Capital and Security Markets
Analyzing the instruments of capital markets and incentives/risks of major market participants. Understanding the structure and market acceptance of bank debt, short term debt alternatives, straight debt, equity linked debt, various forms of preferred equity, and international placements. Solving risk management problems using swap overlays, embedded options, and other financial structures.
 Hours3.0 Credit, 3.0 Lecture, 0.0 Lab
Course Outcomes: 

Explaining Financial Institutions

Be able to explain the function, risks, regulatory environment and capital market impacts of a number of financial institutions (banks, mutual funds, savings and loans, insurance companies, pension funds).

Understanding Financial Terms

Be conversant with the features, risks and use of bank instruments, money market securities, bonds, equities, debentures, loan covenants and agreements, equity-linked debt, and asset securitization notes.

Cost Calculations and Pricing Impacts

Perform all-in-cost calculations and pricing impacts of hedging, interest rate swaps, foreign currency swaps, derivatives, synthetic securities, embedded options.

Understanding Issues and Problems

Develop a working vocabulary and understanding of the major issues and problems faced by finance specialists in the current global market.