Not for credit

This one-day workshop aims to provide an introduction to the shipping industry; its main markets and participants, the various vessel classes, the types of commodities carried by sea as well as the main risks and sources of capital in the industry. The session also focuses on current developments and outlook of the global shipping industry.

Renowned business practitioners are often invited as guest speakers to this event which takes place during the first week of the first term.

Module convenor: Professor Chris Brooks20 credits

Introduces techniques for analysing and valuing different classes of risky assets. It also develops ways of optimally selecting portfolios of such assets and develops models of how these portfolios may be priced in financial markets. The techniques introduced in this module are widely applied in other elements of the programme. Outline: Financial assets and investing in securities markets; Investors and their objectives; Risk and capital allocation; Optimal portfolio selection; Capital asset pricing model; Single index and multifactor models; Arbitrage pricing theory; Derivative securities and the no-arbitrage principle; Forwards and Futures contracts; Simple hedging; Options basic properties and trading strategies.

Available learning modes:

• Full time
• Flexible learning
• Distance learning

Module convenors: Dr George Alexandridis  | John Evans  | 20 credits

Fixed Income and Equity Investments deals with the valuation of fixed income and equity securities. The module focuses on the basic characteristics of each security and the strategies used for approximating their fundamental value and assessing their risk. Its primary aim is to discuss how certain characteristics and relationships can affect the value of fixed income and equity securities and how can they be exploited to form optimal investment strategies. The analytical techniques introduced in this module are widely applied in other elements of the programme. Outline: An introduction to securities,  Applying time-value-of-money (TVM) and probability theory to value financial instruments,  Bond prices and yields, Introduction to default risk, Term Structure of Interest Rates, Interest rate risk, Active Bond Management,  Economic and Industry analysis, Financial Statement Analysis, Equity Valuation, Behavioural Finance and Technical analysis  

Available learning modes:

• Full time
• Flexible learning
• Distance learning

Module convenor: Professor Manolis Kavussanos20 credits

Sea transportation is a crucial catalyst for world trade and economic growth. The globalization of the world economy, increased competition and rapid technological change have resulted in lower transportation costs. Price volatility, uncertainty, capital concentration and global competition within the shipping markets make economic skills essential for the success of shipping organizations. The aim of this module is to provide an understanding of the structure and mechanisms of international trade and the associated the economic mechanisms. It also covers the maritime economic principles and policies related to the effective management  of shipping companies operating within the global competitive environment. The focus is on international trade economics, shipping market cycles, supply and demand conditions and trade patterns in seaborne transportation.

Outline: International Trade and the Global Economy, Economic Functions of the Foreign Exchange Markets, The International Monetary System, Introduction to the Shipping Markets, The Economics of the Shipping Industry, Supply and Demand – Freight rate Determination, The Four Markets of the Shipping Industry, Costs and Revenue in Shipping, The economics of liner shipping markets, The Regulatory Framework of Shipping

Module convenor: Dr Alfonso Dufour10 credits

The module provides an economic framework for the understanding of global financial markets, organised exchanges, market players and the importance of liquidity and price efficiency. Participants will gain an understanding of the international stock and bond markets, ‘repo’ markets (for borrowing/ lending on a secured basis); an introduction to foreign exchange and money markets, and to futures markets; finally specific markets for commodity and energy are studied in more detail.

Outline: General introduction to world financial markets, Liquidity, the distinction between exchange versus OTC markets and the role of intermediaries in their various forms, Primary and secondary markets, Market players and effect on liquidity and price efficiency, Market microstructure theory, Fixed income markets, Foreign exchange market, Futures and option markets, Commodity and energy markets

Available learning modes:

• Full time

Module convenor: Dr Dong Wook Song10 credits

The module focuses on the current developments and practices in logistics and supply chain management within the global maritime industry (i.e., shipping and ports). It also aims to provide an understanding of the challenges involved in the management of systems for the transportation of goods by sea as well as the optimization of maritime transportation and distribution systems. The module covers the importance of the maritime industry within global logistics and supply chain, the impact of current business patterns in logistics and supply chain within the maritime sector, the strategic approach of shipping companies in the globalised market place, as well as the logistics related challenges faced by global port operators.

Outline: Seaborne trade and maritime logistics, Intermodal and maritime transportation systems, Third party maritime operators, Maritime logistics value management, Shipping logistics management, Dry- and liquid-bulk, and liner commodity logistics, Port logistics management, Port/terminal operations and management, Maritime logistics integration and performance, Maritime logistics international regulations, environmental and security issues

Available learning modes:

• Full time

Module convenor: Professor Carol AlexanderNot for credit

This non assessed, compulsory course provides an introduction to three main areas of mathematics and statistics that are used in finance; Probability and Statistics, Linear Algebra, and Regression Analysis. The emphasis is on the financial applications of quantitative techniques.

Not for credit

This workshop aims to provide an overview of the different career roles within the shipping industry with particular emphasis on shore based commercial roles. Ship-broking, Chartering, Operations, Ship Finance/Banking and Law/Insurance as well as their inter-relations are covered. Qualities required, locations and major employers will also be covered.

Participants will have the opportunity to discuss about their career prospects and receive advice from one of the most experienced shipping recruitment specialists in the world.

This workshop takes place early during Term 1.

Not for credit

This one-day workshop aims to provide an overview of some very important technical aspects of ships and cargoes. The issues and terminology introduced here are pre-requisites for the understanding of topics in ship management and chartering. It will cover, among others, types of commercial ships, load-lines, ship construction, engine room layouts, ship surveys, dry docking, cargoes, stowage and cargo handling equipment.

Module convenor: Dr Illias Visvikis20 credits

Shipping Finance and Investment focuses on the evaluation and selection of alternative shipping related investment decisions under uncertainty and the different sources of investment financing available to shipping organisations. It builds upon some of the core concepts introduced in Corporate Finance, but focuses on the shipping industry. The module deals with the process and types of traditional ship mortgage finance, as well as the alternative capital market sources, such as public issuance of equity and debt, private forms of equity and debt, ship leasing and KG/KS financing. It also aims to provide a rigorous grounding on the long-term financial decisions that shipping corporations make, the tools and analysis used to make these decisions and the factors that affect them.

Outline: Bank Shipping Loans, Bank Syndication, Bank Credit Analysis, Issuance of a Shipping Loan, Public and Private Equity in Shipping, Comparison of Risks-Returns across Listed Shipping Companies, High Yield Shipping Junk Bonds and Credit Spreads, Ship Leasing, KG/KS Ship Finance, Capital Budgeting in Shipping, Investment Appraisal in Shipping, Cost of Capital and Capital Structure in Shipping

Module convenor: Dr Carol Padgett10 credits

Corporate financial management deals with the long-term financial decisions that corporations make and the tools and analysis used to make these decisions. The objective of the module is to introduce students to the main financial decisions taken by corporations, examining how those decisions influence the market's valuation of companies.

Outline: The corporate form and initial public offerings, Valuation: management and measurement of value, Capital budgeting: decisions on fixed assets, Treasury function 1: working capital management and risk management, Treasury function 2: new issues, Treasury function 3: capital structure continued, Dividend policy: dividends and share repurchases.

Available learning modes:

• Full time
• Flexible learning
• Distance learning

Module convenor: Dr Illias Visvikis10 credits

The module deals with the most common economic techniques used in the analysis of shipping markets. The aim is to provide participants with the business modeling research tools and skills necessary to conduct empirical analysis in shipping. It follows a “hands-on” approach, where participants use real shipping market data and apply empirical assessment methods through case studies. Emphasis is placed on practical applications of the research techniques employed in international shipping markets.

Outline: Linear regression models and their application in shipping, Modelling shipping firms’ stock returns and associated risk factors, Univariate time series modelling and forecasting shipping indices, Multivariate time-series modelling and spillover effects between freight and commodity derivatives markets, Modelling long-run relationships and the price dynamics of the dry bulk market

Available learning modes:

• Full time

Module convenor: Dr Konstantina Kappou10 credits

This module aims to provide students with a detailed knowledge of the Commodity Derivatives Markets. It examines the aspects of pricing and trading physical derivatives, with emphasis on the Energy and Shipping (Freight) sectors. The course is designed using real trading examples, stimulating students, who want to follow a Sales and Trading Career in Investment Banking, to approach derivatives pricing from first principles.

Outline: Introduction to Commodity Markets (History and Evolution, Energy Products, Base Metals, Soft Commodities), Main Market Players and the Forward Curve (Basis Risk, Commodity Futures and Options, Exchanges and OTC markets), Pricing of Commodity Derivatives (Swaps, Options and Structured Trades), The Oil Market and its Mechanisms (OPEC and DOE, Crude Supply and Demand, Inventories, Crude Products and Crack Spreads, Refineries and Margins, Main Energy Derivatives strategies), The Freight Market and its Mechanisms (The Baltic Exchange and the Shipping Industry, Forward Freight Agreements, Trading Freight Derivatives)

Available learning modes:

• Full time

Module convenor: Dr Marcel Prokopczuk10 credits

The module provides an introduction to the basic techniques employed in Financial Engineering. Students will understand how these methods can be applied to design securities with desired payoff characteristics. They will be able to evaluate complex securities by means of reverse engineering and be aware of possible problems when these methods are applied in real world situations.

Outline content: Introduction to Financial Engineering, cash flow engineering, basic financial products, interest and forward rates, no-arbitrage and the law of one price; Pricing and hedging by replication, major interest rate (IR) swap structures, IR swaps, currency forwards and cross currencies FX-swaps, options; Structured products, introduction and evaluation; Dynamic strategies for hedging and principal protection; Credit markets: CDS engineering, credit indices and CDO's.

Module convenor: John Evans10 credits

International Securities Markets applies general valuation risk assessment methods to: fixed income securities, derivatives and markets. It describes the basic characteristics of each fixed-income security, cash and underlying, and develops practical strategies for finding its value and assessing its risk. It also considers how the markets for these securities are related and begins the task of showing how these relationships can be exploited for trading or investment. The analytical techniques introduced in this module are very applied to allow the successful candidate to apply directly to industry the more theoretical market valuation and risk models learned in other core modules taken in the first term. Outline: FIxed income Analysis, Rates Trading and Hedging I, Rates Trading and Hedging II, Credit Analysis and Products I, Credit Analysis and Products II

Available learning modes:

• Full time
• Flexible learning
• Distance learning

Module convenor: Dr Simone Varotto10 credits

The objective of the module is to introduce students to the technical and practical aspects of M&A deals. In lectures we shall explore (1) several corporate valuation methods (2) how to identify and value synergies and (3) how to finance an acquisition. Selected case studies will help students become familiar with the practical aspects of the deal making process.

What makes a mergers successful and what does not, SWOT analysis and other strategic tools, Bidder and target valuation: DCF, APV, P/E, Book value and similar transactions' multiples, Sensitivity analysis and triangulation, Synergies, Cash, stock and mix financing, Impact of financing methods on valuation, Payment methods, Decision rules, Takeover, Defences: poison pills, staggered boards, supermajority, Legal aspects of M&A in Europe, Cross-border mergers, Valuation issues, Mergers and corporate governance

Module convenor: TBC10 credits

In order to raise capital from financiers or secure funding via government grants it is always necessary to produce a robust financial plan. This plan will then be used as a yardstick by all parties to monitor the performance of the business. Typically a detailed twelve month plan is required in addition to a summary level five year plan. Typically these plans will include comprehensive sections on revenue forecasts, profit and loss, cash flows, balance sheet, capex, financing and a commentary with further detail to help explain the figures. The aim of the module is to introduce students to the practicalities of developing and utilising financial models with a view to achieving the overall strategic objectives of an organisation. Students will also gain a thorough understanding of the interaction between the separate statements within a financial model.

Outline: The components of organisational strategy, the need for Strategic Planning and Budgeting and the role it serves for different parties, The statements contained within a financial model and the interaction between those statements, Banking covenants and aiding compliance, Planning as an aid to identify potential cash shortfalls and mitigate future uncertainties, Links between long term and short term borrowings, Initial detail required to commence the preparation of a financial plan, Revenue and expenditure planning, Working capital modelling and integration, Capital expenditure cycle and integration, Management support and incentivisation, Plan development for twelve month and five year time frames, Sources of information, Plan monitoring, Rolling forecasts and amendments to the model, Whole business monitoring versus project modelling

Module convenor: Dr George Alexandridis10 credits

The module aims to provide a framework for the analysis of shipping companies and the management of portfolios involving shipping stocks. Participants will gain an understanding of the factors affecting the performance of listed shipping companies and the tools used for investment selection and portfolio optimisation.

The module involves a series of portfolio management and shipping investment sessions delivered by resident academic faculty and shipping investment professionals. It also entails a shipping portfolio management challenge where participants build portfolios of shipping stocks using real time data on the ICMA Centre Portfolio Management Simulation Platform.

Outline: Shipping industry news, shipping portfolio management challenge mandate, IC Portfolio Management web Platform, Overview of Portfolio Management Tools and Investment Selection, Portfolio Optimisation and essentials of portfolio performance evaluation, Analysing publicly listed shipping companies.

Module convenor: Dr Illias Visvikis20 credits

The module provides a solid grounding in risk management and derivatives products in shipping. It builds upon some of the finance concepts introduced in Term 1 modules and applies those concepts within the shipping industry. Risk management is constantly evolving and has become an essential tool within the modern corporation. The cyclical and volatile nature of the shipping business that tends to result in extensive fluctuations in rates and prices associated with shipping operations makes risk management crucially important to shipping companies. As a result, shipping derivatives have been developed in order to more efficiently manage risks, emanating from fluctuations in freight rates, bunker prices, vessel prices, interest rates and foreign exchange rates, amongst others. The module’s main aim is to provide a critical understanding on how all main types of shipping derivatives can be applied in the day-to-day practice of risk management in shipping.

Outline: Sources of Business Risks in the Shipping Industry, Traditional Risk Management Strategies, Underlying Freight Assets (Baltic Exchange indices and routes), Derivatives Products and Markets in Shipping: Futures, Forwards, Swaps and Options, Dry-bulk and Tanker Forward Freight Agreements (FFAs), “Hybrid” Cleared FFAs, Containership Freight Swap Agreements (CFSAs), Freight Futures and Clearing, Baltic Forward Curves (BFAs), Freight Options Contracts  and Option Pricing, Advanced Option Trading Strategies, Bunker Fuel Price Derivatives, Bunker Fuel Trading Simulation, Foreign Exchange and Interest Rate Derivatives, Baltic Sale and Purchase Assessments (BSPAs), Baltic Demolition Assessments (BDAs)

Module convenor: Dr Alec Coutroubis20 credits

The module provides an in-depth understanding on the various activities related to the commercial exploitation of merchant ships and their different chartering methods and practices. Content includes the procedure and practices relating to the sale and purchase of vessels, their commercial employment under various forms of chartering and the detailed calculation of financial performance including port operations. The module further provides a critical overview of niche cargo markets such as dry bulk, oil and chemical tanker, container, liner, passenger, short sea and inland waters. Where appropriate, the impact of national, EU and International sea transport policies are examined, together with International Maritime Organisation (IMO) regulations that guide the future terms of trade and developments in the design and specifications of ships.

Outline: Sell & Purchase of Vessels, The role and Functions of the Shipbroker, Vessel Description and Technical Details, Chartering Terminology, Dry Bulk Chartering, Wet Bulk (Tanker) Chartering, Passenger Chartering, Different Chartering Methods: Voyage, Time, Bareboat Chartering, Contracts of Affreightment, Disputes and Arbitration, Voyage Estimates & Voyage Results, Laytime calculations

Available learning modes:

• Full time

Not for credit

The purpose of this one-day workshop is to provide an overview of the accounting practices commonly employed within the maritime industry. The workshop focuses on the critical evaluation of accounting methods used in modern shipping practice. Its ultimate goal is to provide students with the necessary tools to perform accounting analysis within a maritime organization.

Not for credit

Strategic management skills are essential within the shipping sector. This one-day workshop deals with the set of objectives and policies adopted by shipping service providers in order to gain a competitive advantage and maximise returns for their owners and other stakeholders. The primary focus is on the external environment and internal resources that determine what businesses to participate in and how to compete. Participants learn, through case studies, to use appropriate tools in order to build, analyze and communicate shipping related strategies.