55175 - Corporate Banking

Learning outcomes

The aim of the course is to examine the business models of financial intermediaries other than banks. By the end of the course, students will have: - a good understanding of corporate banking activities; - the basic knowledge required to understand investment banking activities; - the tools for valuing syndicated loans and bond issues; - the tools for valuing project finance transactions and debt restructuring.

Course contents

The course will be divided into several thematic areas, each of which will cover both Corporate Banking and Investment Banking, with a particular focus on the differences between the two:

· Introduction to Corporate and Investment Banking: structure of the banking sector, fundamental differences in business models, roles and functions.

· Regulation and Innovation: the impact of banking regulation, an introduction to sustainability issues (ESG) and the effect of digitalisation and fintech.

· Corporate Banking: key products (loans, leasing, factoring, trade finance), managing relationships with businesses, credit risk and capital management.

· Investment Banking: capital markets transactions (equity, debt), mergers and acquisitions (M&A) advisory, structuring of complex transactions (IPOs, leveraged buyouts, project finance).

· Financial Markets: the role of Corporate and Investment Banking in financial markets; relations with institutional and retail investors; structured finance.

· Case Studies: analysis of real-life cases presented by industry experts covering M&A transactions, corporate restructuring, structured finance and trade finance.

Readings/Bibliography

Corporate and Investment Banking – Egea 2021 (excluding Chapters 2, 10, 11 and 12) by Caselli, Gigante and Tortoroglio

To be chosen at the student’s discretion, to be supplemented with:

Corporate & Investment Banking – 2020 by Giancarlo Foresti

Teaching methods

Lectures: Theoretical introduction and explanation of key concepts

Guest lectures: Each week, managers, investors and consultants will be invited to present real-life transactions in the fields of corporate and investment banking, with a particular focus on decision-making processes, the products used and market dynamics.

Case studies: Students will analyse real or simulated transactions, addressing issues relating to corporate finance, capital management and financial markets.

Assessment methods

The examination will be held in person and will be oral.

The examination will focus on the theoretical content covered in the textbooks, but knowledge of the case studies will not be required.

Grades are awarded as follows:

30/30 with distinction: an excellent performance. This mark demonstrates a perfect command of the subject matter, the language and the content of the course and its materials.

27–29: this mark demonstrates excellent command of the course content, together with an excellent ability to make connections between the various aspects.

24–26: the level of preparation associated with this mark is considered good, with some gaps in both content and interpretation.

21–23: fair level of understanding

18–20: adequate level of understanding

<18: insufficient

Should the student wish to improve their mark, they may present a case study, either from those covered in lectures or taken from the textbook.

Teaching tools

Textbooks.

Slides presented during lectures and available on Virtuale. Please note that the slides are intended to support the lectures and do not cover the entire course syllabus.

Both the textbook and the slides are in English. Lectures and the examination will be conducted in Italian.

Office hours

See the website of Alessandro Marchesini