Book description
New banking and investment business models to navigate the
post-financial crisis environment
The financial crisis of 2007-2008 has discredited business models in
the banking and fund management industries. In The Future of
Finance, Moorad Choudhry and Gino Landuyt argue that banks must
realign their business models, implying a lower return-on-equity;
diversifying their funding sources; and increasing liquidity reserves.
On the investment side, the authors discuss how diversification did
not reduce risk, but rather amplified it, and failed to stabilize
returns. The authors conclude that the clear lesson from the crisis is
to know one's risk. A lesson that is best served by concentrating on
assets and sectors that you understand.
- Examines the weaknesses in the business models of many
institutions, as well as the theoretical foundation for
professionals in the field of finance
- Identifies the shortcomings of Modern Portfolio Theory
- Addresses how investment managers can find new strategies for
creating "alpha" and why they need to re-vamp their fee structures
Filled with in-depth insights and practical advice, The Future of
Finance will provide bankers and investment managers with a guide
to realigning their businesses in order to prosper in the post-crisis
financial markets.
Moorad Choudhry has over twenty-one years experience in investment
banking and was latterly head of treasury at Europe Arab Bank. He was
previously head of treasury at KBC Financial Products and vice
president in structured finance services at JPMorgan Chase Bank. Dr.
Choudhry is Visiting Professor at the Department of Economics, London
Metropolitan University, and Senior Research Fellow at the ICMA
Centre, University of Reading. He is a Fellow of the ifs-School of
Finance and a Fellow of the Chartered Institute for Securities and
Investment. He is on the Editorial Board of the Journal of Structured
Finance and the Editorial Advisory Board of American Securitization.
Gino Landuyt is Head of Sales at Conduit Capital in London. Prior to
that, he was head of insti-tutional structured sales at ING Bank in
Brussels, and worked with KBC Bank N. V. in their Brussels, Frankfurt,
New York, and London offices. Landuyt has an MA in applied economic
sciences from the State University of Antwerp and an MBA from the
Catholic University of Antwerp.
