Synthetic and Structured Assets

The publisher of this book has a reputation for publishing multiple books on a topic and letting them compete with each other. That is the case with this book, which comes out at the same time as two other Wiley releases on structured finance: Fabozzi, Davis, Choudhry (2006) and Culp (2006). This book pales in comparison.

 

One specific criticism is that the choice of topics is somewhat non-standard. I don't know why the author has chapters covering callable bonds, stripped bonds, convertible bonds or mutual funds. I doubt anyone considers these structured products. Material on options trading strategies and options spreads seems also out of place. It would have been nice to cover project finance or leasing, but these aren't addressed.

Contents

1. Introduction to synthetic and structured assets

2. Financial building blocks

3. Callable, puttable, and stripped securities

4. Mortgage- and asset-backed securities

5. Structured notes and loans

6. Collateralized debt obligations

7. Insurance-linked securities and contingent capital

8. Convertible bonds and equity hybrids

9. Investment funds

10. Derivative replication, repackaging, and structuring

11. Risk, legal, and regulatory issues

The writing also leaves something to be desired. It is verbose. The author talks about topics rather than explain them. If you are new to CMOs, CDOs or structured notes, good luck comprehending this book's explanations.

One significant bright spot—and this is an advantage over Fabozzi et al—is a chapter on insurance-linked securities. Fabozxzi et al doesn't cover the subject.

In summary, if you can only read one book, make it Fabozzi et al. Consider this as a supplement. [November 10, 2006]

 

For related books, see sections.

Markets - General

Markets - Credit Derivative, CDO

Markets - Derivatives

Markets - MBS, ABS

Markets - Repo, Security Lending

Markets - Structured Finance

 

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