I’v always been into microeconomics (particularly of the individual and of the firm) but the breadth of that field means that I’ve not really ever got to grips with specialist financial products in anything more than the broadest terms. I understand the principles and could probably have a decent conversation on Mogdaliani-Miller or Black-Scholes, but two days ago I didn’t understand what CDOs were, or how they were created. Thankfully, John Kay’s The Long and the Short of It is proving useful to refresh the basics, and this Harvard Business School article (found via Marginal Revolution) was very interesting on structured finance and the limitations of rating agencies. I recommend both.