Bank Structured Financial Products Pricing And Risk Research

In recent years,commercial banks have witnessed rapid growth of wealth management products.In particular,some joint-stock commercial banks,on the one hand bank interest rates continue to decline,banks are difficult to absorb deposits,the traditional mode of investment banking "access to deposit interest" can not meet people's wealth,value added,investment securities The market is too risky for non-professional investors.China's stock market is still in a noneffective market.It is very difficult for ordinary investors to obtain market-valid information.The risks and benefits are far from being uncertain.The 2015 stock market crash caused many ordinary Investors suffered tremendous losses,as well as the state to prevent the real estate market bubble further aggravated,a series of restrictions on purchase policy,as well as the continuous fluctuations in housing prices so that real estate investors have been on the sidelines,the traditional three big investment banking "bank deposits","Stock market investment" and "real estate investment" can not meet investors' needs.Meanwhile,in order to break the traditional "deposit-loan spread" profit model,reduce the non-performing loan ratio,and find new profit models and profit growth Point,the bank will shift the focus of the business to personal reason Based on the design and pricing of wealth management products by foreign banks,China's commercial banks started to make various kinds of innovations in domestic wealth management products.According to the risk tolerance of different investors,we designed different wealth management products with different benefits to meet the needs of investors At this point,commercial banks 'wealth management products with stable returns and relatively low risks have become ideal investors' means of preserving and adding value to their assets in the macroeconomic environment of China in recent years.The purpose of this paper is to provide ideas for domestic financial institutions in the design and distribution of structured wealth management products,and provide reference for ordinary investors to correctly evaluate structured products,estimate expected returns and how investors should choose valuable financial products.Therefore,the author chooses the typical structured product types in the market to analyze them,selects the products with standard European call option and rainbow option as the empirical analysis,and in the pricing process,uses the financial engineering technology to decompose the product For two parts,namely,fixed income securities and derivative financial products,fixed income securities are discounted by cash flow method,while derivative financial products are priced according to embedded different options.In this paper,the standard European options are adopted BS option pricing and Monte Carlo pricing method,Monte Carlo pricing is carried out for embedded rainbow complex options with strong path-dependent type to simulate the underlying asset price change path and calculate the theoretical value of the product as well as the expected return distributed.In addition,this article conducts a sensitivity analysis of the various factors that affect the expected benefits in the product risk study,and analyzes the product market risk quantitatively.Finally,this paper draws a conclusion from the case studies of two wealth management products that the pricing of wealth management products has a high price and the probability of the highest expected return from the bank is low.