98904 - FINANCIAL PRODUCTS AND MARKETS

Learning outcomes

At the end of the course the student has a sound knowledge of the financial products traded in the market, the differences among them, and the reasons why they were introduced in the market. The products range from standard bond and stocks, to derivatives and structured financial products. The student has knowledge of the main agents trading in the market, as fund raisers or investors, as well as financial intermediaries.

Course contents

Financial Options and Option Pricing Techniques

Primary Market for Stocks: Initial Public Offering (IPO)

Secondary Market for Stocks: The Functioning of Stock Market Orders

Bonds and Pricing Techniques

Pricing Corporate Bonds: Credit Risk, Default Probabilities and Credit Ratings

Primary Market for Government Bonds: The Functioning of Treasury Auctions

Interest Rate and Currency Swaps

ESG Financial Products: ESG Ratings, Green Bonds and Social Bonds

Readings/Bibliography

Slides, Excel Files, Case Studies provided by the instructor.

Textbook: Jonathan Berk, Peter DeMarzo. Corporate Finance, Second Edition, Global Edition, Pearson

Teaching methods

Traditional in-class lectures and case study applications

Assessment methods

The students will form groups to work on a case study application assignment and present their respective solutions to the instructor on the day of the exam.

 

Thesis Assignment

Prerequisite: Successful completion of the exam. Interested students can be assigned a master thesis by the instructor by discussing the topic in class or during the office hours. Typically, the instructor offers advice on innovative research-driven, empirical topics.

Teaching tools

Slides, exercises, case study applications.

If possible, guest speakers working in the industry may be invited to lecture on specific topics.

Office hours

See the website of Francesco Baldi