The financial engineering is a phenomenon or simply a process innovating path in the finance industry. The new finance processes and the financial instruments developed and used by various financers now are nothing but the product of financial engineering. The new terms like zero-coupon convertible debt and adjustable rate preferred stock, added to the dictionary of finance by new Palgrave are nothing but the recent innovations made in finance industry. Well to be in simple terms, these innovations are made by altering the basic techniques of finance like risk management, income stream swapping, pooling risk like mutual funds, income stream splitting and conversion of obligations that are long time into short times.
But, the phenomenon of financial engineering is not just alterations in basic techniques but producing a new technique itself. A new process or security system that cut down the issues faced by the financers these days fully or to some extend at least. The initiatives for finance engineering were taken after realization of Wall Street in need of a new stream in 1990’s. There are ten forces which inspire financial engineering. They were risk management, cost reduction of agencies and issuances, tax advantages, regulation compliance, changes in the interest and rate of exchange, advancements in technology, gimmicks accounting and research academics.
Finance engineering and the role of finance engineers
A simple definition about finance engineering states that financial engineering is a process that can be viewed as a fine tuning of the financial products in existence in order to improve the returns and risk characteristics of varying market conditions. It is a process that allows financial products in existence to be refurbished and restructured for taking advantages over the changing taxation.
A finance engineer is the one who makes use of his mathematical and computer knowledge to work in finance industry. But this is just a general work description of a finance engineer. But the people who choose financial engineering as their major now tends to see the subject in different perspectives like becoming a commercial banker, a financial analyst, a corporate treasurer, a corporate recruiter and a finance engineer. As a whole, the new discipline still doesn’t have a clear definition of itself. But it is clear that the role of a finance engineer lies with finance only. John Finnerty has defined finance engineering as a discipline that involves design, development and implementation of financial processes and instruments that are so innovative and formulating creative solutions.
Future of finance engineering in India
In India, finance is one of the finest fields to build a better career. Especially in a growing market like India, the finance engineering need is very high as the market requires more new techniques to be incorporated in it. The career prospectus is good for a finance engineer in India and it provides excellent growth opportunities. After successful completion of financial engineering course, one can expect great opportunities from different financial sectors like banking, insurance, security trading and in engineering consultancies. There are many Institutes and Corporate Bodies in India that train new talents in Financial Engineering and various aligned courses. Executive programs in Algorithmic Trading (E-PAT) and Certificate in Quantitative Finance (CQF) are two of the most advanced courses that will get you prospect jobs in right direction.
But, the phenomenon of financial engineering is not just alterations in basic techniques but producing a new technique itself. A new process or security system that cut down the issues faced by the financers these days fully or to some extend at least. The initiatives for finance engineering were taken after realization of Wall Street in need of a new stream in 1990’s. There are ten forces which inspire financial engineering. They were risk management, cost reduction of agencies and issuances, tax advantages, regulation compliance, changes in the interest and rate of exchange, advancements in technology, gimmicks accounting and research academics.
Finance engineering and the role of finance engineers
A simple definition about finance engineering states that financial engineering is a process that can be viewed as a fine tuning of the financial products in existence in order to improve the returns and risk characteristics of varying market conditions. It is a process that allows financial products in existence to be refurbished and restructured for taking advantages over the changing taxation.
A finance engineer is the one who makes use of his mathematical and computer knowledge to work in finance industry. But this is just a general work description of a finance engineer. But the people who choose financial engineering as their major now tends to see the subject in different perspectives like becoming a commercial banker, a financial analyst, a corporate treasurer, a corporate recruiter and a finance engineer. As a whole, the new discipline still doesn’t have a clear definition of itself. But it is clear that the role of a finance engineer lies with finance only. John Finnerty has defined finance engineering as a discipline that involves design, development and implementation of financial processes and instruments that are so innovative and formulating creative solutions.
Future of finance engineering in India
In India, finance is one of the finest fields to build a better career. Especially in a growing market like India, the finance engineering need is very high as the market requires more new techniques to be incorporated in it. The career prospectus is good for a finance engineer in India and it provides excellent growth opportunities. After successful completion of financial engineering course, one can expect great opportunities from different financial sectors like banking, insurance, security trading and in engineering consultancies. There are many Institutes and Corporate Bodies in India that train new talents in Financial Engineering and various aligned courses. Executive programs in Algorithmic Trading (E-PAT) and Certificate in Quantitative Finance (CQF) are two of the most advanced courses that will get you prospect jobs in right direction.