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Index
Praise
Title Page
Copyright Page
Dedication
Foreword
Preface
Acknowledgements
CHAPTER 1 - Understanding and Navigating the Financial Revolution
Introduction: The Need for Transformational Thinking
From George Bailey to the Golden Age
Accounting for Profits the Old-Fashioned Way
The “Great Moderation” As an Evolutionary Catalyst
Economic Performance in the Dynamic New World
Pressures on Static Business Models
Dynamic Finance Perspective on Financial Crises
Pillars of Strategic Decision Making
Value Creation Through Dynamism and Business Model Transformations
Beyond the Façade: The Importance of Risk-Based Transparency
CHAPTER 2 - The Old Regime and Its Demise
Economic Performance and Viability of Financial Institutions
Static Business Models
Dominant Forces: The Future that Has Already Happened
Pressures on Static Business Models
Pressures on Securities Firms, Money Center Banks, and Monoline Insurers
CHAPTER 3 - The Dynamic New World
Risk-Based Economic Performance
Balance Sheet Arbitrage (α)
Principal Investments (α)
Systematic Risk Exposures (Σβ · RP)
Fees and Expenses (+F - E)
Capital Structure Optimization (C)
Economic Performance Attribution
CHAPTER 4 - Business Model Transformations
Pillars of Strategic Decisions in a Dynamic World
Responsive Recalibrations of Business Models
Full-Scale Business Model Transformations
Making the Strategic Vision a Reality
CHAPTER 5 - The Road to Financial Darwinism
Real-World Business Model Transformations
Stakeholder Communication & Equity Valuation in a Dynamic World
Economic Value Creation (and Destruction) by Non-Financial Corporations
The Infamous “Carry Trade” and the Old Ways of Thinking
A Dynamic Finance Perspective on Modern Financial Crises
Beyond the Façade: The Need for Risk-Based Transparency
Conclusion
EPILOGUE
APPENDIX A - The Risk-Based Economic Performance Equation
APPENDIX B - A Case Study in Dynamic Finance
Notes
References
About the Author
Index
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