The Big Why | p. xv |
Foreword | p. xvii |
Preface | p. xix |
Introduction | p. 1 |
Introduction to the world of financial instruments and derivatives | p. 3 |
'Derivatiphobia' | p. 3 |
Neither a borrower nor a lender be | p. 5 |
How to capture the big new IDEA | p. 13 |
Why creativity? | p. 13 |
The big IDEA - impossible | p. 15 |
The big IDEA - disasters | p. 16 |
The big IDEA - everywhere | p. 17 |
The big IDEA - archive | p. 18 |
The big IDEA - the IDEA kit | p. 20 |
No chance | p. 21 |
Postscript | p. 22 |
What drives innovation? | p. 25 |
Ease of entry | p. 25 |
Copyright | p. 26 |
Six pillars of financial innovation | p. 27 |
The key financial instruments | p. 33 |
Key risks | p. 35 |
Currency risk management | p. 35 |
Interest rate management | p. 38 |
Equity risk management | p. 39 |
Commodity and inflation risk management | p. 40 |
Key financial instruments | p. 43 |
Introduction | p. 43 |
The four keys | p. 44 |
Forwards, futures, options and swaps | p. 45 |
Creating hybrids using building blocks | p. 56 |
Conclusion | p. 57 |
Derivatives for the retail client | p. 59 |
Introduction | p. 59 |
Los chiringuitos financieros | p. 60 |
Derivatives for the retail customer | p. 61 |
Guaranteed equity investments | p. 63 |
Mortgages | p. 65 |
Studies in innovation: from creativity to closing | p. 69 |
The break forward | p. 71 |
Introduction and overview | p. 71 |
Definition of a break forward | p. 73 |
Background to its invention | p. 73 |
The gap in first-generation products | p. 76 |
Break forward versus first-generation products | p. 78 |
Break forward versus second-generation products | p. 85 |
Conclusion | p. 90 |
Perpetual swaps | p. 93 |
Overview | p. 93 |
Introduction | p. 94 |
Where? | p. 95 |
What? | p. 96 |
Why? | p. 101 |
When? | p. 104 |
Conclusion | p. 105 |
Risk management | p. 107 |
Hedge choice and performance measurement | p. 109 |
To hedge or not to hedge? | p. 109 |
Hedge choice | p. 113 |
Utility or benefit function | p. 116 |
Judgement after the fact | p. 117 |
Legal risk management (by lona Levine) | p. 119 |
The market | p. 119 |
Legal risk defined | p. 120 |
Legal risk management and the matrix approach | p. 121 |
Conclusion | p. 133 |
Taxation aspects of derivatives and risk management | p. 135 |
General principles | p. 135 |
Matched tax treatment? | p. 136 |
Where does tax profit/loss arise? | p. 138 |
Tax costs of a transaction | p. 138 |
Simulated assets | p. 141 |
Back to the future: current developments and trends | p. 145 |
Credit and insurance derivatives | p. 147 |
Credit derivatives | p. 147 |
Insurance derivatives | p. 156 |
Dangers and disasters; profits and principles | p. 161 |
Retail clients | p. 162 |
Corporate business | p. 163 |
My word is my bond | p. 163 |
Some cautionary tales | p. 165 |
Conclusion | p. 177 |
The financial future | p. 181 |
Likely developments | p. 181 |
Less technophilia - have faith in fools | p. 183 |
Appendices | p. 193 |
Financial risk types or '50 ways to lose your money' | p. 195 |
Financial risk management instruments | p. 207 |
Risk management terms | p. 237 |
Islamic financial products | p. 245 |
Bibliography | p. 271 |
Index | p. 275 |
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