“…Tavakoli uses her broad professional experience to examine the CDO market in simple and clear language.” (Risk
, March 2004)
"Tavakoli…does what she can to address this market’s growing pains in…this intriguing book" (Hedge World)
From the Inside Flap
What is a collateralized debt obligation (CDO)? What is securitization? What is a synthetic credit structure? What is an asset-backed security? Ask any market professional and they will all agree that these are structured products, but total agreement usually ends theremainly because, in a global financial environment, one product may have more than one definition.
To help you keep up with the expanding CDO market and the various elements of structured finance, Collateralized Debt Obligations and Structured Finance digs deep to explain some of the newest areas in structured finance, particularly the CDO market and some of the problems created by its rapid growth.
Collateralized Debt Obligations and Structured Finance provides a state-of-the-art look at the exploding CDO and structured credit products market. Financial expert Janet Tavakoliauthor of the widely popular Credit Derivatives and Synthetic Structuresexamines a variety of securitization topics never before seen in print, including the huge increase in the CDO arbitrage created by synthetics; the tranches most at risk from this new technology; dumping securitizations on bank balance sheets; the abuse of offshore vehicles by companies such as Enron; and securitizations made possible by new securitization techniques and the introduction of the Euro.
This valuable guide comprehensively covers one of the fastest growing markets on Wall Street, predicting where new bank regulations and other developments may lead to product growth or product extinction. While providing an overview of the market and its dynamic growth, Collateralized Debt Obligations and Structured Finance also explores the types of products offered, hedging techniques, and valuation and risk/return issues associated with investing in CDOs and synthetic CDOs.
Written in a clear and accessible style, this book is a valuable resource that will provide you with critical insights into many areas of this important market sector.