A Study On The Valuation Of Bank 's Structured Financial Products

Structured financial products refers to fixed income securities and financial derivative contracts combine innovative financial products, taking into account income securities and financial derivatives feature fixed.Since 2004 in the form of structured deposits in foreign currency in our country since its launch, the rapid development has become an important part of the domestic financial market.But on the whole, the development of structured finance products in China is still in its infancy, compared to the international market, the domestic market is still immature.Despite the growing wealth of the Underlying species, but for the value assessment of the product is still lacking, there will be the product of default phenomenon. From the perspective of the issuer, the domestic commercial banks to establish a lack of products at reasonable valuation system. Standing investor point of view, since the structure of the product complex product structures often cause investors to recognize the value of the product deviation.This article is intended for financial institutions to provide comments on the rationalization of pricing and assess structured financial products for investors reasonably estimated value of the product, and then choose the right product to meet their investment needs to provide a reference. First, the background and current status of research on the introduction of structured financial products and foreign research reports, indicating theoretical and practical significance of the research and literature review. Point out the problem at this stage of development, the domestic institutions to establish product valuation system is imperfect, investors judge the value of the product is not accurate- the highest rate of return for the occurrence of product has high expectations for the intrinsic value of the product exist overestimated. Article elaborated framework, determine the research methods in the chapter concludes with innovation and needs to be perfected. The second part, the first important structural parameters of structured financial products connotation and product briefly. Then qualitative analysis, with the market in accordance with the typical structured products with embedded options linked to the subject type of structured product classification. In the third chapter will be broken down into fixed income products and derivatives contracts in two parts, gives ideas and pricing formulas. The fourth chapter is the focus of the article section, combined with examples of products using Monte Carlo simulation to predict the theoretical value and the actual product price comparison draw final conclusions, try an optimization proposal for traditional structured products valuation models and verification. Finally, make a summary and outlook.