LOS ANGELES — The same tool that many blame for the current housing slump is actually the key to facilitating a more stable and sustainable financing system for housing: financial innovation.
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: Financial Innovations for the Future" (Pearson Prentice Hall, ISBN: 9780137011605, $34.99, 208 pages, February 2012), three leading experts explain how, covering everything decision-makers should know about today's housing and financial markets.
"Even though complex and opaque securitization contributed in part to today's housing slump, by no means should that make us afraid of the power of financial innovation to improve the market for the future," says author Franklin Allen.
The authors begin by explaining how 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 assess current housing finance structures in emerging economies such as Brazil, Russia, India and China.
"Growth in the United States — and globally — will be hobbled without a recovery of a sustainable housing market," says author Glenn Yago. "The need to create housing and urban centers that are sustainable, both environmentally and financially, requires innovations in construction, energy efficiency — and housing finance."
For anyone interested in interested in the challenges and solutions associated with the current housing slump, this book will build on insights into the past and ultimately explore practical development strategies to bridge funding gaps for the future-raising more capital for longer terms at lower cost. "Fixing the Housing Market" will:
• Demystify housing finance, showing how financial innovation can overcome information gaps that disrupt housing markets, promote homeownership, and make housing more affordable
• Help entrepreneurs, economic development specialists and policymakers develop strategies for improving the housing markets in their specific regions
• Reflect crucial lessons learned in the housing bubble and bust
About the Authors
• Franklin Allen (Philadelphia), Professor of Finance and Economics at Wharton, co-directs its Financial Institutions Center. He coauthored Financing the Future and Principles of Corporate Finance.
• James R. Barth (Santa Monica, Cal.), Lowder Eminent Scholar in Finance at Auburn and Milken Institute Senior Fellow, coauthored (with Glenn Yago) The Rise and Fall of the U.S. Mortgage and Credit Markets.
• Glenn Yago (Santa Monica, Cal.), Milken Institute Senior Director/Senior Fellow founded its Financial Innovations Labs and coauthored Financing the Future.
About FT Press
FT Press (www.ftpress.com), an imprint of Pearson, publishes high quality books in the areas of General Business, Finance and Investing, Sales and Marketing, Leadership, Management Strategy, Human Resources, and Global Business. Our brand is built on the concept of signing and publishing the world's best minds on the most relevant topics.
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