Programa de MSc en Finanzas.pdf

8/11/2019 Programa de MSc en Finanzas.pdf

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Accounting Foundations ( 2 credits )

Introduction to accounting concepts, preparation and interpretation of financial statements.

Corporate Finance ( 2 credits )

Valuation of cash flow streams (PV of cash flow streams, annuities, and perpetuities); valuation of bonds; valuation of stocks

using dividend discount model; capital budgeting decisions (NPV, IRR, payback); capital structure; limits to the use of debt

(trade-off models); estimation of cost of debt and equity; WACC.

Derivatives Analysis ( 2 credits )

Basic characteristics of derivatives instruments such as forwards, futures, options, and swaps. Topics include pricing of

futures and forward contracts, forward-spot basis risk, option strategies, put-call parity and introduction to the Black-Scholes

model. The development and use of interest rate and currency swaps are also discussed.

Foundations of Economic Analysis ( 2 credits )

An examination of some micro- and macro-economic concepts: competitive markets, profits in terms of cost structure and

market power; national accounts and business cycles; money and inflation, economic growth, capital accumulation,

technological advance and returns to capital and balance of payments.

Investment Analysis ( 2 credits )

An Introduction to fundamental concepts in investment analysis. The first part covers risk and return tradeoff, portfolio

diversification, and modern portfolio theory including the capital asset pricing model and arbitrage pricing theory. The second

part covers basic analytical tools used in analyzing fixed income securities. Topics include interest rates and yield-curve

mathematics, duration analysis and convexity.

Statistics for Financial Analysis ( 2 credits )

Applications of various statistical concepts to investment and financial decision including descriptive statistics, discrete and

continuous probability distribution, sampling and estimation, hypothesis testing, correlation, and regression.

Required Courses

Advanced Topics in Financial Management ( 2 credits )

Valuation of projects (advanced capital budgeting); estimating cost of capital; risk assessment of projects; decision tree

analysis; real option valuation of projects; warrants and convertibles; leasing; dividend policy.

Advanced Derivatives Analysis ( 2 credits )

Advanced techniques in option pricing and derivatives risk management. Topics include the binomial model, risk-neutral

valuation, extension of the Black-Scholes pricing model and option Greeks. The course will also include discussion and

analysis of options on futures, interest rate options such as caps and floors, and some popular OTC products such as equity-

linked notes and principal guaranteed funds.

Corporate Financial Reporting I ( 2 credits )

Corporate financial reporting from the perspective of managers and financial statement users, including analysts. Topics


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include inventories, fixed assets, income taxes, liabilities, leases, off-balance-sheet debt, and dilutive securities.

Equity Investment Management ( 2 credits )

The course covers the complete investment process from constructing investment objectives and policies to broad class asset

allocation, monitoring, and performance measurement and attribution. Practical issues relating to investment style, active and

passive management, stock market inefficiency will be discussed. Advanced techniques in portfolio construction such as theBlack-Litterman model, single index and multi-factor are studied.

Fixed Income Analysis ( 2 credits )

Includes techniques in fixed-income portfolio management and introduction of fixed-income derivatives. Topics include term-

structure theories, yield-curve fitting techniques and yield curve trading strategies, portfolio performance evaluation, floating

rate securities, forward rate agreements, bond and interest rate futures, and interest rate swaps.

Financial Modeling ( 2 credits )

This is a course about financial modeling. The goal is to make financial models that produce useful answers to economic

questions. Selected topics which lend themselves to financial modeling will be covered, such as (but not limited to) loanamortization schedules; valuation and private equity; equity derivatives; mutual fund performance and style analysis; fixed

income derivatives, and optimal portfolio selection.

Elective Courses

Advanced Derivatives Applications ( 2 credits )

Practical applications of derivative pricing and hedging, focusing on equity-linked structures. The emphasis of the course will

be on building intuition with regard to option pricing and hedging, using Excel-based pricing models and real world

applications. A solid foundation in option pricing theory as provided by the prerequisite courses is assumed, as is familiarity

with Excel and VBA.

Asset Securitization ( 2 credits )

An introduction to the analysis of structured securities. Catalogues the world of cash- and derivative-based structured

products. Reviews the essential methods used by rating agencies in appraising the credit of cash structures: ABS, MBS and

CDOs. Hands-on exercise on the assignment of credit ratings.

Behavioral Finance ( 2 credits )

This course examines how individuals' attitudes and behavior affect their financial decisions and financial markets. Topics

include: review of psychological foundations, imperfect markets and limited arbitrage, market anomalies, and trading

strategies.

Corporate Risk Management ( 2 credits )

Practical and theoretical issues in risk management from the corporate end-user's perspective; benefits and optimal strategies

of risk management; current cases which have been debated in the media.

Entrepreneurial Finance and Family Business(2 credits)

The course is designed to investigate how firms evolve from an entrepreneurial idea to eventually becoming a family


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business. The course consists of two sessions focused on entreprenurial finance, one session on the tranformation from

entrepreneurial to family business, and five sessions on aspects of family business. The course objective is to understand

how the uniqueness of family firms arises from a set of key assets and contraints which are similar across firms, countries,

and cultures.

Equity Valuation ( 2 credits )

Basic valuation approaches including dividend discount model, free cash flows model, and valuation by multiples; measures

of company performance and value added; valuation in special situations such as emerging markets, closely held companies,

mergers, and divestitures.

Financial Markets in China ( 2 credits )

The course is an overview of China's financial markets, their latest development, and future trends. Topics include: History of

China Financial Markets, Structure of China Financial Markets, Regulation and Regulatory Bodies, Foreign Exchange and

Monetary Policy, the Peoples Bank of China, Banking Industry, Securities and Bonds Market, Development of the Stock and

Bond Market, Development of the Insurance Industry, Private Equity Funds, and the Real Estate Industry.

Fixed Income Derivatives ( 2 credits )

This course teaches fixed-income derivatives and related topics. It begins with the interbank forward rate agreements and

exchange traded interest rate and bond futures. It then covers the standard interest rate swaps followed by a variety of

nonstandard swaps and swap derivatives. The next topic to be covered is fixed-income options and nonstandard floating rate

notes that aim for managing interest rate risk. The last part of the course deals with fixed income instruments that have

exposure in equity, commodity, inflation, currency, and so on. Both economic intuition and quantitative skills are emphasized.

Foreign Exchange Market ( 2 credits )

This course covers foreign exchange cash and derivatives markets and instruments - spot, outright forwards, swaps, and

futures. It also addresses arbitrage in currency and capital markets, and international parity conditions, dealings with forex risk

in corporate finance and efficient portfolio construction, and creating and back-testing foreign exchange forecasting models.

Global Economy and Emerging Markets ( 2 credits )

The objectives of this course firstly is to introduce students to emerging markets by using a map; maps help us to understand

the influences of civilizations, cultures and religions in how emerging markets develop; secondly, is to treat emerging markets

like a human body. What can we use to take the temperature, pulse and blood pressure of an emerging market to tell if it is

healthy or sick; thirdly, is to use actual experience, real markets and live research to discover more about some of the most

important emerging markets right now: Indonesia, China and India. We focus on excessive leverage which is always the main

cause of financial crisis.

Hedge Funds ( 2 credits )

Alternative investments are the fastest growing sector of the financial industry, and probably the least understood, including

by several market professionals. Although the range of sophistication in people associated with alternative investments varies

substantially, it is more and more common to use them in investment strategies, either as direct investments or through funds

of funds or structured products. The purpose of this course is to give participants a good understanding and workable

knowledge of the techniques that should be part of the tool kit of anyone investing in, analyzing and/or advising private and

institutional clients on the inclusion of alternative investments - and more specifically hedge funds - in their portfolios.

Furthermore, this course will enable the participants to absorb the analytical arguments in the technical publications - the in-

house research notes of financial institutions and in practitioner oriented journal - that deal with alternative investments and to


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apply them.

Introduction to Islamic Banking and Finance(2 credits)

This course will introduce the basic concepts of Islamic banking and finance; differentiate Islamic financial system and

conventional financial system; introduce some fundamental Islamic financial products and explain the theories and concepts

of the Islamic financial products.

Investment and Finance in China ( 2 credits )

Foreign direct investment, China's banking system, trade and trade finance, infrastructure finance, raising funds from the

stock markets.

Mergers, Acquisitions and Restructuring ( 2 credits )

Focuses on the design, analysis, and implementation of financial strategies aimed at repositioning and revitalizing companies.

Corporate value creation by restructuring a company or by undergoing a business combination.

Raising Debt in the Financial Markets ( 2 credits )

This course is designed to develop an in-depth understanding of the choices open to companies in terms of debt financing,

and to provide students with an introduction to the domestic and international debt financial markets.

Real Estate Investment ( 2 credits )

The goal of the course is to introduce to students recent developments in real estate markets, especially in Asia, and the

basic knowledge for real estate investment. Students will learn basic concepts and skills for mortgage financing analysis and

for real estate investment valuation and return analysis. Students will also be exposed to recent developments in real estate

debt and equity markets.

Risk Management for Financial Institutions ( 2 credits )

Brief overview of financial intermediaries and their functions. Measures of interest rate risk: periodic (re-pricing) gap, duration

gap. Management of interest rate risk using appropriate composition of assets and liabilities, futures, options, caps, floors,

collars, swaps. Market risk: value at risk measures. Management of credit risk, off-balance sheet risk, liquidity risk, capital

adequacy. Deposit insurance. With selected case studies.

Statistical Methods for Risk Management ( 2 credits )

This course introduces several risk management models designed to allow risk managers of financial institutions to measure

and manage various sources of financial risk including market risk, interest rate risk, and default risk, among others.

Emphasis is on the development of 'hands-on' experience which includes the calibration of models and discussion of the data

issues faced in the application of these models. This course is intended for all students considering a career in quantitativerisk management, whether in the insurance, banking, or non-financial sector.

Strategic Finance and Value Creation ( 2 credits )

Key valuation techniques including discounted cash flow approach and valuation by multiples. Understanding of how firms

manage and create value through restructuring assets, liabilities and organizational design.


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Structured Products and Exotic Options ( 2 credits )

This course will provide students with a basic understanding for the commonly traded financial derivatives and bonds

instruments in the financial markets. Detailed explanations on the hedging, pricing and risk management methodologies will

be included. Illustrative case studies of some real products will be provided.

Trading in Equity Markets ( 2 credits )

This course aims to give participants an insight into finance in action, focusing on the equity market. The emphasis will be on

real life market problems. Led by a market practitioner, it will look at, amongst other things, how a trading floor works and the

different forces and factors that lead to a market behaving in the way that it does. Students will apply knowledge gained in

other courses in practical situations with a distinction on where theory differs from practice, and an emphasis on the needs of

market practitioners.

Venture Capital and Private Equity ( 2 credits )

Topics include: (1) An overview of the venture capital and private equity markets in Asia; (2) Deal structuring; (3) Valuation

techniques; (4) Due diligence and post-investment management; (5) Understanding the terms in term sheets; (6) Negotiating

term sheets; (7) Going public, trade sale and other exit strategies. Real-world examples from throughout Asia will be used toillustrate these topics.

Documents

Programa de MSc en Finanzas.pdf