What you will learn
- The theories and macroeconomic structures governing banking and financial intermediation, what are the embedded risks, how are those risks managed as well as the regulatory framework and Basel guidelines that ensure stability of banking systems worldwide.
- The structures and functioning of the various financial markets: money markets, debt market, equity stock markets, foreign exchange markets, private equity markets, mortgages markets, etc.
- The theories underlying those markets such as time value of money, bond valuation, etc., the financial instruments traded in those markets and the associated trading and settlement mechanisms; structured financial products & their role in the 2008 crisis.
- How to identify, assess and manage the various risks in those markets.
- How tools such as Value at Risk and Stress Testing are used to proactively assess risk, and derivative instruments such as futures, options, swaps are used either to hedge against or to speculate and profit from those risks.
- Critically review of the Basel guidelines: have they helped stabilize financial systems worldwide? Would they be able avert the recurrence of a global financial crisis, as witnessed in 2008?