(230 pages, $49.99 hardcover, 2012, ISBN 978-0-13-292911-0) by Michael Lovelady, published by FT Press.
Option-based “synthetic annuities” allow investors to generate higher returns, provide downside protection, and utilize risk more efficiently. This strategy shows how to use them to support a range of trading and investing goals. Synthetic annuities blend the best features of traditional portfolios with the risk management discipline of quantitative investing, increasing current yields while reducing volatility. The strategy is presented with graphics and simplified models. The author explains the entire “ecosystem” of theories, products, and tools surrounding synthetic annuities, and shows exactly how to integrate them with other investment and portfolio management techniques.