Financial Engineering
The creation of new and improved financial products through innovative design or repackaging of existing financial instruments. Investopedia Says:
Financial engineers use various mathematical tools in order to create new investment strategies. The new products created by financial engineers can serve as solutions to problems or as ways to maximize returns from potential investment opportunities. Related Terms:
Asset-Backed Security - ABS
Dertivative
Futures Contract
Hybrid Security
International Association of Financial Engineers - IAFE
Mortgage-Backed Security - MBS
Option
Reverse Mortgage
Security |