tranche CMOs to Zero couponbonds, this unique sourcebook guides both the novice and theprofessional through the full range of innovative syntheticstructures and their manifold uses. It''s packed with easy-to-useformulas and charts, as well as clear, step-by-step discussions offinancial theory that promote clear understanding of the mostcomplex fixed-income financial engineering str
Table of ContentsPartial table of contents:
THE BUILDING BLOCKS OF SYNTHETIC ASSETS.
Present Value, Compound Interest, and Total Returns.
Forward Rates and Spot Rates.
Duration and Convexity.
SYNTHETIC MONEY MARKET SECURITIES.
A Survey of Cash Money Market Securities.
Repos, Reverse Repos, and Dollar Rolls.
Treasury Bill Futures.
Eurodollar Futures and International Money Markets.
Floating Rate Notes.
SYNTHETIC NOTES, BONDS, AND OPTIONS.
Creating Duration.
Creating Convexity.
Creating Other Synthetic Assets.
SYNTHETIC FIXED-INCOME PORTFOLIOS.
Creating Portfolio Duration.
Designing Portfolio Returns.
VARIATIONS ON A THEME.
Equity- and Commodity-Linked Securities.
Synthetic Option Strategies.
Appendices.
Glossary.
Index.
