8193 - INTERNATIONAL FINANCIAL MARKETS
MM-LS - OSI-LS - AFC-LS - CLAPI-LS - CLEFIN-LS - CLELI-LS - CLEACC-LS - DES-LS - CLEMIT-LS - CLG-LS - M-LS
Department of Finance
Course taught in English
GIULIANO ORLANDO IANNOTTA
Course Objectives
The course aims to provide participants with an integrated view of international financial markets and the financial management of multinational firms. The focus is on the markets for spot exchange, currency forwards, futures, options, swaps, international bonds, international equities and innovative instruments. For each of the above mentioned markets, valuation of instruments traded and their application are exploited through software simulations and case studies.
Course Content Summary
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Main players in the International Financial Context. Euromarket versus international market. Global banking: products and markets. The tasks of international financial managers.
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Currency markets and the behaviour of the exchange rate. Understanding the working of spot and forward currency markets. Implications for corporate decisions.
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Markets for exchange-rate derivatives and the hedging decision. How to measure currency exposure. Hedging techniques using options and futures. Uses and abuses of currency derivatives by corporations.
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International fixed income markets and the financing decision: use of international bonds and swaps to play cross-border financing strategies. Exploiting differences in tax regulations.
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International equity markets and the investment decision. Understanding the cost of capital for cross border investments. Valuing projects exposed to currency and sovereign risk.
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Innovation in international financial markets: structured and hybrid instruments. Securitization and asset backed securities: structures and markets.
Detailed Description of Assessment Methods
The exam is written.
Participants can split the exam into two parts, a partial examination and a final examination, or simply have one general exam at the end of the course.
In both cases, 30% of the valuation is based on assignments given during the course.
Textbooks
The adopted text books will be specified in the detailed programme.