Buch, Englisch, 192 Seiten, Format (B × H): 164 mm x 236 mm, Gewicht: 397 g
ISBN: 978-1-118-00181-3
Verlag: John Wiley & Sons
An in-depth look at the failure of Wall Street's "proven" financial models
Origami is the Japanese art of folding paper into intricate and aesthetically attractive shapes. As such, it is the perfect metaphor for the Wall Street financial engineering model, which ultimately proved to be the underlying cause of the 2008 financial crisis.
In Financial Origami, Brendan Moynihan describes how the Wall Street business model evolved from a method to transfer risk into a method for manufacturing risk. Along the way, this timely book skillfully dissects financial engineering and addresses how it's often a mechanism to evade regulatory constraints, provide institutional investors with customized products, and, of course, generate revenue for financial engineers.
- Reveals how Wall Street's financial engineering business model morphed into something destructive
- Highlights how the origami model worked well in the comparatively stable years of the early 2000s, when there was less risk to transfer
- Discusses how Wall Street began manufacturing risk by creating products that multiplied risk exposures and encouraged subprime lending
With the collapse of Lehman Brother the Wall Street business model effectively broke. But there are many lessons to be learned from what has transpired, and Financial Origami will show you what they are.
Autoren/Hrsg.
Fachgebiete
- Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Internationale Finanzmärkte
- Wirtschaftswissenschaften Wirtschaftswissenschaften Literatur für Manager
- Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Börse, Rohstoffe
- Wirtschaftswissenschaften Wirtschaftswissenschaften Wirtschaft: Sachbuch, Ratgeber
Weitere Infos & Material
Author’s Note xi
Introduction xiii
Chapter 1 Fold Sides to Center 1
Commercial Banks 5
Savings and Loans 9
Securities Firms 10
Transferring Risk 12
End of an Era 14
Chapter 2 Result, Turn Over 17
The Three Derivatives 22
Options 23
Futures 24
Swaps 25
Chapter 3 Fold Sides to Center, Again 29
Changing the Rules 33
A New Environment 36
Investing in Mortgages 39
Banker Incentives 42
Chapter 4 Fold Tip to Point 45
Other People’s Money: Equity 50
Agents Transferring Risk Become Principals Taking It 53
Chapter 5 Fold Point Back 59
Rules, Refold, Rave, Ruin 64
A New Environment 66
A New Risk 68
Chapter 6 Fold in Half 75
Mortgage Origami 78
Subprime Origami 81
The Rating Game 82
Banker Incentives 86
Manufactured Product 89
Chapter 7 Pull Neck Upright 91
Low Volatility, Low Risk 96
The CDS Market Develops 98
More Insurance Than Needed 101
Opaque Markets 103
Other People’s Money: Debt 106
Chapter 8 Pull Head to Suitable Angle 109
Vindicating Greenspan 115
How, Not Will, You Pay? 117
Broken Markets 119
Chapter 9 Complete 125
What’s Wrong with Wall Street? 130
Government-Sponsored Enterprises 131
Government-Sanctioned Credit-Rating Agencies 137
Banks 139
What’s Right with Wall Street? 141
Epilogue 147
Notes 153
About the Author 157
Index 159
