What is financial engineering

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Financial Engineering is the application of mathematics and computer programming skills to solve certain problems in finance drawing on tools of statistics, economics, computer science and applied mathematics.

Investment banks, commercial banks, insurance companies, corporate treasuries and regulatory agencies employ financial engineering in USA, Britain and other countries with robust financial markets.

-What is financial engineering.

-What are credit default swaps and their role in the financial crisis/near collapse of 2008?

-Describe the roles of investment bankers, commercial banks, bond credit rating agencies, and Congressional Legislation in the crisis.

-Describe the impact on this entire scenario of the Community Reinvestment Act of 1977.

-Describe what financial leverage is, and its role in leading up to the collapse.

-Describe how investment and commercial banks apply the methods of financial engineering to problems such as (i) new product development, (ii) derivative securities valuation, (iii) portfolio structuring, and (iv) risk management.

Reference no: EM131017232

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