Financial engineering


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Financial engineering

Combining or carving up existing instruments to create new financial products.

Financial Engineering

The process of creating a new investment vehicle. For example, one may create a new derivative by taking existing structures and altering them to mitigate risk and/or increase the return. One may also theoretically invent a completely new financial product from nothing. Financial engineering is often mathematically intensive, as a number of risks and other factors must be considered before the new product is marketable.
References in periodicals archive ?
The background against which this financial engineering played out is not a crisis or recession as the events that triggered quantitative easing measures by the Federal Reserve System after 2008 or by the European Central Bank during the current decade in the course of various national crises in euro-zone countries.
We have seen an unusual inflow of funds thanks to the Central Bank financial engineering," the banker said.
In the field of financial engineering, academics have studied how to hedge against short-term risks associated with asset management.
Discussion will focus on industry issues of performance, competitiveness, financial engineering, environmental risk management, and effective operations management.
During the economic downturn, outsourcers should expect to see increased demand for financial engineering through outsourcing," said Caldwell.
The science of structuring derivatives and other related securities is often referred to as financial engineering.
Even when Revlon tried to use financial engineering it backfired.
Money market financial engineering became more imaginative and more divorced from reality.
The annual IAFE/SunGard FEOY Award, established in 1993, recognizes individual contributions to the advancement of financial engineering technology.

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