Banking and International Finance

Specialist Masters
Programme
Elective handbook
MSc in Banking &
International Finance
www.cass.city.ac.uk/masters
Introduction to the Elective Selection Process

This handbook contains syllabi of the third term Specialist Masters Elective
Modules available to MSc Banking and International Finance
In this handbook you will find the Elective Grid, which contains the full list of electives offered
this year, the host degrees and an indicator of which modules are available for you to select
(as shown by a tick on the table), including those modules open to you which are offered by
other degrees.
This is your opportunity to expand the content of your degree and really make it work for you
in terms of your future career. You can expand the content by looking at subjects you have
not previously studied or focus your studies more tightly on a particular area perhaps by
doing a Business Research Project or choosing targeted electives.
Use all of the information available to you before the selection rounds, such as sample
lecture notes and module outlines. Please think carefully about your options in term three,
you should do some research and think about your potential career and what will be most
useful to you. You can look at information available from Cass Careers to give you some
guidance about what employers in your sector might prefer.
You should read the module outlines carefully and take special care when choosing
unfamiliar subject matter; refer closely to the sample lecture material (if available) and look
at books on the module reading lists. If you are uncertain you should talk to your personal
tutor or course director who will help you ensure you have the appropriate background
knowledge for a module.
Opportunities
Block Modules
This year we have decided to introduce block-taught modules. We hope that these will help
support your busy schedules and offer more flexibility to enable you to structure your studies
in a way that suits you.
Any block taught modules will be flagged on the relevant module spec and on the elective
grid.
International Modules
We are very excited that, as well as introducing some block taught modules this year, we are
also running several international electives in conjunction with international business
schools. These modules will again be highlighted in your handbook and on the elective grid.
Please note: Students that elect to take the block format must attend all sessions. For
international electives students who select these will be required to make, and pay for, travel
and accommodation arrangements.
Options
During term three students should complete one of the following two options.
Option One: Students write a Business Research Project (40 credits) and complete
One elective module (10 credits)
Option Two: Students complete five elective modules (5 x 10 credits)
Rules
When allocating places priority will be given to students who select modules offered by
their primary (host) degree
Selection is not made on a first-come first-served basis, so think carefully before making
your selection
An elective will only run if a minimum of 30 students register for the module, please think
carefully about your back-up options as well, in case your first choice is not available.
Modules may be oversubscribed and therefore it is very important that you think carefully
about your back up choices as it may be necessary to allocate some students to their
back up option
We reserve the right to withdraw an elective
Important Dates:
Term three: 11 May - 286June
Term three test period: 29 June - 10 July
Business Research Project submission: 01 September
Table of Electives
SMM No.
Elective/Host Course
Lecturer
BIF
Banking and International Finance

SMM142
Advanced Topics in Banking and International Finance
Thorsten Beck
SMM128
Banking Strategy
Paulo Soares de Pinho
SMM468
Financial Statement Analysis and Valuation in Banks
Alessandro Santoni
SMM121
Hedge Funds
Nick Motson
SMM121
Hedge Funds Block Elective
Nick Motson
SMM126
Investment Banking in Corporate Finance
Paulo Soares de Pinho
SMM129
Money and Central Banking
Alberto Pozzolo
Energy, Trade and Finance

Shipping, Trade and Finance
SMM133
Energy Project Investment and Finance
Amir Alizadeh
SMM596
Financial Derivatives
Vincenzo Maini
SMM235
Finance
An Introduction to Islamic Banking, Finance and
Insurance
M Iqbal Asaria
SMM226
Credit Risk Management
Max Bruche
SMM921
Trading and Market Microstructure
Rich Payne
Finance &
Banking and International Finance
SMM500
Ethics, Society and the Finance Sector Block Elective John Hailey
SMM233
Mergers & Acquisitions
Scott Moeller
SMM233
Mergers & Acquisitions Block Elective
Anna Faelten
Finance and Investment

SMM922
Energy Markets
Michael Tamvakis
SMM545
Global Real Estate Markets: Block (taught in Dubai)
Tony Key
SMM140
Investment Markets: Block (taught in New York)
Andrew Clare
SMM969
Monetary Policy: Block (taught in Singapore)
Andrew Clare
SMM953
Project Finance and Infrastructure Investment: Block

(taught in Madrid)
Juan Lafont
Evgueni Ivantson
Insurance and Risk Management

SMM141
Risk Strategy and Decision Making
Table of Electives
SMM No.
Elective/Host Course
Lecturer
BIF
International Accounting and Finance
SMM468
Alessandro Santoni
Mathematical Trading and Finance

SMM620
Trading and Hedging in the Forex Market
Patrick Osborn
MODULE SPECIFICATION
KEY FACTS
Module name
Module code
School
Department or equivalent
UK credits
ECTS
Level
Advanced topics in Banking and International Finance

SMM142
Cass Business School
Specialist Masters Programme
10
5
7
MODULE SUMMARY
Module outline and aims
Global banking and financial markets have experienced major developments over the
last two decades, in line with a transformation of the macroeconomic features of many
countries. Financial sector development has been found to spur economic growth.
At the same time, banks involvement in financial markets increased dramatically. This
has lead to the emergence of a complex web of interdependence between banks and
markets, which has brought about increased and more complex risks. The recent
crises episodes have highlighted these interconnections. The lesson is that finance
can be beneficial to economic growth but also has a dark side which needs to be
properly understood by policymakers and regulators as well as industry participant.
The aim of this module is to help students understand the mechanisms that make
financial institutions important for the economy. Specifically, we will investigate the
interactions between financial development, short-run business cycles and long-run
economic growth and development. The course will also explore the dynamics that
shape the institutions of a society' financial structure over the long-run, and study the
complexities of financial policy design in the context of integrated global markets. An
important final objective of the course will be to familiarise students with current
debates on financial markets. In this respect, the module's discussions will be
motivated by the Global Financial Crisis of 2007/8 and the eurozone crisis and the key
regulatory changes which stemmed from these events.
Content outline
The module covers key topics from both a theoretical and an applied perspective.
More specifically, it will cover (but it is not limited to) the following:
Topic 1: Financial openness and the real economy: theory and evidence.
measurement of financial integration
capital account liberalization
effects of Foreign Direct Investment (FDI)
Topic 2: Cross-border banking
the real and financial sector effects of cross-border banking
Case studies (Santander, Ecobank)
Topic 3: . Exchange rates and currency crises.

introduction into exchange rate markets, exchange rate systems and
currency crises
different generations of currency crisis models (with a focus on thirdgeneration models)
link between banking and currency fragility.
Topic 4: Bank stability and banking crises
systemic banking distress
cross-border contagion
interlinkages between sovereign and financial fragility
Case studies: the global financial crisis; the eurozone crisis
Topic 5. International banking post-crisis
post-crisis trends in international banking
regulatory responses on several fronts (Basel 3, governance structure,
cross-border regulatory cooperation)
Case studies: the banking union for Europe; the implementation of
Basel III (US, Europe and emerging markets)
Topic 6: Banking in emerging markets
the special challenges of banking in emerging markets
Case studies: Case studies: Equity Bank, Standard Bank
WHAT WILL I BE EXPECTED TO ACHIEVE?

On successful completion of this module, you will be expected to be able to:
Knowledge and understanding:
Understand the key issues involved in financial development, financial
liberalization and financial integration
Articulate the different roles played by banks and financial institutions
Recognise the interactions between banks and markets and how these have
resulted in increased and more complex risks
Identify the main the determinants of idiosyncratic and systemic bank distress
Demonstrate understanding of the role of regulation and supervision in
preventing financial distress
Evaluate the policy lessons of the crises.
Skills:
Analyse concepts and apply skills through key activities, including working on
case studies,
Develop the ability to contextualise and apply knowledge;

Apply research skills to advanced finance issues;
Develop the ability to prepare reports, critically evaluate policy actions and
debate opposing views
Values and attitudes:
Enhance career opportunities through a deeper understanding of policy and

regulatory issues in international financial markets and institutions.
Improve ability to assess and resolve problems, taking into account a broad
conceptual framework
Ability to demonstrate leadership skillsThe course does not specifically address ethical issues, but will encourage
students to consider the broader implications of regulatory policies and
interventions in financial markets
HOW WILL I LEARN?

This module will be taught primarily through lecturers and will require students to work
in groups for some of the time.
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
(scheduled) (independent)
Lecture
Lecture
Totals:
18
82
Total
student
learning
hours
100
18
82
100
WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT?

Assessments
Students will be assessed on their class presentation (25%) and their reports on casestudies (75%).
Assessment pattern:
Assessment
component
Assessment
type
Course work
Oral
Assessment
and
Presentation
Report
Course work
Weighting Minimum
qualifying
mark
25%
0
75%
Pass/Fail?
Assessment criteria
Standard MSc grade related assessment criteria will apply.
Assessment criteria are descriptions of the skills, knowledge or attributes you need to
demonstrate in order to complete an assessment successfully and Grade Related
Criteria are descriptions of the skills, knowledge or attributes you need to demonstrate
to achieve a certain grade or mark in an assessment. Assessment criteria and Grade
Related Criteria for module assessment will be made available to you prior to an
assessment taking place. More information will be available from the module leader.
Feedback on assessment
Following an assessment, you will be given their marks and feedback in line with the
Assessment Regulations and Policy. More information on the timing and type of
feedback that will be provided for each assessment will be available from the module
leader.
Assessment Regulations
The Pass mark for the module is 50%. Any minimum qualifying marks for specific
assessments are listed in the table above. The weighting of the different components
can also be found above. The Programme Specification contains information on what
happens if you fail an assessment component or the module.
INDICATIVE READING LIST
Beck, T. (2012): The Role of Finance in Economic Development: Benefits,
Risks, and Politics.
Brunnermeier, Markus. 2009. Deciphering the Liquidity and Credit Crunch
2007-08 Journal of Economic Perspectives 23(1), 77-100
Claessens and van Horen: The Impact of the Global Financial Crisis on
Banking Globalization, mimeo.
Cull, Robert and Maria Soledad Martinez Peria. 2012. Foreign bank
participation in developing countries : what do we know about the drivers and
consequences of this phenomenon?in Caprio, Jerry (Ed.): Encyclopedia of
Financial Globalization, Elsevier.
Glick and Hutchison, 2012: Models of Currency Crises, in: The Evidence and
Impact of Financial Globalization.
Kose, Prasad, Rogoff and Wei (2009): Financial Globalization: A Reappraisal.

IMF Staff Papers 56.
Levine, Ross (2010): An autopsy of the U.S. financial system: Accident, suicide
or negligent homicide? Journal of Financial Economic Policy, 2010 2(3), 196213.
Relevant and updated material for class discussion will be provided before each
lecture.
Version:V2
Version date:19/09/2014
For use from:
Appendix: see
http://www.hesa.ac.uk/component/option,com_studrec/task,show_file/Itemid,233/mnl,12
051/href,JACS3.html/ for the full list of JACS codes and descriptions
CODES
HESA Cost Centre
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N310
Description
Banking
Percentage (%)
100%
MODULE SPECIFICATION POSTGRADUATE PROGRAMMES

KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
An Introduction to Islamic Banking, Finance and Insurance

SMM235
MSc Programme (Cass Business School)
10
5
7
MODULE SUMMARY
Although the history of modern Islamic banking and finance dates back to the 1960s, it is
only over the last two decades that western financial institutions started to add Shariahcompliant finance to their portfolios and fully-fledged Islamic financial institutions started
to emerge in many countries. Currently, dedicated Islamic financial institutions and
Islamic subsidiaries of large multinational banking conglomerates are targeting a
potential worldwide market of over 1.6 billion Muslims holding trillions of dollars of
investible wealth and successfully competing with their conventional counterparts. The
current market size of this industry is often estimated at over US$1 trillion; however, the
total size could be substantially higher if one aggregates the retail and wholesale sector
in more than 75 countries with Muslim populations.
The UK Government, together with the Financial Conduct Authority and other
participating organisations, have done all they can to provide a level playing field for
Islamic finance in this country. The UK Government has now launched its first sovereign
Sukuk issue. This will further enable the City of London to become a leading global
Islamic Finance hub. The City now has unrivalled expertise in Islamic banking, finance
and insurance. Four new Islamic Investment Banks have already been licensed by the
FCA (Previously the FSA). In addition, over the last five years, the newly licensed
Islamic Bank of Britain has launched retail Islamic Banking products.
The time is ripe for mainstream banking, finance and insurance expertise to be brought
to bear on the growing Islamic banking, finance and insurance industry. The Cass
Business School, with its unrivalled expertise in these fields, can provide an invaluable
service to the City of London.
This module aims to introduce you to the fundamentals of Islamic banking, finance and
insurance industry. It focuses on making a case for Islamic finance industry and its
development as a viable alternative financial system.
Content outline
1. Evolution of Muslim Commerce
The origin and guiding principles of Islamic banking and finance. A brief history of
the way Islamic finance emerged.
Key Islamic financial principles and the core contracts.

- From Islamic Economics to Banking
- A briefing on the key financial contracts, as used by the Islamic finance industry.
- From Contracts to Islamic Financial Products
2. The operation of an Islamic bank and how it invests in Islamic assets

-
The formation of an Islamic bank or Islamic banking window.

Operations of an Islamic bank.
The nature of assets and liabilities of an Islamic bank.
Authorisation and regulation of Islamic banks issues and challenges
3. Islamic Capital Market Products [1] Asset Classes Equity Class

-
Market overview, global positioning of the Islamic financial marketplace, market

evolution and foundation
Understanding of asset classes in investment strategies
The Design and Evolution of Islamic Equity Funds
Screening for Shariah Compliant Funds
Performance of Shariah Screened Funds
4. Islamic Capital Market Products [2] Bond Class - Sukuk

-
Market overview, global positioning of the Islamic financial marketplace, market

evolution and foundation
Understanding of asset classes in investment strategies
The need for an Islamic bond class
Understanding Sukuk structures
The debt/equity tension in Sukuks
Shariah scholars views on existing structures and the nature of the controversy
5. Islamic Capital Market Products [3] - Alternative Asset Classes

-
Alternative asset class

Derivatives in Islamic Finance
Private Equity
Real Estate / REITs / ETFs
6. Takaful (Islamic insurance)
What Takaful is and why it is important

The differences between Takaful and conventional insurance
The difference between Takaful and Co-operative insurance
The difference in structure between Takaful providers
Asset Management for Takaful operators
Re-Takaful - its nature and requirement
The challenges for the Takaful sector
7. Regulation and Governance of Islamic Financial Institutions

-
Traditional use and limitations of Islamic financial contracts

Regulation of Islamic Financial Institutions
Corporate Governance and Islamic Financial Institutions
Shariah Governance of Islamic Financial Institutions
Movement from Shariah compliant to Shariah-based products

Understand the theoretical basis and underlying concepts of Islamic banking,

finance and Insurance
Understand the origin, history, and current status of Islamic banking and finance
industry
Understand key Islamic financial principles and the core contracts
Understand Islamic Capital Market Products
Understand Islamic Insurance(Takaful)
Understand issues in regulation and governance of Islamic financial institutions
Show appreciation for the potential and future growth of Islamic Financial institutions
Skills:
Leverage their conventional financial skills to develop expertise in Islamic banking,

finance and insurance
Review the fundamentals of conventional financial products and understand the
principal differences with Islamic finance concepts
Evaluate the similarities and differences between conventional finance products and
Islamic products
Discuss various finance products relating to corporate finance, asset management
and insurance and assess which instruments are compliant with Islamic principles
Evaluate financial transactions using a different set of evaluation criteria based on
principles of Islamic Finance
Develop ideas for new products that reflect Islamic finance principles
Acquire knowledge to structure existing products to comply with Islamic finance
principles
Communicate the unique vantage point of Islamic banking, finance and insurance to
a non specialist audience
Value the ethics underpinning the Islamic finance industry and appreciate the
inherent strengths of this method of finance
Show appreciation of Islamic banking, finance and insurance as a subset of the
growing field of ethical finance
Show awareness and openness to subjects, cultures and audiences with different
fundamental assumptions to their own but which seek to address issues similar to
those of conventional financial theory and institutions
HOW WILL I LEARN?
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Lecture
Lecture
Totals:
18
82
Total
student
learning
hours
100
18
82
100

Assessments
Group coursework in groups of two to three
Assessment pattern:
Assessment
component
Assessment type
Weighting
Coursework
Written assignment,
including essay
100
Minimum
qualifying
mark
50
Pass/Fail
?
N/A
Assessment Criteria
demonstrate in order to complete an assessment successfully. Grade related criteria are
descriptions of the skills, knowledge or attributes you need to demonstrate to achieve a
certain grade or mark in an assessment. Assessment criteria and grade related criteria
for module assessments will be made available to you prior to an assessment taking
place. More information will be available from the module leader.
Following assessment, you will be given your marks and feedback in line with the
leader.
The pass mark for the module is 50%. Any minimum qualifying marks for specific

-
Iqbal, Zamir and Mirakhor, Abbas (2011). An Introduction to Islamic Finance Theory
and Practice. John Wiley & Sons (Asia) Pte Limited, Singapore.
Jaffer, Sohail (ed) (2007). Islamic Insurance: Trends, Opportunities and the Future of
Takaful. Euromoney Books, UK.
Several topic related resources to be posted on CASS Moodle by the course coordinator
Additional reading:
- Askari, Hossein, Iqbal Zamir, Krichene Noureddine & Mirakhor Abbas (2012). Risk
Sharing in Finance The Islamic Finace Alternative. John Wiley & Sons (asia) Pte
Limited, Singapore
- El-Gamal, M. A. (2000). A Basic Guide to Contemporary Islamic Banking and
Finance. Department of Economics, Rice University, Houston.
- Macmillan, New York.
- Obiyathulla Ismath Bacha and Abbas Mirkhor (2013). Islamic Capital Markets A
Comprehensive Approach. John Wiley & Sons (asia) Pte Limited, Singapore
Web Resource
Takaful Primer (www.takafulprimer.com)
Version: 4.0
Version date: October 2014
For use from: 2014-15
Appendix: see http://www.hesa.ac.uk/content/view/1805/296/ for the full list of JACS

codes and descriptions
CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N310
Description
Banking
Percentage (%)
100
Module name
Module code
School
UK credits
ECTS
Level
Banking Strategy
SMM128
10
5
7
MODULE SUMMARY
Banking markets are experiencing unprecedented changes following the recent banking
crisis. Banks are now faced with several competing issues: complying with regulatory
changes, increasing capital and liquidity as well as maintaining profitability and
generating shareholders wealth. It is therefore very important to develop a sound
understanding of these strategic challenges and the evolving strategic context faced by
retail banks around the world. To pursue a successful career in banking it is necessary
to understand the key business areas of banking, including commercial, investment,
corporate, private and wealth management and understand the interactions between
them.
This course aims to equip you with the necessary strategic tools to understand current
issues in banking markets. You will be analysing the implications on banking strategy
of the recent changes and the different strategic responses followed by banks. In
addition, on completion of this module, you will be able to understand the main tools
associated with the value-based management approach.
This course builds upon the knowledge from core courses such as Commercial and
Investment Banking and Risk Management.
Content outline
The course will cover the following key areas:
The strategic environment of retail banking
The past two decades have seen unprecedented deregulation and liberalisation of the
bank and financial sectors. This part of the module will review the main changes and
the transformation of the sector. Focus will be on market segmentation and the
development of customer-centric banks.
Customer-relationship management in banking
Customer relationship management (CRM) is a crucial area of bank strategy. This part
of the course will analyse the internal organisation of modern retail banks and
introduce CRM tools and approach in banking
Bank mergers and acquisitions internationalisation and strategies

In most advanced economies deregulation, competitive pressures, financial innovation
and technological change are amongst the main forces generating change in banking.
Banks main strategic responses to these forces of change have been conglomeration
process (through mergers and acquisitions) and the processes of internationalisation
and globalisation. This part of the course will analyse these main trends.
Bank Conglomerates
Main areas to be discussed: Commercial banking, investment banking, private banking,
wealth management
Banking and insurance
Conglomeration effects; risk contamination; synergies
Value-based management in banking
Value based management is structured approach to measure the performance of a
firm's unit managers or products in terms of the net benefit they provide to
shareholders. This module will emphasize the understanding of banks pool of funds
system and the measurement of value created on a risk-return framework using the
RAROC/RORAC approach.
Capital management
Banks are responding to the recent challenging capital requirements by readapting
their organisations, abandoning business lines and focusing on the most value
generating ones.
Pricing risky banking products.
In this section of the course the RAROC and the time value of money approaches will be
used to price bank loans and loan guarantees in an integrative framework that accounts
for risk, including estimates of probability of default (PD) and Loss Given Default (LGD),
bank capital requirements and operating costs.

Knowledge and understanding
Demonstrate an understanding of typical retail banking strategies

Demonstrate an understanding of customer-focused banking
Demonstrate an understanding of the rationale of bank mergers and acquisitions
Demonstrate an understanding of the execution problems in bank mergers and
acquisitions
Demonstrate an understanding of internationalisation strategies in banking
Demonstrate an understanding of banking conglomeration versus focused banking
strategies
Demonstrate an understanding of the benefits and costs of focused strategies
Demonstrate an understanding of conglomeration risks
Demonstrate an understanding of the business of commercial banking and
investment banking
Demonstrate an understanding of bank marginal cost of funds and pool rates
Demonstrate an understanding of value-based management and measurement in
banking
Demonstrate an understanding of measuring value created at bank division,
customer and product levels.
Demonstrate an understanding of pricing retail and corporate credit risk
Skills
Analyse the competitive banking markets

Identify competitive advantage and sources of value in banking
Understand CRM strategies and tools in retail banking
Measure opportunity costs of funds under a multiple pool system
Compute Risk-Adjusted Return on Capital (RAROC)
Use Probabilities of Default (PD), Loss Given Default (LGD), capital risk weights and
operating costs to price credit risk
Values and attitudes
The course aims to introduce you to Social, Environmental, Ethical and Trust
(SEET) issues in banking. A particular focus will be on the sustainability of bank
products and strategies.
HOW WILL I LEARN?

This module is taught primarily through lectures and you will also be required to devote a
minimum of two hours of home study to prepare the case-studies to enable you to
actively participate in case-study discussions in class. You will also be required to work
in groups to prepare the assigned reports on case-studies and devote two hours per
class to textbook study.
Teaching pattern
Teaching
component
Teaching Contact
Self-directed
Placement
study hours
hours
type
hours
Lecture
Lecture
Totals:
18
82
Total
student
learning
hours
100
18
82
100

Assessments
This module will be assessed by 100% coursework and class participation, which will be
assessed by the lecturer during each session.
Assessment pattern
Assessment
component
Assessment
type
Coursework
Written
assignment,
including essay
Weighting Minimum
qualifying
mark
100
50
Pass/Fail?
N/A
Assessment criteria
leader.

Davies, Steven Excellence in banking Revisited!, Palgrave McMillan, 2004.
Other interesting books that may be useful to accompany the course include:
Canals, Jordi Competitive Strategies in European Banking, Clarendon, 1993.
Casu, Barbara, Girardone, Claudia and Molyneux, Philip Introduction to Banking,
Financial Times / Prentice-Hall, 2006.
DeLaurentis, Giacomo Strategy and Organization in Corporate Banking, Springer,
2010.
Fiordelisi, Franco and Molyneux, Philip Shareholder Value in Banking, Palgrave
McMillan, 2006.
Version: 2.1
Version date: January 2014

CODES
HESA Code
133
JACS Code
N310
Description
Business and
Management Studies
Price Group
D
Description
The study of the banking
industry.
Percentage (%)
100
Module name
Module code
School
UK credits
ECTS
Level
Credit Risk
SMM226
10
5
7
MODULE SUMMARY
This elective course introduces the mathematical models used in the area of credit risk,
and shows how they are applied in practical situations.
Content outline
Topic 1: Basic instruments and structures
Topic 2: Hedge-based pricing
Topic 3: Spread-based pricing
Topic 4: Reduced form models
Topic 5: Structural models (Moody's KMV)
Topic 6: Default dependence and portfolios

Demonstrate understanding of the fundamental mathematical concepts used in credit

risk analysis.
Demonstrate understanding of the basic rationale for the way credit risk related
instruments are structured in practice
Demonstrate understanding of the concepts of risk-neutral default probabilities and
intensities and their application to the pricing of corporate bonds and credit
derivatives.
Skills
Use market prices to estimate credit default and loss distributions, as e.g. done in
practice by Moodys-KMV.
Appreciate the role of the credit instruments in the global financial crisis
HOW WILL I LEARN?

This module will be taught primarily through lectures.
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Presentations Lecture
18
82
Total
student
learning
hours
100
Totals:
18
82
100

Assessments
This module will be assessed through 100% coursework. requiring calculations and
verbal description and evaluation of results
Assessment pattern
Assessment
component
Assessment
type
Written assignment,
Written
assignment
including essay.
Weighting Minimum
qualifying
mark
100
50
Pass/Fail?
N/A
Assessment criteria
Assessment criteria are descriptions of the skills knowledge or attributes you need to
leader.

Introductory:
Saunders, Anthony and Linda Allen, 2004, Credit Risk: Measurement In and Out of
the Financial Crisis, Wiley, 3rd Ed, 2010
Lewis, Michael, The Big Short, W. W. Norton & Company, 2010
Hull, John C., Options, Futures, and Other Derivatives, Prentice Hall, 6th Ed, 2006, or
later edition (relevant chapters only)
Practitioner focused:
De Servigny, Arnaud and Olivier Renault, Measuring and Managing Credit Risk,
McGraw Hill, 2004.
Intermediate/ Advanced:
Schnbucher, Philip, Credit Derivatives Pricing Models, Wiley, 2003
Lando, David, Credit Risk Modeling: Theory and Applications, Princeton University
Press, 2004
Duffie, Darrell and Kenneth J, Singleton, Credit Risk, Princeton University Press, 2003
Version: 2.1

CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N341
Description
Percentage (%)
100
The study of the risks

involved in the handling of
money, capital and credit.

KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
Energy Markets
SMM922
10
5
7
MODULE SUMMARY
The aim of the module is to provide you with an energy-specific toolkit, which will allow
you to understand the broader economic concepts and issues in this sector, as well as
the function of energy markets, pricing and the various trading instruments. The target
audience is one with little or no prior knowledge of the area.
Topics include:
Hydrocarbon supply and demand: geology, extraction, transformation, final
consumption
Microeconomic organisation of oil, natural gas, coal and electricity markets
Renewable energy: basic understanding of generation physics and economics of
the key types
Energy derivatives: futures, options, swaps and other relevant instruments
Content outline
1.
2.
3.
4.
5.
6.
World energy demand and key issues

Oil markets, pricing, economics and geopolitics
Gas and coal markets, pricing, economics and geopolitics
Electricity generation, markets and regulation
Renewable and alternative energy sources (wind, solar, nuclear, etc.)
Energy derivatives markets
The module will be taught using the block delivery format, preferably over two
weekends in the third term, spaced apart so that students can catch up with the study
material.

Understand the key supply characteristics of hydro-carbons, such as geology,

extraction, transformation
Understand the economics of renewable energy generation and distribution
Understand how supply and demand factors interact to formulate prices for the
various sources of energy
Understand the function of the various energy derivatives markets and instruments
Skills:
Possess the vocabulary necessary in energy business, including all relevant

terminology, measurement units and conversions
Use economic analysis to understand what drives the markets in both exhaustible
and renewable energy sources
Appreciate the impact that energy production/generation and consumption have

on our living environment
HOW WILL I LEARN?

It is expected that the main delivery method for this module will be lectures,
supplemented with practical examples, exercises any other available material
which is deemed necessary.
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Lectures
Lecture
Totals:
18
82
Total
student
learning
hours
100
18
82
100

Assessments
This module will be assessed by 100% coursework comprising a 1.5 hour invigilated
test. This will consist of a short question section including MCQs and problems, and
one essay question.
Assessment pattern:
Assessment
component
Assessment
type
Invigilated test
Set exercise
Weighting Minimum
qualifying
mark
100%
50
Pass/Fail?
No
Please note:
Students are expected to attend all elements of the module, including all
lectures and any scheduled company visits. Failure to attend any scheduled
element of the module could result in the deduction of five percentage points
from the module mark, per missed element.
If you are in any doubt about the compulsory elements of this module, please
contact your course officer. In addition, students are expected to be at all
elements of the module on time. Persistent poor time keeping could lead to a
deduction of up to 10 percentage points from the module mark.
Assessment Criteria
demonstrate in order to complete an assessment successfully. Grade related criteria
are descriptions of the skills, knowledge or attributes you need to demonstrate to
achieve a certain grade or mark in an assessment. Assessment criteria and grade
related criteria for module assessments will be made available to you prior to an
leader.
Bern, G. (2011), Investing in Energy: A Primer on the Economics of the Energy

Industry, Bloomerg
Bhattacharyya, S.C. (2011), Energy Economics: Concepts, Issues, Markets &
Governance, Springer
Dahl, C. A. (2004), International Energy Markets: Understanding Pricing, Policies
and Profits, PennWell Corporation, ISBN 9780878147991
Boyle, G. (2004), Renewable Energy: Power for a Sustainable Future, 2nd ed.,
Oxford University Press, ISBN 9780199261789
Everett, B., Boyle, G., Peake, S. and Ramage, J. (2012), Energy Systems and
Sustainability: Power for a Sustainable Future, 2nd ed.,Oxford University Press,
ISBN 9780199593743
Fiorenzani, S., Ravelli, S. & Edoli, E. (2012), The Handbook of Energy Trading,
Wiley
Geman, H. (2005) Commodities and Commodity Derivatives: Modeling and Pricing
for Agriculturals, Metals, and Energy. John Wiley & Sons
Eydeland, A. & Wolyniec, K. (2003) Energy and Power Risk Management: New
Developments in Modeling, Pricing and Hedging. John Wiley & Sons
Tamvakis, M. (2015), Commodity Economics & Finance, 2nd ed., Taylor & Francis
Version: 2.0
Version date: July 2013
For use from : 2013-14
CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N300
Description
The study of financial
systems, regulations and
reporting
Percentage (%)
100

KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
Energy Project Investment and Finance

SMM133
Faculty of Finance
10
5
7
MODULE SUMMARY
This extended elective module provides the opportunity for students to focus on issues
of particular importance to the specialist field of valuation of energy projects, investment
analysis, and financing oil and gas, refining, power generation, transportation and other
segment of the energy industry.
The aim of the module is to equip students with tools necessary to think skilfully and
maturely, but also independently on matters relating to the oil and energy investment
and finance. Also, the module aims to familiarise students with the valuation techniques
as well as risk analysis in different segment of the energy industry including upstream,
midstream and downstream as well as generation asset valuation and portfolio
management.
Content outline
Unit 1
Introduction to Energy Markets and Projects

Structure of the international oil and gas industry
From Upstream to Downstream the hydrocarbon value chain
Upstream exploration, development and production
Refining from raw material to end-product
Pipelines transmission and distribution
Liquefied Natural Gas a fuel of the future
Petrochemical industry
Unit 2
Unit 3
Unit 4
Unit 5
Unit 6
International fiscal system & contract design

Energy project contracts structures, payments and terms
Royalties
Product sharing
Turn key
Buy back
Signature bonus
Hybrid structure
Concession agreements and Build-Own-Operate
Risk Analysis in Energy Projects,
Product price & volume risk
Operational Risk
Environmental risk
Default Risk
Political Risk
Investment analysis & decision making
Separation of fixed and variable costs
Decision Trees and project evaluation,
Scenario and breakeven analysis
Risk, return and cost of capital in oil and gas projects
NPV, IRR, Discounted Payback
Case study
Use of Monte Carlo Simulation in Project Valuation
Modelling of Energy and Mining Projects
Evaluation of quantity and availability
Use of cash slow sweeps
Modelling of deferred payments
DSCR requirements for refining projects
Break-even analysis on costs and margins
Use of Monte Carlo simulation to measure Probabilities
Case study
Real Option Analysis and Valuing Energy Projects
Real option v financial option
Real option and NPV analysis
Types and examples of real options in the energy industry
Valuing real options in energy projects
Simulation and real option analysis
Energy project valuation
Generation asset valuation
Energy Project financing methods
Project finance v traditional corporate finance
Forms, types and methods of financing energy projects
Large energy projects financing
Project finance debt, structure and service
Bond Issues
Theory and benefits from re-financing

understand the key stages in the supply chain in the oil & gas industry and how each
one contributes value
comprehend the major factors involved in energy project investments
understand different types of investment contracts and structures in international
energy project financing
understand the risk involved in energy investment projects
comprehend the regulatory and environmental issues related to the energy industries
Skills:
analyse the major factors involved in energy project investment decisions

perform financial analysis for energy project investment using a variety of techniques
evaluate different types of energy projects and optimise the return on such
investments
perform risk analysis of energy projects using a variety of techniques
appreciate the impact of oil and gas project structures on the risk and return of host
countries and international oil companies, including environmental and political risk
HOW WILL I LEARN?

The module is based on a series of lectures as well as in class exercises.
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Lectures
classes
Totals:
18
82
0
0
18
82
Total
student
learning
hours
100
100

Assessments
This module will be assessed by 100% coursework comprising a written assignment.
Assessment pattern:
Assessment
component
Assessment
type
Coursework
Individual
assignment
including essay
Weighting Minimum
qualifying
mark
100%
50%
Pass/Fail?
N/A
Assessment criteria
demonstrate in order to complete an assessment successfully and Grade Related
Criteria are descriptions of the skills, knowledge or attributes you need to demonstrate to
achieve a certain grade or mark in an assessment. Assessment criteria and Grade
Related Criteria for module assessment will be made available to you prior to an
Students will receive oral feedback on their in-class presentation. Feedback on reports
will be posted on Moodle. Feedback on the assessment will be provided within three
weeks of submission.

1- Lecture notes
2- Energy Finance and Economics: Analysis and Valuation, Risk Management, and
Futures of Energy by B. Simkins and R. Simkins, 2013, Kolb Series in Finance,
Wiley.
3- Upstream Petroleum: Fiscal and Valuation Modelling in Excel, by K. Kasriel and

D. Wood, 2013, Wiley Finance.
Version: 1
For use from: May 2014
CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N321
N213
Description
Investment
Project Management
Percentage (%)
50%
50%

KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
Ethics, Society and the Financial Sector

SMM500
10
5
7
MODULE SUMMARY
Module Outline & Aims
This module has been designed for those Cass students expecting to develop careers in
the financial services sector. It introduces them to the key ethical issues they may face,
the potential impact of geo-political and environmental trends, and the consequence of
recent events on the sector as a whole. This module is designed to help prepare a new
generation of managers and professionals in the sector to make responsible and ethical
decisions. It is also intended to help prepare them for the ethics, integrity and corporate
responsibility components of the CFA examinations or Chartered Institute of Securities
and Investment qualifications.
Those working in financial services do not make decisions in a vacuum. Taking this
module will help students develop an understanding of the implications of changing
international social and political trends, issues of sustainability and the potential impact
of environmental changes, and the consequences of changing attitudes to personal and
institutional ethics.
There are numerous examples, in both business and public life, where failure to observe
the basic principle of acting with integrity, or make responsible decisions have caused
considerable damage. These range from temporary short term difficulties or
embarrassment to major structural problems, resulting in the destruction of businesses
or having major social or environmental consequences.
Following the recent economic crisis the financial services sector faces increasing public
scrutiny, media comment and a new regulatory environment. There is greater
transparency and the quality of decision making is being critically examined. Integrity is
central to the creation and maintenance of trust and trust underpins the work of the
financial services industry. The loss of trust through an actual, or perceived, absence of
integrity undermines these foundations and can create an environment in which
business becomes paralysed, or the cost of doing business becomes exorbitant. It is in
light of these concerns that this module has been designed. There will be greater
pressure on those working in financial services to factor-in the cost of the societal and
environmental consequences of their decisions, as well demonstrate evidence that they
meet ethical norms and act with integrity.
This module offers students an applied introduction to these issues. It will provide them
with the opportunity to explore issues around societal concerns, sustainability and ethical
behaviour in more depth. This module is intended to help Cass students to become
more effective and responsible decision-makers able to play a leadership role in the
financial services sector. The course objectives are:
To develop students understanding of the implications of wider global trends,
ethics and personal integrity on responsible decision making.
To raise awareness of the value and role of incorporating societal issues and
ethical considerations in the behaviour and decision making of those
intending to work in the Financial Services Sector.
To enable students become a more effective and responsible decisionmakers, able to play a leadership role in the financial services sector.
To introduce you to some of the ethical, societal and sustainability issues of
concern to professional bodies, such as the CFA, CISI and ICAEW, and
which are an increasingly important element of their professional exams and
codes of conduct.
Course Outline
The course is run as three half-day masterclasses each exploring different issues
including: the implications for those working in the financial sector of changing
international social, environmental and political trends; the ethical issues of around the
banking and Eurozone crisis; and the practical application of personal and institutional
ethics in the financial sector.
1) The first masterclass looks at the consequences of changing geopolitical and
social trends, the impact of climate change and other environmental
considerations on investment decisions, the financial markets and
sustainability.
2) The second masterclass explores the ethical aspects of the banking crisis
and the roles of the stakeholders involved. It explores the genesis of the
banking crisis, its consequences (including the Eurozone crisis and the
collapse of major banks), the lessons learnt and the implications for
responsible decision making in the sector.
3) The third masterclass analyses the practical consequences of unethical
behaviour in the financial sector, the behavioural and cross-cultural
dimensions of applied ethics, and the impact of new industry standards and
codes of practice such as the CFA.

Demonstrate a sound knowledge, understanding and critical awareness of the
current geo-political, societal and environmental trends and their implications for
decision makers in the financial services sector
Demonstrate an awareness and appreciation of some of the current debates
around ethical behaviour, social capital, shared value and business sustainability
Demonstrate an understanding and appreciation of the significance and

implications of ethics, integrity and ethical behaviour and their implications for
decision makers in the financial services industry
Demonstrate an awareness of the ethical, societal and sustainability
considerations of concern to relevant professional bodies
Skills:
Developing your ability to analyse the current trends and assess their
implications for decision makers in the financial services industry
Enhancing your capacity to engage in ethical behaviour and decision making
capabilities
Developing your ability to review and evaluate complex issues in a critical
manner, assessing alternative approaches
Enhancing your ability to utilise data from a range of sources; synthesise
information effectively and in a way that relates to, and adds insight into, the
issues being considered; as well as communicate findings and conclusions in a
clear and appropriate manner
Reflecting on ethical and societal responsibilities of key decision makers and
showing a willingness to exercise personal judgements and behaviours
accordingly
Demonstrating a sensitivity to, and ability to work with, divergent groups and
different institutions with different ethical and societal perspectives
Gaining awareness of the wider ethical and societal responsibilities of decision
makers in the financial services sector.
HOW WILL I LEARN?

The Module will be delivered using the following methods:
Lectures and discussions in plenary
Discussion in groups of case studies and critical incidents
A c c e s s t o i nteractive computer-based ethical and integrity learning
resources and tests (lab sessions)
Self study based on on-line readings etc
Lectures will draw on both conceptual, contextual and applied research and
analysis. Lecturers will include the module leader who has extensive international
experience, a leading practitioner in the field of ethical behaviour within the
financial services sector, and a senior banker who is actively concerned about the
ethical and integrity issues facing decision makers in the sector.
As part of this module you will be able to access to some of the interactive
computer-based learning resources and accompanying tests concerned with
ethical, integrity and business sustainability issues prepared by professional

bodies and institutions, such as the CFA, CISI and ICAEW, and which will help
you prepare for professional exams. Preparation for, and access to, these
interactive computer-based learning resources will be scheduled within the course
accordingly.
Teaching pattern:
Teaching
component
Teaching
type
Group Work
and/or Labs
Practical
6
classes
and
Workshops
12
Lecture
Lectures
Totals:
Contact
Self-directed
Placement
hours
study hours
hours
18
Total
student
learning
hours
6
82
94
82
100

Assessments
The module will be assessed through 100 percent coursework. This will
both enable you to draw on the issues and concepts covered in the
lectures, discussions, and interactive computer-based learning resources,
as well as apply your previous learning in the MSc.
You will be divided into small groups of five or six. Each group will be
required to analyse a specific company or scenario in the financial services
sector where there has been concern around ethical or integrity issues, or
where significant societal or environmental issues have been raised. The
final assessment will be a group report of c.3000 words.
Assessment pattern:
Assessment
component
Assessment
type
Coursework
Written
assignment,
including essay
Weighting Minimum
qualifying
mark
100
0
Pass/Fail?
N/A

leader.

Please note that this reading list is indicative and you are not required to read all the
texts listed here. This is a broad subject and you are encouraged to read around the
subject to help you understand the complexities involved.
Ethics & Integrity
Bibb.S, (2010), The Right Thing: An Everyday Guide to Ethics in Business, Wiley
Blowfield.M & A.Murray, (2011), Corporate Responsibility, OUP, Oxford
Crane.A, et al. (eds.), (2014), CSR: Readings and Cases, Routledge, London
Chartered Institute of Securities and Investment, (2011), Integrity At Work in the
Financial Services, 3rd Edition, CISI, London
Hendry.J, (2013), Ethics and Finance, Cambridge University Press, Cambridge
Porter.M.E & Kramer.M.R, (2011), The Big Idea: Creating Shared Value, Harvard
Business Review, Vol.89, Nos 1-2, 62-77
Steare.R, (2009), Ethicability, 3rd Edition, Roger Steare, London
Tett.G, (2009), Fools Gold: How Greed Corrupted A Dream, Little Brown, London
Global Trends
Done.A, (2011), Global Trends: Facing Upto A Changing World, Palgrave Macmillan
The Economist, (2012), MegaChange: The World in 2050, The Economist, London
Smith.L, (2012), The New North: The World in 2050, Profile, London
Turney.J (2010), The Rough Guide to the Future, Rough Guides, London
Watson.R, (2008), Future Files, The Five Trends that will Shape the Next Fifty Years,
Brearley,
US National Intelligence Council, (2012), Global Trends 2030, Washington

World Economic Forum, (2012), Global Risk Report, WEF, Geneva
Environment & Sustainability

Blowfield.M, (2012), Business and Sustainability, Oxford University Press, Oxford
Berners-Lee.M and D.Clark, (2013), The Burning Question: We Cant Burn Half the
Worlds Oil, Coal and Gas - So How do we Quit? Profile, London
Brand.S (2009), Whole Earth Discipline: An Ecopragmatist Manifesto, Viking, London
Institute of Mechanical Engineers, Global Food: Waste Not, Want Not, (2013),
London
Lovelock.J, (2007), The Revenge of Gaia: Why the Earth is Fighting Back and How
we can Save Humanity, Penguin
Kane.G, (2011), The Green Executive: Corporate Leadership in a Low Carbon
Economy, Routledge, London
Lynas.M, (2011), The God Species: How the Planet can Survive the Age of Humans,
Fourth Estate, London
Royal Society, (2012), People and the Planet Report, Royal Society, London,
UNEP, (2011), Towards a Green Economy, UNEP, Nairobi
World Wildlife Fund, (2010), Tackling Climate Change, WWF,
Journals include:
The Journal of Business Ethics
The Journal of Corporate Citizenship
Sustainable Development
Websites include:
CFA
CISI
CSR Wire
Financial Innovations Lab
ICAEW
Interface Sustainability
Version: 2.1
Version date: Jan 2014

CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N100
Description
The study of organisations
and the environment in
which they operate.
Percentage (%)
100

KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
Financial Derivatives
SMM596
10
5
7
MODULE SUMMARY
Those of you seeking employment in the derivatives sector need to understand the
complex nature of the main derivatives contracts, to master the dynamic interplay
between the cash market instruments and their contingent claims and to be able to
create profitable trading strategies using financial futures and options.
This module covers the derivatives market from a sophisticated traders perspective.
The different types of cash and derivative instruments are presented and different
valuation methods are analysed. The main emphasis is placed upon the detailed of
pricing techniques and arbitrage trading strategies. Market risk and Credit risk
management is also examined.
Content outline
Session 1 - Introduction to Derivatives Markets
Nature and Types of Derivative Contracts
Trading of Futures Contracts
Characteristics of Futures Prices
Basis and Spreads
Futures Prices and Expectations
Future Prices and Risk Aversion
Risk Management using Futures
Derivation and Estimation of Optimum Hedge Ratios
Hedging Effectiveness and Hedge Ratios
Session 2 Stock Index Futures
Description of the market - Major stock indices
Derivative contracts on the indices (e.g. FTSE-100, S&P 500 etc.)
Pricing futures on stock indices
Index arbitrage and program trading
Hedging with stock index derivatives
Session 3 Swaps
Interest Rate and Currency Swaps - Examples
Pricing Interest & Currency Swaps, as combinations of
Forward contracts
Bonds
Pricing Equity Swaps
Pricing non-standard Swaps
Session 4 & 5 Options Pricing

Stochastic processes
Closed Form Solutions
Binomial / Trinomial Methods
Options Risk Management
Option Price Sensitivities (The Greeks)
Derivation and uses of the Greeks
Numerical Methods for Options Pricing
Monte Carlo Simulation
Finite Differences
Session 6 Advanced Topics on Options
Pricing and hedging Options on Stock Indices, Currencies and Futures Options
with non-standard characteristics (Exotic Options)
Options Trading Strategies
Pricing and hedging Volatility Contracts (VolSwaps, VarSwaps and Forward
Volatility Agreements)

Price a range of vanilla and exotic currency options

Establish optimum hedging strategies using cash and derivative contracts
Price volatility swaps and forward volatility agreements Execute derivative
transactions in the currency market (real case study)
Skills:
Good knowledge of financial mathematics and pricing models

Basic understanding of currency and fixed income markets
Good programming skills in Matlab or VbA
Values and Attitudes:

Students are expected to actively participate to the lectures and to constantly interact
with the class and the Lecturer on the various topics discussed throughout the course.
HOW WILL I LEARN?

This module is taught primarily through lectures and independent study
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Lecture
Lecture
Totals:
18
82
Total
student
learning
hours
100
18
82
100

Assessments
This module will be assessed through 100% coursework comprising a written
assignment.
Assessment pattern:
Assessment
component
Assessment
type
Coursework
Written
assignment,
including essay
Weighting Minimum
qualifying
mark
100
50
Pass/Fail?
N/A
Assessment criteria
leader.

Lectures will be based on detailed lecture notes which will be supplied at the
beginning of the module.
Useful for supplementary reading:
HULL, J. C. (2006) Options, Futures and Other Derivatives. 6th ed. Prentice Hall.
HIRSA, A. AND SALIH N. N. (2013) An Introduction to the Mathematics of Financial
Derivatives. 3rd ed. Academic Press.
CUTHBERTSON K, & NITZSCHE, D. (2001) Financial Engineering. Wiley.
DEROSA, D. F. (2011) Options on Foreign Exchange. 3rd ed. Wiley Finance.
Version: 3.0
For use from: 2014/15

CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N300
Description
reporting.
Percentage (%)
100

KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level

SMM468
10
5
7
MODULE SUMMARY
Covers areas of financial analysis and valuation of banks and similar entities, which are
currently not taught.
The course will enable you to analyse annual reports of financial institutions as it
will provide them with the necessary terminology, regulatory framework, and
bank-specific framework to carry out such an analysis.
Content outline
Sessions:
1.
Bank financial statement analysis. Bank balance sheet structure and key
performance ratios. Interest income and expense. Fee and trading income.
Revenue recognition. Key ratios used to compare bank performance and balance
sheet structure. Asset and liability spreads. Transfer pricing.
2.
Bank valuation methods. Use different valuation methods to value a financial

institution. Differentiate between quantitative and qualitative factors affecting
the value of banks. Apply correctly valuations derived from the stock market,
IPOs and M&A transaction.
3.
Bank regulation. Bank Capital and Liquidity Regulation (Basel III),
4 . Banking Analyst Job. A study of the relation among analyst forecast bias, firm
characteristics, and equity return anomalies. Analyst earnings forecasts are an
important collection of expectations regarding future earnings as their revisions
induce significant price impacts and market movements. However, psychology,
overconfidence, conflicts of interest, career concerns are capable of biasing their
earnings forecasts. Whether the market properly interprets analyst forecasts is
fundamental to the debate on market efficiency
5. Analyst Behavioural Bias (Case study based) Regulatory forbearance and

accounting methods used to hide bank insolvency. Stock and flow
approaches to recapitalisation of failing or failed banks. Use of hybrid Tier I
equity instruments e.g. capital augmented preference shares (CAPS) and
stapled limited interest preferred shares (SLIPS). Use of Asset Management
Companies (AMCs).

- Analyse and interpret a banks financial statements. Use the published financial
statements of a bank to work out key performance ratios used to compare bank
performance
- Explain the principle method used by equity analysts to value bank stocks, make the
necessary adjustments to income statement and book and put a theoretical valuation
on a banks stock
- Discuss the differences between a bank economic hedging and accounting hedging
- Explain the difference between expected losses and incurred losses and the problems
relating to comparability of impaired loan cover
Skills:
- Demonstrate analytical skills when assessing a bank's performance.
- Explain how a mortgage backed securitisation issue is structured and how valuation
modelling can be used to assess the impact of changing interest rates and impairment
levels and the risks such methods involve.
- Develop skills needed to evaluate hedging activities by banks.
- Give examples of significant bank accounting failures and discuss manipulations to
hide insolvency.
- Understand the complexity of accounting reporting issues in financial institutions
HOW WILL I LEARN?

A set of lectures, each covers a particular issue. The lectures will use case studies and
build on the lecturers vast experience and textbook
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Lecture
Lecture
Totals:
18
82
Total
student
learning
hours
100
18
82
100

Assessments
This module will be assessed by 100% coursework.
Assessment pattern:
Assessment
component
Assessment
type
Coursework
Written
assignment,
including essay
Weighting Minimum
qualifying
mark
100
50
Pass/Fail?
N/A
Assessment criteria
Assessment Criteria are descriptions of the skills, knowledge or attributes students
need to demonstrate in order to complete an assessment successfully and GradeRelated Criteria are descriptions of the skills, knowledge or attributes students need
to demonstrate to achieve a certain grade or mark in an assessment. Assessment
Criteria and Grade-Related Criteria for module assessments will be made available to
students prior to an assessment taking place. More information will be available from
the module leader.
Following an assessment, students will be given their marks and feedback in line with
the Assessment Regulations and Policy. More information on the timing and type of
leader.
Key readings will be released as part of the course materials and during lectures.
Version: 2.0

CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N422
Description
Financial Reporting
Percentage (%)
100%
KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
Global Real Estate Markets

SMM545
10
5
Level 7
MODULE SUMMARY
Real estate (land and structures upon it) is the biggest global store of wealth, worth
more than equity and bond markets combined. It is typically the largest asset owned
by a household, and on the balance sheet of a company, and the most common form
of collateral for loans.
It is therefore very difficult to pursue a career in business or finance without having to
deal with real estate, whether that is through the true value of real estate on the
balance sheet value of a target company in a merger, the credit risk of a bank with a
large exposure to property loans, or the impact of property cycles on an emerging
economy.
The elective will equip you with a basic working knowledge of the most important
aspects of real estate as an investment asset. For those who intend to work in general
business and finance, it provides the basis to understand the real estate issues they
are likely to encounter. For those who intend to specialise in real estate as investors,
fund managers or lenders, the elective will serve as the foundation for further
development.
The course will be taught in the Cass Dubai Centre.
In the context of Dubai and the UAE, real estate has special significance. For the
cash-rich sovereign wealth funds of oil-rich Gulf states, real estate in developed
markets is a major target for outward investment. For the states themselves, and for
Dubai especially, real estate has been a lead sector in the diversification and branding
of their economies, and property development has been the main driver of the
massive cyclical swings in activity in Dubai over the past decade.
Content outline
This elective builds on knowledge from core courses in Finance, Corporate Finance,
Business Economics and Strategy.
The course covers four key topics in real estate:
1. Cash flows, asset pricing and appraisal
As for all investments, the fundamental value of real estate estates depends on
the cash flows they generate, and the pricing of the risks, liquidity and costs
associated with ownership of assets. Topics covered include:
- Rents, Market rental values
- Rental value growth, depreciation and property yields
- Leases and international differences in lease terms
- Risk and Liquidity
- Costs and required rates of return.
- Appraisal methodologies: discounted cash flow and income capitalisation.
- Model appraisals for investments and development projects.
- Fair value analysis and investment decisions.
2. Investment performance and role in the multi-asset portfolio
Real estate is typically the third leg in multi-asset investment portfolios, and a
favoured investment for high-net worth individuals and sovereign wealth funds.
This block will set out the theoretical basis for the comparison of investment
returns on real estate with other asset classes, document the delivered returns
from real estate over time and across countries, and demonstrate the effects of
including real estate in portfolios constructed on optimised risk-return or assetliability matching criteria.
3. Real estate market analysis, the real estate cycle.
Real estate markets show strong boom-bust cycles, large variations in returns
across locations and property types, and a tendency toward protracted mis-pricing
of assets. This block will explain the data sources and methods used to evaluate
real estate markets, the drivers of short-run and long-run performance, and the
variation in returns across markets and countries
4. Real estate portfolios and investment vehicles.
The standard portfolio models indicate investors should allocate at least 10% of
portfolios, and often much more, to real estate, primarily for its diversification
benefits. Accessing real estate performance is however difficult due to its large lot
sizes, heterogeneity, high holding and transactions costs, and low liquidity. This
block deals with the variety of forms in which investors can obtain exposure to real
estate performance, and their implications for the returns and risks the asset will
deliver.
The course is preceded by a short introduction to the history and culture of Dubai and
the Gulf states. During the course you will visit a major developer in a landmark
development, and meet expert(s) on the local market.

Understand how cash flows are generated by market movements and lease
contracts, how risk premia for real estate are set, and how appraisals determine
estimated market values for investments and development projects.
Understand in the Dubai/ UAE context the significance of the real estate sector in
supporting long term growth and driving short term cyclical booms and busts
Argue the standard case for real estate investment, and critically assess the
methods used to set target allocations.
Assess the information produced by market analysts, and to take informed
judgements on the investment prospects of different markets.
Make an informed choice between direct and indirect, unlisted and listed real
estate vehicles.
Skills:
Apply mainstream finance concepts of to the valuation of real estate assets, and
the evaluation of risk and expected return in real estate portfolios
Help students be more objective and less emotional in their investment advice and
decisions, and perhaps help them understand through the experience of Dubai the causes of excessive exuberance and pessimism in developers and investors.
Help London-educated students understand the economic and cultural
perspectives of investors and business leaders in the Gulf states
HOW WILL I LEARN?

You will read online materials ahead of (and following) a face to face workshop in
Dubai. The material and workshop uses a mix of theory and case study, with cases
drawn from a variety of international experiences.
In-class lectures and group discussion will be enhanced by a visit to a major
developer, and guest speaker(s) from the property sector
Teaching pattern:
Teaching
Teaching
component type
Lecture
Lecture
Company
Visit
External
Presentation/ visit
Q&A
Totals:
Contact
Self-directed
Placement Total
hours
study hours
hours
student
learning
hours
16
80
0
96
2
18
82
100

Assessments
This module will be assessed by 100% coursework, comprising an individual
assignment.
Assessment pattern:
Assessment
component
Assessment type
Weighting
Individual
Coursework
Written assignment,
including essay
100
Minimum
qualifying
mark
50
Pass/Fail
?
N/A
Please note:
Students are expected to attend all elements of the module, including all lectures
and any scheduled company visits. Failure to attend any scheduled element of
the module could result in the deduction of five percentage points from the
module mark, per missed element.
deduction of up to 10 percentage points from the module mark
Assessment criteria
Standard grade related assessment criteria will apply.
the Assessment Regulations and Policy.More information on the timing and type of
leader.

BAUM, A. and HARTZELL, D. (2011) Global Property Investment: Strategies,
Structures, Decisions. 1st Ed. Wiley-Blackwell.
Version 1.0
CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N120
Description
The study of organisations
and their operations
throughout the world.
Percentage (%)
100
Module name
Module code
School
UK credits
ECTS
Level
Hedge Funds
SMM121
10
5
7
MODULE SUMMARY
The purpose of this module is to provide an in-depth study of the hedge fund industry
structure and strategies. You will be provided with an overview of the hedge fund
industry organisation and structure as well as the reasons for this structure. You will
undertake an exhaustive study of the 10 major strategies paying particular attention to
the risks underlying these strategies. You will be introduced to the key issues involved in
constructing portfolios of hedge funds as well as incorporating hedge funds into a
traditional portfolio. For all topics, you will be provided with both the academic and
practitioner perspective.
Content outline
An overview of the hedge fund industry, history, organisation, issues & current
trends
A Review of the 10 major hedge fund strategies
Analysis of hedge fund performance, performance metrics & factor models
Hedge fund data, availability, biases & statistical properties
Case studies of 5 major hedge fund failures

Demonstrate an understanding of the global market for hedge funds

Demonstrate an understanding of the structure of hedge funds
Demonstrate an understanding of the investment strategies of hedge fund
Demonstrate an understanding of hedge fund diversification and what to expect
when investing in portfolios of hedge funds or funds of funds
Demonstrate an understanding of the shortcomings of standard performance
measurement tools such as the Sharpe ratio and Mean-Variance analysis when
applied to hedge funds
Skills
Understand the global market for hedge funds

Assess the risk of hedge fund investments
Understand the drivers of return of the 10 major hedge fund strategies
Assess the pros and cons of investing in funds of hedge funds
Articulate the shortcomings of standard performance measurement tools such as the
Sharpe ratio and Mean-Variance analysis when applied to hedge funds
Articulate the shortcomings of standard performance measurement tools such as the

Sharpe ratio and Mean-Variance analysis when applied to hedge funds
Understand of how pursuing the wrong strategy can lead to failure
HOW WILL I LEARN?

This module will be taught primarily through lectures and independent study.
Teaching pattern
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Lectures
Lecture
Totals:
18
72
Total
student
learning
hours
100
18
72
100

Assessments
This module will be assessed through 100% invigilated test which will include both
multiple choice and essay questions.
Assessment pattern:
Assessment
component
Assessment
type
Invigilated test
Set exercise
Weighting Minimum
qualifying
mark
100
50
Pass/Fail?
N/A
Assessment criteria
leader.

Fung W. & Hsieh D. (1999), A Primer on Hedge Funds. Journal of Empirical Finance, 6
(1999), 309-331.
Carol Loomis (1970) Hard Times Come To Hedge Funds Fortune Magazine
Mitchell, Mark L. & Pulvino, Todd C. (2001), Characteristics of Risk and Return in Risk
Arbitrage, The Journal of Finance 56, no. 6 (2001): 213575
Fung, William, and David A. Hsieh, (2001), The Risk in Hedge Fund Strategies: Theory
and Evidence from Trend Followers, Review of Financial Studies, 14, 313-341.
Gatev, E., Goetzmann, W., and G. Rouwenhorst, (2006), Pairs Trading: Performance of
a Relative Value Arbitrage Rule, Review of Financial Studies.
Lhabitant, Francois Serge and Learned Michelle, (2002), Hedge Fund Diversification:
How Much is Enough? FAME Research Working Paper No. 52.
Fung W. & Hsieh D. (2004) Extracting Portable Alphas From Equity Long/Short Hedge
Funds Journal of Investment Management, Vol. 2, No. 4 (2004), p1-19.
Kat, H. (2003) "10 Things That Investors Should Know About Hedge Funds," Journal of
Wealth Management, (Spring, 2003), 72-81
Fung W. & Hsieh D. (2002), Hedge-Fund Benchmarks: Information Content and
Biases.Financial Analysts Journal, Jan/Feb2002, Vol. 58 Issue 1, p22-34.
Brooks C. & Kat H. (2002), The Statistical Properties of Hedge Fund Index Returns and
Their Implications for Investors. Journal of Alternative Investments, Fall2002, Vol. 5
Issue 2, p26-44
Jorion, P. (2000), Risk Management Lessons from Long-Term Capital Management
European Financial Management, Vol 6:3 September 2000.p277-300
Till, H. (2006), EDHEC Comments on the Amaranth Case: Early Lessons from the
Debacle
Version: 2.1

CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N321
Description
The study of the
investment industry and
the techniques used
therein.
Percentage (%)
100

KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
Investment Banking in Corporate Finance

SMM126
10
5
7
MODULE SUMMARY
This course is devoted to students who aim to pursue a career in the corporate finance,
mergers and acquisitions and coverage areas of investment banks or private equity
firms or simply want to gain a deeper understanding of corporate restructuring
transactions from the banks perspective. Within the MSc in Banking and International
Finance, it provides an addition to the electives focused on other types of financial
transactions and other financial institutions.
This course aims to equip you with the necessary tools to understand the most typical
corporate restructuring transactions from an investment bank perspective. These
include mergers and acquisitions, spin-offs, carve-outs, going public, going private,
buyouts and bankruptcy reorganisations. You will learn to perform an analysis of
value creation, as well as the mechanisms necessary to align the incentives all the
parties involved. You will gain a deeper understanding of the actual financial
instruments used in some of these transactions. Additionally, you will learn how
investment banks are organised and the role played by the different areas of the bank
on a clients transaction.
The content builds on your knowledge of banking and corporate finance and
follows an applied approach focusing on specific corporate restructuring
transactions, while providing a real-life emphasis based upon the extensive use
of case-studies.
Content outline
An investment bank is split into the so-called front office, middle office, and back
office. This course will deal predominantly with the so-called front office (corporate
finance, coverage and mergers and acquisitions) division of investment banking.
Specifically, it will focus on the role of investment banks in corporate finance
transactions. These include:
- Corporate Valuations
The valuation of companies forms the basis of share trading and corporate finance
activities. The ability of market participants to identify under or overvalued
companies drives portfolio outperformance and the creation of shareholder value.
- Mergers and Acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance
and management dealing with the buying, selling and combining of different
companies. This part of the course will focus on the role investment banks play in the
M&As markets.
- Corporate Distress and Leveraged Restructurings
Corporate distress, including the process of corporate bankruptcy and liquidation are
an important area of investment banking activity. Leveraged restructuring of
organisations can create greater corporate value by concentrating more control among
fewer stockholders, initiating enhanced corporate efficiency and performance.
Following the frenzy of mergers and acquisition activity over the past decade, the
current trend is towards more spin- offs and divestments as companies rethink the
strategic benefits of consolidation. This part of the course will analyse the valuation
Spin-offs and other divestments as well as the effect of such transactions on
shareholder wealth.
- Going public, IPOs and going private
This part of the course covers the strategic rationale behind companies'' decision to
go public or to go private as well as the tools and techniques used by investment banks
to advise their corporate clients.
- Spin-offs and other divestments

Show understanding of:
the rationale of corporate de-mergers and divestments

the process and benefits of going public
the advantages and risks of leveraged reorganisations including buyouts
the process and economics of debt restructuring
the bankruptcy reorganisation process
The investment banks role in the above transactions.
Skills:
value the synergies from acquisitions

quantify the expected benefits and risks from leveraged transactions analysing of
alternative bankruptcy reorganisation alternatives.

This course does not specifically address ethical issues in isolation, but will encourage
students to consider issues of sustainability in the context of corporate valuations and
investment banking. It will also address the issue of conflicts of interest.
HOW WILL I LEARN?

Students are expected to:
devote two hours of home study to prepare the case-studies actively participate in
case-study discussions in class prepare, in group, the assigned reports on casestudies devote two hours per class to textbook study.
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Lecture
Lecture
Totals:
18
82
Total
student
learning
hours
100
18
82
100

Assessments
This module will be assessed by 100% coursework and class participation.
Assessment pattern:
Assessment
component
Assessment
type
Coursework
Written
assignment,
including essay
Weighting Minimum
qualifying
mark
100
0
Pass/Fail?
N/A
Assessment criteria
leader.

Patrick A. Gaughan, Mergers, acquisitions and corporate restructurings 4th edition,
John Wiley & Sons, 2007
Other interesting books:
DePamphilis, Donald Mergers, acquisitions, and other restructuring
activities, 4ed, Academic Press, 2007.
Koller, Goedhart and Wessels, Valuaion, 5th ed, University Edition,
McKinsey & Co and John Wiley, 2010.

Rosenbaum, Joshua and Pearl, Joshua Investment Banking: Valuation,
Leveraged Buyouts, and Mergers andAcquisitions, Wiley Finance 2009.
Version: 2.1

CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N321
Description
The study of the
investment industry and
the techniques used
therein
Percentage (%)
100
KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
Investment Strategy
SMM140
10
5
7
MODULE SUMMARY
The aim of this course is to introduce you to some of the latest developments in
investment strategy. The majority of these new developments are rooted in academic
research, as such, you will also become familiar with the theoretical underpinnings of
these new strategies.
Content outline
The course will comprise six, key elements:
1. Asset Allocation 1.0
A detailed examination of the traditional approach to asset allocation and risk
profiling.
2. The Tactical Asset Allocation Game
A chance for you to pit your wits against a computer-based investment game;
a game that demonstrates the difficulties involved in applying traditional
investment strategies.
3. Asset Allocation 2.0
An analysis of alternative approaches to asset allocation and the academic
evidence for the effectiveness of these approaches.
4. New challenges to active fund management
An analysis of active fund management in the light of the well-known
scepticism in the academic literature about whether active fund managers can
produce alpha. At the same time, the academic literature has shown that
there are ways in which alpha can be generated without the need for the
traditional, active fund manager.
5. New developments in passive fund management
An examination of the options available in passive fund management. For
those investors that do not believe in active fund management, passive fund
management techniques have been an important alternative. But, driven
largely by academic research, the passive choice has expanded dramatically

in the last few years.
6. Case studies
Working in groups, you will be given one of three case studies that
demonstrate how academic research has been put in to practice by three,
successful fund management firms. Using these cases you will be asked to
prepare a presentation.
You must be participants in one of Casss main finance-related MScs:
-
MSc Banking and International Finance

MSc Corporate Finance
MSc Finance
MSc Finance & Investment
MSc International Accounting & Finance
MSc Investment Management

-
Demonstrate an understanding of investment strategy.

Demonstrate an understanding of how investment strategies can be informed by
academic research, to produce better investment solutions for clients that are
more closely aligned with investors needs.
Skills:
-
Analyse and evaluate competing investment strategies.

This course does not specifically address ethical issues or professional behaviours in
isolation, but will encourage students to consider issues and behaviours appropriate to
the aims of the module.
HOW WILL I LEARN?

The learning will be based on a combination of:
i.
ii.
iii.
classroom teaching and discussions;

an interactive computer-based investment game;
case study presentations, prepared by the students; and
iv.
industry speakers.
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Lectures
Lecture
Totals:
18
82
0
0
18
82
Total
student
learning
hours
100
100

Assessments
This module will be assessed by 100% coursework, comprising a written assignment
prepared in groups.
Assessment pattern:
Assessment
component
Assessment
type
Group coursework
Written
assignment
including essay
Weighting Minimum
qualifying
mark
100
50
Pass/Fail?
Assessment criteria
leader.

To follow.
Version:1.0
For use from:
Appendix: see
CODES
HESA Cost Centre
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N321
Description
Investment
Percentage (%)
100%
Module name
Module code
School
UK credits
ECTS
Level
Mergers and Acquisitions

SMM233
10
5
7
MODULE SUMMARY
M&A is a major form of corporate activity and has significant financial implications. You
should complete the module with not only an understanding of the blend of strategic and
financial concepts applied to M&A, but more importantly a full recognition of the impact
on organisations and people of corporate restructurings.
Content outline
To provide you with a detailed understanding of the financial issues within a strategic
context regarding mergers & acquisitions from an international perspective. At the end
of the module you should have the ability to form your own views about M&A, and
should be prepared to make your own creatively strategic and analytically supportable
recommendations regarding potential M&A transactions.
Corporate motives for M&A

Strategic alternatives to a merger or acquisition
Why so many acquisitions fail; value creation and value destruction
Commonly used takeover defences and tactics
Deal valuation and financing
Merger arbitrage
Due diligence
Role of outside advisors and company management
Regulators and regulatory and tax environment (focus on the UK)
Post merger integration and other impacts of the M&A process
Surviving an M&A deal.

Understand the role of M&A activity in its wider economic context

Understand relevant company valuation concepts
Understand strategic implications of M&A activity.
Skills
Demonstrate team working skills

Understand the implications of current finance theories for practical M&A issues
Evaluate the value-creating potential of an M&A proposition
Evaluate complex M&A propositions
Apply understanding of the building blocks of M&A transactions (e.g. sources of
finance, accounting implications)
Demonstrate presentation and report writing skills.
Demonstrate confidence in applying financial and strategic concepts to M&A

Demonstrate awareness of the wider business context of M&A activity.
HOW WILL I LEARN?

This is a popular module and will be delivered in different streams, delivering the content
and learning outcomes in different formats:
Weekly delivery
Weekend block delivery
The module will be taught primarily through lectures and will make use of class
discussions, case studies and discussion on the wider business context of M&A activity.
Guest lecturers may be used when available. Students should also work in groups to
practise the course topics, such as valuations.
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Lectures
Lecture
Totals:
18
82
Total
student
learning
hours
100
18
82
100

Assessments
The module will be assessed by 100% coursework, the nature of which is dependent on
the format of delivery.
The stream(s) taught weekly by Professor Scott Moeller will be assessed by weekly
class tests (except the first class), each of which count as 20% of the final mark.
The stream(s) taught in a block by Anna Faelten will be assessed as follows: Students'
participation and contribution in class and during the group work will account for 40%
final grade. The remaining 60% will be based on a piece of individual coursework to be
submitted after the course. This will be a written critical assessment of a recent deal.
The particular deal will be revealed and supplementary material distributed during the
last class.
Assessment pattern:
Assessment
component
Assessment
type
Coursework
Set exercise
Weighting Minimum
qualifying
mark
100
50
Pass/Fail?
N/A
Assessment criteria
leader.

The stream(s) taught by Professor Scott Moeller will have one case study assigned for
each class as pre-reading. There are also assigned readings from one textbook and
from articles that are referenced during the course, especially contemporary articles from
the financial press (usually the Financial Times). The textbook will be:
Moeller, Scott and Brady, Chris (2014) Intelligent M&A: Navigating the Mergers and
Acquisitions Minefield. Wiley, Second Edition.
For the stream(s) taught by Anna Faelten, the principal reading will be from one textbook
(Sudarsanam, S., Creating Value from Mergers and Acquisitions, Second Edition, 2010,
Pearson Education); selected articles and case studies will also be supplied in advance
and during class.
Version: 2.1

CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N300
Description
Percentage (%)
100

reporting.

KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
Monetary Policy in a Global Context

SMM969
10
5
7
MODULE SUMMARY
The course will be given in partnership with Singapore Management University and the
students will come from both Cass and SMU.
You will come away with a deeper understanding of the practice and impact of monetary
policy across the world, including:
The functions of money and the money creation process
The operation of monetary policy
Monetary policy tools
Types of monetary policy (e.g. contractionary and expansionary policies)
Limitations of monetary policy
The variety of teaching and learning methods engaged in for this particular module,
including lectures, group work, will support you in applying your learning in a real world
context.
You will have 15 hours of lectures complimented by 3 hours from an industry speaker.
Monetary policy is a key theme for financial professionals wishing to become analysts.
Many of our students go on to be or are currently analysts. It is also linked to the CFA
exam.
Content outline
Lecture 1: Money: The Function of Money, Paper Money and the Money Creation
Process
- Definitions of money, the supply and demand for money
- The quantity theory of money
- The roles of central banks focusing on US, Europe and Asia
Lecture 2: The Operation of Monetary Policy: The Cost of Inflation
- Monetary policy tools: open market operations
- The central banks policy rate: reserve requirements, the transmission mechanism
- Inflation targeting, exchange rate targeting
Lecture 3: Contractionary and Expansionary Monetary Policies and the Neutral Rate
- Limitations of monetary policy: problems in the monetary transmission mechanism,
interest rate adjustment in a deflationary environment and quantitative easing as a
response.
Lecture 4: Limitations of Monetary Policy - Summary

Show knowledge and understanding of global monetary policy, its relationship to

economic theory, and its economic impact from a European and Asian perspective
Show knowledge and understanding of Asian financial markets
Understand the function of money, paper money and the money creation process
Skills:
Work effectively in a cross cultural team

Apply aspects of monetary theory to real world economic problems
Understand and respect for different cultural values
HOW WILL I LEARN?

The teaching and learning strategies for this particular module are varied and include:
Classroom teaching by Professor Clare alongside.

Group preparation and discussion of monetary policy case studies, to be distributed
during the course
SMU Professor to talk about Asian markets.
A speaker from the Central Bank of Singapore will address the students on monetary
policy thus giving a policy makers point of view.
Group work in order to develop case studies to look at monetary policy challenges
facing an Asian central bank. Computer simulation game where students act as the
central bank
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Lecture
Lecture
Totals:
24
76
Total
student
learning
hours
100
24
76
100

Assessments
a) Overview: You will work together in small groups to write a case study on the
monetary policy challenges facing an Asian Central Bank.
b) Progression requirements N/A
c) Assessment Criteria: Course work
d) Standard MSc grade-related assessment criteria for pass / fail modules. (d)
e) You will receive feedback on their assessment from Prof. Clare, in line with the Cass
feedback policy.
Assessment pattern:
Assessment
component
Assessment type
Weighting
Group Coursework
Set Exercise
100
Minimum
qualifying
mark
50
Pass/Fail
?
N/A
Please note:
Assessment Criteria

leader.

-
Monetary Policy CFA chapter: Prof. Andrew Clare, Cass Business School
(Pre-publication copies will be disseminated to students who register on the module)

-
The Central Bankers' Burden The Economist: 15th July 2010

http://www.economist.com/node/16590992
Plus:
- A reading assignment about Asian markets will be assigned by the associated
Singapore Management University professor.
Version: 2.0
Version date: July 2013

CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N340
Description
The study of the
management of money,
capital and credit.
Percentage (%)
100

KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
Money and Central Banking

SMM129
Faculty of Finance
10
5
7
MODULE SUMMARY
This course aims to foster the understanding of the functions of money in the
economy and of the role of central banks. After a brief introduction on the nature
and characteristics of money in modern economies, we will analyse how central
banks, commercial banks and other financial intermediaries determine the
quantity of money available in the system. We will then turn more in detail to the
operations of central banks, their strategy and the specific policy tools used to
influence inflation and output. Finally, we will discuss the changes in monetary
policy tools and strategies triggered by the recent financial crisis. The course is
designed for those of you with strong interests in understanding the impact of the
decisions of central banks on financial markets and the real economy.
Content outline
Topic #1 Introduction
The functions of money in a modern economy
The money creation process: the money multiplier
The role of the central bank and of commercial banks in money supply
Topic #2 Monetary policy and the real economy
Money demand
The equilibrium between money demand and supply
Nominal and real interest rates
The transmission of monetary policy and the yield curve
The credit channel of monetary policy
Topic #3 The objectives of monetary policy
The output-inflation trade-off
Price stability and the costs of inflation
Traditional monetary policy tools
Short- and long-term impact of monetary policy
Topic #4 Monetary policy strategies

From monetary targeting to inflation targeting
Inflation targeting and central bank independence
The Taylor rule
Expectations and time consistency
Central bank communication strategies
Topic #5 Monetary policy in practice
The monetary policy and its implementation: the general framework
The implementation of the monetary policy by:
o the Bank of England
o the ECB
o the FED
Topic #6 Monetary policy during the financial crisis
Was monetary policy responsible for the 2007-2008 financial crisis?
Monetary policy strategies in the Great Depression and in the Great
Recession
Conventional and non-conventional monetary policy
Quantitative easing

On successful completion of this module, you will be expected to be able
to:
understand the role of money in economic systems;
comprehend the different roles played by central banks, commercial banks
and other financial intermediaries in determining the quantity of money
available in the economy;
recognise the different strategies guiding monetary policy decisions by
central banks and their impacts on real and financial markets;
identify the impact of a wide range of central bank operations;
appreciate the role played by central banks during the recent financial
crisis.
Skills:
understand the statements of monetary authorities and their implications
for the functioning of the financial system and the economy at large;
critically evaluate publications and debates on the effect of monetary
policy, with particular attention to the official reports of central banks;
report, verbally or writing a memo, on the implications of monetary policy
decisions and on the overall adequateness of the stance of monetary
policy.
The course does not specifically address ethical issues, but will encourage you to
consider the broader implications of monetary policies including the trade-off
between price and output stabilisation, and the implications for financial stability
on the different classes of agents in the economy.
HOW WILL I LEARN?

This module will be taught primarily through lecturers and will require students to
work in groups for some of the time.
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Lecture
Group work
18
70
12
0
0
Total
student
learning
hours
88
12
Totals:
18
82
100

Assessments
This module will be assessed by 100% coursework weighted at class
presentation (20%) and reports on case-studies (80%).
Assessment pattern:
Assessment
component
Assessment
type
In class presentation
Practical
Exercises
Written
assignment
including essay
Report on the
assigned case study
Weighting Minimum
qualifying
mark
20%
0
80%
Pass/Fail?
Assessment criteria
Assessment criteria are descriptions of the skills, knowledge or attributes you
need to demonstrate in order to complete an assessment successfully and Grade
Related Criteria are descriptions of the skills, knowledge or attributes you need to
demonstrate to achieve a certain grade or mark in an assessment. Assessment
criteria and Grade Related Criteria for module assessment will be made
available to you prior to an assessment taking place. More information will be
available from the module leader.
Students will receive oral feedback on their in-class presentation. Feedback on
reports will be posted on Moodle. Feedback on the assessment will be provided
within three weeks of submission.
assessments are listed in the table above. The weighting of the different
components can also be found above. The Programme Specification contains
information on what happens if you fail an assessment component or the module.

BANK OF ENGLAND. Inflation report.
BANK OF ENGLAND. Minutes of the MPC meetings.
BANK OF ENGLAND (2013). Monetary policy trade-offs and forward guidance.
BERNANKE, B. S., & MISHKIN, F. S. (1997) Inflation targeting: a new framework
for Monetary Policy?. The Journal of Economic Perspectives. 11 (2), p.97-116.
BLENCK, D., HASKO, H., HILTON, S., & Masaki, K. (2001) The main features of
the monetary policy frameworks of the Bank of Japan, the Federal Reserve and
the Eurosystem. BIS papers, 9, p. 23-56.
BORIO, C. E. V., BLENCK, D., HASKO, H., HILTON, S., & MASAKI, K. (2001)
Comparing monetary policy operating procedures across the United States,
Japan and the Euro area. BIS paper, 9, p. 1-22.
De GRAUWE, P. (2012). Economics of monetary union. Oxford University Press.
EUROPEAN CENTRAL BANK. (2011) The monetary policy of the ECB.
EUROPEAN CENTRAL BANK. Monthly Bulletin.
EUROPEAN CENTRAL BANK. Introductory statements to the press
conferences.
FEDERAL RESERVE BOARD. Monetary policy report.
FEDERAL RESERVE BOARD. FOMC minutes.
JOYCE, M., TONG, M., & WOODS, R. (2011) The United Kingdom's quantitative
easing policy: design, operation and impact. Bank of England Quarterly Bulletin,
51(3).
MISHKIN, F. S. (2007) Monetary Policy Strategy. MIT Press.
MISHKIN, F. S. (2007) Will monetary policy become more of a science?. NBER
Working Paper Series (13566).
MISHKIN, F. S. (2007) The economics of money, banking, and financial markets,
10th ed.
MISHKIN, F. S. (2011). Monetary policy strategy: lessons from the crisis, NBER
Working Paper Series (16755).
Additional and updated material for class discussion will be provided before each
lecture.
Version: v.2
Version date: 14/10/2014
For use from: 2014/15
Appendix: see http://www.hesa.ac.uk/content/view/1805/296/ for the full list of
JACS codes and descriptions
CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N310
Description
Banking
Percentage (%)
100%
MODULE SPECIFICATION WORD TEMPLATE POSTGRADUATE PROGRAMMES

KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
Project Finance and infrastructure investment

SMM953
10
5
7
MODULE SUMMARY
This module will provide you with a new approach to understanding the fast changing
dynamics around project and infrastructure finance. For many years, project finance has
been the core technique for financing infrastructure and other large scale projects
worldwide. The module will enable you with the tools to enter in the project financing
arena:
Review the business modelling, applying business levers to meet performance

goals
Study the carefully engineered financing alternatives that drive to an efficient
allocation of the project risks between sponsors and investors, typically under the
umbrella of government or multilateral finance programmes.
Evaluate alternative financing models as more recently, private capital has taken
the lead. The syndicated project finance business has given space to direct
equity investments and hybrid secured financings.
Learn on how the credit crunch and market conditions has tempered the pace of
such investments and how the recent infrastructure spending plans initiated by
governments around the world will need significant private capital participation in
order to have a meaningful chance of being implemented.
Special emphasis will be devoted to project finance restructuring, as it is a
relevant issue nowadays, including terms negotiation, derivatives, and equity
resolution.
This first part of the module aims at providing the necessary theoretical and conceptual
tools for financial analysis and decision-making in relation to project and infrastructure
finance. The module is designed to introduce you to project feasibility evaluation,
financial analysis and structuring, use of various sources of funds and markets, and
contractual documentation.
The second part will focus on the global need for infrastructure investments (accelerated
by the recent stimulus policies) and the increased role played by private capital in the
form of private equity, insurance companies, pension funds and sovereign wealth funds.
you will appreciate how international investors now consider infrastructure as an asset
class per se.
The module includes both technical issues
The rationale for project finance/ infrastructure finance
Structuring and financing the project
Managing the project risk and public-private partnerships
Infrastructure investments, leverage and regulation
Infrastructure funds and the transportation sector
Infrastructures through the crisis

as well as practical examples
Cogeneration project case discussion
Renewable energy project case discussion
Wind power project case discussion
Utility (water) sector case discussion
Highway investment case discussion
Airport investment case discussion

- Understand the main elements of project finance and infrastructure finance
- Understand how international investors consider infrastructure as an asset class per se
- Have an understanding of derivatives, swaps and cash flow modelling related to project
finance analysis
- Have an understanding of the cogent analysis of why some financial deals have failed
and / or succeeded.
Skills:
- Solve complex problems
- Be flexible in applying theory to cases
- Extract a coherent framework of thinking from the course materials, readings and
cases
- Demonstrate interpersonal skills
- Demonstrate team working skills
- Demonstrate presentation and negotiation skills.
- Demonstrate the technical and strategic skills required to analyze and evaluate
infrastructure projects
- Structure financing solutions using the methodologies and the models provided.
- Evaluate the risk/return trade-off of the various investment strategies.
- Be open to new concepts and ideas.
- Contribute with insights to the class discussion.

HOWWILLILEARN?
The module will be taught as a block over the weekend, divided into six, three hour
sessions. Sessions will include a review of the relevant theory and the discussion of
case studies. The case studies provide an opportunity to apply the project finance
principles and valuation methods to real-life projects. You will also be asked work in
groups to prepare a case presentation in class.
Teachingpattern:
Contact
Selfdirected
Totalstudent
Teaching
Teaching
Placement
hours
studyhours
learning
component
type
hours
hours
Lectures
Lectures
18
82
0
100
Totals:
18
82
0
100

Assessments
This module will be assessed by 100% coursework comprised of case assignments
(both individual and group) weighted at 80% and class participation scores weighted at
20%.
All case assignments will be turned in by groups of four to six students. Assignments
will comprise class presentations lasting no more than 30 minutes, focussing on the
substantive issues in the case and presenting insights rather than background
information and written assignments which should include an executive summary.
Assessment pattern:
Assessment
component
Assessment
type
Coursework
Written
assignment
including essay
Weighting Minimum
qualifying
mark
100%
50%
Pass/Fail?
Please note:
Assessment criteria
leader.
John D Finnerty, Project Financing: Asset Based Financial Engineering, (Wiley Finance,
2007)
Additional readings and assigned cases will be provided on Moodle during the module
including rating agency methodologies, fundamentals of project finance and cases.
Version: 1.1

CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N213
Description
Project Management
Percentage (%)
100%
KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
Risk Strategy and Decision Making in Situations of High

Uncertainty
SMM141
10
5
7
MODULE SUMMARY
The recent financial crisis revealed that the financial sector needed to urgently enhance
the efficiency of its approach to risk strategy and decision making in critical situations.
Most of the failures that occurred during the crisis stemmed not from isolated human
errors or technical / analytical mistakes, but strategic mistakes in risk taking, flawed
models or inability to provide a holistic risk management response to systemic or
idiosyncratic shocks. The lesson that the financial industry ought to learn from the
recent experience is that every organisation urgently needs to strengthen its strategic
risk management.
This module addresses this call and aims to provide a comprehensive coverage of key
elements that are vital for every organisation to develop and maintain a robust risk
strategy. The module explains to you how strategic risk management decisions are
made overall and gives a top down view on risk management frameworks. It is not
focussed on a particular type of risk isolation. Instead it creates a Big picture. Unlike
many in-focus risk management courses, this course will help you to see the forest for
the trees in the risk management world.
Content outline
This module covers areas which predetermine the overall robustness of a firms risk
management and effectiveness of strategic decisions from a risk perspective that a firm
makes. Risk strategy is a key driver that sets a firms overall attitude towards risk taking
and its ability to make correct risk decisions. Ultimately, it determines future success or
failure of the organisation.
The module covers (but is not limited to) the following:
High level firms risk management framework

Risk governance and risk ownership
Risk appetite
Risk culture
Aligning business strategy with risk appetite

Aligning business strategy with regulatory requirements
Interplay of various risks (portfolio risk)
Strategic decision making in high risk situations.

Demonstrate understanding of the concepts and contexts of risk and uncertainty,

such as acceptability of risks and the identification of cost-effective strategies in
the high risk environment to ensure an effective management and sustainable
business growth.
Develop your understanding of the practical aspects of risk management function
within and between organisations, by exploring the balance between theory,
practical skills and knowledge in order to enable students to prepare for a career
within risk management function as well as other managerial functions;
Show mastery of the core concepts, principles and techniques for decisionmaking with regard to risks;
Gain insights into different sources of information used by individuals, business
leaders and stakeholders and the factors that influence their perceptions of risk
identification, risk avoidance or reduction, risk mitigation and risk transfer
Skills
Develop skills and methods for identifying risk signals and communicate these to
stakeholders, including the risk scorecard, scenario analysis, and handling
governance and compliance issues
Analyse concepts and apply skills through key activities including working case
studies, where you will have the opportunity to contextualise and apply your
knowledge;
Apply research skills in Risk Management;
Value and attributes.
Build a network within the Risk Management practitioners community and

enhance future career opportunities through engagement with risk management
executives who will deliver guest lecturers;
Be able to isolate, assess and resolve problems of varying degrees of
predictability
Be able to make a robust management decisions in the situation of high

uncertainty
Demonstrate ability to provide conceptual and business leadership in complex
creative situations
HOW WILL I LEARN?

This module is hands on and highly practical, aimed at sharing the best industry
practice.
The module will be taught primarily through lectures using the following structure:
Formal Lecture:
Where you will be provided with knowledge of a particular areas of risk strategy and
decision making. The background which is necessary for deep understanding of the
area is given and practical questions and challenges are discussed.
Case study / simulation:
You will gain hands-on experience by going through a real business case or virtual
situation when you will learn how to make strategic risk decisions and understand the
consequences of such decisions.
Masterclass:
You will have the opportunity to learn how risk gurus make decisions for their
organisations. An industry executive will share his practical experience in risk strategy or
decision making through a lecture and Q&A session.
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Lecture
Lecture
Totals:
18
82
0
0
18
82
Total
student
learning
hours
100
100

Assessments
This module will be assessed by 100% coursework comprising an invigilated test
weighted at 70% and a group assignment based on the course decision making game
weighted at 30% where each group of students will manage a portfolio of assets.
Assessment pattern:
Assessment
component
Assessment
type
Invigilated test
Group coursework
Set exercise
Set exercise
Weighting Minimum
qualifying
mark
70
0
30
0
Pass/Fail?
No
No
Assessment criteria
Standard MSc Grade Related assessment criteria will apply.
Assessment Criteria are descriptions of the skills, knowledge or attributes students need
to demonstrate in order to complete an assessment successfully and Grade-Related
Criteria are descriptions of the skills, knowledge or attributes students need to
demonstrate to achieve a certain grade or mark in an assessment. Assessment Criteria
and Grade-Related Criteria for module assessments will be made available to students
prior to an assessment taking place.
Following an assessment, you will be given their marks and feedback in line with the
leader.
Assessment regulations

Evgueni Ivantsov. Heads or Tails: Financial Disaster, Risk Management and Survival
Strategy in the World of Extreme Risk. 2013, Ashgate. Avalable:
http://www.ashgate.com/isbn/9781409460749
Ernst & Young Report: Remaking financial services: risk management five years after
the crisis. E&Y Report. 2013. Available:
http://www.ey.com/Publication/vwLUAssets/Remaking_financial_services:_risk_manage
ment_five_years_after_the_crisis/$FILE/Remaking_financial_services_risk_managemen
t_five_years_after_the_crisis.pdf
Andrew Haldane, Vasileios Madouros. The dog and the Frisbee. 2012, Bank of
England. Available:
http://www.bankofengland.co.uk/publications/Documents/speeches/2012/speech596.pdf
World Economic Forum. Global Risks 2014 Ninth Edition. Insight Report. WEF.
Available: http://www3.weforum.org/docs/WEF_GlobalRisks_Report_2014.pdf
Version:1.0
Version date: June 2014
For use from: May 2015
Appendix: see
CODES
HESA Cost Centre
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N341
Description
Financial Risk
Percentage (%)
100%

KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
Trading and Hedging in the Foreign Exchange Market

SMM620
10
5
7
MODULE SUMMARY
The aim of this course is to provide you with a comprehensive understanding of how
foreign exchange (FX) is traded in both the professional and retail markets and what
causes currencies to rise and fall. The course will examine the major players within
the FX market place banks, brokers, fund managers, hedge funds and high net
worth individual and explores the dynamics between participants and the techniques
used to evaluate and trade FX for risk mitigation or speculation.
You will be taught how investor behaviour affects FX prices and will learn how to
analyse FX markets using technical and fundamental indicators. Hedging techniques
to mitigate risk will be explained, with the emphasis on the practical side of FX trading
to prepare students for a career in the banking/finance industry.
Content outline
FOREX market history & current landscape

FX pricing and relationship between different currencies
Fundamental v technical approach to trading FX
The growing impact of Central Banks and macro-economic news events
Technical Trading Techniques:
o Dow Theory; how price encompasses all information
o How psychological biases affect trader performance
o Trading off support/resistance, trends, channels and price patterns
o Japanese candlestick analysis
o Moving averages, MACD, oscillators & momentum indicators
o Technical trading strategies for FOREX speculation
Pricing FOREX spot and forwards markets
Mechanics of the interest rate carry trade
Hedging Forex exposure
o Structured FOREX products
o Use of FOREX derivatives

The aim of this course is to provide you with a comprehensive understanding of how
FOREX is traded in both the professional and retail markets and what causes currencies
to rise and fall. The course examines the major players within the FOREX market
banks, brokers, fund managers, hedge funds and high net worth individuals and
explores the dynamics between participants and the techniques used to evaluate and
trade FOREX for risk mitigation or speculation.
You will learn how to analyse FOREX markets using technical and fundamental
indicators and how to use hedging techniques to mitigate risk. The emphasis is on the
practical applications of FX trading in order to prepare students for a career in the
banking/finance industry.
Understand the context and structure of the FOREX market

Interpret a variety of information from different sources to assess the potential
impacts of this information on FOREX rates
Understand why and how FOREX currencies are traded for speculation or risk
mitigation
Skills:
Evaluate the performance of currencies and determine whether a currency is

under-priced or over-priced
Use fundamental, technical or behavioural information to trade in the FOREX
market
Understand the perspectives of market players in international trade and the
FOREX market
Price derivative assets written on FOREX
Appreciate the potential trade-off between FOREX risk and return

Interact with market colleagues using appropriate market jargon and etiquette
Appreciate the impact of international diversification in minimising risk
Appreciate the importance of international trade in financial decisions
HOW WILL I LEARN?

-
A series of six 3-hour lectures, plus at least 82 hours of self-directed study

Lectures are delivered by experienced traders and hedge fund managers to
provide real-life examples of FOREX trading techniques and analysis of real data
examples
Analysis of contemporary FOREX issues and methods to speculate on or hedge
FOREX exposure
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
Lecture
Lecture
Totals:
18
82
Total
student
learning
hours
100
18
82
100

Assessments
This module will be assessed through 100% coursework comprising an invigilated test.
Assessment pattern:
Assessment
component
Assessment type
Weighting
Coursework
Set Exercise
100
Minimum
qualifying
mark
50
Pass/Fail
?
N/A
Assessment criteria
leader.
assessments are listed in the table above. The weighting of the different components can
also be found above. The Programme Specification contains information on what happens
if you fail an assessment component or the module.

Required reading:
Course Notes & Presentation hand-outs from lecturers
Reference websites:
http://www.fxstreet.com
https://www.mataf.net
http://www.forexpeacearmy.com
Recommended reading:
Technical Analysis of the Financial Markets (1998) - John Murphy
Additional reading:
Market Wizards: Interviews with Top Traders (2006) - Jack Schwager
New Market Wizards: Conversations with Americas Top Traders (2008) - Jack
Schwager
Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary
Traders - Curtis Faith
Version: 2.0
Version date: Oct 2014

KEY FACTS
Module name
Module code
School
UK credits
ECTS
Level
Trading and Market Microstructure

SMM921
10
5
7
MODULE SUMMARY
This module focuses on the mechanisms by which securities are traded in modern
financial markets and the implications of trading mechanisms for the efficiency and
liquidity of markets. It covers all major asset classes (equities, FX, bonds and
derivatives) and treats theoretical work on trading mechanisms and market outcomes,
related empirical work and the application of microstructure analysis to practical trading
scenarios. It aims to prepare you for work which would involve trading or trade quality
evaluation or for graduate work in this area.
Content outline
Topic 1: the basics of trading (different trader types, trading mechanisms, order types,
definitions of liquidity and efficiency)
Topic 2: asymmetric information and inventory control in markets (models including
private information and risk aversion, implications for the relationship between trades
and prices, dealer markets and batch markets)
Topic 3: Price discovery and liquidity measurement (econometric evidence on the
implications of trading methods for information efficiency and determination of liquidity)
Topic 4: limit order markets (order choice models and empirical evaluation of those
models, practical examples of order placement strategies in equity markets and
transaction cost analysis).
Topic 5: FX and bond market microstructure (order flow models and models to explain
the relationship between order flow and exchange rates, bond trading and implications
for pricing.)
Topic 6: issues and controversies in modern market structures (for example highfrequency trading, algorithmic trading, dark versus lit execution methods, market
manipulation)

Describe clearly the manner in which trading takes place in modern markets for
equities, FX and bonds
Describe theoretical work that involves trading on the basis of private information and
dealer behaviour which results from risk aversion. Also to describe the implications of
this work for properties of trade and price data and empirical evaluation of these
implications
Debate the effects of modern developments in trading on market quality and
outcomes.
Skills
Demonstrate empirical time-series skills to measure and model financial market

liquidity and efficiency
Measure and model execution quality of a trading system or a set of trades
Design an appropriate execution strategy under various circumstances.
Advise on appropriate execution policy for clients and portfolio managers.
HOW WILL I LEARN?

As is standard for an elective, there will be 18 contact hours comprising lecture time
(about 75%) and student presentations/discussions (25%). Trading practitioners will be
brought in to give guest lectures where appropriate and available
Teaching pattern:
Teaching
component
Teaching Contact
Self-directed
Placement
type
hours
study hours
hours
lectures
Lectures
Totals:
18
82
Total
student
learning
hours
100
18
82
100

Assessments
You will be divided into groups of at most four. Each group will be given a particular topic
to research (e.g. the effects of high-frequency trading on market quality).
Groups will be required to present their findings in class and to write up their work for
assessment. The group will be required to work together and submit one report, this will
be the only piece of assessed work in the course.
Assessment pattern:
Assessment
component
Assessment
type
Group coursework
Practical Skills
assessment
Weighting Minimum
qualifying
mark
100%
50%
Pass/Fail?
No
Assessment criteria
Assessment Criteria are descriptions of the skills, knowledge or attributes students need
to demonstrate in order to complete an assessment successfully and Grade-Related
Criteria are descriptions of the skills, knowledge or attributes students need to
demonstrate to achieve a certain grade or mark in an assessment. Assessment Criteria
and Grade-Related Criteria for module assessments will be made available to students
prior to an assessment taking place. More information will be available from the module
leader.
leader.

de Jong, Frank and Rindi, Barbara (2009) The Microstructure of Financial Markets.
Cambridge University Press
Harris, Larry (2002) Trading and Exchanges. Oxford University Press
Hasbrouck, Joel (2007) Empirical Market Microstructure. Oxford University Press
In addition, for each topic considered, a set of journal articles (from academic and
practitioner journals) will be required reading.
Version: 2.1

CODES
HESA Code
133
Description
Business and
Management Studies
Price Group
D
JACS Code
N300
Description
reporting
Percentage (%)
100

106 Bunhill Row
London EC1Y 8TZ
T: +44 (0)20 7040 8600
www.cass.city.ac.uk/masters

In 2002, City Universitys Business School
was renamed Sir John Cass Business School
following a generous donation towards
the development of its new building in
Bunhill Row. The Schools name is usually
abbreviated to Cass Business School.
Sir John Casss Foundation
Sir John Casss Foundation has supported
education in London since the 18th century
and takes its name from its founder, Sir John
Cass, who established a school in Aldgate in
1710. Born in the City of London in 1661, Sir
John served as an MP for the City and was
knighted in 1713.

Banking and International Finance

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Banking and International Finance

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Specialist Masters

Introduction to the Elective Selection Process

We reserve the right to withdraw an elective

Term three: 11 May - 286June

Term three test period: 29 June - 10 July

Business Research Project submission: 01 September

Banking and International Finance

Advanced Topics in Banking and International Finance

Paulo Soares de Pinho

Financial Statement Analysis and Valuation in Banks

Hedge Funds Block Elective

Investment Banking in Corporate Finance

Paulo Soares de Pinho

Money and Central Banking

Energy, Trade and Finance

Energy Project Investment and Finance

Credit Risk Management

Trading and Market Microstructure

Mergers & Acquisitions

Mergers & Acquisitions Block Elective

Finance and Investment

Global Real Estate Markets: Block (taught in Dubai)

Investment Markets: Block (taught in New York)

Monetary Policy: Block (taught in Singapore)

Project Finance and Infrastructure Investment: Block

Insurance and Risk Management

Risk Strategy and Decision Making

International Accounting and Finance

Financial Statement Analysis and Valuation in Banks

Mathematical Trading and Finance

Trading and Hedging in the Forex Market

Advanced topics in Banking and International Finance

Case studies (Santander, Ecobank)

Topic 3: . Exchange rates and currency crises.

WHAT WILL I BE EXPECTED TO ACHIEVE?

Develop the ability to contextualise and apply knowledge;

Values and attitudes:

Enhance career opportunities through a deeper understanding of policy and

HOW WILL I LEARN?

WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT?

Kose, Prasad, Rogoff and Wei (2009): Financial Globalization: A Reappraisal.

MODULE SPECIFICATION POSTGRADUATE PROGRAMMES

An Introduction to Islamic Banking, Finance and Insurance

Key Islamic financial principles and the core contracts.

2. The operation of an Islamic bank and how it invests in Islamic assets

The formation of an Islamic bank or Islamic banking window.

3. Islamic Capital Market Products [1] Asset Classes Equity Class

Market overview, global positioning of the Islamic financial marketplace, market

4. Islamic Capital Market Products [2] Bond Class - Sukuk

Market overview, global positioning of the Islamic financial marketplace, market

5. Islamic Capital Market Products [3] - Alternative Asset Classes

Alternative asset class

6. Takaful (Islamic insurance)

What Takaful is and why it is important

7. Regulation and Governance of Islamic Financial Institutions

Traditional use and limitations of Islamic financial contracts

WHAT WILL I BE EXPECTED TO ACHIEVE?

Understand the theoretical basis and underlying concepts of Islamic banking,

Leverage their conventional financial skills to develop expertise in Islamic banking,

Values and attitudes:

HOW WILL I LEARN?

WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT?

INDICATIVE READING LIST

Appendix: see http://www.hesa.ac.uk/content/view/1805/296/ for the full list of JACS