Programme Content Part 1 (Compulsory Modules)

Securities, Futures and Options

Convenor: John Board    Credits: 20

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 Content: Financial assets and investing in securities markets; Investors and their objective; 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; Option pricing.

Fixed Income and Equity Investments

Convenor: John Evans    Credits: 20

Applies general valuation methods to specific financial instruments: fixed income and equity securities. It describes the basic characteristics of each security and develops practical strategies for finding its value and assessing its risk. It develops general trading strategies for each type of security. It also considers how the markets for these securities are related and begins the task of showing how these relationships can be exploited to form an optimal investment strategy.

Outline Content:Sovereign and corporate bonds: Characteristics, prices and yields; The Term and risk structure of interest rate; Bond risk; Bond management: Active and passive strategies; Credit and credit default swaps; Securitisation; Top down fundamental management: Economic and industry analysis; Equity valuation I: Dividend growth, P/E ratios and earnings multiples; Financial statement analysis; Equity valuation II: Estimating share price and market strategies; Empirical evidence on market efficiency.

Financial Markets

Convenor: Alfonso Dufour    Credits: 20

Provides knowledge of global financial markets, the importance of liquidity, the distinction between exchange versus OTC markets, primary and secondary markets and the role of intermediaries in their various forms. Participants will gain an understanding of: 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 (which are developed in more detail in optional Part 2 modules); finally specific markets for commodity and energy are studied in more detail.

Outline content: General introduction to world financial markets; Liquidity, the distinction between exchange versus OTC markets and the role of intermediaries in their various forms; Short-term debt securities issued by government and corporations; Classification of bonds according to issuer: government, agencies, corporate and municipa; Comparison of bond markets in major countries and a description of the main intermediaries and their role; Foreign exchange market – quotation conventions, types of brokers, central banks’ policies; Primary and secondary stock markets; Futures markets; Commodities markets; Energy markets.

Regulation of Markets and Traders

Convenor: TBA    Credits: 20

The module offers an in depth understanding, of market regulation and its different philosophies. Participants study, and complete a comparative analysis of the regulatory law in a number of jurisdictions including both developed and developing countries. Students will understand the links between regulation and compliance and the most common regulatory charges including: fraud, insider dealing, market manipulation, breach of fiduciary duty, and manipulative practices. Finally, students will have full exposure to the regulatory process of becoming “publicly held” as well as the reporting requirements of a publicly held company.

Outline content: Historical evolution of the markets and their regulation;Securities capital raising and Corporate Finance;Capital raising through other products, including mutual funds, hedge funds and alternative investment vehicles; Licensing of intermediaries; Broker-Dealer customer relationships and advisory services; Investment research, dealing techniques and best execution; Insider Trading and Market Manipulation; Market Abuse

 

NB. We may offer additional modules or vary current modules in any particular year.