Financial engineering includes the use of derivatives,structured debt,securitization,and off-balance-sheet financing.In some cases financial engineering can create value.

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Financial engineering can create value by optimizing financing options, managing risks, and structuring complex financial instruments to meet specific needs of investors or issuers. However, there are also risks associated with financial engineering such as increased complexity and opacity, which can lead to unforeseen consequences and systemic risks.

Financial Engineering Includes the Use of Derivatives,structured Debt,securitization,and Off-Balance-Sheet Financing