Fixed-Income Synthetic Assets: Packaging, Pricing, and Trading Strategies for Financial Professionals (Wiley Finance) [Hardcover]

Perry H. Beaumont (Author)

Book Description

ISBN-10: 0471551627 | ISBN-13: 978-0471551621 | Publication Date: September 17, 1992 | Edition: 1

The comprehensive guide to creating, valuing, and trading today's most innovative fixed-income securities . Financial markets worldwide are being flooded with a wealth of innovative and increasingly complex securities. Now, more than ever, fixed-income professionals must understand how these synthetic instruments are structured and traded, and how to profitably integrate them into an overall financial strategy. Fixed-Income Synthetic Assets supplies this crucial working knowledge. This results-driven primer delivers the proven tools and techniques for packaging, pricing, and trading these innovative products. From A-tranche CMOs to Zero coupon bonds, this unique sourcebook guides both the novice and the professional through the full range of innovative synthetic structures and their manifold uses. It's packed with easy-to-use formulas and charts, as well as clear, step-by-step discussions of financial theory that promote clear understanding of the most complex fixed-income financial engineering strategies and practices. This timely sourcebook is designed to help traders, arbitrageurs, speculators, and financial executives profit from the financial markets of today, and successfully prepare for the opportunities of tomorrow. "Perry H. Beaumont offers a logical, well organized book filled with examples. His step-by-step explanations make it easy to decipher some of today's most sophisticated financial instruments." --Ira G. Kawaller Vice President, Director of New York Office, Chicago Mercantile Exchange "Fixed-Income Synthetic Assets is a practical guide to state-of-the-art financial practice. An excellent tool for the financial manager trading in the markets and applying the latest financial techniques." --David Robison Vice President & Treasurer Chrysler Financial Corporation

Editorial Reviews

From the Publisher

From A-tranche collateralized mortgage obligations to zero coupon bonds, readers are guided through a variety of innovative structures. Covers all instruments used in conjunction with debt--futures, floating rate notes, options, mortgage-backed securities, ``strips'', T-bills and more. Provides a slew of effective techniques for packaging, pricing and managing synthetic products for today's financial markets.

From the Inside Flap

Fixed-income synthetic assets are fast becoming the investment vehicles of choice for an increasing number of astute financial professionals. Traders, arbitrageurs, speculators, as well as financial executives are increasingly involved with these new and dynamic products. Fixed-Income Synthetic Assets is the only professional guide to focus exclusively on packaging, pricing, and trading strategies for these complex securities. This authoritative sourcebook covers all fixed-income instruments including derivatives, floating rate notes, STRIPs, mortgage-backed securities, U.S. Treasuries, and much more. It delivers market-proven guidance for applying fixed-income strategies to key areas of finance such as risk management, option pricing and packaging, swaps and swaptions, and fundamental risk/return analysis. Fixed-Income Synthetic Assets begins with a concise overview of the fundamental building blocks used to create synthetic assets. Sophisticated valuation techniques are explored for calculating present value, forward and spot rates, and duration and convexity. A variety of synthetic structures are then considered among money market assets. Securities discussed include certificates of deposit, agency and municipal securities, mortgage-backed securities, Treasury Bill futures, Eurodollar futures, international money markets, and floating rate notes. From here, the guide moves further along the yield curve. Synthetic strategies are provided for a variety of notes and bonds, and modern portfolio theory is applied to the creation of synthetic fixed-income portfolios. The book concludes with a detailed review of the more innovative structures in the marketplace, including promising new commodity- and equity-linked products. Throughout, Fixed-Income Synthetic Assets supplies a precise and lucid examination of financial engineering practices and strategies, supplemented by accurate, easy-to-follow formulas. Numerous charts and graphs add visual punch to important topics. This essential desktop reference shows issuers and investors how to:

• Package, price, and trade synthetic securities that are more desirable than the assets being replicated
• Identify investment opportunities among complex, competing financial products
• Create securities with cashflows and market sensitivities superior to alternative assets
• Integrate synthetic securities within any fixed-income strategy

In today’s explosive global markets, traditional securities are increasingly used as building blocks of potentially more innovative and profitable assets. By showing how synthetic fixed-income securities are structured, priced, and traded, this practical primer helps fixed-income professionals profit both from the current market environment and future opportunities.

See all Editorial Reviews

Product Details

• Hardcover: 320 pages
• Publisher: Wiley; 1 edition (September 17, 1992)
• Language: English
• ISBN-10: 0471551627
• ISBN-13: 978-0471551621
• Product Dimensions: 9.2 x 6.5 x 1 inches
• Shipping Weight: 1.5 pounds (View shipping rates and policies)
• Average Customer Review: 5.0 out of 5 stars  See all reviews (3 customer reviews)
• Amazon Best Sellers Rank: #1,955,559 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

7 of 7 people found the following review helpful:

5.0 out of 5 stars Essential guide for fixed-income professionals., July 7, 1998

By 

M. D. Gibney (Ridgewood, New Jersey) - See all my reviews
(REAL NAME)   

This review is from: Fixed-Income Synthetic Assets: Packaging, Pricing, and Trading Strategies for Financial Professionals (Wiley Finance) (Hardcover)

The author delivers clear and concise explanations on the more esoteric aspects of fixed-income securities. It is written using an easy to understand, building-block approach which enables the reader to grasp the theory behind creating synthetic securites. This book goes beyond textbook definitions and introduces essential strategies which can be used by trading managers, risk managers, and individual investors.

5.0 out of 5 stars Nuts and bolts, May 5, 2004

By A Customer

This review is from: Fixed-Income Synthetic Assets: Packaging, Pricing, and Trading Strategies for Financial Professionals (Wiley Finance) (Hardcover)

This text was especially helpful for me as someone who knew pretty much next to nothing about the field but who also wanted not to be spoon fed. The author strikes an excellent balance for beginners and the more advanced.

5.0 out of 5 stars A must for bond pros, October 22, 2002

By A Customer

This review is from: Fixed-Income Synthetic Assets: Packaging, Pricing, and Trading Strategies for Financial Professionals (Wiley Finance) (Hardcover)

The book is concisely written and loaded with practical examples. A must for the reference shelf of bond professionals.