Programme Content Part 1 (Compulsory Modules)

Securities, Futures and Options

Convenor: Professor Chris Brooks     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: Dr George Alexandridis and John Evans    Credits: 20

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 they can be exploited to form optimal investment strategies.

Outline Content: An Introduction to Debt Markets; Bond Prices and Yields; Term Structure of Interest Rates; Interest Rate Risk; Active Bond Management; Credit Risk; Economic and Industry analysis; Financial Statement Analysis; Equity Valuation; Behavioural Finance and Technical analysis.

Financial Analysis

Convenor: John Evans    Credits: 20

Financial Analysis provides a comprehensive study of ‘top-down' fundamental analysis and then allows one to take this framework and apply it to the valuation of financial securities.  The first part of the course takes the student through macro-economics, micro-economics, industry analysis, financial statement analysis and the second part of the course focuses on financial statement analysis and then looks to apply this framework to the corporate valuation decision.  The final objective is to bring together these various disciplines into a single framework for analysis.

The analytical techniques taught in this course are very applied, to allow the successful candidates to apply directly to industry either the analysis section (as an equity analyst would do) or the usage of the relative value results as a fund manager or trader would do.

Outline content: Introduction and overview of the framework, and Markets and government; Aggregate demand, fiscal and monetary policy; Consumer demand and competitive markets; Industry analysis and regulation; The accrual concept and cash flows; Current assets and inventories; Long term assets; Long term finance; Business investments and combinations; Pensions and derivatives; Research project with presentation to class.

Financial Markets

Convenor: Dr Alfonso Dufour    Credits: 20

The aim is to provide an economic framework for understanding the global financial system and global financial markets, financial institutions, market players and the importance of liquidity and price efficiency.  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; 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 municipal; 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.

 

NB. All our Masters degrees comprise a total of 180 credits: 80 credits at Part One and 100 credits at Part Two. All modules are 20 credits except those marked with†, which are 10. Please note that module titles or content may vary each year.