{"product_id":"introduction-to-structured-finance-isbn-9780470045350","title":"Introduction to Structured Finance","description":"Created by the experienced author team of Frank Fabozzi, Henry Davis, and Moorad Choudhry, \u003ci\u003eIntroduction to Structured Finance\u003c\/i\u003e examines the essential elements of this discipline. It is a convenient reference guide—which covers all the important transaction types in one place—and an excellent opportunity to enhance your understanding of finance. \u003cp\u003ePreface vii\u003c\/p\u003e \u003cp\u003eAbout the Authors xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 Introduction 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDefinition of Structured Finance 1\u003c\/p\u003e \u003cp\u003eOther Definitions of Structured Finance 2\u003c\/p\u003e \u003cp\u003eCase Study: How Enron Has Affected the Boundaries of Structured Finance 15\u003c\/p\u003e \u003cp\u003eConclusions 22\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 Interest Rate Derivatives 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInterest Rate Forward and Futures Contracts 23\u003c\/p\u003e \u003cp\u003eFutures Contracts 24\u003c\/p\u003e \u003cp\u003eInterest Rate Swaps 26\u003c\/p\u003e \u003cp\u003eOptions 36\u003c\/p\u003e \u003cp\u003eCaps and Floors 43\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 Credit Derivatives 45\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDocumentation and Credit Derivative Terms 45\u003c\/p\u003e \u003cp\u003eCredit Default Swaps 48\u003c\/p\u003e \u003cp\u003eCredit Default Swap Index 50\u003c\/p\u003e \u003cp\u003eBasket Default Swaps 51\u003c\/p\u003e \u003cp\u003eAsset Swaps 54\u003c\/p\u003e \u003cp\u003eTotal Return Swaps 57\u003c\/p\u003e \u003cp\u003eEconomics of a Total Return Swap 58\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 Basic Principles of Securitization 65\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is a Securitized Transaction? 66\u003c\/p\u003e \u003cp\u003eIllustration of a Securitization 67\u003c\/p\u003e \u003cp\u003eReasons Why Entities Securitize Assets 70\u003c\/p\u003e \u003cp\u003eBenefits of Securitization to Investors 79\u003c\/p\u003e \u003cp\u003eWhat Rating Agencies Look at in Rating Asset-Backed Securities 79\u003c\/p\u003e \u003cp\u003eDescription of the Collateral 82\u003c\/p\u003e \u003cp\u003ePrepayments Measures 87\u003c\/p\u003e \u003cp\u003eDefaults and Delinquencies 90\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 Securitization Structures 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUse of Interest Rate Derivatives in Securitization Transactions 95\u003c\/p\u003e \u003cp\u003eCredit Enhancement 104\u003c\/p\u003e \u003cp\u003eMore Detailed Illustration of a Securitization 113\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6 Cash Flow Collateralized Debt Obligations 119\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFamily of CDOs 120\u003c\/p\u003e \u003cp\u003eBasic Structure of a Cash Flow CDO 122\u003c\/p\u003e \u003cp\u003eCDOs and Sponsor Motivation 124\u003c\/p\u003e \u003cp\u003eCompliance Tests 127\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7 Synthetic Collateralized Debt Obligation Structures 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMotivations for Synthetic CDOs 134\u003c\/p\u003e \u003cp\u003eMechanics 136\u003c\/p\u003e \u003cp\u003eFunding Mechanics 138\u003c\/p\u003e \u003cp\u003eInvestor Risks in Synthetic Transactions 140\u003c\/p\u003e \u003cp\u003eVariations in Synthetic CDOs 141\u003c\/p\u003e \u003cp\u003eThe Single-Tranche Synthetic CDO 147\u003c\/p\u003e \u003cp\u003eSummary of the Advantages of Synthetic Structures 149\u003c\/p\u003e \u003cp\u003eFactors to Consider in CDO Analysis 150\u003c\/p\u003e \u003cp\u003eCase Study 151\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8 Securitized and Synthetic Funding Structures 155\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCommerical Paper 155\u003c\/p\u003e \u003cp\u003eAsset-Backed Commercial Paper 157\u003c\/p\u003e \u003cp\u003eSynthetic Funding Structures 162\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9 Credit-Linked Notes 181\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDescription of CLNs 181\u003c\/p\u003e \u003cp\u003eIllustration of a CLN 182\u003c\/p\u003e \u003cp\u003eInvestor Motivation 182\u003c\/p\u003e \u003cp\u003eSettlement 182\u003c\/p\u003e \u003cp\u003eForms of Credit Linking 184\u003c\/p\u003e \u003cp\u003eThe First-to-Default Credit-Linked Note 190\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 10 Structured Notes 193\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStructured Notes Defined 194\u003c\/p\u003e \u003cp\u003eMotivation for Investors and Issuers 196\u003c\/p\u003e \u003cp\u003eIssuance Form and Issuers 197\u003c\/p\u003e \u003cp\u003eCreating Structured Notes 198\u003c\/p\u003e \u003cp\u003eExamples of Structured Notes 199\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 11 Large Ticket Leasing: Leasing Fundamentals 207\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow Leasing Works 207\u003c\/p\u003e \u003cp\u003eTypes of Equipment Leases 208\u003c\/p\u003e \u003cp\u003eFull Payout Leases versus Operating Leases 211\u003c\/p\u003e \u003cp\u003eReasons for Leasing 211\u003c\/p\u003e \u003cp\u003eTypes of Lessors 216\u003c\/p\u003e \u003cp\u003eLease Brokers and Financial Advisers 217\u003c\/p\u003e \u003cp\u003eLease Programs 217\u003c\/p\u003e \u003cp\u003eFinancial Reporting of Lease Transactions by Lessees 218\u003c\/p\u003e \u003cp\u003eFederal Income Tax Requirements for True Lease Transactions 222\u003c\/p\u003e \u003cp\u003eSynthetic Leases 224\u003c\/p\u003e \u003cp\u003eValuing a Lease: The Lease or Borrow-to-Buy Decision 225\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 12 Leveraged Lease Fundamentals 237\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eParties to a Leveraged Lease 239\u003c\/p\u003e \u003cp\u003eStructure of a Leveraged Lease 243\u003c\/p\u003e \u003cp\u003eClosing the Transaction 245\u003c\/p\u003e \u003cp\u003eCash Flows During the Lease 246\u003c\/p\u003e \u003cp\u003eDebt For Leveraged Leases 247\u003c\/p\u003e \u003cp\u003eFacility Leases 249\u003c\/p\u003e \u003cp\u003eConstruction Financing 252\u003c\/p\u003e \u003cp\u003eCredit Exposure of Equity Participants 253\u003c\/p\u003e \u003cp\u003eTax Indemnification for Future Changes in Tax Law 253\u003c\/p\u003e \u003cp\u003eNeed for a Financial Adviser 254\u003c\/p\u003e \u003cp\u003eThe Steps in Structuring, Negotiating, and Closing a Leveraged Lease 256\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 13 Project Financing 259\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is Project Financing? 260\u003c\/p\u003e \u003cp\u003eReasons for Jointly Owned or Sponsored Projects 262\u003c\/p\u003e \u003cp\u003eCredit Exposures in a Project Financing 262\u003c\/p\u003e \u003cp\u003eKey Elements of a Successful Project Financing 264\u003c\/p\u003e \u003cp\u003eCauses for Project Failures 265\u003c\/p\u003e \u003cp\u003eCredit Impact Objective 277\u003c\/p\u003e \u003cp\u003eAccounting Considerations 279\u003c\/p\u003e \u003cp\u003eMeeting Internal Return Objectives 282\u003c\/p\u003e \u003cp\u003eOther Benefits of a Project Financing 282\u003c\/p\u003e \u003cp\u003eTax Considerations 283\u003c\/p\u003e \u003cp\u003eDisincentives to Project Financing 283\u003c\/p\u003e \u003cp\u003eRecent Trends 284\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX A The Basel II Framework and Securitization 287\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBasel Rules 288\u003c\/p\u003e \u003cp\u003eImpact on Securitization and Credit Derivatives 293\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX B Synthetic Securitization: Case of Mortgage-Backed Securities 297\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTransaction Description 297\u003c\/p\u003e \u003cp\u003eDeal Structures 298\u003c\/p\u003e \u003cp\u003eInvestor Considerations 301\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX C Home Run! A Case Study of Financing the New Stadium for the St. Louis Cardinals\u003cbr\u003e\u003c\/b\u003e\u003ci\u003eCynthia A. Baker and J. Paul Forrester 303\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX D Municipal Future-Flow Bonds in Mexico: Lessons for Emerging Economies\u003cbr\u003e\u003c\/b\u003e\u003ci\u003eJames Leigland 309\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX E Crown Castle Towers LLC, Senior Secured Tower Revenue Notes, Series 2005-1\u003cbr\u003e\u003c\/b\u003e\u003ci\u003eTaimur Jamil 321\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX F MVL FIlm Finance LLC\u003cbr\u003e\u003c\/b\u003e\u003ci\u003eOlga Filipenko 335\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX G Presale: Honda Auto Receivables 2006-1 Owner Trust\u003cbr\u003e\u003c\/b\u003e\u003ci\u003eAmanda M. Soriano and Nadine E. Gunter 339\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX H Presale: ACG Trust III\u003cbr\u003e\u003c\/b\u003e\u003ci\u003eAnthony Nocera, Ted Burbage, Philip Baggaley, and Michael K. Vernier 345\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX I CNH Equipment Trust 2006-A\u003cbr\u003e\u003c\/b\u003e\u003ci\u003eDu Trieu, Bradley Sohl, Joseph S. Tuczak, and Peter Manofsky 355\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX J CIT Equipment Collateral 2006-VT1\u003cbr\u003e\u003c\/b\u003e\u003ci\u003eBrigid E. Fitzgerald, John Bella, and Peter Manofsky 365\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eIndex 373\u003c\/p\u003e Structured finance is one of those elusive terms that mean different things to different people. With this wonderful book, authors Fabozzi, Davis and Choudhry first explore the boundaries of what is and is not considered to be structured finance. A simple definition would be that structured finance is any form of non-traditional financing, but this begs the question of where to draw the line between traditional and non-traditional. Certainly, most people wouldn't consider a vanilla swap to be structured finance! Structured finance might be described in terms of techniques that are commonly employed—securitization, derivatives, special purpose vehicles (SPVs), leasing, project finance, etc. The authors explore this and other approaches to, if not defining structured finance, at least clarifying its boundaries.-- Riskbook.com  \u003cb\u003eFRANK J. FABOZZI\u003c\/b\u003e, PHD, CFA, CFP, is an Adjunct Professor of Finance at Yale University's School of Management and the Editor of the \u003ci\u003eJournal of Portfolio Management\u003c\/i\u003e.  \u003cp\u003e\u003cb\u003eHENRY A. DAVIS\u003c\/b\u003e, MBA, is an editor, writer, and consultant working in the fields of banking and corporate finance. He currently serves as Editor of two quarterly professional journals, the \u003ci\u003eJournal of Structured Finance\u003c\/i\u003e and the \u003ci\u003eJournal of Investment Compliance\u003c\/i\u003e.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eMOORAD CHOUDHRY\u003c\/b\u003e is Head of Treasury at KBC Financial Products in London. Previously, he worked at JPMorgan Chase Bank, where he was a vice president of structured finance services sales and marketing.\u003c\/p\u003e  Structured finance is a term that covers a very wide range of financial market transactions and products. While a common definition of it seems to center on securitization, structured financial products also include credit derivatives, bonds with embedded options, leveraged leasing, project financing, and a variety of other complex financing transactions.  \u003cp\u003eCreated by the experienced author team of Frank Fabozzi, Henry Davis, and Moorad Choudhry, \u003cb\u003e\u003ci\u003eIntroduction to Structured Finance\u003c\/i\u003e\u003c\/b\u003e examines the essential elements of this discipline and makes them understandable to a wide audience—from professionals generally familiar with the world of finance who want to enhance their technical knowledge to specialists in some structured finance disciplines who want to become more familiar with others.\u003c\/p\u003e \u003cp\u003eWritten in a straightforward and accessible style, this comprehensive guide—along with its information-packed appendices—contains a broad view of structured finance that includes:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eSecuritization\u003c\/li\u003e \u003cli\u003eInterest rate derivatives (such as options, caps, and floors)\u003c\/li\u003e \u003cli\u003eCredit derivatives (such as asset swaps and total return swaps)\u003c\/li\u003e \u003cli\u003eSecuritized and synthetic funding structures\u003c\/li\u003e \u003cli\u003eCash and synthetic collateralized debt obligations (CDOs)\u003c\/li\u003e \u003cli\u003eCredit-linked notes and structured notes\u003c\/li\u003e \u003cli\u003eComplex leasing transactions\u003c\/li\u003e \u003cli\u003eProject financing\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eStructured finance plays an important and growing role in today's financial markets. Indeed, a large part of financial innovation in recent years has been related to securitization, credit derivatives, or a combination of the two. \u003ci\u003e\u003cb\u003eIntroduction to Structured Finance\u003c\/b\u003e\u003c\/i\u003e offers a well-rounded treatment of this dynamic discipline, a convenient reference covering all the important transaction types in one place, and an excellent opportunity to enhance your financial skills.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989467545829,"sku":"NP9780470045350","price":94.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470045350.jpg?v=1761784218","url":"https:\/\/k12savings.com\/products\/introduction-to-structured-finance-isbn-9780470045350","provider":"K12savings","version":"1.0","type":"link"}