Department of Finance

MSc Finance
Part-time Programme
The Programme
MSc Finance
The MSc Finance Part-time evening
programme at LSE offers a unique
opportunity to combine your career with
a Finance Master’s programme grounded
in world class academic depth and
rigour, designed specifically for aspiring
professionals. The MSc Finance Part-time
programme is aimed at people currently
working in or around London’s financial
services sector who are thinking about
moving into or acquiring further in-
depth expertise in the area of Finance.
The programme is ideal for those who
want a focused, academically rigorous
Masters degree programme to give them
a solid foundation in this field.
As a student enrolled on the Part-time
programme you will have access to the
highly rigorous teaching and curriculum
offered by a full-time LSE Masters
programme, with the addition of the
added learning experience gained from
participation in a class made up of
fellow financial sector professionals.
This class interaction allows a practical
grounding in the concepts studied. The
programme of study begins with core
courses in corporate finance and
financial markets which give a thorough
grounding in the principles of finance
seen both in general and in concrete
applications, taught in part using case
studies. This same combination of rigour
and relevance is continued in the
advanced elective courses which provide
deeper practical insight into finance as
practiced by leading financial
institutions. The courses regularly
involve top practitioners from the City.
The MSc Finance programme is also
offered on a full-time basis of study,
maintaining the same blend of rigour and
relevance as the Part-time programme.
Finance at LSE
LSE has a solid tradition in finance,
grounded in economics, and based on
a rigorous approach to the discipline.
Finance faculty are recognised as experts
in their field, and have developed their
teaching in Finance at LSE through over
15 years contribution to the established
and successful MSc Accounting and
Finance, MSc Finance and Economics
and the MSc Management and
A unique opportunity to combine your career with a
Finance Masters programme grounded in world class
academic depth and rigour, designed specifically for
aspiring professionals.
Regulation of Risk programmes. The
Finance faculty have close links with the
Financial Markets Group, an ESRC-
funded research centre which attracts
leading international finance researchers
to present at its many academic
research seminars or conferences for
practitioners which students are
welcome to attend.
Located in Central London, the London
School of Economics and Political
Science is a world class social science
institution, attracting some of the best
researchers and teachers in their
respective fields and providing a
challenging environment for highly
capable students. The dynamic
intellectual environment of LSE
facilitates a constant interchange of
ideas between the School and major
financial institutions, leading
multinational organisations and key
regulatory bodies. LSE also houses the
British Library of Political and Economic
Science, the largest social sciences
library in the world.
Programme Structure

The first year of the programme Year 1

provides the foundation for the second September Pre-sessional Course Quantitative Methods
elective year (see table).
Michaelmas Term October – December Core Courses Corporate Finance
Asset Markets
Teaching
Lent Term January – March
The MSc Finance Part-time programme Two evenings per week
is taught two evenings a week during Summer Term April – June Review and Exams
term time, following a format of
lecture and class teaching. The lectures Year 2
(2 hours) cover the core theoretical Michaelmas Term October – December Elective Courses 4 half unit courses selected from:
concepts, while their associated classes Applied Financial Valuation*
(1 hour) help students to gain a Lent Term January – March Financial Engineering*
practical understanding of the 2 evenings per week Fixed Income Securities and Credit Markets*
application of these concepts. This is Risk Management and Financial Institutions*
supported by case studies, practical Topics in Portfolio Management*
homework problems and, where
relevant, computer assignments and * Exclusive to MSc Finance
online learning resources.
Summer Term April – June Submission of 6,000 word
Dissertation in lieu of
Assessment an exam
Courses are assessed by a final Review and Exams
examination, with most elective courses
also having projects or coursework as a
component of the assessment. Students
will be required to write a 6,000 word
dissertation (replacing the exam) in one
of the half unit elective courses selected.

Careers in Finance
LSE is a key recruiting ground for the financial
services sector and students from our Masters
programmes have been successful in securing
graduate positions with the major financial
institutions. The LSE Careers Service has significant
links with financial institutions in the City of
London, and has been building relationships with
overseas employers.
As a student on the MSc Finance Part-time
programme you will have the opportunity to
access careers support to help leverage your
existing work experience with the new skills
gained through the MSc Finance programme.
MSc Finance students will also benefit from
becoming part of LSE’s alumni network. LSE’s
alumni base includes graduates working in
financial institutions around the globe. LSE
Alumni Relations organises alumni lectures and
events in London and overseas, with speakers
from key organisations across a whole range of
sectors, including financial services. There is also
a London Business Alumni Network, an alumni
group which offers a forum for London-based
alumni to meet and discuss areas of common
interest. Twice yearly, City Alumni Events
organises debates on current topics followed
by networking receptions.
Finance Faculty
The faculty in the Department of
Finance has expertise in a number of
discrete yet complementary areas, such
as financial economics, empirical studies
of asset pricing and capital markets,
including portfolio analysis, as well as
corporate financial regulation and the
microstructure of European financial
markets. We also have expertise in
financial risk analysis, including market
risk, credit risk and international
financial crises.
Professor Ronald Anderson
Professor of Finance,
Head of Department
Dynamic corporate finance; contingent
claims analysis, risk management;
financial market structure and regulation.
Dr Elisabetta Bertero
Lecturer in Finance
Budget constraints and state-owned
firms; French and Italian financial
systems; interdependence of equity
markets; international finance.
Professor Sudipto Bhattacharya
Professor of Finance
Corporate finance and governance;
models of research and development
and the dissemination of proprietary
knowledge; financial intermediation;
contract theory; regulation.
Dr Vicente Cuñat
Lecturer in Finance
Theoretical and empirical corporate
finance, trade credit, contract theory.
Dr Jon Danielsson
Reader in Finance
Financial risk analysis; value at risk;
volatility modelling and forecasting;
extreme value theory; financial
engineering; regulation; financial crises.
Dr Amil Dasgupta
Reader in Finance
Information economics and game theory
with applications to finance; the theory
of financial crises; delegated portfolio
management.
Professor Antoine Faure-Grimaud
Professor of Finance
Venture capital; capital structure
and product market competition;
corporate governance.
Dr Jack Favilukis
Lecturer in Finance
Macroeconomics and finance,
incomplete markets, real estate finance,
computational methods.
Dr Stephane Guibaud
Lecturer in Finance
International macroeconomics and
finance, asset pricing, yield curve,
recursive contracts.
Dr Xiaoji Lin
Lecturer in Finance
Theoretical and empirical asset pricing
in connection with corporate finance;
and macroeconomics.
Dr Antonio Mele
Reader in Finance
Asset pricing theory, financial
econometrics, empirical finance.
Dr Philippe Mueller
Lecturer in Finance
Macro-finance, empirical asset pricing,
fixed income, financial econometrics
Dr Yves Nosbusch
Lecturer in Finance
Empirical asset pricing; credit risk;
debt management; intergenerational
risk sharing.
Dr Andrew Patton
Reader in Finance
Financial econometrics, forecasting,
volatility and dependence modelling;
portfolio decisions.
Professor Christopher Polk
Professor of Finance
Theoretical and empirical asset-pricing;
theoretical and empirical corporate
finance; behavioural finance;
macroeconomics and finance.
Dr Rohit Rahi
Reader in Finance
Arbitrage in segmented markets;
financial innovation and security
design; asset pricing with asymmetric
information; general equilibrium theory;
incomplete markets.
Professor Dimitri Vayanos
Professor of Finance
Liquidity and asset pricing, information
in asset markets, delegated portfolio
management, behavioural finance.
Dr Michela Verardo
Lecturer in Finance
Empirical asset pricing, investment
anomalies, the information efficiency of
stock markets; the impact of analyst
forecasts on stock returns; financial and
bayesian econometrics.
Professor David Webb
Professor of Finance
Financial economics; monetary theory,
specifically analysis of bankruptcy and
financial contracts.
Dr Kathy Yuan
Reader in Finance
Bubbles and crises, liquidity,
heterogeneous information, mutual
funds, hedge funds, network theory,
short-sale and margin constraints, global
games, asset pricing.
Dr Kostas Zachariadis
Lecturer in Finance
Market microstructure, information
economics, and corporate governance.
Dr Jean-Pierre Zigrand
Reader in Finance
General equilibrium asset pricing,
financial intermediation and delegation,
continuous time asset pricing, herding,
market crashes, foundations of arbitrage.
The courses
Core Courses
Asset Markets
Aims to familiarise students with the workings of
asset markets and the fundamental tools of asset
valuation. Three important asset classes will be
covered: bonds (25%), stocks (50%), and
derivatives (25%). The starting point of asset
valuation is the present-value formula, and will
be covered. We will then proceed to fixed-
income securities, focusing mainly on
government bonds and emphasizing the relation
between valuation and no-arbitrage. Next, we
will move to stocks, starting with basic notions
of risk, return and diversification. We will
formalize the trade-off between risk and return
in the context of portfolio theory. We will then
examine how risk is priced in equilibrium, via the
capital asset pricing model (CAPM) and multi-
factor models. In covering the models, we will
also examine their implications for stock
valuation, security selection, and performance
evaluation. We will also ask whether the market
values stocks efficiently, or whether there are
‘abnormal’ returns leading to large profits.
Finally, we will cover derivatives, especially
futures and options. After an overview of the
main uses of derivatives, we will cover valuation
methods, such as the binomial and the Black-
Scholes model, emphasizing again the relation
between valuation and no-arbitrage.
Corporate Finance
This course is roughly divided in three parts.
The first part, financing, investigates how
companies finance their activities best. The aim
is to understand what factors determine the
‘optimal’ capital structure and how the interplay
of those factors can affect financing decisions in a
way that creates value on the right hand side of
the balance sheet. For instance, we will explain
that there can be a trade-off when selecting a
debt/equity ratio between on the one hand
exploiting the ‘tax shields’ created by debt finance
and, on the other hand, the need to minimize the
bankruptcy risk associated with leverage. The
second part, valuation, instead focuses on how to
create value of the left hand side of the balance
sheet, ie, explains how companies should select
the assets they want to invest in. For instance,
attention will be paid to how firms should account
for different levels of risks in real investments and
how the discount rates used to value future cash-
flows should reflect those risks. The third part
contains a number of topics covering other
important corporate finance decisions, such as
mergers and acquisitions, initial public offerings or
risk management.
Elective Courses
The structure of the programme permits students
to take electives from a series of dedicated exclusive
courses, or in some cases to select from a range of
courses open to other MSc day-time programmes.
Applied Financial Valuation
Covers advanced topics in Corporate Finance
and Valuation, focusing especially on corporate
reorganizations such as mergers and acquisitions,
leveraged buyouts, spin-offs and divestitures, as
well as reorganizations in financial distress
situations through private workouts and
bankruptcy. Particular emphasis will be put
on linking conceptual tools and institutional
environments to real business decisions.
Fixed Income Securities and Credit Markets
Provides a thorough grounding in recent
developments in fixed income securities pricing,
hedging and portfolio management. Will
familiarise with a variety of topics, including
analysis of the main products traded in the credit
markets, such as Government and corporate
bonds, bond options, swaps, caps, floors,
swaptions, callable, puttable and convertible
bonds, and an analysis of the main credit
derivatives such as total-return swaps, spread
options and credit default swaps; the specific
tools used in the industry practice to evaluate and
hedge these products, which range from no-
arbitrage trees and the calibration of yield curve
derivatives to the main tools used to monitor and
manage credit risk; the process of securitization,
with particular reference to collateralized default
obligations and mortgage-based securities.
Financial Engineering
Provides a thorough grounding in the theory and
practice of derivatives pricing, hedging,
calibration and synthesizing. The course aims to
cover the basics in derivatives theory, and to apply
them to a multitude of financial securities and
structured products. The pricing of said
engineered products is covered in theory first. We
review selected case studies in order to gain a
better understanding of their practical usage. We
also implement some of the models numerically.
Risk Management and Financial Institutions
Examines methods of financial risk assessment
including: advanced risk measurement for fixed
income and derivative instruments, credit risk
modelling, advanced methods for risk adjusted
capital allocation, and modelling systemic and
liquidity risk.
Topics in Portfolio Management
Provides analytical and statistical tools for the
management of investment portfolios. The
course focuses on stocks, bonds and currencies,
with some attention paid to alternative asset
classes such as commodities, real estate, and
hedge funds. It considers portfolio risk
management, international diversification,
currency management for international investors,
asset allocation, trade implementation costs and
trading strategies, and portfolio performance
measurement and attribution.
To Apply
The programme is designed for students
whose academic background is not
necessarily in finance, however, you
should have a good undergraduate
degree in which you have achieved a
2:1 or the equivalent. The mathematics
used in the programme includes basic
calculus and statistics. Some knowledge
of economics is required, but this could
have been acquired professionally.
Two to five years of relevant work
experience will be considered an
advantage but is not a requirement.
GMAT/GRE
Submission of GRE or GMAT test results
is an advantage but not a requirement.
English Language Skills
A good mastery of English is required as
demonstrated by a TOEFL score of at
least 627 (263 in the computer based
test) or an IELTS score of at least 7.0 for
those whose undergraduate degree was
not taught in English.
Candidates given admission to the
programme will be strongly recommended
to attend a pre-sessional Quantitative
Methods course in September. In some
cases, this may be a condition of entering
the programme.
Certain students may require a visa to
study in the UK. Please see;
www.ukvisas.gov.uk for further
information. As this programme is part-
time, you will not be able to obtain an
entry clearance to the UK as a student.
Instead, you must obtain a work permit
with the sponsorship of your employer.
If this is not possible, you may wish to
consider application to the MSc Finance
Full-time programme which fulfils the
Student Visa requirements.
All applications for LSE Masters
programmes are made via the Graduate
School at LSE. Applications for entry in
September are accepted from the
October of the preceeding year. Offers of
admission are made on a rolling basis,
therefore early application is encouraged.
All applications are made via the online
application form available on the
Graduate Admissions website. All
correspondence relating to offers and
registrations should be directed to the
Graduate Admissions Office at the
Graduate School which can be contacted
as follows:
www.lse.ac.uk/collections/
graduateAdmissions
Enquiries tel: +44 (0)20 7955 7160
For further information on the MSc
Finance Part-time programme, please see;
www.lse.ac.uk/collections/accounting
AndFinance
or feel free to contact the Programme
Manager directly;
MSc Finance Part-time
Programme Manager
Department of Finance
Houghton Street
London WC2A 2AE
tel: +44 (0)20 7955 7318
fax: +44 (0)20 7955 7420
email: mscfinance@lse.ac.uk
Design: LSE Design Unit (www.lse.ac.uk/designunit) Photography: LSE Photographer, Nigel Stead © 2008. This information is correct at the time of going to press, and may be subject to change.
Student Profile
Andrea Iannelli
Andrea brings four years of experience to the programme
as an FX trader with Goldman Sachs. One of the strengths
of the programme is the diverse and stimulating range of
professional and academic backgrounds and experience
of the students.
Andrea received a first in Financial Economics from
London Metropolitan University, and his dissertation
was published in an academic journal and as a
discussion paper.
‘I enjoy the mix of theory and real world examples and
have already seen added value in relation to my work.
The programme is very relevant.’
I also enjoy the networking and social side of the
programme, and have benefitted from a friendly and
culturally and professionally diverse group. I would
recommend this programme to anybody looking for a
strong theoretical foundation in finance and enhanced
real world financial knowledge.’
As one of two student representatives in his year,
Andrea passed on student feedback to faculty and
administration which led to the creation of a new
elective course. As a direct result we now offer FM405
Fixed Income Securities and Credit Markets.
Sarah Fournier
Sarah Fournier entered the MSc Finance (Part-time)
programme from an academic and professional
background in genetics. After achieving a PhD in
genetics and working in genetic research for a major
pharmaceutical company, Sarah decided that she
wanted to change her career to finance.
‘The MSc Finance (Part-time) programme, and the
reputation of LSE, are the perfect support to develop
a strong career in finance, building upon my analytical
and quantitative skills and experience. The programme
provides a broad and deep knowledge of finance
theory and applications.’
‘I have found the programme intellectually stimulating.
Having wanted to get back into education while
developing my career, I found this programme to be the
perfect fit. As a part-time student the excellent quality
and accessibility of faculty has been very important.’