Syllabus
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Course Code: FM-401 Course Name: Specialisation-A: FINANCE - Financial Engineering |
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| MODULE NO / UNIT | COURSE SYLLABUS CONTENTS OF MODULE | NOTES |
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| 1 | Financial engineering – meaning and need of financial engineering, financial engineering vis-à-vis financial analysis, tools used in financial engineering, growth and need for financial engineering, skill set required for financial engineering. Financial engineering in India: Financial Derivatives and futures markets. Nature, types and value derivers of financial instruments and products viz., time value of money, required rate of return, valuation: Absolute and relative valuation, risk –return, investment horizon and portfolio considerations. Financial engineering processes and strategies – assets and liabilities management, securitization, asset backed securities, mortgage backed securities, corporate restructuring and leverage buyouts/ management buyout, value at risk (VAR). Emerging instruments: Hybrid securities, credit derivatives, options on debt instruments, exotic options, synthetic instruments, and issues related to accounting treatment of derivatives. Corporate risk management – planning and controlling reasons for hedging, cash flow hedges and value hedges, capital structure and hedging, interest rate risk management. |
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