Derivatives Unlocked: A Practitioner’s Perspective

Derivatives Unlocked: A Practitioner’s Perspective offers the reader a practical explanation of the key concepts behind the design of financial derivatives. Resolutely selective and user-friendly, this book constitutes a hands-on introduction to both the structuring and use cases of derivatives products in modern global finance.

The book is organised around two parallel streams of content. On the one hand, the Derivatives Toolbox comes as a set of pricing rules that underpin the building blocks of most derivatives products, namely discounting, duration and convexity, interest rates and credit default swaps, forwards and options. The methodology is approachable, simplified whenever possible, and does not require advanced mathematical training.

On the other hand, the Case Studies, largely inspired by real European corporate finance and corporate risk management situations, allow the reader to (i) make explicit use of the techniques learned as he or she progresses through the Toolbox and (ii) to grasp the effective power of derivatives solutions.

Features:

• Easy to follow for non-specialists, helping them build a solid and empirical foundation to encourage continued learning.
• Provides a unique insight, balanced between the acquisition of technical tools and their practical applications
• Contains numerous case studies and other support material making it suitable for both students and practitioners.

Philippe Dufournier has spent over 30 years in investment banking in London with a career focused on the structuring, sales and origination of innovative derivatives and capital markets transactions for European corporates, financial institutions, governments and investment funds.

Throughout the 1990’s, he gained deep derivatives structuring and sales expertise whilst at Bankers Trust in London, a pioneer in the development of the global derivatives markets. He joined Lehman Brothers in 2001 as Head of European Derivatives Sales where he founded the Structured Solutions Group. In 2007, he was made Head of Global Finance for EMEA, in charge of Primary Markets Origination and Private Derivatives Solutions. He kept that role as he transitioned to Nomura International in 2008. In 2015 he joined Mediobanca, first as Head of Corporate Lending and Acquisition Finance and then as Head of the UK Branch until 2020

During his career, Philippe directly contributed to the training and mentoring of over 20 classes of summer interns, analysts and associates. Over the last three years, he has been teaching financial derivatives courses in the Finance Masters of the Institute for Finance and Technology at University College London.