The Future of Finance
A New Model for Banking and Investment
Erschienen am 21. September 2010
198 Seiten
978-0-470-90646-0 (ISBN)
Beschreibung
New banking and investment business models to navigate thepost-financial crisis environment
The financial crisis of 2007-2008 has discredited businessmodels in the banking and fund management industries. In TheFuture of Finance, Moorad Choudhry and Gino Landuyt argue thatbanks must realign their business models, implying a lowerreturn-on-equity; diversifying their funding sources; andincreasing liquidity reserves. On the investment side, the authorsdiscuss how diversification did not reduce risk, but ratheramplified it, and failed to stabilize returns. The authors concludethat the clear lesson from the crisis is to know one's risk. Alesson that is best served by concentrating on assets and sectorsthat you understand.
* Examines the weaknesses in the business models of manyinstitutions, as well as the theoretical foundation forprofessionals in the field of finance
* Identifies the shortcomings of Modern Portfolio Theory
* Addresses how investment managers can find new strategies forcreating "alpha" and why they need to re-vamp their feestructures
Filled with in-depth insights and practical advice, TheFuture of Finance will provide bankers and investment managerswith a guide to realigning their businesses in order to prosper inthe post-crisis financial markets.
Weitere Details
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Personen
Moorad Choudhry has over twenty-one years experience ininvestment banking and was latterly head of treasury at Europe ArabBank. He was previously head of treasury at KBC Financial Productsand vice president in structured finance services at JPMorgan ChaseBank. Dr. Choudhry is Visiting Professor at the Department ofEconomics, London Metropolitan University, and Senior ResearchFellow at the ICMA Centre, University of Reading. He is a Fellow ofthe ifs-School of Finance and a Fellow of the Chartered Institutefor Securities and Investment. He is on the Editorial Board of theJournal of Structured Finance and the Editorial Advisory Board ofAmerican Securitization.
Gino Landuyt is Head of Sales at Conduit Capital in London.Prior to that, he was head of insti-tutional structured sales atING Bank in Brussels, and worked with KBC Bank N.V. in theirBrussels, Frankfurt, New York, and London offices. Landuyt has anMA in applied economic sciences from the State University ofAntwerp and an MBA from the Catholic University of Antwerp.
Inhalt
Foreword.
Preface.
Introduction.
Market Instability.
Derivatives and Mathematical Modeling.
Senior Management and "Staying in the Game".
Macro-prudential Financial Regulation and Cycle-ProofRegulation.
The Way Forward.
Conclusion.
Part I: A Review of the Financial Crash.
Chapter 1: Globalization, Emerging Markets, and the SavingsGlut.
Globalization.
A Series of Emerging Market Crises.
Low Yield Environment Due to New Players on the FinancialMarkets.
Artificially Low Exchange Rates.
Recommendations and Solutions for Global Imbalances.
Chapter 2: The Rise of Derivatives and Systemic Risk.
Systemic Risk.
Derivative Market Systemic Risk: Solutions for Improvement.
Chapter 3: The "Too-Big-To-Fail" Bank, MoralHazard, and Macroprudential Regulation.
Banks and Moral Hazard.
Addressing Too-Big-to Fail: Mitigating Moral Hazard Risk.
Macroprudential Regulation: Regulating Bank Systemic Risk.
Conclusion.
Chapter 4: Corporate Governance and Remuneration in theBanking Industry.
Bonuses and a Moral Dilemma.
A Distorted Remuneration Model.
Unsuitable Personal Behavior.
Conclusion.
Chapter 5: Bank Capital Safeguards: Additional CapitalBuffers and Reverse Convertibles.
Capital Issues in a Bear Market.
Looking for New Capital Instruments.
Counter-Cyclical Capital Management.
Chapter 6: Economic Theories under Attack.
A Belief in Free and Self Adjusting Markets.
Modigliani and Miller.
Markowitz and Diversification Tested.
Minsky Once Again.
Lessons to Be Learned for Central Banks.
Conclusion.
Part II: New Models for Banking and Investment.
Chapter 7: Long-Term Sustainable InvestmentGuidelines.
The Investment Landscape after the Crisis.
Government Debts and Demographics.
A New Economic Environment.
The Inflation Dragon.
Currencies and a Changing Geo-Political Landscape.
Exchange Traded Funds: A Flexible Asset Class.
Conclusion.
Chapter 8: Bank Asset-Liability and Liquidity RiskManagement.
Basic Concepts of Bank Asset-Liability Management.
Asset and Liability Management: The ALCO.
ALCO Reporting.
Principles of Bank Liquidity Risk Management.
Measuring Bank Liquidity Risk: Key Metrics.
Internal Funding Rate Policy.
Conclusion.
Chapter 9: A Sustainable Bank Business Model: Capital,Liquidity and Leverage.
The New Bank Business Model.
Corporate Governance.
Liquidity Risk Management.
The Liquid Asset Buffer.
Conclusion.
Notes.
References.
About the Authors.
Index.
