MSc Global Banking and Finance Elective Modules
Students on the MSc programme can choose one elective to
complement their respective core and specialist
modules.
Electives currently on offer:
Alternative Investments
This module looks at alternative investment vehicles – hedge
funds, private equity, venture capital and CTAs (Commodity Trading
Advisors). Portfolio management, asset allocation, investment
selection and investment performance are also covered for each of
the different areas. The terms “Venture Capital” and “Private
Equity” describe equity investments in unquoted companies: younger,
early stage and developing businesses, as well as financing
leveraged management buy-outs and buy-ins and related investments.
This module focuses the students’ critical understanding to the
concept of private equity finance, the fund raising and investment
process of private equity firms, as well as to the characteristics
of private equity, its returns, risks, and cash flow
implications.
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Financial Engineering
Innovation and sophistication in the financial markets are ever
increasing, exemplified not least by the recent growth in credit
derivatives and in structured equity products for retail markets.
For managers and market participants these developments present new
opportunities and risks. The challenges may take different forms –
reduce cost of funding, increase yield on short-term investments,
hedge currency risk, devise new products for clients, speculation
on market movements, reduce cost of replication, etc – all of which
have to be solved taking regulatory as well as tax and accounting
legislation into account. This module will help students develop
skills to deal with such real-world challenges, often by creating
and managing synthetic assets of various kinds.
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Trading in Global Financial Markets
Trading is an important function in the global financial
markets. In fact, the Efficient Market Hypothesis (EMH) depends on
a sufficient number of traders/investors driving out pricing
anomalies through arbitrage. But trading in the global financial
markets is broader. In addition to arbitrage and market-making,
trading is also conducted on behalf of customers as well as
proprietary trading by financial institutions. To succeed in
trading, traders must not only have a good grasp of global economic
fundamentals, but must also be knowledgeable regarding technical
indicators and market behaviour.
The module is positioned to provide students with practical
exposure to the art and science of trading. Emphasis will be on
giving the students a comprehensive look at traders, trading and
the behaviour of markets. Students will be asked to develop a
trading strategy, implement it and finally to sell this trading
strategy to the right client. Thus, in addition to developing
trading knowledge and skills, this module will highlight the
importance of selling/marketing the right product to the right
client based on financial goals/needs/culture.
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Microfinance
Since the 1990s, microfinance has branched out both in terms of the
range of financial and economic services extended, as well as in
terms of how capital is raised. Banks began to access this market
in a more significant way than ever before. Financial services
offered range from savings, deposits, loans, insurance to cover
life, health, crop, and properties. Many microfinance institutions
access capital markets either by issuing equity or debt capital in
order to raise capital. There are others who have been able to
securitize their loans and thus attract capital by issuing
micro-credit backed securities. Technological innovations have also
paced the evolution of microfinance, changing the landscape. This
module is designed to develop the MSc students’ understanding of
modern Microfinance theory and practice. It is an advanced module
covering the traditional microcredit, most recent microfinancial
services and the role of banks in microfinance, varying from retail
commercial banking services addressed towards the financially
excluded economic agents to the function of large investment banks
in microfinance. The principal objective is to forge a solid
understanding of the theories underlying contemporary microfinance,
demand and supply of microfinance, products and services,
sustainability and outreach, risk management, the role of
regulation and other key topics that will be synthesised into
modules on the programme and directly to inform technical mastery
in the critical analysis, application and execution of contemporary
microfinance.
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Bond Market Strategies
Bond markets and the term structure of interest rates have
always been two cornerstones of financial theory. Moreover, in the
last decades, bond markets have become highly sophisticated in
their offering of a wide range of instruments, from bonds with
embedded options to asset-backed securities or structured notes.
Because of the great importance of these markets and instruments,
participants must become well-informed of the structure and uses of
these securities and also of the increasingly complex techniques
for valuing them. This module is designed to develop the MSc
students’ understanding of bond markets and securities theory and
practice. It is an advanced module that covers the different types
and features of these bond instruments and the fundamental
analytical tools to price them. The principle objective is to forge
a solid understanding of structuring techniques, portfolio
strategies and products within the bond markets.
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Page last updated 4/5/2012