Finance / Financial Engineering
Welcome to my Finance and Financial Engineering Portfolio! Here you will find some of my past experiences and new experiences I hope to gain.
Certifications
01.
Global Tech Experience Excel
Summer 2023
02.
Global Tech Experience Tableau
Summer 2023
03.
Intel Sustainability Project (Data Analytics)
Summer 2023
04.
Google Python Crash Course
Summer 2024
05.
LinkedIn Python Data Analytics and Machine Learning 1
Summer 2024
06.
Bloomberg Certification
Fall 2024
07.
Bloomberg Environmental, Social, Governance
Winter 2024
Projects / Presentations / Academic Papers

BlackGen Capital:
Minority owned and student-run investment fund.
Financial education series and professional events.

BlackGen Capital Eli Lily Stock Pitch ​​
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Competed in the National Conference among top universities such as Cornell, the University of Michigan, Columbia. ​​​

BlackGen Capital NXP Stock Pitch
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Contributed to the winning stock pitch for the Spring 2023 conference. NXP was invested in. Completed the comparative analysis and DCF sections.

Economic Foundation of Finance Analysis 1:
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Application of supply, demand and consumer behaviour concepts to determine the effect of COVID-19 on the South African beverage industry.

Economic Foundation of Finance Analysis 2:
Conduct statistical analyses to identify trends and differences within data. Develop a descriptive financial economic theory to explain these trends, integrating historical context and informed speculation to offer a comprehensive explanation of the observed data.
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Topic: The consequences of increasing the college education price.

Economic Foundation of Finance Analysis 3:
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Develop a prescription for the future using the data developed from Analysis 2.
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Topic: The consequences of increasing the college education price – the current trends and what it means for the future.

Economic Foundation of Finance Analysis 4:
Determine the CR4 of a chosen industry. Analyse how the industry operates as an oligopoly or monopoly and which competition model is better.
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Topic: Competing for the skies. Is it Monopolistic or Oligopolistic Competition?
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Introduction to Accounting: ​
Analysis of the Hershey Company Financial Performance, Market Valuation and Risk and Opportunities in comparison to its competitors.
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Risk Modelling and Analytics:
​Topic: ESG Risk of Tesla and Peers: Machine Learning Techniques Applications, Academic Project, FRE Risk Modeling & Analytics
Applied machine learning through MATLAB and data analysis using Excel to determine climate risk and the effect of natural disasters on Tesla’s financial performance.

Bootstrapping the U.S. Treasury Yield Curve: From Bonds to Zero-Coupon Bonds (ZCBs)
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​Problem:
The goal was to construct a zero-coupon bond (ZCB) yield curve using U.S. Treasury data, focusing on coupon payment schedules, accrued interest, invoice pricing, and time to maturity.
Actions Taken:
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Modeled accrued interest and invoice prices using the actual/actual day convention.
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Developed a time-to-maturity grid and bond payment schedules. - Employed a bootstrapping methodology to extract ZCB yields, testing various functional forms for accuracy.
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Created scatter plots to compare fitted bond values with invoice prices, optimizing using Excel Solver.
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Constructed a graphical representation of the ZCB term structure.

Simplified CDO Analysis: Structuring and Valuation
Problem:
The task was to analyze a collateralized debt obligation (CDO) structured from 10 speculative-grade corporate bonds.
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Actions Taken:
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Developed a simulation model to calculate aggregate quarterly cash flows from the underlying portfolio of bonds, incorporating their duration, default probabilities, and LGD values.
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Applied waterfall rules to allocate cash flows sequentially to the Class A tranche, Class B tranche, and residual equity, based on prioritization.
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Optimized the notional value of the Class A tranche to achieve a Moody's Aa rating, using historical default rate data and accounting for tranche yield spreads over risk-free rates.
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Analyzed the probability of default and expected loss for the Class B tranche and determined the values of Class A, Class B, and residual equity tranches.
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Calculated the bank’s return on equity (ROE) as the equity holder.

Valuation and Risk Analysis of an Up-and-Out Call Option:
Problem:
A client requested the valuation and risk assessment of an up-and-out call option on the S&P 500. The option had a strike price of $390 and a knockout barrier at $500. The challenge included determining its value using Monte Carlo simulations, analyzing the effect of increased volatility, and recommending a static hedging strategy.
Actions Taken:
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Data Preparation: Processed the provided call option data, plotted implied volatility, and created a line of best fit to estimate the implied volatility for the specific strike price.
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Monte Carlo Simulation:
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Simulated 5,000 paths of stock price evolution using the Geometric Brownian Motion model, assuming no dividend payouts.
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Implemented the knockout barrier, setting payoffs to zero for stock prices at or above $500.
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Calculated option payoffs using the formula max(S(T) - K, 0), discounted to present value, and ensured the error margin remained within $1.00.
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Volatility Impact Analysis: Assessed how varying implied volatility influenced payouts and the likelihood of breaching the knockout barrier.
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Static Hedging Strategy: Recommended pairing the up-and-out call option with a long put option having a payoff of max(500 - S(T), 0), enhancing payoff efficiency.
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Risk Assessment: Quantified the probability of barrier breach and emphasized the suitability of this option for moderately volatile assets.

Optimal Hedging Strategies for a 30-Year Oil Production Project
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Problem:
This project involved determining the optimal hedging strategy for a 30-year oil production project to maximize valuation while balancing the interests of shareholders and debtholders. The analysis considered the volatility of oil prices, mean-reversion dynamics, forward pricing, and the Weighted Average Cost of Capital (WACC) under various hedging levels.
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Actions Taken:
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Price and Discount Rate Modeling: Modeled oil prices using a mean-reversion process, incorporating parameters such as a long-run mean price, a reversion speed, and a standard deviation. Calculated forward rates by discounting expected spot prices.
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Cash Flow Simulation: Simulated cash flows under hedging levels of 0%, 25%, 50%, 75%, and 100%, analyzing the impact on WACC, cash flow stability, and overall project valuation.
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Sensitivity Analysis: Conducted sensitivity analyses to evaluate the influence of forward price discounts and hedging strategies on valuation.
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Hedging Optimization: Assessed the trade-offs between shareholder returns and risk mitigation. Recommended a hedging range of 50%-75%, balancing cash flow stability with upside potential.

Bloomberg Environmental Social Governance Score ​
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Introduction to ESG and Sustainable Finance:
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Gained an understanding of ESG-related concepts and their significance in sustainable finance, including climate risks, carbon intensity, and the "greenium" (premium for green bonds).
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Explored the role of ESG in aligning investments with long-term sustainability goals and reducing risks in volatile market conditions.
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Researching and Adopting ESG:
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Learned how asset management firms integrate ESG into decision-making, using roles such as ESG analysts, portfolio managers, and risk officers.
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Explored frameworks like the EU Taxonomy, which classifies environmentally sustainable economic activities, and the Sustainable Finance Disclosure Regulation (SFDR), which mandates ESG-related reporting to ensure transparency and standardization.
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Negative Screening & Positive Screening:
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Understood negative screening, which excludes companies, sectors, or countries that fail to meet ESG criteria (e.g., fossil fuel producers).
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Explored positive screening using green bonds and other ESG-aligned instruments, focusing on investments with strong environmental and social impacts.
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ESG Integration - Fixed Income:
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Analyzed how ESG factors are incorporated into fixed-income securities, particularly through sustainable debt instruments like green bonds, social bonds, and sustainability-linked bonds.
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Examined principles such as the ICMA Green Bond Principles, which provide guidelines for issuing green bonds tied to environmentally beneficial projects.
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ESG Integration - Equities:
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Learned how ESG metrics are systematically applied in equity analysis, assessing factors like governance practices, carbon footprints, and gender diversity.
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Explored how ESG integration enhances portfolio resilience, reduces risks, and aligns with market trends favoring responsible investing.
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Corporate Governance & Shareholder Activism:
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Investigated shareholder tactics like proxy voting and shareholder resolutions to influence corporate governance, improve racial and gender diversity, and address climate risks.
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Analyzed the Paris Climate Agreement's role in driving shareholder activism to reduce global warming to 1.5°C.
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Reporting Sustainability Activities:
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Highlighted the importance of transparency in ESG reporting through tools like Bloomberg’s ESG dashboards, enabling comparison of ESG scores, disclosure metrics, and carbon intensity.
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Discussed mandatory disclosures under regulations like the SFDR and their role in aligning investment practices with sustainability goals.
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