on 31 January 2010
Keith's new book does what it says, it takes the reader step-by-step through the process of understanding the calculations and intricacies behind the terminology in Structued Finance deal documentations and building reverse-engineered models.
Although "Reverse Engineering Deals on Wall Street with Microsoft Excel" shows how to build reverse-engineered models, this book is not about quantitative modeling methods in Structured Finance, it is first of all a book about understanding the process and its inputs described
in each deal prospectus before getting to work.
The modeling method chosen for presenting the deal process deconstruction
is a deterministic approach but the author hints at more advanced stochastic modeling approaches for which this book lays out a solid foundation.
The time spent reading and working through this book has been time well invested as it has helped me get a better understanding of the securitization process before digging into heavy duty modeling and progamming on other platforms.