Scot Mason, Harvard University Robert Merton, Harvard University Andre Perold, Harvard University Peter Tufano, Harvard University
Book includes Harvard cases on the hot topics of financial engineering and innovation. Text could be used in options and futures, capital markets, and graduate corporate finance courses.
Includes a conceptual overview by Robert Merton in Chapter 1, Financial Innovation and the Financial System.
Over 35 case studies - all have been used at the Harvard Business School. Provide the students with real-world applications, real products, real financial innovations.
Includes financial innovations over a span of two decades, including recently financial engineered products such as Nikkeputwarronts and synthetic equity products.
1. Financial Innovation and The Financial System.
2. Securities Innovation: A Historical and Functional Approach.
CASES.
1. Financial Engineering and Debt Securities. 1.1 Arbitrage Fundamentals.
Cougars. RJRCHC 1991. Arb in Government Bonds. Coca ColaÑHarmless Warrants.
1.2 Taxes, Regulation and Accounting: Stimuli to Innovation.
Citicorp 1985. Note: Eurodollar Bond. New England Property and Casualty. Schroeders Perpetual. Metromedia.
1.3 Securitization.
Travelers. Note: MBS. Amex TRS Case. Lehman Case.
2. Financial Engineering and Equity Securities.
2.1 Addressing Information Asymmetries.
Arley. Avon PERCs. GM PERCs. ALZA series (A-B1-B2-C). British Telecom. RJR 1990. Sally Jameson.
2.2 Taxes, Regulation and Accounting: Stimuli to Innovation.
ARPPS. MMP. Dart and Kraft. Waste Management.
3. Managing Issuers' Exposures.
3.1 Managing Issuers' Exposures.
B.F. Goodrich-Rabobank. GM Liab Management. State of CT Muni Swap. Walt Disney. Gaz de France. American Barrick. Enron.
