Question: Financial Engineers

Society Business and Career
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Re: Question: Financial Engineers

Actually I agree with Kaka on this one. Its mostly these money making ideas with the shift of products , in essence ability to create a new success formula from new or existing products in the market and give the company the ability to make money on that formula. That is what financial engineering is all about.

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Re: Question: Financial Engineers

Thanks kaka. Very informative. Didn't fully understand 1st sentence - "I create a bet with you that Obama rating will fall".

Does that mean I and you in above sentence are on same side of the bet.

Ms. Biryani, how dare you agree with my opponent. Consider yourself on the enhanced - stalked list

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Re: Question: Financial Engineers

:smokin: apologies Southie sir.. I had to agree why they opponent for the sake of truth :cb:

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Re: Question: Financial Engineers

Means we write a contract which makes you pay me $100 if ratings go down and I pay you $100 if ratings do not go down. You can sell this bet to CB. This contract should be transferable and later transactions would be designed by financial engineers, specially regarding how these instruments would be priced.

Just like banks sold rights to receive housing mortgages to other banks and those banks bundled the those mortgages together and sold to investment banks as 'mortgage backed securities'. Those investment banks traded such securities making money for themselves, eventually taking down the economy :D

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Re: Question: Financial Engineers

Thanks!

Such a clear explanation.