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 ?
Lane suggested that corporate financial engineering is at the UK current account deficit's core, and that Britain's external economic weakness could have been overstated in official figures.
June 11, 2015 /PRNewswire-USNewswire/ -- In a newly published listing of the 25 best financial engineering master's degree programs in the United States, the New York University Polytechnic School of Engineering ranked fifth.
This study frames a generic picture on the concept of the need for financial engineering and on the innovative instrument titled, 'Banker Certificate'.
Now, before anyone complains that the fees are too high, please do remember that the proceeds from financial engineering can be as high as $70 million for just one transaction alone, and so - obviously - the fees for teaching it must reflect the quantum of advantage it can bestow on the individual who masters it.
Proceedings from an international conference held in Singapore in April 2009, bringing together researchers, scientists, engineers, and practitioners to share their experiences, new ideas, and research results in information and financial engineering.
Previously, mathematical analysis experts for insurance businesses have examined factors that make the management of insurance contracts and pension programs unstable, while experts on financial engineering have studied risks associated with asset management.
The firm's two other early partners, Michael Murray, 33, and Brian Nevel, 29, both Howard University alumni, served stints at Merrill's municipal financial engineering desk Their educational backgrounds in high-tech fields helped prepare them for the derivatives market: Murray earned a B.
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.
Modulus Financial Engineering, Inc, a technology provider to financial institutions, professional traders and organizations worldwide plans to release the product on a white label basis through a network of retail brokerages and technology partners.
The topics discussed include real options and variational inequalities, optimal consumption and investment in the presence of a stopping choice, stochastic control methods for the joint optimization of the risk and dividend policies of firm, nonlinear expectation and limit theorems, and financial engineering and agency problems.

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