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Financial Engineering

Financial Engineering & Derivatives
Corporations, hedge funds, and special purpose entities (including structured investment vehicles) use financial derivatives for a variety of reasons such as hedging, speculation, structured finance, shifting risk and capital formation.  These derivatives, though economically similar to the property to which they relate, may have a dissimilar financial, legal or regulatory reporting status, thereby resulting in an adverse tax, financial or regulatory result. Derivatives can be "weapons of mass destruction" capable of becoming problematic -- particularly since many knowledgeable executives are unaware of the hidden financial dangers.

In short, there is a significant need in the marketplace for a proper assessment of the risks and costs of using these instruments.

FIF experts in derivatives and financial engineering provide cutting-edge training services which focus on the intricate nature of these synthetic instruments including: value determination, price analysis, shifting risk, economic profiling and tax consequences.  Through this process the client will receive a more accurate portrait of the risks and benefits associated with these financial constructs.

Importantly, in developing each customized program, FIF will educate about the overall nature of financial derivatives and synthetics, as well as the correct linguistical descriptions to ensure appropriate tax, legal and regulatory treatment of the products. 

Potential topics may include:

  1. Distinctions between forwards and options;
  2. Long-positions versus short-positions;
  3. Economically equivalent asset positions;
  4. Financially engineered equity positions;
  5. Swaps of various types;
  6. Long-dated, non-debt derivatives;
  7. Exchange-traded notes;
  8. Overview of valuation and pricing of derivatives and synthetics; and             
  9. Tax and other regulatory consequences of economically similar derivative positions.

 



We invite you to contact us for more information.

Financial Consulting

Utilize our team to help with valuations, financial projections, and accounting.

Hedge Funds

From infrastructure consulting for new funds to operational and investment analysis for investors.