A Quantitative Framework to Assess the Risk-Reward Profile of Non-Equity Products

Timely

Rating

The book is a timely addition to the wold of structured products. The angle is not from the buy side, nor the sell side, but from investors' side in the context of market regulations. It provides insights into how the regularors view the risks, and how these risks should be measured. More importantly, the book illustrates in depth how to calculate and communicate to investors consistent risk profiles. The methododolies are based on quantitatvie analysis, hence project more objective risk pirctures, rather than semi-subjective opinions. Clearly the book is a very good read, not just for investors, but for the sell side as the product providers are now under increasing pressure to do even better in terms of communicating accurate risks to the investors.

At last!

Rating

Finalmente!, at last the Italians would say. This book advocates with unmatched rigor and narrative simplicity the need and the opportunity for applying quantitative methods to the benefit of buy-side industry experts, as well as the broader community of private investors. The author investigates the thin boundary between the advantages and the risks of market innovation. I think the proposed approach is going to influence and permanently shape market regulation in the years to come. The spell for transparency is rigorous but not detrimental to the industry freedom to act: abandoning the prescriptive dogmatism of classical regulation, modern risk-based regulation here outlined will provide a consistent framework for wealth managers to operate freely, but will also enforce ethical and objective standards for aligning industry interests to the investors' benefits. Worth reading!