“Allen and Yago demonstrate clearly the importance of the interaction of theory and experience in explaining the evolution of financial innovations.” Myron S. Scholes, Nobel Laureate in Economics, 1997, and Frank E. Buck Professor of Finance, Emeritus, Graduate School of Business, Stanford University “Despite its role in the recent economic crisis, financial innovation, wisely used, can play a crucial role in solving some of the world’s most pressing problems, particularly by delivering sustainable growth and economic development. Allen and Yago’s compelling, contrarian analysis punctures the current gloom about finance, and shows how its creativity can make a huge, positive difference.” Matthew Bishop, New York Bureau Chief of The Economist and co-author of Philanthrocapitalism and The Road from Ruin: How to Revive Capitalism and Put America Back on Top “This book provides a clear and concise history of financial innovation as an engine for growth in various fields--an often ignored or misunderstood topic. From its role to help finance new industries and technologies to upcoming advances in environmental and health areas, it will prove an important reference to those of us who are interested in how ingenuity in capital markets can help advance social goals. A must-read in these times.” Richard L. Sandor, Chairman and Founder, Chicago Climate Exchange; Executive Chairman, Climate Exchange plc “The right book at the right time. Allen and Yago colorfully relate the history of financial innovation down through the ages. With facts and analyses, they restore the concept of financial innovation to its rightful place: a medium by which long-standing problems of social, economic, and environment have been addressed, sometimes solved.” Lewis S. Ranieri, Ranieri Partners LLC “From housing to microfinance to drug development, Allen and Yago explore the important role financial innovation plays around the world. The authors prove in plain English the vital role creative finance played in building America and why stifling innovation poses a risk to our financial future.” Brian Sullivan, Fox Business Financial innovation can drive social, economic, and environmental change, transforming ideas into new technologies, industries, and jobs. But when it is misunderstood or mismanaged, the consequences can be severe. In this practical, accessible book, two leading experts explain how sophisticated capital structures can enable companies and individuals to raise funding in larger amounts for longer terms and at lower cost--accomplishing tasks that would otherwise be impossible. The authors recount the history and basic principles of financial innovation, showing how new instruments have evolved, and how they have been used and misused. They thoroughly demystify complex capital structures, offering a practical toolbox for entrepreneurs, corporate executives, and policymakers. Financing the Future presents clear, thorough discussions of the current role of financial innovation in capitalizing businesses, industries, breakthrough technologies, housing solutions, medical treatments, and environmental projects. It also presents a full chapter of lessons learned: essential insights for stabilizing the economy and avoiding pitfalls. Distinguishing genuine innovation from dangerous copycats Crafting sustainable financial innovations that add value and manage risk The best tools for the job: choosing them, customizing them, using them Selecting the right instruments and structures, and making the most of them Financial innovations for business, housing, and medical research Finding new and better ways to promote entrepreneurship and advance social goals Innovating to save the planet and help humanity The power of finance to protect natural resources and alleviate global poverty This is the first in a new series of books on financial innovation, published through a collaboration between Wharton School Publishing and the Milken Institute. Future titles will focus on specific policy areas such as housing and medical research. The Milken Institute is an independent economic think tank whose mission is to improve the lives and economic conditions of diverse populations in the United States and around the world by helping business and public policy leaders identify and implement innovative ideas for creating broad-based prosperity. It puts research to work with the goal of revitalizing regions and finding new ways to generate capital for people with original ideas.

Financing the Future: Market-Based Innovations for Growth (Prentice Hall-Milken Institute Series on Financial Innovations)

Business & Money

Yago, Glenn

Allen,Franklin

Finance

Ft Pr

Ever since the ancient Greeks, financial innovation has enabled more people to purchase homes. Today is no different: in fact, responsible financial innovation is now the best tool available for "rebooting" crippled housing markets, improving their efficiency, and making housing more accessible to millions. In Fixing the Housing Market, three leading experts explain how, covering everything decision-makers should know about today's housing and financial markets. The authors first explain how innovative housing financial products, services and institutions evolved through the 19th century, World War I, the Great Depression, World War II, and beyond -- culminating in the post-1970s era of securitization. Next, they assess housing finance systems in mature economies during and after the recent crisis, highlighting benefits and risks associated with each widely-used mortgage funding structure and product. They also carefully assess current housing finance structures in emerging economies s

Fixing the Housing Market: Financial Innovations for the Future (paperback)

Barth, James

Ft Press

“Allen and Yago demonstrate clearly the importance of the interaction of theory and experience in explaining the evolution of financial innovations.” Myron S. Scholes, Nobel Laureate in Economics, 1997, and Frank E. Buck Professor of Finance, Emeritus, Graduate School of Business, Stanford University “Despite its role in the recent economic crisis, financial innovation, wisely used, can play a crucial role in solving some of the world’s most pressing problems, particularly by delivering sustainable growth and economic development. Allen and Yago’s compelling, contrarian analysis punctures the current gloom about finance, and shows how its creativity can make a huge, positive difference.” Matthew Bishop, New York Bureau Chief of The Economist and co-author of Philanthrocapitalism and The Road from Ruin: How to Revive Capitalism and Put America Back on Top “This book provides a clear and concise history of financial innovation as an engine for growth in various fields--an often ignored or misunderstood topic. From its role to help finance new industries and technologies to upcoming advances in environmental and health areas, it will prove an important reference to those of us who are interested in how ingenuity in capital markets can help advance social goals. A must-read in these times.” Richard L. Sandor, Chairman and Founder, Chicago Climate Exchange; Executive Chairman, Climate Exchange plc “The right book at the right time. Allen and Yago colorfully relate the history of financial innovation down through the ages. With facts and analyses, they restore the concept of financial innovation to its rightful place: a medium by which long-standing problems of social, economic, and environment have been addressed, sometimes solved.” Lewis S. Ranieri, Ranieri Partners LLC “From housing to microfinance to drug development, Allen and Yago explore the important role financial innovation plays around the world. The authors prove in plain English the vital role creative finance played in building America and why stifling innovation poses a risk to our financial future.” Brian Sullivan, Fox Business Financial innovation can drive social, economic, and environmental change, transforming ideas into new technologies, industries, and jobs. But when it is misunderstood or mismanaged, the consequences can be severe. In this practical, accessible book, two leading experts explain how sophisticated capital structures can enable companies and individuals to raise funding in larger amounts for longer terms and at lower cost--accomplishing tasks that would otherwise be impossible. The authors recount the history and basic principles of financial innovation, showing how new instruments have evolved, and how they have been used and misused. They thoroughly demystify complex capital structures, offering a practical toolbox for entrepreneurs, corporate executives, and policymakers. Financing the Future presents clear, thorough discussions of the current role of financial innovation in capitalizing businesses, industries, breakthrough technologies, housing solutions, medical treatments, and environmental projects. It also presents a full chapter of lessons learned: essential insights for stabilizing the economy and avoiding pitfalls. Distinguishing genuine innovation from dangerous copycats Crafting sustainable financial innovations that add value and manage risk The best tools for the job: choosing them, customizing them, using them Selecting the right instruments and structures, and making the most of them Financial innovations for business, housing, and medical research Finding new and better ways to promote entrepreneurship and advance social goals Innovating to save the planet and help humanity The power of finance to protect natural resources and alleviate global poverty This is the first in a new series of books on financial innovation, published through a collaboration between Wharton School Publishing and the Milken Institute. Future titles will focus on specific policy areas such as housing and medical research. The Milken Institute is an independent economic think tank whose mission is to improve the lives and economic conditions of diverse populations in the United States and around the world by helping business and public policy leaders identify and implement innovative ideas for creating broad-based prosperity. It puts research to work with the goal of revitalizing regions and finding new ways to generate capital for people with original ideas.

Financing the Future: Market-Based Innovations for Growth (Wharton School Publishing--Milken Institute Series on Financial Innovations)

Economics

Prentice Hall Professional

Junk bonds burst into the nation's headlines as the fastest growing and most controversial financial instruments of the 1980s. Branded with an unflattering nickname, these high yield securities were tarnished in the public eye by waves of negative publicity. Critics cast the financiers and entrepreneurs who pioneered their use as symbols of a decade of greed and financial excess. By the end of the 1980s, the heyday of junk bonds had seemingly come to a close with the conviction of junk bond pioneer Michael Milken and the bankruptcy of Drexel Burnham Lambert, the brokerage that dominated the high yield market. But the controversy surrounding junk bonds continues. Now, in Junk Bonds, business professor Glenn Yago turns the tables on conventional wisdom about this new financial technology. He offers the first systematic examination of the facts about high yield securities. His analysis provides hard evidence that demystifies junk bonds and explodes many of the popular myths that surround them. Junk Bonds sheds light on the role of high yield financing in what Yago calls the democratization of capital. Before the advent of junk bonds, only companies with an "investment grade" rating--five percent of the 23,000 American companies with sales over $35 million--had access to long term capital. In effect, the author argues, 95 percent of American companies were denied the means to finance growth and business development. Yago shows how junk bonds changed all that, breathing life into thousands of American companies that had been shunned by the capital markets. His research demonstrates that these "junk" companies outperformed many Fortune 500 firms in job creation, product development, sales, and business innovation. The real contribution of junk bonds, according to Yago, was to improve the productivity and competitiveness of American business by restructuring companies in the wake of the corporate conglomerations of the 1960s and 1970s. His findings show that divestitures by companies financed with high yield bonds were not necessarily destructive. Many sold-off units flourished as independent enterprises at a time when numerous "investment grade" companies stagnated or closed plants or fired workers. This restructuring of corporate America has enabled businesses to compete in a changing international environment, benefiting managers, workers, stockholders, and investors alike. Junk Bonds provides readers with a scholarly analysis that shears away the hype and hysteria that often accompany rapid change. And at a time when Wall Street is under greater scrutiny than at any time since the Depression, this provocative study provides a timely and thoughtful contribution to the debate surrounding junk bonds.

Junk Bonds: How High Yield Securities Restructured Corporate America

Biography & History

Oxford University Press

Since financial myths exploded in the 1980s, the perspective of time creates a unique opportunity to update and expand the analysis begun in Glenn Yago's 1991 book, Junk Bonds: How High Yield Securities Restructured Corporate America (Oxford University Press). At the time of its publication, Junk Bonds drew controversial responses from the Federal Reserve and government agencies. In retrospect, the evidence clearly casts favorable light on the role of high yield securities. The research presented here demonstrates how financial innovations enabled capital access for industrial restructuring, capital and labor productivity gains, and improved global competitiveness. Enough time has now passed to allow this dispassionate empirical analysis to shear away the hype and hysteria that surrounded the Wall Street scandals, Washington controversies, and media frenzy of the time. Beyond Junk Bonds provides a one-stop data, reference and case study presentation of the firms and securities in the contemporary high yield market and the financial innovations that spurred growth in the nineties and will continue to finance the future. The high yield market incubated successive waves of financial technologies that now proliferate beyond junk bonds to all the dimensions and dynamics of global debt and equity capital markets. It charts the recovery of the market in the 1990s, the recent wave of fallen angels, distressed credits and defaults, and suggests how the high yield market will be recreated in the global market of the 21st century. It explicates the linkages between the high yield market, and other credit and equity markets in managing a firm's capital structure to execute its business strategy. The weakening of the U. S. economy in 2001 and the huge shock to Wall Street from the terrorist attacks of September 11 witnessed a historic increase in the yield to maturity of high yield bonds. Despite the volatility in the flow of funds to high yield mutual funds and occasionally sharp increases in non-investment grade debt yields, the asset class has been one of the best performing fixed income investments of the past decades. In fact, high yield bonds offer an attractive risk-reward ratio competitive with more traditional asset classes. Anyone active in corporate finance, financial institutions and capital markets will find this book a must read for interpreting and understanding the recent history both of the high yield marketplace and its interaction with private equity, public equity, and fixed income markets.

Beyond Junk Bonds: Expanding High Yield Markets

Trimbath, Susanne

Automobiles dominate transportation today in most American cities. After World War II, urban planners embraced highway transportation as the solution to urban congestion, while mass transit was shunned as outmoded and appropriate only for older, densely populated cities. Yet the prolonged energy crisis, beginning in 1973, shattered most previously held attitudes about the role of mass transit, and it was now promoted as central to energy efficiency and rational land use. If mass transit is now possible and even desirable in new, auto-oriented cities - Los Angeles, Frankfurt, Tokyo - why did it decline in the first place? In examining the historical conditions that led to the current crisis of urban transportation, the book offers an explanation of past urban and economic policy failures. The Decline of Transit will be essential reading for urban planners, politicians, economists, historians, and all others interested in the state of urban transportation today.

The Decline of Transit: Urban Transportation in German and U.S. Cities, 1900–1970

Engineering & Transportation

Transportation

Cambridge University Press

Automobiles dominate transportation today in most American cities. After World War II, urban planners embraced highway transportation as the solution to urban congestion, while mass transit was shunned as outmoded and appropriate only for older, densely populated cities. Yet the prolonged energy crisis, beginning in 1973, shattered most previously held attitudes about the role of mass transit, and it was now promoted as central to energy efficiency and rational land use. If mass transit is now possible and even desirable in new, auto-oriented cities - Los Angeles, Frankfurt, Tokyo - why did it decline in the first place? In examining the historical conditions that led to the current crisis of urban transportation, the book offers an explanation of past urban and economic policy failures. The Decline of Transit will be essential reading for urban planners, politicians, economists, historians, and all others interested in the state of urban transportation today.

Politics & Social Sciences

Politics & Government

Financial markets are among the most highly-regulated markets in the world. Nevertheless, financial crises still occur -- witness the U.S. savings-and-loan fiasco of the late 1980s and early 1990s, and the Mexican and East Asian financial implosions of 1994 and 1997. What role does regulation play in stabilizing -- or destabilizing -- financial markets? "Restructuring Regulation and Financial Institutions" answers this question with incisive analyses of financial market regulation in the United States. 
The ramifications of financial regulation in the United States extend far beyond the nation's borders. World financial markets are undergoing dramatic change, driven by the rapid development and deployment of new technology that enables information -- and money -- to travel farther, faster. However, a Byzantine array of regulatory structures in the international arena hinder the development of efficient global financial markets. Policy makers around the world are attempting to address the issues by emulating the financial markets of the United States. 
This book presents 10 papers that examine in-depth the primary aspects of U.S. financial market regulation, including: 
* Banks * Securities markets * Pension policies and mutual funds * Derivatives * Life insurance company investments * Government sponsored enterprises * Systemic risk 
Each paper considers how regulation enhances or impedes the efficiency of a particular financial sector, and is followed by comments by two or three noted experts. The result of this approach is a wealth of useful information that may be applied by policy makers contemplating the restructuring of regulations and financial institutions. 
The contributors to this volume are distinguished economists, many of whom have careers not just in business, government, or academia, but have held influential positions in all three. Such varied backgrounds enable the contributors to offer remarkable insights based on the best of theory and practice. 
Never before has understanding the workings of U.S. financial market regulation been so important to the development of world financial markets. Policy makers around the globe will find that "Restructuring Regulation and Financial Institutions" offers a cogent assessment of the contemporary regulatory environment in U.S. financial markets, and a blueprint for action in evolving global financial markets.

Restructuring Regulation and Financial Institutions

Barth, James R.

Brumbaugh Jr., R. Dan

Milken Inst Pr

Now that globalization is a reality and cross-border is no longer a discretionary activity, companies need reliable tools to manage the risks associated with doing business around the world. This title is a relevant, practical addition to risk management literature. This book will help readers think about their global business differently, manage them effectively, and develop ways to forecast in which areas they might get into trouble. To support the book there will be an internet-based tool that offers up-to-date risk information by country. This title is the right mix of important new research and practical applicability for readers. It details the risks of doing business overseas and is as valuable to someone in Europe or Asia or in the US. Author, Kurtzman is well-known and respected in both academic and business circles.Since a systematic understanding of global risks is in its infancy, this book has the potential to be the definitive work that transforms the subject. It is packed with international companies including Sumitono Bank, Bre-X, Banco Ambrosiano, Parmalat, Royal Ahold, Barings Bank, Daiwa Securities, BCCI, Lloyd Aero Boliviano, Viacao Aerea, ChuoAoyama, Kanebo, Glo

Global Edge: Using the Opacity Index to Manage the Risks of Cross-border Business

Kurtzman, Joel

Harvard Business Review Press

See the best price to sell, buy, or rent books by Yago, Glenn. BookScouter helps to compare book prices from 25+ online bookstores and 30+ buyback vendors with a single search.

Books by Yago, Glenn

See the best price to sell, buy, or rent books by Yago, Glenn. BookScouter helps to compare book prices from 25+ online bookstores and 30+ buyback vendors with a single search.

Financing the Future: Market-Based Innovations for Growth (Prentice Hall-Milken Institute Series on Financial Innovations)

Fixing the Housing Market: Financial Innovations for the Future (paperback)

Financing the Future: Market-Based Innovations for Growth (Wharton School Publishing--Milken Institute Series on Financial Innovations)

Junk Bonds: How High Yield Securities Restructured Corporate America

Beyond Junk Bonds: Expanding High Yield Markets

The Decline of Transit: Urban Transportation in German and U.S. Cities, 1900–1970

The Decline of Transit: Urban Transportation in German and U.S. Cities, 1900–1970

Restructuring Regulation and Financial Institutions

Global Edge: Using the Opacity Index to Manage the Risks of Cross-border Business