Semester.ly

Johns Hopkins University | EN.550.448

Financial Engineering and Structured Products

4.0

credits

Average Course Rating

(3.78)

This course focuses on structured securities and the structuring of aggregates of financial instruments into engineered solutions of problems in capital finance. Topics include the fundamentals of creating asset-backed and structured securities—including mortgage-backed securities (MBS), stripped securities, collateralized mortgage obligations (CMOs), and other asset-backed collateralized debt obligations (CDOs)—structuring and allocating cash-flows as well as enhancing credit; equity hybrids and convertible instruments; asset swaps, credit derivatives and total return swaps; assessment of structure-risk interest rate-risk and credit-risk as well as strategies for hedging these exposures; managing portfolios of structured securities; and relative value analysis (including OAS and scenario analysis).

Spring 2014

(3.52)

Spring 2015

(4.04)

Spring 2014

Professor: David Audley

(3.52)

The best aspects of this course included the interesting material covered, the intellectual chal enge, and the additional philosophical aspect of the lectures. Students thought the newness of the field was exciting. The worst aspects of the course were the disorganization during review sections and the difficulty of the exam. Many students found the textbook unhelpful. Giving more specific exercises and 16 examples in class and a better textbook were suggested improvements to the course. Prospective students should know this is a very useful class if you intend on entering the financial field, and the workload is moderate.

Spring 2015

Professor: David Audley

(4.04)

The best aspect of this course was the ability to relate concepts to the real world. Several students noted that the material covered was highly relevant for future work in financial engineering. Students felt that the professor did not effectively deliver concepts in a clear manner, and that TA’s were difficult to understand and not helpful. Suggestions for improvement included inviting industry professionals to give guest lectures and having more assignments with productive feedback. Prospective students should do al assigned readings to better understand course concepts.