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Principles of Financial Engineering

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Title: Principles of Financial Engineering
by Salih N. Neftci
ISBN: 0-12-515394-5
Publisher: Academic Press
Pub. Date: 01 May, 2004
Format: Hardcover
Volumes: 1
List Price(USD): $99.95
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Average Customer Rating: 5 (4 reviews)

Customer Reviews

Rating: 5
Summary: Bravo!
Comment: It is such a comprehensive and reader-friendly financial engineering book! Neftci explained the complex financial concepts with plain English, simple examples and graphs. Any one with less financial background can understand the concepts with less effort. It describes and covers the most concepts that many financial practitioners may use at daily business. From Volatility surface to Greek Letters, from Convertible bond to Synthetic CDS, it provides the most financial concepts than any other books. It is one of the best reference books that are available in the industry.
Even though it explains the structured financial products, such as CDO, it will be much more valuable to the book, if it describes in more details on valuations of CDO and MBS. Since those structured financial products are started to pick up on Wall Street and becoming fashion in the financial industry at the current stage. After adding those products, the book will become the most comprehensive and sophisticated financial engineer's handbook.

Rating: 5
Summary: An excellent reference for professionnals and students
Comment: 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.

Rating: 5
Summary: A Sophisticated Treatment of FE as Actually Practiced!
Comment: The current crop of texts on financial engineering range from dull and plodding approaches to mathematically rigorous yet borderline unintelligible analyses. By changing the conventional vantage points, Neftci is able to strike a pleasing balance between intuitive justification and elegant mathematics. At the same time he is able to convey the inherent excitement of the subject with a true-to-life flavor. Practitioners will benefit by finding many of their tricks-of-the-trade justified, made explicit, and clarified. Students, on the other hand, will feel ready to march directly from the classroom to the trading floor. If you are looking for detailed mathematical proofs, this book is not for you. If you want a compendium of financial products and their properties, you will not like it either. On the other hand, if you want a sophisticated, up-to-the-minute account of contemporary financial engineering as it is actually practiced, something that has connections to the "real" world, you will thoroughly enjoy this work.

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