A serious source of information for those looking to reverse
engineer business deals
It's clear from the current turbulence on Wall Street that
the inner workings of its most complex transactions are poorly
understood. Wall Street deals parse risk using intricate legal
terminology that is difficult to translate into an analytical
model. Reverse Engineering Deals on Wall Street: A Step-By-Step
Guide takes readers through a detailed methodology of
deconstructing the public deal documentation of a modern Wall
Street transaction and applying the deconstructed elements to
create a fully dynamic model that can be used for risk and
investment analysis.
Appropriate for the current market climate, an actual
residential mortgage backed security (RMBS) transaction is taken
from prospectus to model by the end of the book. Step by step,
Allman walks the reader through the reversing process with textual
excerpts from the prospectus and discussions on how it directly
transfers to a model. Each chapter begins with a discussion of
concepts with exact references to an example prospectus, followed
by a section called "Model Builder," in which Allman translates the
theory into a fully functioning model for the example deal. Also
included is valuable VBA code and detailed explanation that shows
proper valuation methods including loan level amortization and full
trigger modeling.
Aside from investment analysis this text can help anyone who
wants to keep track of the competition, learn from others public
transactions, or set up a system to audit one's own
models.
Note: CD-ROM/DVD and other supplementary materials are
not included as part of eBook file.
