Just spent $400 books related to the credit crisis

[Deleted member 4644]

Anyone interested in borrowing one of my books should PM me and I will put your name on a list.

I will mail them to you, you need pay only my mailing costs and promise to mail them back in a reasonable amount of time.

I will post here when they become officially available.

1 of: Pigs at the Trough: How Corporate Greed and Political Corruption Are Undermining America [Paperback]
By: Arianna Huffington
Condition: New
Sold by: Amazon.com, LLC
$11.16
- 1 item(s) Gift options: None Change gift options

1 of: Competing on Analytics: The New Science of Winning [Hardcover]
By: Thomas H. Davenport, Jeanne G. Harris
Condition: New
Sold by: Amazon.com, LLC
$19.77
- 1 item(s) Gift options: None Change gift options

1 of: The Black Swan: The Impact of the Highly Improbable [Hardcover]
By: Nassim Nicholas Taleb
Condition: New
Sold by: Amazon.com, LLC
$17.82
- 1 item(s) Gift options: None Change gift options

1 of: The Credit Default Swap Basis [Hardcover]
By: Moorad Choudhry
Condition: New
Sold by: Amazon.com, LLC
$31.50
- 1 item(s) Gift options: None Change gift options

1 of: Credit Derivative Strategies: New Thinking on Managing Risk and Return [Hardcover]
By: Rohan Douglas
Condition: New
Sold by: Amazon.com, LLC
$50.37
- 1 item(s) Gift options: None Change gift options

1 of: Ahead of the Curve: Two Years at Harvard Business School [Hardcover]
By: Philip Delves Broughton
Condition: New
Sold by: Amazon.com, LLC
$5.99
- 1 item(s) Gift options: None Change gift options

1 of: The Complete Guide to Capital Markets for Quantitative Professionals (McGraw-Hill Library of Investment and Finance) [Hardcover]
By: Alex Kuznetsov
Condition: New
Sold by: Amazon.com, LLC
$47.25
- 1 item(s) Gift options: None Change gift options

1 of: Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions) [Hardcover]
By: Benjamin Graham, et al
Condition: New
Sold by: Amazon.com, LLC
$47.25
- 1 item(s) Gift options: None Change gift options

1 of: Game Over: How You Can Prosper in a Shattered Economy [Hardcover]
By: Stephen Leeb
Condition: New
Sold by: Amazon.com, LLC
$17.15
- 1 item(s) Gift options: None Change gift options

1 of: Trend Following: How Great Traders Make Millions in Up or Down Markets, New Expanded Edition, (Paperback) [Paperback]
By: Michael W. Covel
Condition: New
Sold by: Amazon.com, LLC
$13.59
- 1 item(s) Gift options: None Change gift options

1 of: Chain of Blame: How Wall Street Caused the Mortgage and Credit Crisis [Hardcover]
By: Paul Muolo, Mathew Padilla
Condition: New
Sold by: Amazon.com, LLC
$18.45
- 1 item(s) Gift options: None Change gift options

1 of: Structured Finance and Collateralized Debt Obligations: New Developments in Cash and Synthetic Securitization (Wiley Finance) [Hardcover]
By: Janet M. Tavakoli
Condition: New
Sold by: Amazon.com, LLC
$56.70
- 1 item(s) Gift options: None Change gift options

1 of: A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation [Paperback]
By: Richard Bookstaber
Condition: New
Sold by: Amazon.com, LLC
$10.17
- 1 item(s) Gift options: None Change gift options

1 of: The Structured Credit Handbook (Wiley Finance) [Hardcover]
By: Arvind Rajan, et al
Condition: New

 

[bsobel]

The Black Swan: The Impact of the Highly Improbable

Is a good read but I do find the author a bit verbose for my tastes.

 

[StageLeft]

:thumbsup: that is a cool thing to do!

 

[Slew Foot]

Here are my favorite books


http://www.amazon.com/Real-Est...&qid=1236472467&sr=8-2

Hahaha notice the url, it goes "re boom will bust" while the title of the book is why the "RE boom will NOT bust"

http://www.amazon.com/Dow-2008...&qid=1236472467&sr=8-1

http://www.amazon.com/Dow-40-0...r=1JEMJA854M2E9F3K2X87

 

[Slew Foot]

Originally posted by: Slew Foot
Here are my favorite books


http://www.amazon.com/Real-Est...&qid=1236472467&sr=8-2

Hahaha notice the url, it goes "re boom will bust" while the title of the book is why the "RE boom will NOT bust"

http://www.amazon.com/Dow-2008...&qid=1236472467&sr=8-1

http://www.amazon.com/Dow-40-0...r=1JEMJA854M2E9F3K2X87

Even funnier are the user tags :


epic fail (25)
idiocy (4)
loser (4)
wrong (3)
brilliance (1)
bush doctrine (1)
captain retardo (1)
credit derivative moron (1)
greenspan worship (1)
haha (1)
house prices (1)
hussein obama (1)
oracle (1)

 

[Zebo]

Not to sound crass my friend but not sure why... Other than for novelty and history sake...try not to dwell in the past - Not profitable and unchangeable even if we went back in time since we don't have the power.

This guy, OTOH, has big time credibility with his projections, and built successful company around it - his journal is way cheaper.
http://www.trendsresearch.com/

I do have power to prepare now.

 

[Deleted member 4644]

Well, Zebo..

As a young guy, I don't know that much about the markets or finance, past, present, or future.

Second, CDS are still here. They may change, but they are still here, at least for now.

Third, I am a student and plan to write about this.

And finally, I will donate them and save on taxes after I am done.

 

[LegendKiller]

Seems like a waste. All you're going to do is read about the items but not have any working experience in them, thus your ability to roundly discuss them is limited. Just another book published by somebody who can't wholly explain the problem. I guess if you're planning on making a penny or two it might be worth it, otherwise just a waste for anything but limited educational purposes.

The quant books specifically. Hell, I had professors with PhD's try to explain securitization when I was going through b-school and they didn't know shit.

 

[Deleted member 4644]

Originally posted by: LegendKiller
Seems like a waste. All you're going to do is read about the items but not have any working experience in them, thus your ability to roundly discuss them is limited. Just another book published by somebody who can't wholly explain the problem. I guess if you're planning on making a penny or two it might be worth it, otherwise just a waste for anything but limited educational purposes.

The quant books specifically. Hell, I had professors with PhD's try to explain securitization when I was going through b-school and they didn't know shit.

I am in law school, so I have some background on the legal processes used. Will I get it 100%? No way, but more than most I think.

 

[JEDIYoda]

Originally posted by: LegendKiller
Seems like a waste. All you're going to do is read about the items but not have any working experience in them, thus your ability to roundly discuss them is limited. Just another book published by somebody who can't wholly explain the problem. I guess if you're planning on making a penny or two it might be worth it, otherwise just a waste for anything but limited educational purposes.

The quant books specifically. Hell, I had professors with PhD's try to explain securitization when I was going through b-school and they didn't know shit.

Let me guess...you know shit??

 

[LegendKiller]

Originally posted by: Deleted member 4644

Originally posted by: LegendKiller
Seems like a waste. All you're going to do is read about the items but not have any working experience in them, thus your ability to roundly discuss them is limited. Just another book published by somebody who can't wholly explain the problem. I guess if you're planning on making a penny or two it might be worth it, otherwise just a waste for anything but limited educational purposes.

The quant books specifically. Hell, I had professors with PhD's try to explain securitization when I was going through b-school and they didn't know shit.

I am in law school, so I have some background on the legal processes used. Will I get it 100%? No way, but more than most I think.

The legal process? ROFL. Sorry, but I can't help but laugh. There are few attorneys I have worked with in the last 7 years in securitization that know their shit. Many just regurgitate but don't understand the fine processes. The two that I have utmost respect for are a couple Orrick attorneys I worked with.

What are you? Some L2 taking contract law? Break down True Sales and FAS140, then let me know.

 

[LegendKiller]

Originally posted by: JEDIYoda

Originally posted by: LegendKiller
Seems like a waste. All you're going to do is read about the items but not have any working experience in them, thus your ability to roundly discuss them is limited. Just another book published by somebody who can't wholly explain the problem. I guess if you're planning on making a penny or two it might be worth it, otherwise just a waste for anything but limited educational purposes.

The quant books specifically. Hell, I had professors with PhD's try to explain securitization when I was going through b-school and they didn't know shit.

Let me guess...you know shit??

7 years in securitization. 3 in term on-balance sheet issuances (2bn in term issuance, 3 annual renewals of an ABCP conduit). 1 at a credit card issuance shop doing off-BS securitizations (6bn in term issuance, 4.5bn in ABCP negotiations). 3 years doing ABCP purchases at an i-bank, structuring, negotiation, surveillance.

I'm by no means an expert in securitization, but I know my way around Sale and Servicing Agreements, Indentures, and Note Purchase Agreements.

As far as other finance, my MBA and my CFA charter, as well as working at an i-bank side by side with M&A and corporate relationship managers provides a bit more depth.

What's your "shit"?

 

[Deleted member 4644]

Originally posted by: LegendKiller

Originally posted by: Deleted member 4644

Originally posted by: LegendKiller
Seems like a waste. All you're going to do is read about the items but not have any working experience in them, thus your ability to roundly discuss them is limited. Just another book published by somebody who can't wholly explain the problem. I guess if you're planning on making a penny or two it might be worth it, otherwise just a waste for anything but limited educational purposes.

The quant books specifically. Hell, I had professors with PhD's try to explain securitization when I was going through b-school and they didn't know shit.

I am in law school, so I have some background on the legal processes used. Will I get it 100%? No way, but more than most I think.

The legal process? ROFL. Sorry, but I can't help but laugh. There are few attorneys I have worked with in the last 7 years in securitization that know their shit. Many just regurgitate but don't understand the fine processes. The two that I have utmost respect for are a couple Orrick attorneys I worked with.

What are you? Some L2 taking contract law? Break down True Sales and FAS140, then let me know.

Read the first 15 pages of FAS140 and understood 90% of it. Would I advise a client regarding the matters discussed? No, that would be malpractice even with a bar license. Is it rocket science? Hardly.

Most of the principles discussed are pretty common legal ideas, and show up in classes ranging from Business Orgs to Real Estate Finance to Estate Planning.

 

[LegendKiller]

Originally posted by: Deleted member 4644

Originally posted by: LegendKiller

Originally posted by: Deleted member 4644

Originally posted by: LegendKiller
Seems like a waste. All you're going to do is read about the items but not have any working experience in them, thus your ability to roundly discuss them is limited. Just another book published by somebody who can't wholly explain the problem. I guess if you're planning on making a penny or two it might be worth it, otherwise just a waste for anything but limited educational purposes.

The quant books specifically. Hell, I had professors with PhD's try to explain securitization when I was going through b-school and they didn't know shit.

I am in law school, so I have some background on the legal processes used. Will I get it 100%? No way, but more than most I think.

The legal process? ROFL. Sorry, but I can't help but laugh. There are few attorneys I have worked with in the last 7 years in securitization that know their shit. Many just regurgitate but don't understand the fine processes. The two that I have utmost respect for are a couple Orrick attorneys I worked with.

What are you? Some L2 taking contract law? Break down True Sales and FAS140, then let me know.

Read the first 15 pages of FAS140 and understood 90% of it. Would I advise a client regarding the matters discussed? No, that would be malpractice even with a bar license. Is it rocket science? Hardly.

Where does the True Sale occur and why is a 2 step isolation required? Can it be eliminated now, given regulatory changes (what changes?) and what is the single most critical perspective?

What is the single most important paragraph of 140?

What separates a QSPE from a straight SPE?

What is the effect of asset recognition with regards to risk profiles in beneficial interests?

How do you estimate the residual piece (IO strip and equity) as well as recognition of Servicing rights?

What are the capital implications?

 

[Deleted member 4644]

So first the transferor deposits the assets into an SPE. This is the first sale and meant to be a true sale. As per paragraph 83(a) of FAS140 the first transfer of interest to a special-purpose entity is designed to be a true sale. The transfered assets are likely to be judged beyond the reach of the transferor or its creditors even in a bankruptcy.

Then it sounds like that SPE then transfers the assets to another entity that allows an increased amount of credit protection. This level of protection does not allow for a true sale (hence why you did not want to have the first transferor directly linked to this stage). The protection is provided by retaining a junior beneficial interest which I assume means that the creditors could reach the holder of that interest.

This second stage is done to get the high rating so that it is actually investment grade (or something close) and can attract third parties.

Can this be elimited? As for the changes, I assume you are referring to "Qualifying Special-Purpose Entities and Isolation of Transferred Assets" amendments to FAS140.. which states "This proposed Statement would prohibit an entity from being a qualifying special-purpose entity (SPE) if it enters into an agreement that obligates a transferor, its affiliates, or its agents to deliver additional cash or other assets to fulfill the SPE's obligations to beneficial interest holders"..

and further "Finally, this proposed Statement also would: a. Require that a two-step transfer used to achieve legal isolation from transferred assets involve a qualifying SPE as the second step if the result of the transfer is issuance of"...

So I would think no, the two steps cant be eliminated.

FAS140: "The Board understands that the "two-step" securitizations described above, taken as a whole, generally would be judged under present U.S. law as having isolated the assets beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership."

^^ The above is damn important.

As for asset recognition.. Well Assets are benefits that are controlled by an entity, that have arisen from a past event, and future economic benefits are expected to flow. Assets should be recognized, according to the AASB Framework, when it is probable that future economic benefits will flow to the entity, and the asset has a cost or value that can be measured reliably.

FAS140: Derecognition of transferred assets is appropriate only if the available evidence provides reasonable assurance that the transferred assets would be beyond the reach of the powers of a bankruptcy trustee or other receiver for the transferor or any consolidated affiliate of the transferor that is not a special-purpose corporation or other entity designed to make remote the possibility that it would enter bankruptcy or other receivership (paragraph 83(c))."

So if you have the wrong type of transfer (no reasonable assurance that the assets are beyond reach), and still hold a beneficial interest, your risk profile is extremely high?

In further reading, I found that retained interests normally have a different risk profile compared to assets transferred in securitization.

I guess my question would be, who is supposed to recognize the assets? Are you referring to the SPE?


.. might have gotten some of the above wrong.. not sure.

And I have no idea how you estimate the residual piece, but I assume it has something to do with CDO2 ? As for the servicing rights.. can't they be sold to anyone?


On a side note, I found literature that states that FAS140 requires that any derivative "pertain" to third-party beneficial interest holders. What does that mean?

Please be a bit more specific about capital implications.

And as for an SPE vs a QSPE, I think the most impt difference is that a QSPE can't hold equities, enter into a derivative transaction with a transferor, or an agreement that commits the transferor to deliver cash or other assets to the QSPE or any beneficial interest holders. (Servicing advances are OK).

Also, am I getting paid for this memo? ;p

 

[Deleted member 4644]

OK, gotta go, GF wants dinner

 

[LegendKiller]

You have the technical aspects correct, but, as I said, the actual working aspects are what is missing.

I will address that tomorrow, when the affects of liquor aren't affecting my brain.

 

[bamacre]

http://www.amazon.com/Meltdown...Bailouts/dp/1596985879

 

[dahunan]

I hope some of your research helps find ways to prosecute some of the Ponzi schemes are govt propped up

 

[daniel49]

Originally posted by: Deleted member 4644
So first the transferor deposits the assets into an SPE. This is the first sale and meant to be a true sale. As per paragraph 83(a) of FAS140 the first transfer of interest to a special-purpose entity is designed to be a true sale. The transfered assets are likely to be judged beyond the reach of the transferor or its creditors even in a bankruptcy.

Then it sounds like that SPE then transfers the assets to another entity that allows an increased amount of credit protection. This level of protection does not allow for a true sale (hence why you did not want to have the first transferor directly linked to this stage). The protection is provided by retaining a junior beneficial interest which I assume means that the creditors could reach the holder of that interest.

This second stage is done to get the high rating so that it is actually investment grade (or something close) and can attract third parties.

Can this be elimited? As for the changes, I assume you are referring to "Qualifying Special-Purpose Entities and Isolation of Transferred Assets" amendments to FAS140.. which states "This proposed Statement would prohibit an entity from being a qualifying special-purpose entity (SPE) if it enters into an agreement that obligates a transferor, its affiliates, or its agents to deliver additional cash or other assets to fulfill the SPE's obligations to beneficial interest holders"..

and further "Finally, this proposed Statement also would: a. Require that a two-step transfer used to achieve legal isolation from transferred assets involve a qualifying SPE as the second step if the result of the transfer is issuance of"...

So I would think no, the two steps cant be eliminated.

FAS140: "The Board understands that the "two-step" securitizations described above, taken as a whole, generally would be judged under present U.S. law as having isolated the assets beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership."

^^ The above is damn important.

As for asset recognition.. Well Assets are benefits that are controlled by an entity, that have arisen from a past event, and future economic benefits are expected to flow. Assets should be recognized, according to the AASB Framework, when it is probable that future economic benefits will flow to the entity, and the asset has a cost or value that can be measured reliably.

FAS140: Derecognition of transferred assets is appropriate only if the available evidence provides reasonable assurance that the transferred assets would be beyond the reach of the powers of a bankruptcy trustee or other receiver for the transferor or any consolidated affiliate of the transferor that is not a special-purpose corporation or other entity designed to make remote the possibility that it would enter bankruptcy or other receivership (paragraph 83(c))."

So if you have the wrong type of transfer (no reasonable assurance that the assets are beyond reach), and still hold a beneficial interest, your risk profile is extremely high?

In further reading, I found that retained interests normally have a different risk profile compared to assets transferred in securitization.

I guess my question would be, who is supposed to recognize the assets? Are you referring to the SPE?


.. might have gotten some of the above wrong.. not sure.

And I have no idea how you estimate the residual piece, but I assume it has something to do with CDO2 ? As for the servicing rights.. can't they be sold to anyone?


On a side note, I found literature that states that FAS140 requires that any derivative "pertain" to third-party beneficial interest holders. What does that mean?

Please be a bit more specific about capital implications.

And as for an SPE vs a QSPE, I think the most impt difference is that a QSPE can't hold equities, enter into a derivative transaction with a transferor, or an agreement that commits the transferor to deliver cash or other assets to the QSPE or any beneficial interest holders. (Servicing advances are OK).

Also, am I getting paid for this memo? ;p

That was almost as fun as reading the obituaries.

 

[Deleted member 4644]

Originally posted by: LegendKiller
You have the technical aspects correct, but, as I said, the actual working aspects are what is missing.

I will address that tomorrow, when the affects of liquor aren't affecting my brain.

haha fair enuf

 

[Craig234]

Good for you, LS. I can recommend some other books, if you like - populist books with a lot of good, less technical info.

I can't recommend the Arianna Huffington book you got that much; for other authors, try Thom Hartmann (Unequal Protection, Screwed), David Cay Johnston, Paul Krugman.

Also the books related to 'Confessions of an Economic Hit Man' are interesting.

There are many more; I've considered 'loaning from my library' as you are here for years.

 

[TallBill]

Originally posted by: Craig234
Good for you, LS. I can recommend some other books, if you like - populist books with a lot of good, less technical info.

I can't recommend the Arianna Huffington book you got that much; for other authors, try Thom Hartmann (Unequal Protection, Screwed), David Cay Johnston, Paul Krugman.

Also the books related to 'Confessions of an Economic Hit Man' are interesting.

There are many more; I've considered 'loaning from my library' as you are here for years.

These are the books that I'd be more interested.

And LegendKiller, you apparently know your job. Congratulations!

 

[JEDIYoda]

1 of: A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation [Paperback]
By: Richard Bookstaber
Condition: New
Sold by: Amazon.com, LLC
$10.17
- 1 item(s) Gift options: None Change gift options

Excellent book!!

 

[StageLeft]

Originally posted by: bamacre
http://www.amazon.com/Meltdown...Bailouts/dp/1596985879

Watching now the video that you linked. I see on amazon the book got a 4.5/5.

Seems like a waste. All you're going to do is read about the items but not have any working experience in them, thus your ability to roundly discuss them is limited. Just another book published by somebody who can't wholly explain the problem. I guess if you're planning on making a penny or two it might be worth it, otherwise just a waste for anything but limited educational purposes.

Good Lord, you are truly the most patronizing person on Anandtech. How's the bailout and it being a "boon for the world" working out? You are constantly pwned and yet constantly tell others they don't know sh*t, you are a legend, minus the killer bit.

Is there a trophy or something we can give this guy?