Sunday, January 13

Disappointing coverage of technology and Islamic Finance

I was first exposed to the challenges that modern technical formulations of financial engineering face when they look at Islamic finance in the eye. This was almost 15 years ago when somebody asked me to remove the word interest from all screens of my interest rate swap trading  application. I just gibbered at him.

For example, any trader worth his salt will have a yield curve in his spreadsheet or application. Now, what I would be interested in (no pun intended), would be to find how on earth can you create, price and risk manage a Islamic finance instrument in a technical application without taking recourse to a yield curve (which in turn relies fully on "interest"). But this article does not say so. Bit disappointing, that!

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