Financial Darwinism

1. Auflage 2008
ISBN: 978-0-470-38546-3
Verlag: Wiley

Buch, Englisch, 192 Seiten, Format (B × H): 157 mm x 235 mm, Gewicht: 442 g

In Financial Darwinism, author Leo Tilman lays the groundwork for understanding the new financial order by introducing his evolutionary thesis and then outlines an actionable decision-making framework that enables financial institutions and investors to fully leverage the power of business strategy, corporate finance, investment analysis, and risk management. Financial Darwinism is an invaluable road map to today's financial world and an essential guide to surviving and thriving during these challenging times.

Autoren/Hrsg.

Tilman, Leo M

Weitere Mitwirkende

Phelps, Edmund S.

Fachgebiete

• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Finanzsektor & Finanzdienstleistungen: Allgemeines

Inhaltsverzeichnis

Foreword ix

Preface xv

Acknowledgments xix

CHAPTER 1 Understanding and Navigating the Financial Revolution 1

Introduction: The Need for Transformational Thinking 1

From George Bailey to the Golden Age 5

Accounting for Profits the Old-Fashioned Way 7

The “Great Moderation” As an Evolutionary Catalyst 11

Economic Performance in the Dynamic New World 14

Pressures on Static Business Models 18

Dynamic Finance Perspective on Financial Crises 21

Pillars of Strategic Decision Making 25

Value Creation Through Dynamism and Business Model Transformations 26

Beyond the Facade: The Importance of Risk-Based Transparency 35

CHAPTER 2 The Old Regime and Its Demise 39

Economic Performance and Viability of Financial Institutions 39

Static Business Models 41

Dominant Forces: The Future that Has Already Happened 46

Pressures on Static Business Models 55

CHAPTER 3 The Dynamic New World 65

Risk-Based Economic Performance 65

Balance Sheet Arbitrage 68

Principal Investments 69

Systematic Risk Exposures 71

Fees and Expenses 74

Capital Structure Optimization 75

Economic Performance Attribution 75

CHAPTER 4 Business Model Transformations 79

Pillars of Strategic Decisions in a Dynamic World 79

Responsive Recalibrations of Business Models 81

Full-Scale Business Model Transformations 86

Making the Strategic Vision a Reality 93

CHAPTER 5 The Road to Financial Darwinism 99

Real-World Business Model Transformations 99

Stakeholder Communication & Equity Valuation in a Dynamic World 109

Economic Value Creation (and Destruction) by Non-Financial Corporations 112

The Infamous “Carry Trade” and the Old Ways of Thinking 115

A Dynamic Finance Perspective on Modern Financial Crises 118

Beyond the Facade: The Need for Risk-Based Transparency 127

Conclusion 129

Epilogue: Financial Darwinism and the Crisis of 2007–2008 133

Appendix A: The Risk-Based Economic Performance Equation 137

Appenidx B: A Case Study in Dynamic Finance 141

Notes 157

References 163

About the Author 167

Index 169

Über Autor(innen)

Leo M. Tilman (NY, NY) has been named Young Global Leader of the World Economic Forum for his professional accomplishments, commitment to society and potential to contribute to shaping the world.  As the Chief Institutional Strategist and Senior Managing Director at a leading investment firm, Tilman is known for providing institutional clients with advice and solutions regarding strategic decision making, corporate finance, investment strategy, product design, asset/liability management, and risk management.  Tilman is also a lecturer in the financial engineering program on foundations of finance at Columbia University.  He is co-author of Risk Management and editor of Asset/Liability Management of Financial Institutions, as well as contributing editor of The Journal of Risk Finance.  He makes regular TV appearances and is often quoted in the financial media such as The Wall Street Journal, New York Times, Forbes, Bloomberg, and Barron’s among others.  He earned his B.A. and M.A. degrees from Columbia University.