Bachelor Program in Business and Management

The course provides students with an overview of global financial markets and how financial intermediaries operate. It develops knowledge about the technical and economic features of equity, fixed income, foreign exchange and credit financial instruments, in the context of different market models. The course also analyzes central banking and the conduct of monetary policy, provides a focus over the interdependence between macroeconomic factors like interest rates, FX rates, asset prices and the dynamic of transmission of monetary policy strategies to real economy through global financial markets. The last financial and economic crisis has provided evidence that although well-functioning financial markets lead to economic growth, in certain conditions they may originate point of failures with negative effects for corporates and individuals. Understanding the mechanisms of financial markets and the evolution of risk management processes have never been so important, for this reason some lectures will be dedicated to the evolution of the regulatory framework. The course will also provide an introduction to behavioral finance and market efficiency theory. Ethical issues, including ESG investments and impact-investing, will be considered as well.

Knowledge and ability to understand - Students should demonstrate in-depth knowledge and understanding of financial markets and institutions, the regulatory framework and how financial institutions are managed.

Ability to apply knowledge and understanding - Students will have the opportunity to discuss real case studies.

Autonomy of judgment - Learning should be ‘critical’ and active class participation is required: students will discuss case studies leveraging on financial press articles.

Communication skills - The attendance of the course will allow students to master the basic technical language and jargon of financial markets.

Ability to learn – The attendance of this course will enable students to contextualize the fundamentals of financial markets within the regulatory framework in which they operate.

The course is developed in 42 hours of lessons of theory complemented by exercises and discussion on real financial markets cases.

The assessment method consists in a written examination.
Questions will consist in questions based on theory as well quantitative exercises.

The lecturer suggests and provides students with interesting and recent articles, going beyond the simple program of the course. Where possible, information providers will be used to observe financial markets in real-time conditions and how asset prices change when additional information flows to market participants.

• Overview of the Financial System and Fundamentals of Financial Markets
• Interest and Debt Securities Valuation
• Risk and Term Structure of Interest Rate
• Financial Markets Efficiency Theory
• Fundamentals of Financial Institutions
• The origin of Financial Crisis and Transmission to Real Economy
• Financial Regulation and the Evolution of the Regulatory Framework
• Central Banking and the Conduct of Monetary Policy: The Federal Reserve System
• Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics
• The Bond market, the Stock market and the FX market
• The International Financial System and the Financial Institutions Industry
• Banking Industry and the Management of Financial Institutions
• Banking Industry: Structure and Competition
• Mutual Fund Industry, Insurance Companies and Pension Funds
• Investment Banks, Security Brokers and Dealers, and Venture Capital Firms
• Behavioral Finance
• Macroeconomic and Industry Analysis

To take the exam, the studens must be listed online following the formal procedure defined by the University (deadlines, ...)