Financial Engineering for Low-Income Households is an edited compilation of articles that focus on using financial engineering-a multidisciplinary field that uses technical methods from the fields of finance, mathematics and economics-to design financial services for low-income households. The book aims to provide an understanding of the various risk-reward trade-offs facing low-income households and how principles of financial engineering can be best applied to understand and manage the complete suite of financial and non-financial assets, including human capital, insurance, annuities and loans.
This compilation connects the fundamental concepts in finance and financial engineering with the relatively new field of financial services delivery to low-income households. Its applied nature will help the reader grasp the implications of theoretical principles in finance on practical product-design considerations. It has several illustrations, caselets, and exercises to facilitate learning and in order to develop a full understanding of the underlying concepts.
The book will be a valuable tool for students and practitioners interested in the design and delivery of financial services to low-income households.
|Edition description:||First Edition|
|Product dimensions:||5.70(w) x 8.60(h) x 0.90(d)|
About the Author
Bindu Ananth is currently the President of IFMR Trust. She worked with ICICI Bank in the microfinance practice between 2001 and 2005 and was head of the new product development group within the bank’s rural finance business in 2007. She is also the founder of Centre for Micro Finance, IFMR. Bindu has an undergraduate degree in Economics from Madras University and master’s degrees from Institute of Rural Management, Anand (IRMA) and Harvard University’s Kennedy School. She is a Fellow at the Global Economic Society. Bindu has published in Small Enterprise Development Journal, Economic and Political Weekly, OECD working paper series, FAI working paper series, and ADB working paper series. She has also contributed to columns in Wall Street Journal, Forbes India, Mint, and Business Line.
Amit Shah is a founding member of Wealth Management team of IFMR Rural Finance since May 2009, where he has been closely involved with the design of a new type of rural financial institution called Kshetriya Gramin Financial Services (KGFS). Prior to joining IFMR, he was with HDFC Bank, working with the Credit Policy for Credit Cards & Merchant Acquiring Business for a year. Amit has a master’s degree in Rural Management from Institute of Rural Management Anand (IRMA) and is a Commerce undergraduate from PSG College of Arts & Science, Coimbatore.
Table of Contents
Foreword - Dr Nachiket Mor Preface I: INTRODUCTION Universalizing Complete Access to Finance: Key Conceptual Issues - Suyash Rai, Bindu Ananth and Nachiket Mor II: BUILDING BLOCKS OF FINANCIAL ENGINEERING Probability Distributions - Bindu Ananth and Amit Shah Preference Theory - Bindu Ananth and Amit Shah Asset Allocation, Portfolio Choice, and Capital Asset Pricing Model - Bindu Ananth and Amit Shah Basics of Credit Risk - Vaibhav Anand III: APPLICATIONS OF FINANCIAL ENGINEERING Human Capital - Bindu Ananth and Amit Shah Life and Personal Accident Insurance - Bindu Ananth and Amit Shah Health Risk and Financing - Swati Grewal Longevity Risk - Shilpa Sathe Livestock Risk and Insurance - Anupama Pant Rainfall Risk and Insurance - Alok Shukla Lending to Low-Income Households and Enterprises - Shilpa Sathe, Ratul Lahkar and Arun Kumar D Commodity Price Risk and Financing - Shweta Aggarwal IV: CASE STUDY Comprehensive Financial Plan for Jaya's Household Bindu Ananth, Amit Shah and Shilpa Sathe Appendices Index