Principles of Financial Engineering 3rd Edition
Principles of Financial Engineering 3rd Edition is an introduction. It deals with a broad array of topics that fit together through a certain logic that we generally call Financial Engineering. The book intended for beginning graduate students and practitioners in financial markets. The approach uses a combination of simple graphs, elementary mathematics, and real-world examples. The discussion concerning details of instruments, markets, and financial market practices is somewhat limited. The pricing issue is treated in an informal way, using simple examples. In contrast, the engineering dimension of the topics under consideration is emphasized.
You can also Read Principles of Solar Engineering 3rd Edition
Principles of Financial Engineering 3rd Edition
- Introduction
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- Institutional Aspects of Derivative Markets
- Cash Flow Engineering, Interest Rate Forwards and Futures
- Introduction to Interest-Rate Swap Engineering
- Repo Market Strategies in Financial Engineering
- Cash Flow Engineering in Foreign Exchange Markets
- Cash Flow Engineering and Alternative Classes (Commodities and Hedge Funds)
- Dynamic Replication Methods and Synthetics Engineering
- Mechanics of Options
- Engineering Convexity Positions
- Options Engineering with Applications
- Pricing Tools in Financial Engineering
- Some Applications of the Fundamental Theorem
- Fixed Income Engineering
- Tools for Volatility Engineering, Volatility Swaps, and Volatility Trading
- Correlation as an Asset Class and the Smile
- Caps/Floors and Swaptions with an Application to Mortgages
- Credit Markets: CDS Engineering
- Engineering of Equity Instruments and Structural Models of Default
- Essentials of Structured Product Engineering
- Securitization, ABSs, CDOs, and Credit Structured Products
- Default Correlation Pricing and Trading
- Principal Protection Techniques
- Counterparty Risk, Multiple Curves, CVA, DVA, and FVA
- References
- Index
The world of financial engineering and derivatives has changed significantly after the Global Financial Crisis (GFC) of 20082009 with a bigger emphasis on simplicity, standardization, counterparty risk, central clearing, liquidity, and exchange trading. But only 5 years after the GFC, new complex products such as contingent convertibles (CoCos) have been sold by banks to investors and prices of risky assets are again at all time highs. Understanding the principles of financial engineering can help us not only to solve new problems but also to understand hidden risks in certain products and identify risky and inappropriate financial engineering and market practices early enough to take action accordingly.
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