{"product_id":"reverse-engineering-deals-on-wall-street-with-microsoft-excel-website-isbn-9780470242056","title":"Reverse Engineering Deals on Wall Street with Microsoft Excel, + Website","description":"\u003cb\u003eA serious source of information for those looking to reverse engineer business deals\u003c\/b\u003e  \u003cp\u003eIt’s clear from the current turbulence on Wall Street that the inner workings of its most complex transactions are poorly understood. Wall Street deals parse risk using intricate legal terminology that is difficult to translate into an analytical model. \u003ci\u003eReverse Engineering Deals on Wall Street: A Step-By-Step Guide\u003c\/i\u003e takes readers through a detailed methodology of deconstructing the public deal documentation of a modern Wall Street transaction and applying the deconstructed elements to create a fully dynamic model that can be used for risk and investment analysis.\u003c\/p\u003e \u003cp\u003eAppropriate for the current market climate, an actual residential mortgage backed security (RMBS) transaction is taken from prospectus to model by the end of the book. Step by step, Allman walks the reader through the reversing process with textual excerpts from the prospectus and discussions on how it directly transfers to a model. Each chapter begins with a discussion of concepts with exact references to an example prospectus, followed by a section called \"Model Builder,\" in which Allman translates the theory into a fully functioning model for the example deal. Also included is valuable VBA code and detailed explanation that shows proper valuation methods including loan level amortization and full trigger modeling.\u003c\/p\u003e \u003cp\u003eAside from investment analysis this text can help anyone who wants to keep track of the competition, learn from others public transactions, or set up a system to audit one’s own models.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eNote:\u003c\/b\u003e CD-ROM\/DVD and other supplementary materials are not included as part of eBook file.\u003c\/p\u003e  Preface.  \u003cp\u003eAcknowledgments.\u003c\/p\u003e \u003cp\u003eAbout the Author.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1: Introduction.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Transaction.\u003c\/p\u003e \u003cp\u003eThe Documents.\u003c\/p\u003e \u003cp\u003eThe Process.\u003c\/p\u003e \u003cp\u003eHow This Book Works.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2: Determining Dates and Setting Up Timing.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDifferences in Timing Approaches.\u003c\/p\u003e \u003cp\u003eA First Look at the Prospectus.\u003c\/p\u003e \u003cp\u003eImportant Dates.\u003c\/p\u003e \u003cp\u003eTransforming Dates and Timing from Words to a Model.\u003c\/p\u003e \u003cp\u003eModel Builder 2.1: Reversing Dates and Timing.\u003c\/p\u003e \u003cp\u003eConclusion of Dates and Timing.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3: Creating Asset Cash Flow from Prospectus Data.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIt’s All in the Prospectus Supplement.\u003c\/p\u003e \u003cp\u003eThe Basics of Amortization.\u003c\/p\u003e \u003cp\u003ePerformance and the Prospectus Supplement.\u003c\/p\u003e \u003cp\u003eDelinquency.\u003c\/p\u003e \u003cp\u003eLoss.\u003c\/p\u003e \u003cp\u003ePrepayment.\u003c\/p\u003e \u003cp\u003eRecovery.\u003c\/p\u003e \u003cp\u003eCreating Cash Flow.\u003c\/p\u003e \u003cp\u003eA Complex Implementation.\u003c\/p\u003e \u003cp\u003eModel Builder 3.1: Entering in the Raw Asset Information.\u003c\/p\u003e \u003cp\u003eModel Builder 3.2: Entering in the Default and Prepayment Assumptions.\u003c\/p\u003e \u003cp\u003eModel Builder 3.3: Interest Rates and Additional Asset Amortization Inputs.\u003c\/p\u003e \u003cp\u003eModel Builder 3.4: Introducing VBA and Moving Data In and Out of the Model.\u003c\/p\u003e \u003cp\u003eModel Builder 3.5: Loading Loan Performance Assumptions into VBA.\u003c\/p\u003e \u003cp\u003eModel Builder 3.6: Global Functions.\u003c\/p\u003e \u003cp\u003eModel Builder 3.7: Loan-Level Asset Amortization.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4: Setting Up Liability Assumptions, Paying Fees, and Distributing Interest.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIdentifying the Offered Securities.\u003c\/p\u003e \u003cp\u003eModel Builder 4.1: Transferring the Liability Information to a Consolidated Sheet.\u003c\/p\u003e \u003cp\u003eThe Liability Waterfall: A System of Priority.\u003c\/p\u003e \u003cp\u003eModel Builder 4.2: Starting the Waterfall with Fees.\u003c\/p\u003e \u003cp\u003eInterest: No Financing Is Free.\u003c\/p\u003e \u003cp\u003eModel Builder 4.3: Continuing the Waterfall with Interest Paid to the Certificate Holders.\u003c\/p\u003e \u003cp\u003eMore on Waterfalls and Wall Street’s Risk Parsing.\u003c\/p\u003e \u003cp\u003eModel Builder 4.4: Mezzanine Interest.\u003c\/p\u003e \u003cp\u003eContinuing the Waterfall: It Only Gets More Complicated.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5: Principal Repayment and the Shifting Nature of a Wall Street Deal.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eModel Builder 5.1: The Deal State and Senior Principal.\u003c\/p\u003e \u003cp\u003eMezzanine Principal Returns.\u003c\/p\u003e \u003cp\u003eModel Builder 5.2: The Mezzanine Certificates’ Priority of Payments.\u003c\/p\u003e \u003cp\u003eNumber Games or Risk Parsing?\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6: Credit Enhancement Mechanisms to Mitigate Loss.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eModel Builder 6.1: Excess Spread, Overcollateralization, and Credit Enhancement.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7: Auditing the Model.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eModel Builder 7.1.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8: Conclusion of Example Transaction and Final Thoughts on Reverse Engineering.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMortgage Insurance and Servicer Advances.\u003c\/p\u003e \u003cp\u003eReverse Engineering in the Current and Future Market.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAutomatic Range Naming.\u003c\/p\u003e \u003cp\u003eAbout the CD-ROM.\u003c\/p\u003e \u003cp\u003eIndex.\u003c\/p\u003e \u003cb\u003eKeith A. Allman\u003c\/b\u003e is a capital markets professional with a specialization in analytics and modeling. He is currently the principal trainer and founder of Enstruct, a quantitative finance training company, as well as a Managing Director with NSM Capital Management. Prior to this, Allman was a vice president at Citigroup's Global Corporate and Investment Bank. He has also worked for MBIA Corporation in their Quantitative Analytics division. Allman is the author of \u003ci\u003eModeling Structured Finance Cash Flows with Microsoft Excel\u003c\/i\u003e, which is published by Wiley.  \u003cb\u003ePraise for Reverse Engineering Deals on Wall Street with Microsoft Excel\u003c\/b\u003e  \u003cp\u003e\"Allman has written an excellent sequel to his first book \u003ci\u003eModeling Structured Finance Cash Flows with Microsoft Excel\u003c\/i\u003e, providing a simple guide on how to deconstruct cash flows through modeling and understanding the collateral by analyzing the prospectus. Whether you are new to the structured finance industry or steeped in structured financing—this book is a must-read.\"\u003cbr\u003e —\u003cb\u003eRalph Armenta\u003c\/b\u003e, PMI Mortgage Insurance\/Structured Transactions\u003c\/p\u003e \u003cp\u003e\"The credit crisis has shown that more financial institutions and analysts need to be able to reverse-engineer structured finance deals to assess their values and risks for themselves. Keith Allman has produced a thorough guide for creating reverse-engineered models that both beginners and experienced analysts will find invaluable.\"\u003cbr\u003e —\u003cb\u003eChandan Sengupta\u003c\/b\u003e, author of \u003ci\u003eFinancial Modeling Using Excel and VBA\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eA serious source of information for those looking to reverse-engineer business deals\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow does Wall Street keep track of the competition? They reverse-engineer deals by taking a prospectus or term sheet and recreating a model from it. The skills involved in this task are sophisticated, but are important to understand—especially in today's dynamic business environment.\u003c\/p\u003e \u003cp\u003eIn this practical resource, financial professional Keith Allman demystifies the process by interpreting complicated legal terminology and clearly showing how it can be organized into a dynamic model. Step by step, Allman walks you through this endeavor with textual excerpts from the prospectus and details how it directly transfers to a model. Each chapter begins with a discussion of concepts with exact references to an example prospectus, followed by a section called \"Model Builder,\" in which Allman translates the theory into a fully functioning model for the example deal. In addition, the companion CD-ROM features all of the modeling exercises, as well as a final version of the model that is outlined in the text.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989959098597,"sku":"NP9780470242056","price":95.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470242056.jpg?v=1761786032","url":"https:\/\/k12savings.com\/products\/reverse-engineering-deals-on-wall-street-with-microsoft-excel-website-isbn-9780470242056","provider":"K12savings","version":"1.0","type":"link"}