A Primer on Securitization

Rating:
Summary: Insightful!
Review: Editors Leon T. Kendall and Michael J. Fishman adapted these first-hand accounts of the early years of the securitization industry from a lecture series at the Kellogg School of Management. The contributions from financial service pioneers are the book's greatest strength. They elucidate the economic and regulatory forces that made securitization a powerful, versatile financial tool. Each chapter stands alone, but the book does not follow a linear narrative. Caveat lector: these lectures were given in 1994, so the sections on current trends and future expectations are out-of-date. Hence, this primer doesn't cover massive changes in financial regulation, an explosion in the types of asset-backed securities (ABSs), the popularity of derivatives or off-balance-sheet accounting to hide fraud. We from getAbstract suggest this book for those entering the financial services industry or for those who need background history. This does not tell you how today's capital markets work, but it is an illuminating eyewitness account of yesterday's.

Rating:
Summary: Securitization:Most important financial innovation in 25 yrs
Review: The Primer offers an introductory read for those wishing to understand the factors that have been driving the securitization process, how it reshaped the financial industry, and the issues it poses for monetary authorities and regulators. The book's uniqueness rests in that the story of the origins of securitization is told by its founders. Lew Ranieri, Larry Fink, Leland Brendsel, Dennis Cantwell, working at Saloman,First Boston, Freddie Mac and Chrysler Financial respectively, along with others, relate both the challenges they faced and the promise they sought in launching the concept. Every effort is made to identify the principles necessary to expand securitization to new products and fields domestically and internationally. Professor Leon Kendall, Kellogg GSM, Northwestern University, Editor.