{"product_id":"the-future-of-finance-isbn-9780470572290","title":"The Future of Finance","description":"\u003cb\u003eNew banking and investment business models to navigate the post-financial crisis environment\u003c\/b\u003e  \u003cp\u003eThe financial crisis of 2007-2008 has discredited business models in the banking and fund management industries. In \u003ci\u003eThe Future of Finance,\u003c\/i\u003e Moorad Choudhry and Gino Landuyt argue that banks must realign their business models, implying a lower return-on-equity; diversifying their funding sources; and increasing liquidity reserves. On the investment side, the authors discuss how diversification did not reduce risk, but rather amplified it, and failed to stabilize returns. The authors conclude that the clear lesson from the crisis is to know one's risk. A lesson that is best served by concentrating on assets and sectors that you understand.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eExamines the weaknesses in the business models of many institutions, as well as the theoretical foundation for professionals in the field of finance\u003c\/li\u003e \u003cli\u003eIdentifies the shortcomings of Modern Portfolio Theory\u003c\/li\u003e \u003cli\u003eAddresses how investment managers can find new strategies for creating \"alpha\" and why they need to re-vamp their fee structures\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eFilled with in-depth insights and practical advice, \u003ci\u003eThe Future of Finance\u003c\/i\u003e will provide bankers and investment managers with a guide to realigning their businesses in order to prosper in the post-crisis financial markets.\u003c\/p\u003e \u003cp\u003eForeword xi\u003c\/p\u003e \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eIntroduction xix\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMarket Instability xx\u003c\/p\u003e \u003cp\u003eDerivatives and Mathematical Modeling xxi\u003c\/p\u003e \u003cp\u003eSenior Management and Staying in the Game xxiii\u003c\/p\u003e \u003cp\u003eMacroprudential Financial Regulation and Cycle-Proof Regulation xxiii\u003c\/p\u003e \u003cp\u003eThe Way Forward xxv\u003c\/p\u003e \u003cp\u003eConclusion xxvi\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One A Review of the Financial Crash 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Globalization, Emerging Markets, and the Savings Glut 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGlobalization 3\u003c\/p\u003e \u003cp\u003eA Series of Emerging-Market Crises 5\u003c\/p\u003e \u003cp\u003eLow-Yield Environment Due to New Players in the Financial Markets 8\u003c\/p\u003e \u003cp\u003eArtificially Low Exchange Rates 15\u003c\/p\u003e \u003cp\u003eRecommendations and Solutions for Global Imbalances 16\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 The Rise of Derivatives and Systemic Risk 22\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSystemic Risk 23\u003c\/p\u003e \u003cp\u003eDerivative Market Systemic Risk: Solutions for Improvement 30\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 The Too-Big-to-Fail Bank, Moral Hazard, and Macroprudential Regulation 37\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBanks and Moral Hazard 37\u003c\/p\u003e \u003cp\u003eAddressing Too-Big-to-Fail: Mitigating Moral Hazard Risk 42\u003c\/p\u003e \u003cp\u003eMacroprudential Regulation: Regulating Bank Systemic Risk 53\u003c\/p\u003e \u003cp\u003eConclusion 58\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Corporate Governance and Remuneration in the Banking Industry 60\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBonuses and a Moral Dilemma 60\u003c\/p\u003e \u003cp\u003eA Distorted Remuneration Model 61\u003c\/p\u003e \u003cp\u003eUnsuitable Personal Behavior 64\u003c\/p\u003e \u003cp\u003eConclusion 65\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Bank Capital Safeguards: Additional Capital Buffers and Reverse Convertibles 67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCapital Issues in a Bear Market 67\u003c\/p\u003e \u003cp\u003eLooking for New Capital Instruments 69\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Economic Theories under Attack 76\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Belief in Free and Self-Adjusting Markets 76\u003c\/p\u003e \u003cp\u003eModigliani and Miller 85\u003c\/p\u003e \u003cp\u003eMarkowitz and Diversification Tested 85\u003c\/p\u003e \u003cp\u003eMinsky Once Again 88\u003c\/p\u003e \u003cp\u003eLessons to Be Learned by Central Banks 89\u003c\/p\u003e \u003cp\u003eConclusion 92\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two New Models for Banking and Investment 93\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Long-Term Sustainable Investment Guidelines 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Investment Landscape after the Crisis 95\u003c\/p\u003e \u003cp\u003eGovernment Debt and Demographics 97\u003c\/p\u003e \u003cp\u003eA New Economic Environment 103\u003c\/p\u003e \u003cp\u003eThe Inflation Dragon 105\u003c\/p\u003e \u003cp\u003eCurrencies and a Changing Geopolitical Landscape 115\u003c\/p\u003e \u003cp\u003eExchange-Traded Funds: A Flexible Asset Class 118\u003c\/p\u003e \u003cp\u003eConclusion 121\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Bank Asset-Liability and Liquidity Risk Management 123\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBasic Concepts of Bank Asset-Liability Management 123\u003c\/p\u003e \u003cp\u003eAsset and Liability Management: The ALCO 134\u003c\/p\u003e \u003cp\u003eALCO Reporting 137\u003c\/p\u003e \u003cp\u003ePrinciples of Banking Liquidity Risk Management 142\u003c\/p\u003e \u003cp\u003eMeasuring Bank Liquidity Risk: Key Metrics 145\u003c\/p\u003e \u003cp\u003eInternal Funding Rate Policy 151\u003c\/p\u003e \u003cp\u003eConclusion 157\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 A Sustainable Bank Business Model: Capital, Liquidity, and Leverage 158\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe New Bank Business Model 158\u003c\/p\u003e \u003cp\u003eCorporate Governance 167\u003c\/p\u003e \u003cp\u003eLiquidity Risk Management 168\u003c\/p\u003e \u003cp\u003eThe Liquid Asset Buffer 175\u003c\/p\u003e \u003cp\u003eConclusion 177\u003c\/p\u003e \u003cp\u003eNotes 179\u003c\/p\u003e \u003cp\u003eReferences 187\u003c\/p\u003e \u003cp\u003eAbout the Authors 189\u003c\/p\u003e \u003cp\u003eIndex 191\u003c\/p\u003e \u003cp\u003e\u003cb\u003eMOORAD CHOUDHRY \u003c\/b\u003ehas over twenty-one years experience in investment banking and was latterly head of treasury at Europe Arab Bank. He was previously head of treasury at KBC Financial Products and vice president in structured finance services at JPMorgan Chase Bank. Dr. Choudhry is Visiting Professor at the Department of Economics, London Metropolitan University, and Senior Research Fellow at the ICMA Centre, University of Reading. He is a Fellow of the ifs-School of Finance and a Fellow of the Chartered Institute for Securities and Investment. He is on the Editorial Board of the \u003ci\u003eJournal of Structured Finance\u003c\/i\u003e and the Editorial Advisory Board of \u003ci\u003eAmerican Securitization.\u003c\/i\u003e\u003c\/p\u003e\u003cp\u003e\u003cb\u003eGINO LANDUYT\u003c\/b\u003eis Head of Sales at Conduit Capital in London. Prior to that, he was head of institutional structured sales at ING Bank in Brussels, and worked with KBC Bank N.V. in their Brussels, Frankfurt, New York, and London offices. Landuyt has an MA in applied economic sciences from the State University of Antwerp and an MBA from the Catholic University of Antwerp.\u003c\/p\u003e  \u003cp\u003eFinancial markets have always promised, and often delivered, prosperity. But, during the last decade, the structure and behavior of financial markets themselves helped create the conditions for an economic implosion that resulted in a banking crisis, recession, and wholesale loss of investor confidence.\u003c\/p\u003e\u003cp\u003eWhile recent events have renewed calls on the need for a paradigm shift in both the investment and banking model, another clear lesson from the crisis is to “know one’s risk,” and that is best served by appreciating fully the nature of the markets in which finance operates.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eThe Future of Finance\u003c\/i\u003e looks beyond the headlines and media hype to present a full and accessible analysis of the factors leading to the crash of 2007 and the banking crisis of 2008, as well as the interaction between these factors. In Part II of the book, the authors present practical recommendations for a revised approach to banking and principles of investment, which if followed will help to produce a more sustainable level of economic prosperity.\u003c\/p\u003e\u003cp\u003eWhile every possible option is impossible to discuss, the measures described throughout these pages should form part of a logical, unbiased review of strategy by both banks and investors.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990234349797,"sku":"NP9780470572290","price":80.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470572290.jpg?v=1761787012","url":"https:\/\/k12savings.com\/products\/the-future-of-finance-isbn-9780470572290","provider":"K12savings","version":"1.0","type":"link"}