Many other financial modeling books explain either application functions or specific theoretical concepts. These books are good for learning a program or understanding an academic topic, yet they are difficult to translate into a functioning financial model. By combining specific application instruction with theory, this book teaches skills that can be applied instantly to professional level modeling. While the book focuses on structured finance analysis, the model created here can be adapted for use in other fields. A fundamental question is whether a cash flow model is the appropriate choice for the transaction under consideration. With cheap memory, powerful processors, and constant evolutions in financial analytics, a multitude of models are available ranging from real-time market value models to code-intensive Monte Carlo simulations. The cash flow model is primarily used for transactions that involve assets generating cash flow, which is applied against a set of liabilities. (Page 1)
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