Rethinking Valuation and Pricing Models: Lessons Learned from the Crisis and Future Challenges

It is widely acknowledged that many financial modelling techniques failed during the financial crisis, and in our post-crisis environment many techniques are being reconsidered.  This single volume provides a guide to lessons learned for practitioners and a reference for academics.  Including reviews of traditional approaches, real examples, and case studies, contributors consider portfolio theory; methods for valuing equities and equity derivatives, interest rate derivatives, and hybrid products; and techniques for calculating risks and implementing investment strategies.  Describing new approaches without losing sight of their classical antecedents, this collection of original articles presents a timely perspective on our post-crisis paradigm.

Highlights pre-crisis best classical practices, identifies post-crisis key issues, and examines emerging approaches to solving those issuesSingles out key factors one must consider when valuing or calculating risks in the post-crisis environmentPresents material in a homogenous, practical, clear, and not overly technical manner

40 original chapters divided into these sections:

1. Review of Traditional Approaches

2. Valuing Equities and Equity Derivatives--Calculating Risks

3. Valuing Interest Rate Derivatives and Debt Products--Calculating Risks

4. Valuing Hybrid Products, Alternative Investments--Calculating Risks

5. Investment Strategies and Asset Management--Combining the Results

6. Putting a Global Perspective on New Valuation Aspects