BAFI 516 Financial Engineering

BAFI 500

Financial engineering involves the creative use of financial products and strategies to solve important problems in corporate finance and investments. Examples include: using packages of securities to shape risks and returns (e.g., using “zero-cost collars” to help company founders realize value from an IPO); banks offering “rate riser” and “index linked” deposits and other structured products; use of Asset-Backed Commercial Paper to help finance corporate investments; the role of loan securitization and Collateralized Debt Obligations in mortgages, credit cards, etc. to mobilize capital, pool and shape risks; use of financial engineering techniques to structure venture financing deals, manage tax and legal issues, etc.

Instructor Biography - Lorenzo Garlappi

Course Outline - Class of 2018 (updated August 1, 2017)

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