Describing the collapse of the subprime mortgage CDO market in 2007, Derman urges readers to stop relying on these financial models where possible, and offers suggestions for mending these models where they might still do some good. This is a fascinating, lyrical, and very human look behind the curtain at the intersection between mathematics and human nature. 256 pp. 50,000 print.

Reviews

"This is a thoughtful book for anyone interested in the overlap between the hard sciences and the soft sciences, from physicists to bankers. But finance academics beware, Professor Derman, with an iron fist in a velvet glove, gives them a good slapping." --Paul Wilmott, co-author "Financial Modelers' Manifesto"