or
Sign in to turn on 1-Click ordering.
Trade in Yours
For a 2.79 Gift Card
Trade in
More Buying Choices
Have one to sell? Sell yours here
Sorry, this item is not available in
Image not available for
Colour:
Image not available

 
Tell the Publisher!
Id like to read this book on Kindle

Don't have a Kindle? Get your Kindle here, or download a FREE Kindle Reading App.

Principles of Financial Engineering (Academic Press Advanced Finance) [Hardcover]

Salih N. Neftci
5.0 out of 5 stars  See all reviews (2 customer reviews)
Price: 64.66 & FREE Delivery in the UK. Details
o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o
Temporarily out of stock.
Order now and we'll deliver when available. We'll e-mail you with an estimated delivery date as soon as we have more information. Your account will only be charged when we dispatch the item.
Dispatched from and sold by Amazon. Gift-wrap available.

Formats

Amazon Price New from Used from
Hardcover 64.66  
Trade In this Item for up to 2.79
Trade in Principles of Financial Engineering (Academic Press Advanced Finance) for an Amazon Gift Card of up to 2.79, which you can then spend on millions of items across the site. Trade-in values may vary (terms apply). Learn more
There is a newer edition of this item:
Principles of Financial Engineering (Academic Press Advanced Finance) Principles of Financial Engineering (Academic Press Advanced Finance)
60.99
Available for pre-order

Book Description

5 May 2004 0125153945 978-0125153942
Bestselling author Salih Neftci presents a fresh, original, informative, and up-to-date introduction to financial engineering. The book offers clear links between intuition and underlying mathematics and an outstanding mixture of market insights and mathematical materials. Also included are end-of-chapter exercises and case studies. In a market characterized by the existence of large pools of liquid funds willing to go anywhere, anytime in search of a few points of advantage, there are new risks. Lacking experience with these new risks, firms, governmental entities, and other investors have been surprised by unexpected and often disastrous financial losses. Managers and analysts seeking to employ these new instruments and strategies to make pricing, hedging, trading, and portfolio management decisions require a mature understanding of theoretical finance and sophisticated mathematical and computer modeling skills. Important and useful because it analyzes financial assets and derivatives from the financial engineering perspective, this book offers a different approach than the existing finance literature in financial asset and derivative analysis. Seeking not to introduce financial instruments but instead to describe the methods of synthetically creating assets in static and in dynamic environments and to show how to use them, his book complements all currently available textbooks. It emphasizes developing methods that can be used in order to solve risk management, taxation, regulation, and above all, pricing problems. This perspective forms the basis of practical risk management. It will be useful for anyone learning about practical elements of financial engineering. Exercises and case studies at end of each chapter and on-line Solutions Manual are provided. It explains issues involved in day-to-day life of traders, using language other than mathematics. It offers careful and concise analysis of the LIBOR market model and of volatility engineering problems.

Special Offers and Product Promotions

  • Between 20-26 October 2014, spend 10 in a single order on item(s) dispatched from and sold by Amazon.co.uk and receive a 2 promotional code to spend in the Amazon Appstore. Here's how (terms and conditions apply)

Customers Who Viewed This Item Also Viewed


Product details

  • Hardcover: 556 pages
  • Publisher: Academic Press Inc (5 May 2004)
  • Language: English
  • ISBN-10: 0125153945
  • ISBN-13: 978-0125153942
  • Product Dimensions: 26.6 x 19 x 3.8 cm
  • Average Customer Review: 5.0 out of 5 stars  See all reviews (2 customer reviews)
  • Amazon Bestsellers Rank: 1,281,369 in Books (See Top 100 in Books)
  • See Complete Table of Contents

Product Description

Review

"This is the first comprehensive hands-on introduction to financial engineering. Neftci is enjoyable to read, and finds a natural balance between theory and practice." - Darrell Duffie, James I. Miller Professor of Finance, The Graduate School of Business, Stanford University "Neftci's book captures much of the excitement of the recent surge of theoretical and practical work on financial engineering. A variety of readers will be interested in this book, including lay people who are interested in better understanding how financial markets can be used to share and mitigate risks and practicioners who are interested in constructing and valuing new securities." - Thomas Sargent, Professor of Economics at NYU, and a Senior Fellow at the Hoover Institution, Stanford University "...an excellent book on which to base an initial course in a financial engineering or mathematics program ... [It] has a breadth and consistency that make it an excellent introduction to what practitioners need to know." - Financial Analysts Journal

About the Author

Professor Neftci completed his PhD at the University of Minnesota. Currently he teaches at the Graduate School, City University of New York, ICMA Centre, University of Reading, UK, and at the University Of Lausanne, Switzerland. He is also a Visiting Professor in the Finance Department at Hong Kong University of Science and Technology. He is the head of the FAME Certificate program in Switzerland. Professor Neftci is known for his books and articles. His books, An Introduction to the Mathematics of Financial Derivatives and Principles of Financial Engineering, are standard texts in most university derivatives courses. The more recent book, Principles of Financial Engineering, was selected as the runner up for The Book of the Year award by Risk magazine during 2004. His current research deals with pricing of contingent credit lines, the relationship between yield curve curvature and volatility. He is also working on using the Credit Default Swap prices to predict financial crises. Overall, Professor Neftci's research and teaching is in the areas of financial engineering, risk management of extreme events and in emerging market asset trading strategies. His latest papers deal with risk measurement using extreme value theory and volatility dynamics. Professor Neftci is a consultant to various financial institutions and teaches high-level courses on cutting-edge issues to advanced financial market professionals. He was recently a consultant with the World Bank and with the IFC. He regularly holds highly visible workshops for market professionals on Financial Engineering, Mathematics for Financial Derivatives, and Calibration Methods. Currently he is a Risk Management Advisor to IMF. Professor Neftci is also a regular columnist for CBN daily, a financial daily in Shanghai, the most influential financial newspaper in China. His columns dealing with current financial market activity are regularly quoted on sina.com and on sohu.com.

Inside This Book (Learn More)
Explore More
Concordance
Browse Sample Pages
Front Cover | Copyright | Table of Contents | Excerpt | Index
Search inside this book:

Sell a Digital Version of This Book in the Kindle Store

If you are a publisher or author and hold the digital rights to a book, you can sell a digital version of it in our Kindle Store. Learn more


Customer Reviews

4 star
0
3 star
0
2 star
0
1 star
0
5.0 out of 5 stars
5.0 out of 5 stars
Most Helpful Customer Reviews
16 of 16 people found the following review helpful
5.0 out of 5 stars A triumph of clarity 7 Sep 2004
Format:Hardcover
In a word: Salih N. Neftci's 'Principles of Financial Engineering' is a triumph. Neftci's 'Principles' joins Mason and Merton's "Cases in Financial Engineering" as the field's premier fundamental texts, most especially for students, but of practical use for practitioners as well. Neftci's chief strength in this work is the same that has made his "An Introduction to the Mathematics of Financial Derivatives" deservedly famous: clarity. Where other authors get bogged down in dark obscurantism, such as Beaumont's unsatisfying and inadequate "Financial Engineering Principles," or Galitz's risk management book, inappropriately titled "Financial Engineering: Tools and Techniques to Manage Financial Risk," Neftci sheds clear sunlight on the field of constructing structured products with the building blocks of financial instruments. He is the most gifted writer in practical financial mathematics, and his legions of fans are not wrong: there is no one better than Neftci at breaking down complex concepts in clear, digestible bites and then reassembling the whole. Neftci's 'Principles' improves upon, and indeed replaces, Cuthbertson and Nitzsche's "Financial Engineering: Derivatives and Risk Management" for applicability, and lucidity, and replaces Mashall's "Financial Engineering: A Complete Guide to Financial Innovation" in scope. But Neftci does not sacrifice addressing difficult or complex structures through useless over simplicity, as sadly is the case with Eales's "Financial Engineering," rather he builds his explanations smoothly and logically, shedding light on the topics at hand by continually clearly demonstrating a replicating portfolio that mimics the instrument using other asset classes. Read more ›
Comment | 
Was this review helpful to you?
3 of 7 people found the following review helpful
Format:Hardcover
I had the luxury of studying financial engineering with professor Neftci at the ISMA Centre, university of Reading where I first came into contact with his new book. It has been an amazing experience and it was a pleasure to see the book finally in print. I could write loads but it is enough to say that the insight and the approach are truly unique and unprecedented, two characteristics I believe that go with professor Neftci, be it when he writes a book or when he delivers a lecture. It is a must read for any financial engineering student and finance practitioners as well.
Comment | 
Was this review helpful to you?
Most Helpful Customer Reviews on Amazon.com (beta)
Amazon.com: 4.7 out of 5 stars  15 reviews
84 of 94 people found the following review helpful
5.0 out of 5 stars A triumph of clarity with a welcome balance of techne & arte 27 Aug 2004
By Bachelier - Published on Amazon.com
Format:Hardcover|Verified Purchase
In a word: Salih N. Neftci's `Principles of Financial Engineering' is a triumph. Neftci's `Principles' joins Mason and Merton's "Cases in Financial Engineering" as the field's premier fundamental texts, most especially for students, but of practical use for practitioners as well. Neftci's chief strength in this work is the same that has made his "An Introduction to the Mathematics of Financial Derivatives" deservedly famous: clarity. Where other authors get bogged down in dark obscurantism, such as Beaumont's unsatisfying and inadequate "Financial Engineering Principles," or Galitz's risk management book, inappropriately titled "Financial Engineering: Tools and Techniques to Manage Financial Risk," Neftci sheds clear sunlight on the field of constructing structured products with the building blocks of financial instruments. He is the most gifted writer in practical financial mathematics, and his legions of fans are not wrong: there is no one better than Neftci at breaking down complex concepts in clear, digestible bites and then reassembling the whole. Neftci's `Principles' improves upon, and indeed replaces, Cuthbertson and Nitzsche's "Financial Engineering: Derivatives and Risk Management" for applicability and lucidity, and replaces Mashall's "Financial Engineering: A Complete Guide to Financial Innovation" in scope. But Neftci does not sacrifice addressing difficult or complex structures through useless over simplicity, as sadly is the case with Eales's "Financial Engineering," rather he builds his explanations smoothly and logically, shedding light on the topics at hand by continually clearly demonstrating a replicating portfolio that mimics the instrument using other asset classes. For example, he begins by addressing the construction of cash flows with forward contracts, and then moves on to interest rate derivatives, swaps, repos, and then puts them all together for dynamic replication methods and the construction of synthetics. Each chapter builds and sheds light on the next instrument and technique. By the time Neftci addresses options and applications to bond convexity strategies and credit derivatives, we are in a position of strength. Most notable is Chapter 14, which clearly reviews volatility trading and discusses both the strengths and pitfalls, before turning to the nearly endless problem and opportunities of volatility smiles. He does not turn away from the problem of pricing in the presence of smiles, and uses the example of trading in the FX markets to shed light on strategies. For those working on synthetic and structured products desks, this will be the premier text. For those working on credit derivatives and other derivatives desks, this work assists in clarifying basic financial engineering concepts that then are more appropriately addressed in specialized texts, Schönbucher's "Credit Derivatives Pricing Models," for example. For those seeking a more rigorous mathematical foundation to financial engineering, Capinski & Zastawniak's "Mathematics for Finance: An Introduction to Financial Engineering" or the works of Steven Shreve and Ioannis Karatzas are the volumes to turn to. But for a solid work for a student who wishes to be a practitioner, Neftci is always the first choice. For the instructor, this book, coupled with the above-mentioned `Cases' will provide the exact balance between techne and arte that provides students with the best education for engineering structured products. There is a single caveat to my otherwise wholehearted praise for this book: those already deeply familiar with these topics will find little new here: this is not a groundbreaking work announcing new techniques or research. Rather, the strength of Neftci's `Principles' again is clarity clarity clarity. This is a most welcome volume, the one I wish I had had as a graduate student, which leaves this reviewer envious of those who will benefit and have stronger careers due to its current availability. We owe Neftci our thanks.
35 of 37 people found the following review helpful
5.0 out of 5 stars I can't praise this book too highly! 8 Dec 2005
By Nicholas Warren - Published on Amazon.com
Format:Hardcover|Verified Purchase
As someone who teaches derivatives to practitioners and in a Masters program, I can't praise this book too highly. It is clear, comprehensive and, most importantly, concentrates on practical applications. I was particularly pleased with the chapter on repo, which is usually underestimated in importance, without requiring a whole, specialist book.

For someone with a fundamental, but non-quantitative background in financial markets (MBA or CFA level), this is the ideal place to go next before more specialised and quantitative books. The advantage of having studied this book first will be to have a clear picture of the forest for the trees.

My only (small) criticism is that the book would have been even better if it had included a chapter (or two) on the multi-tranche asset backed security structure followed by cash and then synthetic CDOs. I do hope that might be rectified in the next edition.

Bravo!
19 of 22 people found the following review helpful
5.0 out of 5 stars An excellent reference for professionnals and students 18 May 2004
By A Customer - Published on Amazon.com
Format:Hardcover
Principles Of Financial Engineering came as an excellent surprise to me, it will probably make a lot of people feel more intelligent about themselves as it explains fairly complex technicalities in a comprehensible way. Neftci book is a very good reference for market professionals like myself in need of a rapid answer, or anyone with a desire to understand more about fixed income and derivatives. Graphical illustrations enhance the text and should make it particularly easy for finance students to understand subjects like synthetic alterations using various financial instruments.
13 of 15 people found the following review helpful
5.0 out of 5 stars This is one of the top books on quantitative finance 22 Nov 2005
By Ananda Chaudhuri - Published on Amazon.com
Format:Hardcover|Verified Purchase
I am a student of Prof Neftci in the Applied Math for Finance MS program at Baruch College. He is a great teacher and has written this wonderful book. This is the text book for the Calibration course he teaches at baruch.

The best thing about it is in the practical approach it is written with. It tries to explain the finance as interpreted by practioners like traders...the engineering of finance rather than the science of it. Knowledge of basic parobability thoery, martingales, PDE and some stochastic calculus is assumed. The book itself has less emphasis on mathematical rigour but there are plenty of other references for that.

The strength of this book is in its practical utility in understanding the market and the rational behind the products that exist in it and the priciples of pricing and hedging those.
Chapter 11 on the Fundamental Asset prcing theory is a gem and is the workhorse for pricing many of the products like swaps or swaptions.
6 of 6 people found the following review helpful
5.0 out of 5 stars If you have one book at work, this one should be it 4 Jan 2009
By Soeren H. Huba - Published on Amazon.com
Format:Hardcover|Verified Purchase
I've read of few books about financial products and their application, but this one is by far the best. The author's intent is to share his knowledge, rather than show it off. This title has served as a very helpful starting point quite a few times, especially when I have to get something done in a hurry.

I bought a number of copies over the years to give them to colleagues - especially those new to the financial industry. The explanations and derivations can be followed by mortals - the author does not leave out big chunks of the explanation using the old "as it can EASILY be shown". Instead, he tells the whole story to build a solid understanding of the subject matter.
Were these reviews helpful?   Let us know
Search Customer Reviews
Only search this product's reviews

Customer Discussions

This product's forum
Discussion Replies Latest Post
No discussions yet

Ask questions, Share opinions, Gain insight
Start a new discussion
Topic:
First post:
Prompts for sign-in
 

Search Customer Discussions
Search all Amazon discussions
   


Look for similar items by category


Feedback