{"product_id":"9781430261346","title":"Practical Methods of Financial Engineering and Risk Management: Tools for Modern Financial Professionals","description":"\u003cp\u003e    \u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e\u003cp\u003eRisk control, capital allocation, and realistic derivative pricing and hedging are critical concerns for major financial institutions and individual traders alike. Events from the collapse of Lehman Brothers to the Greek sovereign debt crisis demonstrate the urgent and abiding need for statistical tools adequate to measure and anticipate the amplitude of potential swings in the financial markets—from ordinary stock price and interest rate moves, to defaults, to those increasingly frequent \"rare events\" fashionably called \u003ci\u003eblack swan events\u003c\/i\u003e. Yet many on Wall Street continue to rely on standard models based on artificially simplified assumptions that can lead to systematic (and sometimes catastrophic) underestimation of real risks. \u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e\u003cp\u003eIn \u003ci\u003ePractical Methods of Financial Engineering and Risk Management\u003c\/i\u003e, Dr. Rupak Chatterjee— former director of the multi-asset quantitative research group at Citi—introduces finance professionals and advanced students to the latest concepts, tools, valuation techniques, and analytic measures being deployed by the more discerning and responsive Wall Street practitioners, on all operational scales from day trading to institutional strategy, to model and analyze more faithfully the real behavior and risk exposure of financial markets in the cold light of the post-2008 realities. Until one masters this modern skill set, one cannot allocate risk capital properly, price and hedge derivative securities realistically, or risk-manage positions from the multiple perspectives of market risk, credit risk, counterparty risk, and systemic risk.\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e\u003cp\u003eThe book assumes a working knowledge of calculus, statistics, and Excel, but it teaches techniques from statistical analysis, probability, and stochastic processes sufficient to enable the reader to calibrate probability distributions and create the simulations that are used on Wall Street to valuate various financial instruments correctly, model the risk dimensions of trading strategies, and perform the numerically intensive analysis of risk measures required by various regulatory agencies.\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e         What you’ll learn\u003cp\u003e\u003c\/p\u003e\u003cp\u003e\u003ci\u003ePractical Methods\u003c\/i\u003e lays out the core financial engineering and risk management concepts and techniques that real-world practitioners use on a daily basis, including:\u003c\/p\u003e\u003cul\u003e\n\u003cli\u003eBloomberg analysis of financial instruments\u003c\/li\u003e\n\u003cli\u003eStatistical analysis of financial data\u003c\/li\u003e\n\u003cli\u003eSimulation of stochastic processes\u003c\/li\u003e\n\u003cli\u003eStatistical modeling of trading strategies\u003c\/li\u003e\n\u003cli\u003eOptimal hedging Monte Carlo (OHMC) methods\u003c\/li\u003e\n\u003cli\u003eCredit derivatives valuation\u003c\/li\u003e\n\u003cli\u003eCounterparty credit risk (CCR) and credit valuation adjustment (CVA)\u003c\/li\u003e\n\u003cli\u003eBasel II and III risk measures \u003c\/li\u003e\n\u003cli\u003ePower laws and extreme value theory (EVT)\u003c\/li\u003e\n\u003cli\u003eHedge fund replication\u003c\/li\u003e\n\u003c\/ul\u003e\u003cp\u003e\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003eWho this book is for      \u003cp\u003e     \u003ci\u003ePractical Methods of Financial Engineering and Risk Management\u003c\/i\u003e is for Wall Street professionals and advanced students training to be risk managers, quantitative analysts, portfolio managers, and traders.      \u003c\/p\u003e     Table of ContentsChapter 1. Financial InstrumentsChapter 2. Building a Yield CurveChapter 3. Statistical Analysis of Financial DataChapter 4. Stochastic ProcessesChapter 5. Optimal Hedging Monte Carlo (OHMC) MethodsChapter 6. Introduction to Credit DerivativesChapter 7. Basel II, Basel III, and Credit Valuation Adjustment (CVA)Chapter 8. Modeling Extreme Moves with Power LawsChapter 9. Asset Replication\u003cp\u003e\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e","brand":"Apress","offers":[{"title":"Default Title","offer_id":47154269978864,"sku":"9781430261346","price":55.99,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0737\/7593\/9824\/files\/9781430261346_p0.jpg?v=1763751029","url":"https:\/\/shop-qa.barnesandnoble.com\/products\/9781430261346","provider":"Barnes \u0026 Noble (DEV)","version":"1.0","type":"link"}