An up-to-date look at the exploding CDO and structured credit products market
In this fully updated Second Edition, financial expert Janet Tavakoli provides readers with a comprehensive look at the CDO and structured credit products market amid recent developments. In addition to a detailed overview of the market, this book presents key issues in valuing structured financial products and important quality control issues. Tavakoli shares her experiences in this field, as she examines important securitization topics, including the huge increase in CDO arbitrage created by synthetics, the tranches most at risk from new technology, dumping securitizations on bank balance sheets, the abuse of offshore vehicles by companies, the role of hedge funds, critical issues with subprime, Alt-A, and prime mortgage securitizations, and securitizations made possible by new securitization techniques and the Euro. While providing an overview of the market and its dynamic growth, Tavakoli takes the time to explore the types of products now offered, new hedging techniques, and valuation and risk/return issues associated with investment in CDOs and synthetic CDOs.Content:
Chapter 1 Securitization Terminology (pages 1โ6):
Chapter 2 Structured Finance and Special Purpose Entities (pages 7โ44):
Chapter 3 Credit Derivatives and Total Rate of Return Swaps (pages 45โ81):
Chapter 4 CDOs and the Global Capital Markets (pages 83โ89):
Chapter 5 Risk and Valuation Issues (pages 91โ115):
Chapter 6 Early CDO Technology (pages 117โ142):
Chapter 7 Early Warning Commercial Financial Services (pages 143โ154):
Chapter 8 Subprime and Alt?A Mortgages: Collateral Damage (pages 155โ192):
Chapter 9 Cash versus Synthetic Arbitrage CDOs (pages 193โ246):
Chapter 10 CDO Equity Structures (pages 247โ290):
Chapter 11 CDO Managers (pages 291โ294):
Chapter 12 Balance?Sheet CLOs and CDOs (pages 295โ330):
Chapter 13 Super Senior Sophistry (pages 331โ351):
Chapter 14 Synthetics and Mark?to?Market Issues (pages 353โ371):
Chapter 15 Comments on Selected Structured Finance Products (pages 373โ395):
Chapter 16 Credit Funds (pages 397โ404):
Chapter 17 The Credit Crunch and CDOs (pages 405โ427):
Chapter 18 Future Developments in Structured Finance (pages 429โ433):