Financial Engineering Certification Program

Why Select this Training Course?

Financial Engineering involves applying mathematical processes to resolve complex financial problems such as converting illiquid assets into liquid ones and the problem of erratic cash flow generation. Most insurance agencies, regular commercial banks, hedge funds, and investment banks use Financial Engineering to create innovative and structured financial tools and products.

What is the importance of financial engineering?

Financial Engineering aims to diminish investment risks by evaluating a portfolio’s absolute risk. It also creates real-time mathematical simulations to forecast and analyze the future behavior of the market.

How does financial engineering work?

Financial Engineering requires applying mathematical techniques across a range of tasks in the finance sphere. These tasks include arbitrage, corporate finance, trading, financial regulation, and quantitative portfolio management. This finance branch also requires using economic simulations to project how specific assets will perform compared to other assets. Finally, Financial Engineering also involves using mathematical models to test and issue new tools such as unique debt offerings, methods of investment analysis, financial models, trading strategies, and investments.

The Rcademy Financial Engineering Certification Program is designed to help participants understand how technical methods such as computational finance and mathematical finance can be used in creating structured financial tools and products. This course covers Financial Engineering applications, such as real options commodities, energy derivatives, and algorithmic trading. This course will expose trainees to new quantitative roles such as risk management and programming, delivering risk models and trading directly, library control, and model validation.

Who Should Attend?

The Financial Engineering Certification Program by Rcademy is curated for finance professionals involved in Financial Engineering and persons looking to pursue a career in this field. The following persons should participate in this training program:

• Chief financial officers: tasked with the responsibility of supervising the use of mathematical models in financial products
• Quantitative researchers, traders, and developers: who are involved in Financial Engineering
• Algorithmic traders and portfolio managers: who are interested in pursuing a career in Financial Engineering
• Strategic planners: tasked with the responsibility of constructing a company’s strategic financial plans
• Public officials: working for governments in formulating state and federal fiscal policies.
• Finance engineers: that are interested in improving their knowledge and expertise in Financial Engineering
• Professionals interested in working in high-level financial planning, modeling, analysis, reporting, and consulting careers

What are the Course Objectives?

The Financial Engineering Certification Program by Rcademy will equip participants with the required expertise and knowledge to succeed in Financial Engineering. Upon the completion of this program, participants would have achieved the following objectives:

• Understand the global financial markets and assess the current trends in the global financial sphere
• Understand the applications of Financial Engineering, ranging from algorithmic trading, commodity, real options, and energy derivatives
• Learn how to apply machine learning, forecasting, and econometric modeling to financial markets
• Learn how to analyze and design financial programs exploiting distributed ledger infrastructure and protocols
• Identify the risks associated with financial businesses and develop mitigation strategies
• Learn how to assess regression, hedging, and time-series model
• Develop a better understanding of fixed-income securities, derivatives, and respective pricing models
• Acquire the expertise to engineer new methods and software for enhancing forecasting outcomes or making empirical simulations that consider market variables and complex asset
• Know how to influence financial markets and make the investment process more efficient
• Learn how to build a stronger foundation in risk management, financial mathematics, dynamic pricing, revenue models, and stochastic models
• Develop a proper understanding of how to use financial modeling tools to forecast market performance, enhance investment decisions, design innovative financial instruments, and formulate data-driven risk management strategies

How will this Course be Presented?

The Rcademy Financial Engineering Certification Program is designed to meet the trainees’ expectations while improving their knowledge and skills about the course. Industry experts will deliver the course with several years of practice and experience. The Rcademy course is designed to cover both the theoretical and practical aspects of Financial Engineering. The theoretical aspect of the course will be delivered through classroom sessions, videos, and providing additional reading materials. The course also integrates workshops, equipment demonstrations including Bloomberg and data stream, and real-world case studies to expose participants to practical experiences in Financial Engineering. Attendees will also partake in presentations, quizzes, group work, and constant feedback on lessons to ensure participation and interaction.

What are the Topics Covered in this Course?

Module 1: Fundamentals of Financial Engineering

• Meaning
• Importance
• Advantages
• Disadvantages
• Types
  – Derivatives trading
  – Speculation
  – Foreign exchange market trading
  – Repackaging structured products
  – Options trading

Module 2: Methods of Financial Engineering

• Need identification
• MVP creation
• Complex model designing
• Product quality assurance
• Perfect product
• Pricing

Module 3: Building Blocks of Financial Engineering

• Cash instruments
  – Cash and cash equivalents
  – Money market instruments
  – Stocks and bonds
• Forwards and Swaps
• Options
  – Vanilla derivative
  – Exotics derivative
  – Interest rate options
• Credit Derivatives

Module 4: Assessing Swap Curves

• The “Par” curve
• Accrual and Yield Conventions
• Bootstrapping the Swap Curve
  – Spot rates
  – Discount factors
  – Using FRAs
  – Deposit futures and par swaps
  – Convexity adjustment
• Forward Rates
  – Developing forward rates from the spot curve
  – Pricing FRAs and other forward contracts
• Pricing Swaps
  – Standard swaps
  – Amortising and accreting swaps
  – Forward starting swaps
  – Shifting the spread from fixed to the floating side
  – Pricing currency swaps

Module 5: Pricing

• Advanced pricing models
  – Black Scholes
  – Multi-period binomial model
• Option pricing models
  – Models for Stock Options (B&S + CRR)
  – Models for Interest Rate Options: Black and BDT, Hull-White, etc.
• Volatility Estimation and Forecasting Techniques

Module 6: Constructing Basic Structured Products

• Interpreting the Required Risk/Return Profile
  – Generic risks
  – Risk factors
• Constructing the product utilizing the Chinese Menu Approach

Module 7: Mathematical Foundations Essential for Financial Engineering

• Linear algebra
• Applied computational techniques
• Probability
• Statistics
• Stochastic processes

Module 8: Complex Financial Engineering Contracts

• Portfolio insurance
• Swaps

Module 9: Scope of Financial Engineering

• Quantitative analysis
• Risk management
• Investment analysis
• Trading
• Banking

Module 10: Finacial Engineering- Real-Life Case Scenarios

• Sale of MW Petroleum Corporation to the Apache Corporation in the 1990s
• Creation of capped price support warranty

Module 11: Skills Required of a Financial Engineer

• Mathematical finance
• Algorithmic trading
• Quantitative analysis
• Asset allocation
• Binomial distribution