Customer Reviews

Collateralized Debt Obligations: Structures and Analysis, 2nd Edition (Wiley Finance)

5 star:		(6)
4 star:		(3)
3 star:		(0)
2 star:		(0)
1 star:		(2)

 

 

Ms. Goodman's book is a much needed resource on CDOs. If you are just learning about the CDO market, Ms. Goodman clearly defines key terms and explains the structures from beginning to end. Those with extensive Wall Street experience will enjoy having one of the few well-written references available in the market. It is also a good marketing tool to give to potential investors. This is a good comprehensive reference guide.

This book covers a broad number of topics on CDOs. I would recommend it with the earlier one "Investing in Collateralized Debt Obligations". Combined they give you a good insight on the market.

This well written book provides an excellent introduction to the CDO market. It covers topics of interest to the potential investor in these securities, in an easy to use format.

Each chapter is a useful in-depth lecture on a specific CDO topic without the cheerleading sales pitch that accompanies most street research. There's a reason why Laurie Goodman has four number 1 rankings in the latest Institutional Investor survey.

This book covers a broad number of topics on CDOs. I would recommend it with the earlier one "Investing in Collateralized Debt Obligations". Combined they give you a good insight on the market.

It seems oddly convenient that a negative review of the late Marcia Stigum's book, The Money Market, recommends The Repo Handbook by Moorad Choudhry. Ms. Goodman's book has a similar title to a book he has coming out and has been attacked with one star reviews that seem very similar to the attacks on books with similar titles and on Ms. Stigum's book. The envy is easy to understand, since this clearly written book with pleasing type-face is selling well and is a valuable resource.

Don't miss the chance to buy this excellent reference work on collateralized debt obligations.

This book provides a lot of information on different types of CDOs. Although this book was written by multiple authors, the writing styles seem to blend pretty well. There are a lot of interesting historical information that is provided as well as a good amount of discussion on various methodologies. One drawback of this book is that it is written in 2006, which was at the height of the CDO market and prior to the recent financial crisis.

In my opinion, one of the more interesting topics in the book are the chapters on "default correlation." The authors do a good job explaining various methods of estimating default correlation. To me, the importance of understanding the correlation between assets during stressful conditions is probably the most important lesson that we should have learned from this crisis. In particular, the correlation of assets increases substantially during stressful conditions and that any risk analysis should also be performed over stressful market conditions and not just over a long horizon that would smooth out any stressful scenarios.

Another important thing to note is that the discussion in this book also points out the inefficiency of the CDO market. In particular, it shows inefficiencies in the ratings and pricing of emerging market CDOs. The authors discuss that emerging market CDOs have lower or similar risk to high-yield CDOs and yet provide a higher return potential. If these inefficiencies existed long enough that a book can be written about it, then there is simply a lack of understanding as to what these products are.

If you are looking to make some sense of this whole subprime market data, this book is for you. This is a great foundation book. This book is ideally for someone who knows a bit about the business already. I would not advise purchasing this book if you are unfamiliar with the business. There is a lot of jargon that may not be understood.

Nevertheless, this book is an excellent resouce. It touches on everything you ever wanted to know about the CDO market and then some.
This book is NOT for the expert on CDO. This is more for the afficionado.

Enjoy!!! :o)

This is an over-rated book on CDOs. Having worked in the financial risk management business for more than 15 years with significant experience in structured financial instruments, the book was not particularly useful to me. I believe the book may be of use for training newbees in need of a primer.

I have no hesitation in recommonding this as a great book on CDOs. I have bought a copy myself and it is very impressive. Moorad Choudhry.