Lectures

01. Introduction. Financial Crisis 1

Introduction to the course. Requirements. Seminar. 2007-2009 Subprime mortgage crisis.

02. Financial Crisis 2

Subprime mortgage crisis. New structured instruments. Impact on the countries of Central and Eastern Europe (CEE).

03. Efficient Markets

Efficient market hypothesis (EMH): weak form, semi-strong form, strong form. Relevant information. Speed of adjustment. Hypothesis testing.

04. Behavioral Finance

Examples of market inefficiencies. Investor sentiment, noise trade risk, and professional arbitrage. Passive vs. active management.

05. Liquidity

Global liquidity. Market Liquidity. Funding Liquidity. Interaction between market liquidity and banks´ funding liquidity. Measurement and indices.

06. Money Markets

Main features of the money markets. Central bank operations. Money market indicators. Determinants of interbank rates.

07. Forex Market

Main features of the forex market. Key players, instruments and operations. Links to money markets.

08. Financial Regulation

Financial system regulation. New regulation requirements. Challenges to financial market participants introduced by new financial regulation.

09. Risk Management

Importance of risk management. Tricky aspects of introducing the efficient risk management system. Differences among firms in motivation for hedging cash flow risk or against changes in firm values. Risk management of the interest rate risk vs value of portfolio.

10. Incentives, Information & Corporate Control

Managerial incentives and financial decisions. Information content of earnings announcements, change in the dividend policy, debt-equity choice.

11. Mergers, Acquisitions & Restructuring

Mergers and Acquisitions as the growth strategies. Shedding assets as gelation of values. Changes in the ownership structure for value creation.

12. Contagion and Spillovers

Volatility on financial markets. Spillovers across markets and empirical evidence.

13. Stock Market and Security Offerings

Function of the stock market as a source of funds. Emergence of securities on stock market.