Financial engineering


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Financial engineering

Combining or carving up existing instruments to create new financial products.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
have been a particular boom area for financial engineering during this cycle, which highlights some of the previous points (e.g., Lund et al.
"The growth in public revenues mainly comes as a result of the tax on financial engineering operations of the Central Bank conducted in 2016 and which amounted to $775 million," the report explained.
As far as the impacts of the financial engineering in the income statement, the bank identified $642.9 million of its non-interest income as having been generated by BDL exchange transactions and $86.8 million in exceptional tax expenses from the same operation.
Hence, the impact of financial engineering on overall returns and value creation has diminished significantly over the last few years and with continued low levels of debt and high acquisition premiums, this trend is expected to continue in the short to mid-term.
The preliminary research took place in the MIT Laboratory for Financial Engineering (which Lo heads) in 2012, with findings reported in a paper published that year titled "Can financial engineering cure cancer?" With co-authors Jose-Maria Fernandez and Roger Stein, Lo's research concluded that it is possible to use financial engineering tools to at least jumpstart biomedical research into the causes of and finding cures for diseases like cancer.
At a very basic level the Commission has indicated that it sees the use of structural funds being delivered by financial engineering instruments which are essentially public/private investment vehicles which lend money rather than granting it.
Organisers said the title sponsor is Lincoln, and event sponsors are Mashreq Bank, Terra Nex Financial Engineering and Grant Thornton.
He started his career in the private sector in Italy in financial engineering and management before joining the Commission, in 1994, as development advisor in Malawi.
An unusually lengthy calm had lulled many into thinking that financial engineering by the European Central Bank (ECB) and other authorities had succeeded in bringing a substantial measure of sustainable stability to European markets.
The main contribution of this financial engineering study is to complexly assess opportunities of the market price directional forecasting of liquid investment instruments and also discuss how to use the possible forecasting improvement for a financial profit making.
A cross-party group will examine the problem after Labour's John Clancy claimed councillors were "deterred from getting a grip" on the costs of what he called a "complex piece of financial engineering".
Delegations representing Oman Sultanate, Yemen, Egypt, Libya, Mauritania, Saudi Arabia and Bahrain are expected to take part in this annual event which is organized by Khartoum-based Bayan Centre for Islamic Financial Engineering.

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