This book scrutinizes the various risks confronting a portfolio,equips the reader with the tools necessary to identify andunderstand these risks, and discusses the best ways to hedgethem.
The book does not require a specialized mathematical foundation,and so will appeal to both the generalist and specialist alike. Forthe generalist, who may not have a deep knowledge of mathematics,the book illustrates, through the copious use of examples, how toidentify risks that can sometimes be hidden, and provides practicalexamples of quantifying and hedging exposures. For the specialist,the authors provide a detailed discussion of the mathematicalfoundations of risk management, and draw on their experience ofhedging complex multi-asset class portfolios, providing practicaladvice and insights.
Provides a clear de*ion of the risks faced by managerswith equity, fixed income, commodity, credit and foreign exchangeexposures
Elaborates methods of quantifying these risks
Identify and understand the risks facing your portfolio,
how to quantify them, and the best tools to hedge them
This book scrutinizes the various risks confronting a portfolio,
equips the reader with the tools necessary to identify and
understand these risks, and discusses the best ways to hedge
them.
The book does not require a specialized mathematical foundation,
and so will appeal to both the generalist and specialist alike. For
the generalist, who may not have a deep knowledge of mathematics,
the book illustrates, through the copious use of examples, how to
identify risks that can sometimes be hidden, and provides practical
examples of quantifying and hedging exposures. For the specialist,
the authors provide a detailed discussion of the mathematical
foundations of risk management, and draw on their experience of
hedging complex multi-asset class portfolios, providing practical
advice and insights.
- Provides a clear de*ion of the risks faced by managers
with equity, fixed income, commodity, credit and foreign exchange
exposures - Elaborates methods of quantifying these risks
- Discusses the various tools available for hedging, and how to
choose optimal hedging instruments - Illuminates hidden risks such as counterparty, operational,
human behavior and model risks, and expounds the importance and
instability of model assumptions, such as market correlations, and
their attendant dangers - Explains in clear yet effective terms the language of
quantitative finance and enables a non-quantitative investment
professional to communicate effectively with professional risk
managers, "quants", clients and others
Providing thorough coverage of asset modeling, hedging
principles, hedging instruments, and practical portfolio
management, Hedging Market Exposures helps portfolio
managers, bankers, transactors and finance and accounting
executives understand the risks their business faces and the ways
to quantify and control them.
