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Course 2018-2019 a.y.

20253 - INTERNATIONAL FINANCIAL MARKETS

Department of Finance

Course taught in English


Go to class group/s: 31

CLMG (6 credits - II sem. - OP  |  SECS-P/11) - M (6 credits - II sem. - OP  |  SECS-P/11) - IM (6 credits - II sem. - OP  |  SECS-P/11) - MM (6 credits - II sem. - OP  |  SECS-P/11) - AFC (6 credits - II sem. - OP  |  SECS-P/11) - CLEFIN-FINANCE (6 credits - II sem. - OP  |  SECS-P/11) - CLELI (6 credits - II sem. - OP  |  SECS-P/11) - ACME (6 credits - II sem. - OP  |  SECS-P/11) - DES-ESS (6 credits - II sem. - OP  |  12 credits SECS-P/11) - EMIT (6 credits - II sem. - OP  |  SECS-P/11) - GIO (6 credits - II sem. - OP  |  SECS-P/11)
Course Director:
MANUELA GERANIO

Classes: 31 (II sem.)
Instructors:
Class 31: MANUELA GERANIO


Prerequisites

None.


Mission & Content Summary
MISSION

The scope and content of international finance has been fast evolving due to deregulation, product innovations and technological advancements. World's capital markets are becoming more integrated and new players are emerging on the international financial landscape. Therefore, a solid understanding of international finance has become essential for both economic research and corporate decision making. The course aims to provide participants with an integrated and updated view of international financial markets and the financial management of multinational firms.

CONTENT SUMMARY
  • Introduction to the International Financial Markets. International monetary Systems. Review of the balance of payments and current trends.
  • Currency markets and the behaviour of the exchange rate. Understanding the working of spot and forward currency markets. 
  • International parity conditions: purchasing power parity & interest rate parities. Carry trade strategy.

  • Forecasting exchange rates: focus on macro modelling.

  • Types of currency exposures at the corporate level (transactional, translational, competitive). Measurement techniques, hedging strategies and tools.
  • International money markets and related benchmarks.
  • International debt funding: syndicated loans and international bonds. 
  • The basics of islamic finance.
  • International equity markets and cross listing.
  • International financial flows and new financial hubs in emerging countries.
  • The global consolidation of stock exchanges.
  • The impact of fintech on markets’ infrastructures. 

Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
  • Explain the Balance of Payments of a Country.
  • Identify FX market prices and potential arbitrage opportunities.
  • Describe international FX parities.
  • Illustrate FX forecasting models.
  • Identify sources of FX risks for a company.
  • Describe international capital markets instruments and procedures.
  • List main issues of Islamic Finance.
  • Comment major innovations in financial market infrastructures.
APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
  • Evaluate prospects for a currency's apreciation/depreciation.
  • Analyze and quantify exposure to FX risks.
  • Evaluate and choose FX hedging tools.
  • Compare financial alternatives for funding in international markets.
  • Design a strategy for international listing.
  • Improve his/her teamwork and communications skills.

Teaching methods
  • Face-to-face lectures
  • Guest speaker's talks (in class or in distance)
  • Case studies /Incidents (traditional, online)
  • Group assignments
DETAILS
  • Guest speaker's talks concern: practice in the FX markets; overview of international debt market; islamic finance; fintech in IFM.
  • Case studies follow face-to-face lectures to improve a more practically oriented learning. They focus on: the globalization of Renmimbi; hedging FX risk in a multinational company; syndicated lending; international and sukuks bonds; international equities; internationalization of market infrastructures. 
  • Groups assignment: students are requested to form groups and prepare a presentation to foreward cases' discussion.

Assessment methods
  Continuous assessment Partial exams General exam
  • Written individual exam (traditional/online)
  •   x x
  • Group assignment (report, exercise, presentation, project work etc.)
  • x    
  • Peer evaluation
  • x    
    ATTENDING STUDENTS

    Evaluation combine exam results (80% of the final grade) and class participation and group works (20% of the final grade).

    • Attending students can split the exam into two parts, a partial examination and a final examination (each of them weighting 40% on final grade) or simply have one general exam at the end of the course (weighting 80% of final grade). In both cases attending students’ exam focuses on material discussed in class (included case studies) as well as book chapters indicated in the syllabus.
    • Active class participation and group works on case studies weight 20% of final grade. Attending students shall read case studies before the class in order to facilitate general discussion. Attending students are also required to form groups and give at least a presentation of a case study among those scheduled for the course. Peer evaluation is applied on case study presentations. 
    NOT ATTENDING STUDENTS

    Not attending students must take the general exam on the whole book. 


    Teaching materials
    ATTENDING STUDENTS
    • Selected chapters from:
      • C.S. EUN, B.G. RESNIK, International Financial Management, Mc Graw Hill International editions, 8th edition.
    • Cases studies are indicated in September 2018 and made available through Course Reserve at Bocconi Library.
    NOT ATTENDING STUDENTS
    • C.S. EUN, B.G. RESNIK, International Financial Management, Mc Graw Hill International editions, 8th edition.
    Last change 09/06/2018 17:52