Thiruspace.com : Overview : Contents

Study Approach

(for Readers with Full login access to this website)

The approach would be to first familiarize with the broad array of finance-related topics that we want to cover in this platform. Then we go back to basics, delve a little deeper into the mechanics of rudimentary instruments.You should then be ready for the Review section, where you will do an exhaustive review covering practical examples in Hedging, Risk Management and Stress testing tools.

What we want to cover:

1. Financial Structures - Here we give a broad overview of each Structure Description - in brief simple terms:
-- Broad explanation of how the structure performs in varied market circumstances.
-- Brief review of mathematical formulae behind each structure.
-- Other relevant concepts including charts, illustrations etc.

2. Building the basics:
-- Bond basics, duration, convexity, hedging strategies and practical work-out sessions with vanilla bond structures.
-- Futures markets - brief overview of Interest-rate related products only.
-- Swap mechanics - characteristics that differentiate various flavors of swap products, Npv valuation, how to calculate pay-off values etc.
-- Options on Interest rate instruments including caps, floors and swaptions.
-- Strategies and plays with conventional options - payoff profiles under different market scenarios.
-- VaR methodology.
-- Interest rate option Modeling algorithms - Study of Equillibrium, and Arbitrage free models with particular reference to estimation and forecasting of volatility and correlation factors.
-- HJM / BGM models - an indepth overview.

3. Objective of this section would be to reinforce the knowledge about the same Structures that we had broadly touched upon in the first section. Practical workouts of each individual structure with adequate numerical examples are included.

4. Techniques of programing Code for building financial models discussed in these topics