Moynihan Financial Origami

How the Wall Street Model Broke
1. Auflage 2011
ISBN: 978-1-118-03032-5
Verlag: John Wiley & Sons
Format: EPUB
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 192 Seiten, E-Book

Reihe: Bloomberg

An in-depth look at the failure of Wall Street's "proven"financial models
Origami is the Japanese art of folding paper into intricate andaesthetically attractive shapes. As such, it is the perfectmetaphor for the Wall Street financial engineering model, whichultimately proved to be the underlying cause of the 2008 financialcrisis.
In Financial Origami, Brendan Moynihan describes how the WallStreet business model evolved from a method to transfer risk into amethod for manufacturing risk. Along the way, this timely bookskillfully dissects financial engineering and addresses how it'soften a mechanism to evade regulatory constraints, provideinstitutional investors with customized products, and, of course,generate revenue for financial engineers.
* Reveals how Wall Street's financial engineering business modelmorphed into something destructive
* Highlights how the origami model worked well in thecomparatively stable years of the early 2000s, when there was lessrisk to transfer
* Discusses how Wall Street began manufacturing risk by creatingproducts that multiplied risk exposures and encouraged subprimelending
With the collapse of Lehman Brother the Wall Street businessmodel effectively broke. But there are many lessons to be learnedfrom what has transpired, and Financial Origami will show you whatthey are.

Autoren/Hrsg.

Moynihan, Brendan

Inhaltsverzeichnis

Author's Note.
Introduction.
Chapter 1 Fold Sides to Center.
Commercial Banks.
Savings & Loans.
Securities Firms.
Transferring Risk.
End of an Era.
Chapter 2 Result, Turn Over.
The Three Derivatives.
Options.
Futures.
Swaps.
Chapter 3 Fold Sides to Center, Again.
Changing the Rules.
A New Environment.
Investing in Mortgages.
Banker Incentives.
Chapter 4 Fold Tip to Point.
Other People's Money: Equity.
Agents Transferring Risk Become Principals Taking It.
Chapter 5 Fold Point Back.
Rules, Refold, Rave, Ruin.
A New Environment.
A New Risk.
Chapter 6 Fold in Half.
Mortgage Origami.
Subprime Origami.
The Rating Game.
Banker Incentives.
Manufactured Product.
Chapter 7 Pull Neck Upright.
Low Volatility, Low Risk.
The CDS Market Develops.
More Insurance Than Needed.
Opaque Markets.
Other People's Money: Debt.
Chapter 8 Pull Head to Suitable Angle.
Vindicating Greenspan.
How, Not Will, You Pay?
Broken Markets.
Chapter 9 Complete.
What's Wrong with Wall Street.
Government Sponsored Enterprises.
Government Sanctioned Credit Rating Agencies.
Banks.
What's Right with Wall Street?
Brown Brothers Harriman.
Marketfield Asset Management.
Egan-Jones Co.
Epilogue.
Notes.
About the Author.
Index.

Über Autor(innen)

Brendan Moynihan is an editor-at-large for Bloomberg News, wherehe manages the popular column "Chart of the Day" and writes aboutthe economy and Wall Street. He has been with the company since2006, after spending more than twenty years on Wall Street as atrader and risk manager. Moynihan is the author of Trading onExpectations (Wiley) and coauthor of What I Learned Losing aMillion Dollars. He lives in Barrington Hills, Illinois, with hiswife and two sons, and is currently writing a book on Englishgrammar.