30367 - FINANCE (MODULE I) - FINANCIAL MARKETS AND INSTITUTIONS
Department of Finance
Course taught in English
Course Director:
NICOLA GENNAIOLI
NICOLA GENNAIOLI
Suggested background knowledge
Mathematics (applied), Management, Accounting and Financial Statement Analysis.
Mission & Content Summary
MISSION
The main objective of this course is to provide the students with a general understanding of the different functions performed by financial markets and institutions and their role in the economic system. We start by giving a brief overview of the functions of the financial system and its connections to the real economy. We then study the functioning of financial markets and the main financial instruments. Finally, we study the economics of different types of financial institutions.
CONTENT SUMMARY
The first part of the course analyzes in detail the characteristics of the major financial assets, and describes the institutional characteristics of the markets in which these assets are traded.
The second part of the course studies in detail the objectives as well as the organization of the major financial intermediaries (commercial banks, investment banks, mutual funds) that allow to match demand and supply of funds when securities markets do not function perfectly.
Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
- Understand the functioning of financial markets and the role of financial institutions within the economic system.
APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
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Session |
Topic |
Textbook chapters |
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PART 1: FINANCIAL MARKETS |
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1. |
Overview of the Financial System |
Ch. 2 |
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2. |
The Determinants of Interest Rates |
Ch. 4 |
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3. |
Interest Rates and Valuation |
Ch. 3 |
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4. |
The Money Markets |
Ch. 11 |
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5. |
The Money Markets / The Bond Market |
Ch. 11 and 12 |
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6. |
The Bond Market |
Ch. 12 |
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Online Test 1 posted by 23:00* on Friday, September 27th, 2024 (topics 1-6) |
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7. |
The Stock Market |
Ch. 13 |
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8. |
Valuation of Stock |
Ch. 13 |
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9. |
Derivatives: Forwards and Futures |
Ch. 24 (forwards/futures only) |
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10. |
Derivatives: Options |
Ch. 24 (options only) |
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11. |
Buffer Lecture/Exercises |
|
|
Online Test 2 posted by 23:00* on Friday, October 18th, 2024 (topics 7-10) |
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PART 2: FINANCIAL INSTITUTIONS |
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12. |
Are Financial Markets Efficient? |
Ch. 6 |
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13. |
Why Do Financial Institutions Exist? |
Ch. 7 |
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14. |
Commercial Banking |
Ch. 17 |
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15. |
Central Banking |
Ch. 10 (until asset purchases) |
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16. |
Mutual Funds |
Ch. 20 (plus slides on ETF) |
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17. |
Investment Banks |
Ch. 22 (investment banks only) |
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18. |
Risk Management in Financial Institutions |
Ch. 23 |
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Online Test 3 posted by 23:00* on Friday, November 15th, 2024 (topics 12-18) |
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19. |
Risk Management / Financial Regulation |
Ch. 23 and 18 |
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20. |
Financial Regulation |
Ch. 18 |
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21. |
The Theory of Financial Crises |
Ch. 8 |
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22. |
Buffer Lecture/Exercises |
|
|
Online Test 4 posted by 23:00* on Friday, December 6th, 2024 (topics 19-21) |
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23 24 |
TBD by Instructor Bank Regulation (provisional title) |
Giorgio Gobbi (BoI) |
Teaching methods
- Lectures
DETAILS
The course consists of a series of interactive lectures.
Assessment methods
| Continuous assessment | Partial exams | General exam | |
|---|---|---|---|
|
x |
ATTENDING AND NOT ATTENDING STUDENTS
GRADING
There will be only a general exam (based on the material covered during the whole course).
HOME ASSIGNMENTS
There will be four problem sets. These are not graded but are meant to help you follow the material of the course.
They will be posted online by 23:00 on four Fridays written below. Correct answers will be posted. The home assignments and their solutions will also be posted in Blackboard.
Teaching materials
ATTENDING AND NOT ATTENDING STUDENTS
1. F.S. Mishkin and S.G. Eakins, “Financial Markets & Institutions”
2. Lecture notes and other materials will be available on Blackboard
Last change 24/09/2024 14:15