Book Description

Praise for Collateralized Debt Obligations & Structured Finance

"Caveat emptor! Never in the history of finance has this warning been more appropriate. With the development of CDOs, credit derivatives, and other esoteric structured finance techniques, market participants–the savvy as well as the novice–are exposed to a bewildering array of new ideas, concepts, and structures. Janet Tavakoli has tackled these subjects in an outstanding mixture of exposition, mathematics, and skepticism. A must-read for anyone who plans to play in these markets."
–Jack Caouette
Vice Chairman, MBIA Insurance Corporation

"A timely and comprehensive survey of the latest developments in structured finance, particularly given the rapid pace of change in the last few years. The author’s depth of knowledge and wide experience are conveyed clearly to the reader. At a time when the industry’s ability to meet the complexities of the differing requirements of market participants is under challenge from both the events of the last cycle and the authorities, the insights offered in this book are especially valuable."
–Mark Hale
Group Strategist, Ansbacher & Co., Ltd.

"Structured finance is central to the continued development of active credit portfolio management. In this book, Tavakoli not only provides an authoritative account of many of the structured finance products employed by portfolio managers, but also addresses, in a forthright manner, a number of the ‘burning issues’ affecting the industry in a post-Enron world."
–John Cross
Global Head, Portfolio Management, Standard Chartered Bank ... Read more

Reviews (31)

Collateralized Debt Obligations & Structured Finance
This book combines expertise and readability in the style of Tavakoli's "Credit Derivatives". I would expect it to become a classic in this market as is her other book in the credit derivatives market. This book has particularly nice coverage on SPEs. Her explanation of the evolution of CDOs from balance sheet deals to arbitrage deals includes lots of practical examples and clear graphics.

Tavakoli's insights are especially valuable when highlighting caveats introduced by the rapid growth of credit derivatives technology in structured finance. She recommends structural approaches to getting fair value for both structurers and investors. Much of the information on synthetics is new material, and losses that are just now being realized in the market place might have been avoided had this book been available six months ago.

Tavakoli also predicts products that will wane and the products that will experience a growth spurt - such as the secured trust -in the Basel 2 environment.

Authoritative and Clear Account of Structured Finance
I noticed the same reviewer seems to have posted multiple negative reviews for this book and Tavakoli's credit derivatives book. One of the reviews echoes the words of a fellow who is coming out with his own books on these subjects, so there may be a motive of self-interest. In that respect the one and two star reviews may be a form of envious homage.

I'm a 5-year veteran in credit derivatives trading. I hedge synthetic collateralized debt obligations (CDOs) and manage the risk for single tranche CDOs. I was very glad to receive this book and like it as much as Tavakoli's book on credit derivatives. Tavakoli clearly defines terms. She then clearly explains the products. There are many aspects of the structuring I wasn't aware of that are explained as an entertaining read in this book. Our structuring group liked this book as much as I did, and bought copies for everyone on the desk, and bought copies for customers.

I work for one of the well managed banks that has been providing good value for customers, but I was happy to see Tavakoli talk about how customers have often been ripped-off and she suggests how customers can avoid this - for instance by dealing with my bank. I liked the way the various structures are explained from the bottom up. Tavakoli makes it seem easy to understand the various complex components and the structural options.

The section on language and gaming is especially important. The debate on deal managers both for and against, and the inconsistency of the rating agencies both internally and externally is clearly explained. That isn't necessarily a bad thing, since we want rating agencies to take independent views, but it is important to realize that discrepancies in the approach to rating structured products exist. Tavakoli did an excellent job of explaining this so that there are no misunderstandings.

I also enjoyed the account of non-CDO structured finance products, since I may gravitate to the structuring side of the business in future.

Excellent Resource for Investors
For investors who need to know more about structured finance including new synthetic securitizations using credit derivatives technology, this book is a great resource.

Required Reading
Collateralized Debt Obligations should be required reading for investors in the CDO market. Tavakoli gives a thorough overview of the market and explains the relative value traps and opportunities. Tavakoli explains several different kinds of possible structures in which cash flows can be diverted to either the detriment or the benefit of investors. The recommendations for the structural protections that investors should ask for repay the cost of the book - and the valuable time you take to read it - several thousand fold.

Rating agencies have a difficult time rating tranches of several structures and as an investor, I wasn't aware of these discrepancies before. This book makes major strides in improving transparency in structured finance.

Collateralized Debt Obligations and Structured Finance
Strange how the reviewer(s) from NY, SF, and London (who rank this book with 1 or 2 stars) all write in the same style, all are anonymous once and identified once, and the same reviewer(s) wrote essentially the same reviews on Tavakoli's 2001 book. Who is gaming whom? My first impression of this book is good - I have only skimmed it so far - but I believe it is worth my time for a thorough study. No, I am not a 'trainee' - I have been trading commodities and currencies since the mid 1970s. ... Read more

Book Description

Praise for How to Create & Manage a Hedge Fund
A Professional’s Guide

"True to its title, McCrary provides a clearly written and complete overview of the issues associated with starting and running a hedge fund. And for those outside the hedge fund world, the book’s successful marriage of finance theory and market practice with the author’s own vast experience makes for an enjoyable and thoroughly informative read."
–Christopher L. Culp, Managing Director, CP Risk Management LLC, and Adjunct Associate Professor of Finance, Graduate School of Business, The University of Chicago

"McCrary has drawn from his experience on Wall Street, LaSalle Street, and at the academy in crafting this encyclopedia for hedge fund managers and advisors. Covering the field in plainspoken business prose, he demystifies the secretive world of collective private investment. Whether you earn your living in finance or law, in accounting or marketing, if the subject is hedge funds, you must read this book."
–Patrick Daugherty, Partner, Foley & Lardner

"Building on his broad experience in the securities and derivatives markets, McCrary offers a well-researched guide to starting and running a hedge fund business . . . he tackles everything from the mundane, like regulations and accounting, to the complex, like investment techniques and risk management, in an articulate and insightful manner . . . a necessary handbook for money managers and investors alike."
–Peter F. Karpen, Managing Member, Diversified Investment Management, LLC ... Read more

Reviews (10)

60 Pages of Applicable Information
Years ago I swore never to read another book with the words "How To" in the title. I broke that rule and am now very sorry I did. To be fair, there are a couple of good chapters in this book. Chapter 10 on regulation is a nice overview of the subject, and chapter 12 makes a valiant effort, but ultimately fails to make hedge fund taxation lucid. Unfortunately much of the book is unabashed filler. Chapter 11 is titled "Accounting for Hedge Funds", but is instead a 15 page overview of the first week of Freshman level accounting. Chapter 15 takes ten pages to explain the obvious and intuitive parallels of hedge fund cash flows to options. I got about 60 pages of applicable information on the subject out of a 300 page book, and still feel ripped off. Why is it that there are so many terrible books about money management?

Uh-huh. UhUh!!
Dear, me. Imagine being able to coach a winning business plan in fewer than 20 pages. And marketing, my dears! Why, other people write book after book about marketing, and, viola, all is covered in only twenty pages. That is amazing, especially since all the evidence is that the single most important aspect of creating a successful hedge fund is the marketing side. I can't imagine why the book would deal with trading or corporate structures in the US sense. Most successful hedge funds are incorporated in other jurisdictions which often use different terminology. And, my dears, how useful is it to introduce an S-corp, a US IRS term and structure used primarily in real estate. Few hedge funds invest in real estate, and even fewer non-US jurisdictions recognize that peculiar tax creature.

On top of all that, you don't even get paper, binding or book covers for your money. Talk about 50 ways to leave your lover. Well, buy it if you must, but don't say I didn't warn you.

Criticisms don't make sence to me....
While admittedly there is a lot of fluff in this book - ie explaining strategy and instruments, there is a lot of valuable advise on creating the structure of the company and constructing a business plan.

If your looking for someone to tell you how to trade in the financial markets you probably shouldn't be starting a fund.

Dissapointing
This book only gives a brief overview to the actual nuts and bolts of starting a hedge fund. Instead it spends time explaining various hedge fund strategies, risk-management approaches, and basic entity structures (what is a c-corp? what is an s-corp? what is an llc?).

As someone who has started a fund in the past and is looking to start another, this book was a disappointment. If you are learning the info in this book for the first time, you probably shouldn't be starting a fund in the first place.

Must have resource
A lot of great commentary about the preparation and hard work to build a business, not just trade/manage money. The other reviews listed here correctly point out that this is not another instructional book with investment techniques. This is the ideal book for someone confident enough with their investing strategy be it equities, bonds, limited partnerships, real estate, futures, commodities etc. to grasp business structures, investor/customer expectation, realistic marketing timelines, accounting, and the business aspect of managing a fund. Expect to seek out additional resources to add on McRary's outstanding work. If you are even toying with the idea of starting a mangement company, fund, fund of funds etc. do not proceed without this book. ... Read more

Book Description

There are two sides to everything, except the stock market. In the stock market there is only one side—the right side. In certain market conditions, selling short can put you on the right side, but it takes real knowledge and market know-how as well as a lot of courage to assume a short position.

The mechanics of short selling are relatively simple, yet virtually no one, including most professionals, knows how to sell short correctly. In How to Make Money Selling Stocks Short, William J. O'Neil offers you the information needed to pursue an effective short selling strategy, and shows you—with detailed, annotated charts—how to make the moves that will ultimately take you in the right direction.

From learning how to set price limits to timing your short sales, the simple and timeless advice found within these pages will keep you focused on the task at hand and let you trade with the utmost confidence. ... Read more

Book Description

Concepts in Federal Taxation is designed for a more conceptual, less detailed approach to federal taxation of individuals and corporations in an introductory taxation course. This conceptual approach presents taxation as a small number of unifying concepts, stressing the overriding principles that apply to all specific tax rules and regulations. Concepts in Federal Taxation offers an excellent balance between tax concepts and the Internal Revenue Code and regulations, preparing users for a future in the business environment. ... Read more

Reviews (5)

High on the How, Low on the Why
For a complicated subject like econometrics, or advanced statistics in general, a truly easy to follow overview text is probably impossible. This book comes close and does a fine job of explaining the fundamentals (as an introduction or refresher) before getting into the nitty-gritty of econometrics. There are many examples and problem sets to illustrate the concepts, and the formulas are laid out well and presented in a logical order. You can clearly see how the complex formulas are generated and how they apply to econometric theories. The problem with this book is that the technical focus leads to a distressing lack of conceptual, big-picture understanding. You get exhaustive instructions on HOW to calculate complex statistical tools such as coefficients of determination or multiple aggression analyses. However, regardless of the real-world problem sets used as examples, there is usually little indication of WHY such exercises would be conducted, or WHAT the results truly mean. For example, you know how variance came to equal 2.9167, but does that number truly mean anything? An added problem is generally under-explained definitions of the terms, and a glossary sure would be helpful. This book will teach you with great precision how to calculate, but with precious little on how to interpret the results. {~doomsdayer520~]

The best book our there for undergraduate classes.
It's the best book out there for understanding basis statistics and its application to economics. It is very easy to read, understand and relatively easy to teach considering the intensity of the subject.

Not bad, but not great!
As an undergraduate economics student, this book served as a good reference for econometrics. While some basic information was omitted (which I would have found helpful), the book does an adequate job of laying out regression analysis, and its prerequisites, in a logical manner. The greatest sign of the value of a book, for a college student, is whether it is kept at the conclusion of a class or sold back. I kept this book, but I continue to look for an even better econometrics reference.

Way too confusing
This book may be understandable for a professor. But as a student, it is way too confusing for a person who is just learning econometrics to grasp. A student can get really lost in this book. Overall, it is not worth the money to purchase

Essentials of econometrics- a professor's opinion
This book certainly has its good points; it is written in a non-technical manner which allows everyone the ability to grasp technical material; it also presents statistics thorougly before it introduces Econometrics.As an professor, the major weakness is that there are not enough applications in areas such as forecasting; there were also errors in the first edition which needed to be corrected, and there was perhaps too much emphasis in teaching Statistics(Some of it is irrelevant to

Econometrics). However, I would certainly recommend it. ... Read more

Amazon.com

In Conquer the Crash, Robert Prechter explains why he thinks the boom times are behind us. Based on his interpretation of the Elliott Wave principle (an idea premised on the notion that mass investor psychology is what really drives markets), Prechter believes that the U.S. economy is about to enter into a deflationary depression that few investors are prepared to deal with. In making his case, Prechter assembles an impressive array of data that in essence suggests that the bill for the last 10 years of market excess is about to come due. The second half of the book shows how to avoid becoming "a zombie-eyed victim of the depression" and offers advice on protecting one's assets in a deflationary environment (cash is king). If there's any good news in the future that Prechter sees coming (other than how to avoid it), it's that all-out depressions don't last very long. Conquer the Crash should appeal to gloom-and-doom investors and to those desperately looking for a safe haven from the uncertainties of today's markets. --Harry C. Edwards ... Read more

Reviews (89)

Who are you going to believe?
Subscribers to Prechter's newsletters will have already read most of what is in this book. But for the other 99.99% of investors in the world who are not his subscribers, he has distilled down his reasoning and recommended course of actions into one convenient place.

This book is really two books within one set of covers -- the publisher even uses two different kinds of paper stock to differentiate the "books." In "book one," Prechter draws from history and shows charts & graphs (some going back 300 years) of what has happened in situations similar to what we are going through today. Known for his Elliott Wave analysis, Prechter does not stop there. He uses all of the tools of technical and fundamental analysis to methodically build his argument that the current market downturn is very far from over. Like a lawyer presenting a case, he covers everything from esoteric considerations such as rising federal debt as a percentage of GDP, to public psychology, to the ultimate impotence of the Fed. At the end of the section, the reader is left with the choice to either believe that history repeats, or that "this time it's different."

"Book two" presents practical advice of what to do now. He offers suggestions of what to do if you're in the stock market and your account is way down. He covers junk bonds, real estate, treasuries, pension plans, 401Ks, insurance, gold, and the whole spectrum of investments. To help the reader, he lists the safest banks in the country. He has eye-opening advice for people who are relying on government protection such as FDIC bank account insurance. Finally, he shows how to actually profit in the environment we are currently in.

Some disparage Prechter for his past fault of getting out of the market too early. It's a valid criticism; nevertheless, every one of his predictions are currently playing out. How do you argue with someone who is right?

Ultimately, the reader is left with a choice. One is to follow the financial mass media, economists and brokerage analysts who say recovery is just around the corner. The other is to look at history and Prechter's prediction, along with his track record of being only one of a handful of people to predict the magnitude of the market crash. Who are you going to believe?

Shows you how to profit from the coming depression.
In his new book, Robert Prechter makes a convincing case that we are heading for a deflationary depression, similar to the environment the U.S. saw in the early 1930's, and Japan has experienced for the last 12 years. Readers are shown how to prepare, and even prosper as this deflationary scenario unfolds. While most will be crushed by the weight of their own mortgage and credit card debt, readers of this book can take advantage of a once in a lifetime investment opportunity.

Prechter's understanding of technical, contrary, and economic analysis is exceptional. According to conventional wisdom of investors, traders, and the so-called "experts" on Wall Street, external events and fundamentals cause psychology and social mood to change. Flying in the face of this conventional wisdom, Prechter maintains that in reality the opposite is true; psychology and social mood cause underlying economic and market conditions to change. Once you view events from this perspective you can successfully anticipate conditions and properly adjust your investment techniques for maximum wealth appreciation and preservation.

Prechter identifies the many ways for readers to profit off the continuing stock market decline. Whether you trade stocks, bonds, commodities, or options you will find valuable advice in this book. It will have a permanent spot on my own bookshelf next to Prechter's earlier classic "At the Crest Of the Tidal Wave". Prechter's advice will surely be used in my own trading.

Interesting but...
I like Prechter because he's an interesting, unconventional thinker. But... I want to be careful and fair... doesn't his track record leave quite a bit to be desired?

At one time (I think the early 80's), I've read or heard he did well with his market predictions. But, not sure, didn't he get the 87 crash wrong in the sense that the market quickly recovered and that would've been the opportunity of a lifetime to buy? And, hasn't he's been bearish though another great opportunity, the incredible bull market of the latter 90's?

Finally, here we are in mid 2004, with Gold holding _above_ $400, the stock averages within spitting distance of their old highs, and the fed likely to raise interest rates because of the economic recovery (along with job creation) to keep inflation in check.

It just seems like Elliot Wave strings you along... there're always unlikely alternate counts and unlikely alternates to those that make you question why the unlikely of the unlikely seem to happen so often. I'm not trying to bash; would actually prefer to be more positive; but am simply expressing an honest dissapointment.

Highly Recommended!
Prophets of doom have always made entertaining reading. In his latest fire-and-brimstone warning, Robert R. Prechter, Jr., an experienced forecaster of long-term economic and social trends, says financial Armageddon is just around the corner. While his technical analysis ("Wave Theory") may appear to be stock-market astrology, readers may appreciate his examination of the basic functions of money and credit, his argument that worldwide central banking has fundamentally altered these functions, and his perceptive comparisons of the late 1990s with the Roaring Twenties. Prechter might have appealed to a broader audience by toning down his graphs and technical talk, and focusing instead on his investment suggestions: If the market turns down, you'll save your skin, but even in a bull market, keeping your money safe can't hurt. We recommend this book to anyone looking for bear-market investment advice, as well as those interested in technical analysis or an opinionated view of business and market cycles.

A poorly argued case, even for market bears.
Mr. Prechter is best known as a popular advocate for the Elliot Wave principle. He continues this school of thought in this book.

The book is divided into two parts. The first part attempts to persuade the reader that the US economy is headed for a deflationary depression. The second part recommends actions to prepare and prosper during a deflationary depression. This specific edition of the book also includes an update written in 2004. (The original book was written in 2002.)

First of all, with any investment book review, it is important to understand the reviewer's biases. My belief is that the US will enter some type of unwinding, either through an extended securities bear market, or more severe overall imbalance. I maintain a minor belief in technical analysis but do not rely on it.

Elliot Wave analysis is, at its core, a technical analysis methodology. Elliot Wave claims to find a recurring pattern in short term, long term, and ultra-long term market price charts. What is gravely missing, however, is some sort of explanation or justification for its supposed utility. Many schools of technical analysis, for example, give plausible explanations for why "resistance levels" exist based on market or individual investor psychology. This is completely missing from Mr. Prechter's writings and thus he fails to distinguish himself from a long line of failed data miners.

This missing and crucial "why" is the most glaring hole in this book. While other writers attempt to prove a thesis through a chain of reasoning and supporting data, Mr. Prechter skips steps in his thesis. The holes are not glaring to a casual reader, but a person with some breadth in economic knowledge will easily spot large omissions.

For example, even if you accept the disjointed framework of technical and fundamental analysis, the fundamental arguments for deflation are seriously flawed. Note, also, that Elliot Wave principles claim only to predict the performance of securities. Thus, Elliot Wave is agnostic with respect to the inflation vs. deflation debate. Therefore, Mr. Prechter's arguments for deflation are purely fundamental in basis. This is where his loose foundation really comes apart. His understanding of the Federal Reserve functions are contrary to those written by many other writers and scholars, including many who share similar contempt for the Federal Reserve. This is rather crucial, because the specific authorities and obligations of the Federal Reserve can determine whether a presumed economic failure results in deflation or hyper-inflation. Convincing cases for deflation have been made, but Mr. Prechter does not offer one.

Where many market bears thoroughly argue and carefully build their conclusions, Mr. Prechter glosses over far too many details to arrive at this deflation conclusion and blatantly ignores examples that contradict his thesis. He uses the US depression of 1929 as his sole argument that monetary policy is powerless to prevent deflation, forgetting that Federal Reserve authority was much lesser back then. Meanwhile, he ignores the numerous historical hyper-inflation examples caused by monetarism, such as 1970's US "stagflation", the recent collapses of Argentinean and Mexican currency, or even popular historical cases such as the South Sea Company bubble and post World War One Germany. Mr. Prechter is either grossly ignorant or deliberately avoiding such cases. Neither speaks well for him.

Most importantly, he sets up his own case of why he is wrong. He admits that there is a small probability that he could be wrong and that hyper-inflation will set in. Mr. Prechter says that this would be indicated by a declining US dollar and a price of gold reaching above $400 per ounce. Both are now clearly true, yet in his 50-page 2004 appendix, he conveniently ignores this fact and chooses to emphasize only his market index prognostication.

The rest of his fundamental case rests on material already beaten to death by other bearish scholars. He writes about historical price to earnings ratios, the contrarian indications given by popular finance magazines and long-to-short ratios, for example. His fundamental arguments are not thoroughly presented and escape ridicule only because others have argued the case before him. He adds nothing new here.

Since the first part of the book is so poorly supported, the second part regarding how to survive a depression is irrelevant. His recommendations generally apply only to deflation and would not work in a hyper-inflation or zero-inflation economy.

When one supports an already argued case, the burden of proof is small. However, if one dares to present a different case as Mr. Prechter has done, one needs to cover all well known and reasonably applicable cases at a minimum. Mr. Prechter has failed in this regard and by his own criteria. ... Read more

Book Description

"This new edition of Active Portfolio Management continues the standard of excellence established in the first edition, with new and clear insights to help investment professionals."

-William E. Jacques, Partner and Chief Investment Officer, Martingale Asset Management.

"Active Portfolio Management offers investors an opportunity to better understand the balance between manager skill and portfolio risk. Both fundamental and quantitative investment managers will benefit from studying this updated edition by Grinold and Kahn."

-Scott Stewart, Portfolio Manager, Fidelity Select Equity ® Discipline

Co-Manager, Fidelity Freedom ® Funds.

"This Second edition will not remain on the shelf, but will be continually referenced by both novice and expert. There is a substantial expansion in both depth and breadth on the original. It clearly and concisely explains all aspects of the foundations and the latest thinking in active portfolio management."

-Eric N. Remole, Managing Director, Head of Global Structured Equity, Credit Suisse Asset Management.

Mathematically rigorous and meticulously organized, Active Portfolio Management broke new ground when it first became available to investment managers in 1994. By outlining an innovative process to uncover raw signals of asset returns, develop them into refined forecasts, then use those forecasts to construct portfolios of exceptional return and minimal risk, i.e., portfolios that consistently beat the market, this hallmark book helped thousands of investment managers. Active Portfolio Management, Second Edition, now sets the bar even higher. Like its predecessor, this volume details how to apply economics, econometrics, and operations research to solving practical investment problems, and uncovering superior profit opportunities. It outlines an active management framework that begins with a benchmark portfolio, then defines exceptional returns as they relate to that benchmark. Beyond the comprehensive treatment of the active management process covered previously, this new edition expands to cover asset allocation, long/short investing, information horizons, and other topics relevant today. It revisits a number of discussions from the first edition, shedding new light on some of today's most pressing issues, including risk, dispersion, market impact, and performance analysis, while providing empirical evidence where appropriate. The result is an updated, comprehensive set of strategic concepts and rules of thumb for guiding the process of-and increasing the profits from-active investment management.

Reviews (2)

What could have been explained in 50 pages...
Grinhold and Kahn's concept of the Information Ratio being dependant on skill (i.e. the correlation between expected outperformance and real outperformance) and sqrt. breath (i.e. the number of securities a manager follows and the number of times he rebalances his portfolio) is theoretically excellent. However, in the real world these correlations and even breath are hard to measure and mostly propriatary to the manager. Yet G&K go on for 500 pages on quantitive techniques that might be interesting for those with a PhD in Risk Management.

For the average (practical) person interested in portfolio management this book is way too academic, using some 10 Greek letters and Cov, Std per page (and I'm not even talking about the technical appendices), making it very hard to read and comprehend.

Clear, efficient and useful
The book carefully develops the concepts of Portfolio Theory. Topics include: risk aversion, the Capital Market Line, the Markowitz Portfolio Selection Model, the Capital Asset Pricing Model, beta, market equilibrium, etc. Subsequent chapters cover fixed income securities, security analysis, derivatives and active portfolio management.

The book is extremely detailed and very well written. It covers more than the basics. It includes a variety of advanced theories and describes recent academic research.

A excellent choice ! ... Read more

Book Description

Praise for Financial Modeling Using Excel and VBA

"Excel and VBA have vast capabilities, yet until this book, users were on their own to figure out just how to use these tools for both single and complex financial problems. Financial Modeling fills the gaps with practical guidance to modeling a wide range of finance problems."
–Tim Koller, Partner, McKinsey & Company, Inc.

Financial modeling is an essential skill for all financial professionals and students–and Excel and its built-in programming language, Visual Basic for Applications (VBA), are the preferred tools for the job. Financial Modeling Using Excel and VBA, designed for self-study, classroom use, and reference, presents a comprehensive approach to developing both simple and sophisticated financial models in all major areas of finance using both Excel and VBA.

The book assumes only basic knowledge of finance and Excel, and no previous knowledge of VBA. From that base, it teaches financial modeling, VBA, and advanced features of Excel using a unique, simple approach that is based on the author’s twenty years of experience in financial modeling in the business world and the classroom. The book reviews all the necessary financial theory and concepts, and walks you through a wide range of real-world financial models–over seventy-five of them–that you can imitate and use for practice as well. A companion CD-ROM includes several useful modeling tools and full working versions of all the models discussed in the book, so you can be more productive.

Financial modeling is finance in action. It is both challenging and rewarding. Financial Modeling Using Excel and VBA shows you how you can both enjoy the challenge and reap the rewards. ... Read more

Book Description

A CFP® Study Guide that delivers what you need to succeed!

This quick study guide for candidates preparing to take the CFP® Certification Examination covers the bare-bones essentials needed to pass this challenging exam in a logical and easy-to-absorb manner. Covering some of the most important disciplines of financial planning–– insurance, employee benefit, investment, income tax, retirement, estate, and general planning–– this text provides a no-nonsense approach to studying that includes:

• A highly logical and efficient format
• An in-depth outline of core essentials
• Explanations of all relevant exposures complete with solutions and practical examples
• Key points, exam tips, multiple choice, and mini—case study questions
• Mnemonic devices and study techniques to reinforce key points
• A format that directly parallels the CFP Board’s topic requirements

For students who have been through the traditional CFP® educational programs and want a book that brings it all together, Rattiner’s Review for the CFP® Certification Examination, Fast Track Study Guide keeps students organized, on track, and focused on what they need to succeed. In addition to its value as a quick-reference guide to supplement all CFP® texts and self-study materials, the Guide also serves as an important one-stop resource for financial services professionals who want information in a hurry.

"Jeff Rattiner has developed yet another valuable addition to our profession. Rattiner’s Review for the CFP® Certification Examination develops an excellent, comprehensive framework to prepare a student for the CFP® exam. The breadth and thoroughness of this book encompassing all 101 topics necessary for mastery will help students excel in their test preparations. "
–Stephen P. Wetzel, CFP®
Program Director and Adjunct Professor, New York University’s CFP® program

"I commend Jeff for providing relevant information in a clear and understandable manner for anyone in or thinking of entering the financial planning field. The book brings the Certified Financial Planner Board of Standards education required 101 topics into focus. I definitely recommend the book to anyone preparing for the national certified financial planner examination."
–Kenneth M. Huggins, PhD, CFP®
Chair, Finance Department
Director, Financial Planning Certificate Program
Metropolitan State College of Denver ... Read more

Reviews (2)

I Used This Book To Pass The CFP Exam
I found this book to be an accurate and concise review of the 101 topics covered on the CFP cerfifcation exam. This book was written in a great "review notes" format, much like I would take notes on a complex subject. I would highly recommend this book as a great CFP certification exam review. It is filled with only what you need to know- no extraneous commentary.

Very useful book
This book is an incredibly detailed outline covering the vast selection of topics included on the CFP exam. Because of the outline format, I wouldn't recommend trying to use this book as a way to learn material for the first time. What it is ideal for is as a reminder of details and distinctions, improving your recall of topics learned in some prior class or self-study, but in much more detail. Because this book is updated each year, it references up-to-date tax dollar amounts you'll need for the exam. ... Read more

Book Description

This book will appeal to both graduate students and practitioners. Students will value the Excel spreadsheets allowing them to develop their knowledge of modelling in finance, using a step-by-step approach accompanied by explanations using elementary mathematical statistics and probability. Practitioners will value the VBA functions as a source of up-to-date and efficient programs that can be easily used from Excel.

Standard material covered includes:

• portfolio theory and efficient frontiers
• the Capital Asset Pricing Model, beta and variance-covariance matrices
• performance measurement
• the Black-Scholes option pricing formula
• binomial trees for options on equities and bonds
• Monte Carlo simulation
• bond yield-to-maturity, duration and convexity
• term structure models from Vasicek and Cox, Ingersoll and Ross

Book Description

A family's wealth consists primarily of human capital, meaning, all of the individuals who make up the family, and intellectual capital, meaning, the sum of what each individual member knows, and consists only secondarily of its financial capital. That compelling premise forms the core of Family Wealth—Keeping It in the Family.

This classic treatise has been updated and expanded to include new essays that challenge conventional notions of wealth and that offer guidelines for conserving family assets in the broadest sense: not for just one or two generations but for hundreds of years—and not giving truth to the saying "shirtsleeves to shirtsleeves in three generations."

James Hughes, a prominent attorney and estate planner, teaches how successful long-term wealth preservation requires the creation and maintenance of a system of governance and joint decision making. Filled with inspiration and guidance, Family Wealth enunciates tested principles and practices for preserving wealth and keeping it in the family. ... Read more

Reviews (3)

Insightful!
Reading James E. Hughes Jr.'s book is like sitting down in an easy chair with brass rivets gleaming in burgundy leather, in a trusted old family friend's parlor, to obtain a kindly word of advice. You can almost smell the pipe tobacco and taste the brandy as you read. Hughes gently and wisely guides people who want to preserve their family's wealth on how to think beyond the current fiscal year. This book is genuine and straightforward, with insights gained over many years. Hughes covers creating a family mission statement, instituting a family bank or private trust company, mentoring the next generation, family governance, philanthropy and much more. His most important contribution, however, is the perspective he offers on the human side of the equation. Even the richest families are doomed to squander their inheritances, he cautions, unless they recognize the importance of the intellectual and human development of their family members. We highly recommends this book of sage advice to anyone who hopes to keep it all in the family.

A great addition to my bookshelf
I've read a lot of books and recommended them to my friends and family. This one, I bought for my partners and family. As someone who deals daily with great family wealth, it is invaluable to learn from the experiences of others. There is a wealth of ideas in this book, not just for those with great financial assets, but for those families with great human capital. I would recommend it for anyone who deals with family wealth: attorneys, CPA's, trust officers, and members of families who want to preserve their family wealth (financial, human or intellectual capital).

A New Paradigm For Wealth Preserving
As a great philosopher once said "I am not ashamed to say that I have learned the good news of the truth and am called to proclaim it to others." The truth is Family Wealth: Keeping It In The Family, is the clear result of the author's extensive discernment and constitutes that rare slice of my profession which rises to the level of a ministry. The beauty of this work lies in the author's ability to state concepts with such simplicity and flow, the reader may be lead to conclude "these insights are so patently obvious I should have discovered them myself." Many of us in the estate planning profession, however, have not previously done so. Having invested 20 years in this profession I can attest that many people with reasonable career abilities can accumulate considerable sums of wealth. Moreover, a reasonably competent estate planning attorney can draft the business and estate planning documents to pass that wealth from one generation to the next. Yet after reading Mr. Hughes' book twice (and garnering increasing insights and applications after each journey) it is manifest that merely fulfilling the professional expectations taught in law school will henceforth be insufficient to deal with the interpersonal dynamics and relationship issues which must be addressed in order to wealth preserve. Moreover, this process must be rekindled and nurtured at each generation level. I now understand that to be a truly excellent estate planner, the issues in this book must be addressed by estate planner and client. Your clients need not have the wealth of a Warren Buffett or Bill Gates to benefit from the wisdom of this book and I hope it will raise the standards for the profession as a whole as it did for me.

Douglas E. Barnes, Trust Officer and member, State Bar of Wisconsin. ... Read more

Book Description

This book offers a comprehensive exploration of the revolutionary developments occurring in the world's financial markets and institutions —i.e., innovation, globalization, and deregulation —with a focus on the actual practices of financial institutions, investors, and financial instruments. KEYTOPICS: Extensive coverage of the markets for derivative securities. Coverage of Depository Institutions is included. For professionals in the field of financial markets. ... Read more

Reviews (1)

This book is great, very educational!
I use this textbook for my Financial Markets class and I learn so much from it. Fabozzi does a wonderful job of transfering his ideas to students so they can comprehend them and learn. Because of this book, I will definately get an 'A' in my class. I recommend this book to anybody. ... Read more

Book Description

This book offers a unique combination of practical valuation techniques and the most current thinking to provide an up-to-date synthesis of valuation theory as it applies to mergers, buyouts, and restructuring. It includes detailed treatments of such topics as free cash flow valuation, valuation of leveraged buyouts, Real Option Analysis as applied to entry and exit decisions, valuation of special offer structures, and more. ... Read more

Book Description

A concise yet thorough, analytically sound 14-chapter introduction to financial management designed especially for the experienced executive.Where most texts prove to be either too simplistic or too advanced for most non-financial managers, this book employs the appropriate level of both practicality and rigor for the executive audience.Its practical approach make it ideal for a course taught from a case approach or as a complement to a more technical introductory text.Self-contained chapters make it an excellent and concise reference text and useful for readers who want to learn the concepts on their own outside of the traditional classroom. ... Read more

Reviews (6)

Finance for Executives: Managing for Value Creation
Designed especially for experienced executives, this volume offers a concise fourteen-chapter introduction to the world of financial management.
An introductory text written specifically for executives involved with financial matters and financial management, intended to fill the gap between introductory accounting and finance manuals for non-financial managers and advanced texts in corporate finance. Material emphasizes rigorous analysis but avoids complicated formulas that have no direct application to decision making. Mathematical derivations of formulas are given in appendices. Most chapters are self-contained. Coverage includes balance sheets and income statements, financial diagnosis and management, investment decisions, financing decisions, and business decisions. Includes a glossary and review problems. The authors are affiliated with the European Institute of Business Administration. This second edition includes new case studies.

Readable , practical and ..maybe the best...
In my humble opinion ,this maybe one of the best books of Finance... It is practical,direct to the point,the examples are clearly stated so that you can follow the concepts and central ideas and most important : you really can understand everything in an easy way....no sweat here..
You can apply almost everything in this book to your daily practice. No matter your years of experience , FFE will refresh you and reinforce your knowledge. I always have this book on my desk for reference.

Excellent for Corporate Finance practitioners
‚Finance for Executives' is invaluable for everybody who needs to analyse companies and wants to know whether investment, financing or business decisions create value. It is written very clearly and is therefore easy to understand. It offers plenty of practically relevant examples, mostly based on one company which is being analysed in its different aspects throughout the whole book. Moreover, every chapter finishes with review problems (including solutions) and useful references. Some chapters offer appendices with mathematical proofs or additional in-depth analysis. - You will not be satisfied with this book if you are looking for a scientific, theoretical text. However, your expectations will be exceeded if you are a practitioner who wants to make an impact in a consulting or investment banking environment. - What does make this book so special? After working through it, you will be able to easily put into practice what you read.

Great overview in simple terms and easy to follow
This book is great as an introduction to the major concepts of finance. If you are looking for an advanced refernce book, this is not the one. But if you want to refresh your memory, or want a quick overview of concepts and methods, I can't think of a better book.

A readable, relevant reference for every business person.
Every business owner, executive, accountant, banker and maybe even your lawyer should have this valuable book on their desktop! The authors demystify the art of finance and suggest pragmatic approaches and solutions for every day capital uses and needs. This attractive and attractively priced book is written in an innovative way, making it a useful quick desktop reference as well as an MBA level finance text. The glossary by itself is worth the price of the book. How astounding that the authors are both French, yet write with more clarity in English than any American finance writer I have read of late! Vive la readability! ... Read more

Book Description

"All investors, from beginners to old hands, should gain from the use of this guide, as I have."
From the Introduction by Michael F. Price, president, Franklin Mutual Advisors, Inc.

Benjamin Graham has been called the most important investment thinker of the twentieth century. As a master investor, pioneering stock analyst, and mentor to investment superstars, he has no peer.

The volume you hold in your hands is Graham's timeless guide to interpreting and understanding financial statements. It has long been out of print, but now joins Graham's other masterpieces, The Intelligent Investor and Security Analysis, as the three priceless keys to understanding Graham and value investing.

The advice he offers in this book is as useful and prescient today as it was sixty years ago. As he writes in the preface, "if you have precise information as to a company's present financial position and its past earnings record, you are better equipped to gauge its future possibilities. And this is the essential function and value of security analysis."

Written just three years after his landmark Security Analysis, The Interpretation of Financial Statements gets to the heart of the master's ideas on value investing in astonishingly few pages. Readers will learn to analyze a company's balance sheets and income statements and arrive at a true understanding of its financial position and earnings record. Graham provides simple tests any reader can apply to determine the financial health and well-being of any company.

This volume is an exact text replica of the first edition of The Interpretation of Financial Statements, published by Harper & Brothers in 1937. Graham's original language has been restored, and readers can be assured that every idea and technique presented here appears exactly as Graham intended.

Highly practical and accessible, it is an essential guide for all business people--and makes the perfect companion volume to Graham's investment masterpiece The Intelligent Investor. ... Read more

Reviews (7)

A concise, yet quite exhaustive book on financial statements
This booklet is just over a hundred and twenty small pages, yet manages to deliver a brief but comprehensive overview on the various items figuring both on Balance Sheets and on Income Statements.

This book is typically Ben Graham. Short, concise, elegantly written, laid back, it boils down to essential considerations while, of course, nothing is taken for granted. A brief and pleasant overview on useful considerations when one is checking financial statements, except for the fact that there is no treatment of the nowadays standard Cash Flow Statement, which can be seen either as a default or as an advantage, considering that there is some sound treatment of the Balance Sheet cash positions and of the quality of earnings in view of certain depreciation and maintenance charges.

At the end, there is also an over thirty pages lexicon of financial terms and phrases which can be quite useful.

Why This Edition Instead of 3rd/4th Edition?
Why they republished this edition when they might have republished the Second or Third Revised Edition (by Graham and Charles McGolrick, published in 1964 and 1975, respectively) beats me. The latter two editions are unquestionably better,as both are more current, and contain more useful tips regarding contextual interpretation.

It's true that the primary value of Graham's text is its framework, which provides concision in summarizing a potentially confusing topic. This framework persists through all four editions. Also, it's true that all four editions are pretty dated (there is no discussion of cash flow statement interpretation in any edition obviously, for example, although Graham alludes to the significance of cashflow interpretation somewhat disparagingly in the latter editions).

But all of Graham's guidelines for balance sheet analysis are still current in the latter two editions, as are his brief guidelines for bond analysis and earnings power. The first edition seems less useful in these respects.

One might assume that there is value in going back to the first edition of this small volume as one might go back to the first edition of Security Analysis. There are indeed nuggets in the first edition of Security Analysis which have been mysteriously removed from later editions. But that isn't true with The Interpretation of Financial Statements. If you can get your hands on a copy of the 1964 or 1975 edition of this book, you will likely find either more useful than this original edition.

Valuable
For the novice or the professional - this short, concise book is worth it's price.

Ben Graham was the author of many books and the voice of sound advice, his principles are not dated even today.

This is my investing bible
Although corporate 10Q's have become more complex due to a lot of the offbalance sheet investments they do, e.g. Enron. If a company is honest and has value this book will help you find it. So the way I approach my investing I have to assume all companies are honest unless proven otherwise.

So much time is taken to explain diversification by many other books, but none gives you the practical expertise to make an informed decision. This book does. It is a handy reference that sits on my desk. I use it to review annual reports and to interpret online SEC filings just to make sure the companies I have invested in are actually healthy.

This book is small, but what I have found over the years is that smaller books are better. They leave out the fluff and all you get are the meat and potatoes of what you need to know.

If you take your time to understand the information presented and use it, you'll be teaching your broker a thing or two at the end of the day.

Very Worthwhile
Like gold, this small book provides a very high value. With interest in Graham and value investing growing, this small book provides a compact reference to the various parts of a balance sheet and income statement you will become very familiar with as you read his other books.

Fantastic reference on its own. . ... Read more

Book Description

Investment pros know: skyrocket stocks and high-flying money managers come and go, but you only achieve superior long-term results by sticking with a sound, prudent, well-conceived investment plan. In The Management of Investment Decisions, pioneering financial consultant Donal Trone, along with William R. Allbright and Philip R. Traylor, presents the proper ways to: Analyze your client's current position and potential; Develop an Investment Policy Statement that all involved will read and, more importantly, understand; Approach, understand and build the portfolios of high net worth families. ... Read more

Reviews (2)

What Fiduciaries, Trustees, and Professionals need to know
This book is excellent.If you are responsible for investing otherpeople's money as a professional, on the board of a foundation or endowmentor are someone who is a trustee on an account, this book is for you.Thisbook goes over important guidelines that should be followed to protect thefunds and yourself.

Sound Advice on Prudent Asset Allocation
The text was clear, concise, and provided valuable practical insight into the role of an investment advisor with respect to a well-developed investment policy statement and asset allocation methodology. The readingwill be of great value to any portfolio consultant looking to manage fundsprudently and with success. ... Read more

Book Description

This second edition is written readers who crave real world learning. Professor DePamphilis has filled this book with updated cases and grounded models which reflect the theoretical underpinnings of the field. Expanded usage of "key idea" section headings enable the student to understand more easily the key point in each section of each chapter. Chapter 5 provides a detailed listing of questions commonly used to evaluate target firms doing due diligence.A primer on using financial ratios in Chapter 8 has been extended to include a convenient summary of commonly used financial ratios and suggestions as to how they may be used to evaluate target firms.The accompanying CD includes a set of Excel spreadsheets that supplements Chapter 8.

An Instructor's manual, available on the web, contains suggested learning objectives, chapter presentations for creating lectures or providing students with study guides, more than 750 test questions and answers (including true/false, multiple choice, essay questions, and practice problems), and solutions to all chapter business case studies in the book. The manual also contains detailed course syllabi that have been used extensively for both undergraduate and graduate classes and suggested ways for teaching the materials.

Includes 18 new case studies; all 70 cases have been updated

Instructor's Manual available on the web; includes practice problems and solutions

Accompanying CD includes a set of Excel spreadsheets that will supplement Chapter 8 ... Read more

Reviews (9)

Includes great M&A modeling software
This book takes the mystery out of M&A financial modeling and structuring deals. Many books on the subject seem to take a "black box" approach to how to do deal structuring and valuation. The author discusses in plain language how to do valuation, simulation, and deal structuring using financial models and how to use such models to select the best offer price for a target firm. The book includes detailed discussions of tax, accounting, and alternative deal structures.

The CD accompanying the book contains an Excel spread sheet model that can be modified to fit the unique circumstances of any transaction. This alone justifies buying the book, in my opinion.

The book also provides keen insights into how M&A can be used to implement business plans, how to identify potential target firms, strategies for contacting potential targets, and how to draw up initial documents such as confidentiality agreements and letters of intent. The book is highly comprehensive covering virtually all topics necessary to understanding the M&A process.

For the money, it is the best book on the subject, up-to-date, complete, and highly readable. If you have a serious interest in the subject, this is an important book to add to your library.

Outstanding treatment of technical/non-tech.aspects of M&A
Unlike many other treatments of this subject, this text discusses M&A in the context of a process or framework. The author takes great pains to show how all M&A related activities interact. The text discusses both technical (e.g., valuation, accounting, and tax issues) and non-technical (e.g., strategy development, identifying potential targets, initial contact, negotiation, and integration) issues. The book does an excellent job of talking about alternatives to M&A for executing strategies, including alliances, joint ventures, partnerships, etc.

Numerous recent case studies illustrate various concepts and situations. The coverage of laws affecting different types of business combinations, of accounting standards applicable to M&A, and