Specific cases involve the use of derivatives and other financial innovations to reduce risk, lower the cost of financing, improve portfolio yields, or help the corporate firm achieve strategic goals. Students analyze, present, and critique cases. The evolving roles of financial intermediaries, regulation, and capital markets in the financing of American businesses and the provision of savings and payments mechanisms for individuals. The securitization of traditional loan products and the determinants of the term structure of interest rates. Management of risks associated with interest rates, credit, liquidity, and exchange rates.
Attention is devoted to commercial banks, pension funds, investment banks, and other firms.
A financial institution decision game is typically included in the course. FINA 8810 - International Financial Management International business decision making with an emphasis on the relationship between decisions and markets. The determinants of exchange rates, hedged costs of funds, transaction and economic exposure management, capital budgeting, corporate strategy, and swaps. The course makes extensive use of cases. The most recent professional contributions in the various special fields of finance.