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Course 2019-2020 a.y.

20253 - INTERNATIONAL FINANCIAL MARKETS

Department of Finance

Course taught in English

Go to class group/s: 31

M (6 credits - II sem. - OP  |  SECS-P/11)
Course Director:
MANUELA GERANIO

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


Suggested background knowledge

Basics of macroeconomics and financial markets


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.

  • FX in practice: basic technical analysis knowledge and application

  • Types of currency exposures at the corporate level (transactional, translational, competitive). Measurement techniques, hedging strategies and tools.
  • International capital markets: taxonomy, trends and benchmarks 
  • An introduction to Islamic finance.
  • International equity markets and cross listing.
  • International financial flows and new financial hubs.
  • 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.
  • Recognize FX trading patterns.
  • 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.
  • Use basic technical analysis tools for FX trading.
  • 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
  • Interactive class activities (role playing, business game, simulation, online forum, instant polls)
DETAILS
  • Guest speaker's talks concern: trends in international capital markets; financial hubs and recent trends in asset management (ESG investments).
  • 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; international and sukuks bonds; international equities; internationalization of market infrastructures. 
  • Groups assignment: students are requested to form groups and prepare a presentation to foreword cases' discussion.
  • Interactive class activity: a professional trader will  explain the basics of technical analysis and propose simulations on FX market (to be run in groups)  

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

    Attending students are expected to actively take part to classes and prepare material when requested (i.e. reading case study before discussion).

    Attending students evaluation combine exam results (60% of the final grade) and the two assignments results (40% of the final grade).

    • Attending students can split the exam into two parts, a partial examination and a final examination (each of them weighting 30% on final grade) or simply have one general exam at the end of the course (weighting 60% 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.
    • Attending students will have to produce two assignments, each one weighting 20% on the total mark.  In the first part of the course they will be required to run an FX trading simulation (in small groups) that will be evaluated by the instructor. In the second part of the course they will be required to prepare and expose (in small groups) a case study to foreword the class discussion.  On such task they will be evaluated by their peers.  
    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 will be indicated in autumn 2019 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 03/05/2019 09:06