WQU Master in Financial Engineering

This page is my ongoing learning log. I will keep adding course updates, assignments, and reflections.

This is my first Master course i am taken since graduation from NTU in 2022 :D

  • The purpose is to learn the fundamentals of financial engineering and to prepare for my future career in HFT
  • Will update this page with my learning updates, assignments, and reflections
  • Bare with me throughout the upcoming journey!

Modules

Week 1 Credit Risk and Financing

For this first week of the course, I learn about concepts of Time Value of Money, Credit Risk, Shorting as well as basics of Bonds just to name a few.

There is a quiz at the end of the week which i score 95%

Week 2 Return and Volatility

For this 2nd week of the course, I learn about concepts of Stock, its comparison with bonds and using Gordon Growth Model to evaluate the stock portfolio value. The basic in Blockchain and CryptoCurrency is also introduced in this week. It is interesting to see that there are some research papers discussing about variables consider to evaluate Bitcoin price.

Beside the quiz at the end of the week which i score 100%, I also have the first CRT assignment to compare between different types of investments like Certificate of Deposit(CD), Stocks, Bonds, etc. The CRT result is released aft 2 weeks and I score 96% for the assignment and 100% for the review.

Week 3 Correlation

For this 3rd week of the course, I learnt about measuring the performance of a portfolio with various type of securities. The concept of Correlation is also introduced to see the relationship between two assets. The less correlated the assets are, the more diversified the portfolio is which helps manage the risk better. Exchange Traded Funds (ETF) is also introduced as a type of investment to consider for investors. At the end of the week, I score 95% for the quiz.

Week 4 Leverage and NonLinearity

For this 4th week of the course, I learnt about the concept of Derivatives and as well as an exemplary of derivation financial product called Options. The concept of Leverage is also introduced. Some basic Option trading strategies like Straddle Trading, Hedging with Options, Arbitraging and Spread Trading. The Home Equity also be discussed in the lens of an Option. At the end of the week, I score 95% for the quiz.

Week 5 Liquidity and Regulation

For this 5th week of the course, I learnt about the concept of Securitization and an example of securitization called Mortgage-Backed Securities (MBS). Additionally, 5C's criteria also introduced for evaluating the creditworthiness of a borrower. Some formula introduce to link between the Loss Given Default (LGD) and the Recovery Rate (RR). and Potential Sale Prices of the collateral. Multiple nice required readings are given about MBS, Dodd-Frank Act and different Bonds type. At the end of the week, I score 88% for the quiz which is not good enough for me.