Of synthetic finance : three essays of speculative materialism

Synthetic finance revolutionizes materialism such that we can now create wealth in the process of universally distributing it. While financial innovation in global capitalism provided the conditions for the 2008 financial crisis, it has also engineered a set of financial technologies with universal distributive potential. This book explains this possibility and demonstrates how it can be achieved through a rigorous ontological exposition of the radical, nomadic, distributive power of synthetic finance. It also illustrates that Gilles Deleuze is the heterodox political economist who best reveals its profound material capacities. This book articulates an innovative method for the study of finance, fundamentally revaluates political economy as a discipline and practice, and inaugurates a research project from which derivative methodologies and approaches to critical finance can evolve. Of Synthetic Finance actualizes a new kind of heterodox political economy called speculative materialism, and advocates a radical project of speculative materialist financial engineering. Both of these are predicated on the deployment of the latent, nomadic, monstrous capacities of synthetic finance to create and universally distribute risk and cash flow. This book is a must read for anyone interested in critical finance, the financial crisis and the future of political economy. "Synthetic finance revolutionizes materialism such that we can now create wealth in the process of universally distributing it. While financial innovation in global capitalism provided the conditions for the 2008 financial crisis, it has also engineered a set of financial technologies with universal distributive potential. This book explains this possibility and demonstrates how it can be achieved through the use of rigorous ontological exposition of the radical, nomadic and distributive power of synthetic finance. It also illustrates that Gilles Deleuze is the heterodox political economist who best reveals its profound material capacities. This book articulates an innovative method for the study of finance, fundamentally revaluates political economy as a discipline and practice, and inaugurates a research project from which derivative methodologies and approaches to critical finance can evolve. Of Synthetic Finance actualizes a new kind of heterodox political economy called speculative materialism, and advocates a radical project of speculative materialist financial engineering. Both of these are predicated on the deployment of the latent, nomadic, monstrous capacities of synthetic finance to create and universally distribute risk and cash flow. This book is a must read for anyone interested in critical finance, the financial crisis and the future of political economy"-- Provided by publisher Cover 1 Half Title 2 Series Page 3 Title Page 14 Copyright Page 15 Dedication 16 Table of Contents 18 List of illustrations 20 Acknowledgments 21 Introduction 22 1 Some material properties of synthetic finance 27 Moneyness 27 Divisibility 28 Reversibility 30 Liquidity 34 Maturity 43 Risk 46 Cash flow 50 First ontological principle of synthetic finance 59 2 The materialism of synthetic finance: a case study on credit derivatives in seven notes 63 Note 1 Credit default swaps 63 Note 2 Total return swaps 65 Note 3 Credit derivatives 68 Note 4 Tranches 73 Note 5 Credit linked notes 77 Note 6 Structured investment vehicles 81 Note 7 Synthetic CDOs 85 Ending with a modest proposal 90 3 Wagers of the synthetic: Difference & Repetition as heterodox political economy 94 Introduction 94 Synthetic symmetry 95 Hyperfungibility 100 Speculative materialist communism 102 Nomadic distribution 104 Virtual objects 107 Qualitative multiplicities 113 Three wagers of speculative materialism 124 Appendices: two kinds of symmetry, three classes of exchange 130 Appendix 1 – Symmetry and exchange (or, economic transformations) 130 Appendix 2 – Classical exchange 133 Appendix 3 – Generic finance 141 Appendix 4 – Synthetic finance 148 Appendix 5 –Markets as multiplicities 155 Index 159 Content: 1. Some Material Properties of Synthetic Finance 2. The Materialism of Synthetic Finance: A Case Study on Credit Derivatives in Seven Notes 3. Wagers of the Synthetic: Difference & Repetition as Heterodox Political Economy Appendix: Two Kinds of Symmetry, Three Classes of Exchange