Financial Risk Management

What financial risk professionals should understand about autocallable swaps and embedded risks. Analysis by Patrick Oberhaensli, CFA This article explores how such structures operate within Ucits rules, combining bond portfolios and autocallable swaps to deliver targeted returns, defined risk profiles and institutional-scale investment strategies. Funds constructed entirely from synthetic structured products incorporating exotic derivatives that…

Managing risk is one of the core activities of a financial institution. Of course, procedures and governance structures have to be in place, but on top of that front experience and common sense are critical, argues financial expert Patrick Oberhaensli. He teaches the Financial Risk Management program at the Amsterdam Institute of Finance, and shares…