What is Financial Engineering?
Financial engineering is the application of science-based mathematical models to decisions about saving, investing, borrowing, lending, and managing risk.
It is a multidisciplinary field. It involves financial knowledge, business knowledge, mathematics, statistics, and very importantly, computation, because there’s little you can achieve without computation.
Financial engineering would be the study of how to create functional financial devices such as convertible bonds, warrants, synthetic CDOs.
Uses of Financial Engineering
Financial engineering is used across a broad range of tasks in the financial world. Some of the areas where it is most commonly applied are the following:
- Portfolio Management
- Corporate Finance
- Risk Management
- Algorithmic Finance
- Investment Analysis
- Credit Management
If you want to learn more about financial engineering, you can check the categories listed below:
