091EC - FINANCIAL MARKETS AND INSTITUTIONS 2020
Schema della sezione
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Here you can find the list of updates to this page.
23/02 - Page created, syllabus and information uploaded.
01/03 - Updated agenda, uploaded presentations, link to MS-Teams.
04/03 - As you may have heard, universities in our region are required to move to full distance learning once more, from Monday and for at least two weeks. We will have to wait for further notice to resume the blended lectures. As I said in the first lecture, uncertainties need to be addressed in advance...
15/03 - Uploaded results of first additional activitiy. We'll briefly review them tomorrow.
22/03 - Uploaded calendar. Unfortunately, I won't be able to meet you on 25th March, therefore classes will start again on 30th March. Uploaded results of second additional activity, we'll briefly review them tomorrow.
08/04 - Updated results of additional activities and reference material. Keep an eye on incoming deadlines for next additional activities!
12/04 - Updated results of additional activities, material and next additional activities. See you tomorrow.
13/04 - As you may have heard, from next week all lectures will be held in presence and online (blended). Hope to see you there!
26/04 - Added the new additional activity due by 2nd May.
03/05 - Updated calendar and results of additional activity. Again, GoogleForms confuses the comma and the dot for decimals and does not give you the right feedback on some exercises. The current scores are corrected, anyway: many of you got it right in the first two exercises of the last activity!
05/05 - Updated calendar (just shifted the seminar), added link to the next additional activities.
27/05 - Added the last additional activity. We are definitely done!
30/05 - Updated the report on additional activities (up to 16:30 today). There is still some time to do the last two and be considered "attending", for those that are around the threshold (namely, 8 out of 10).
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FINANCIAL MARKETS AND INSTITUTION - A.Y. 2020/21 (English)
6 ECTS – 45 hours
Objectives
This course aims at explaining the functioning of financial markets and their economic role, with a focus on financial institutions and their products and services.
The course looks at global markets, mainly EU and US, with limited references to Italy as examples. Country comparisons aim at evidencing similarities and differences, and at underlining the role of international relationships.
Topics
FINANCIAL MARKETS:
1. The financial system
2. Interest rates: the term structure, the IRR and duration
3. Efficiency of financial markets and behavioral finance
4. Money markets
5. Bond markets
6. Stock markets
7. The mortgage market
8. The Forex
FINANCIAL INSTITUTIONS:
9. Financial crises
10. Central banks and monetary policy
11. Banks
12. Mutual funds
13. Insurance and pension funds
14. The securities' industry
15. Other intermediaries
16. Derivatives and risk management
TEXTBOOK
Mishkin F., Eakins S. (2018), Financial Markets and Institutions, 9th Edition, Pearson.
It is recommended to keep up-to-date by reading news and articles consistently with the topics of this course. Moreover, the textbook is rich of additional references, online material, self-assessment tests, exercises and suggestions for further readings that students are strongly encouraged to use.INTENDED LEARNING OUTCOMES
Knowledge/understanding:
- knowing why financial markets and institutions exist, how they function, are structured and organized
- knowing the constraints affecting the functioning of markets and institutions
- knowing the contractual features of leading financial products and services
- knowing similarities and differences of financial markets and institutions at the international level
Applying knowledge/understanding:
- describing the main features of financial markets and institutions
- describing the mechanics and distortions caused by information asymmetries and financial crisis
- evaluating financial products and services
- describing financial intermediation at the international dimension
Making judgments:
- evaluating differences in risk and return of the main financial instruments
- evaluating the performance of the main classes of financial intermediaries
- selecting markets and institutions consistently with the financial needs of families and firms
Communication skills:
- understanding and applying the technical language specific to financial markets and institutions
- expressing knowledge and opinions effectively on financial instruments, markets and institutions
Learning skills:
- autonomously research relevant data on financial instruments, markets and institutions
- autonomously manage and interpret financial dataREQUIREMENTS
Preconditions (knowledge needed to successfully attend this course assumed already acquired by students):
Financial Mathematics, Macroeconomics.
Propedeuticities (courses that have to be passed before this course):
Accounting.METHODS
Depending on circumstances, this course will be held in presence and/or through distance learning. Participation is a free choice, but strongly encouraged.
The course will start through distance learning and will move to a blended model once the new building (Ed. “D”) will be ready for use, currently expected to happen after mid-March 2021.
Physical presence takes place through traditional front lectures, encouraging the active participation of students, the discussion of market data or real-life cases, the development of exercises, simulations, and role-playing. Usually, a few seminars held by other lecturers or professionals of financial markets are organized during the course. Traditional classes will be also available online through MS-Teams in real time, as long as the pandemic emergency requires it.
The distance learning alternative involves a range of teaching tools: video lectures, webinars, and additional online activities. The latter are exercises, surveys, simulations and tests offered through online digital platforms, both during classes (we will use Mentimeter) or outside classes (we will use Google Forms).
The distinction between attending and non-attending students will be based on the participation to additional online activities. Their short description and deadlines are included in the workplan below. Students will be considered “attending” if they actively participated to at least 80% of additional online activities (8 out of 10). Results will not impact the final grade, but will affect how the exam will take place (see below).
OTHER INFORMATION
Students are advised to check regularly the teaching materials and the information provided on Moodle.
Non-attending students are encouraged to get in touch with the lecturer in due time if they need explanations or additional readings.EXAM AND GRADING
Grading is based on a final oral exam (15-30 minutes, depending on each student’s preparation). If the situation requires it, the oral exam will take place through MS-Teams.
The exam consists of three questions:
1. topic chosen by the student
2. topic chosen by the lecturer, on an insight on the same topic or on a different topic (for non-attending students only)
3. one insight consisting in a comment to financial news, an exercise, a critical remark on links across topics of this course.
Grading scale:
- failure: basic concepts are not understood in full or are incoherent, no proficiency in basic technical language
- range 18-21: basic concepts are sufficiently understood, the basic technical language is used with proficiency, ability to solve simple numerical exercises
- range 22-25: good understanding of basic concepts and sufficient understanding of more advanced topics, good proficiency in basic technical language and sufficient proficiency in advanced terminology, ability to solve simple exercises, sufficient ability to link different topics of this course and to comment financial news
- range 26-28: great understanding of basic concepts and good understanding of advanced topics, great proficiency in basic technical language and good proficiency in advanced terminology, ability to solve complex numerical exercises, good ability to link different topics of this course and to interpret financial news
- range 29-30 with honors: great understanding of basic and advanced topics, great proficiency in basic and advanced technical language, ability to solve complex numerical exercises, great ability to link different topics of this course and to interpret financial news.
GRADING GRID
CONCEPTS
LANGUAGE
EXERCISES
LINKING TOPICS
FINANCIAL NEWS
BASIC
ADV.
BASIC
ADV.
BASIC
ADV.
Insuff.
Insuff.
Insuff.
18-21
Suffic.
Suffic.
Y
22-25
Good
Suffic.
Good
Suffic.
Y
Suffic.
Suffic.
26-28
Great
Good
Great
Good
Y
Y
Good
Good
29-30WH
Great
Great
Great
Great
Y
Y
Great
Great
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Any changes will be announced as early as possible. Last update: 05/05/2021
Since mid-April, classes are held both in Room A_0 (Building "D", main campus) and through MS-Teams
MODE
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DAY
TIME
HOURS
TOPIC
ONLINE ONLY
1
2/3
10-12
2
1. The financial system
2
4/3
9-12
3
2. Interest rates
3
11/3
9-12
3
2. Interest rates
ONLINE until 18th April, BLENDED from 19th April
4
16/3
10-12
2
3. Market efficiency and behavioural finance
5
18/3
9-12
3
4. Money markets
6
23/3
10-12
2
5. Bond markets
7
30/3
10-12
2
6. Stock markets
8
1/4
9-12
3
7. Mortgage markets
9
8/4
9-12
3
8. The Forex
10
13/4
10-12
2
9. Financial crises
11
15/4
9-12
3
10. Central banks and monetary policy
12
20/4
10-12
2
11. Banks.
13
27/4
10-12
2
11. Banks. 12. Mutual funds.
14
29/4
9-12
3
12. Mutual funds. 13. Insurance and pensions
15
6/5
9-12
3
13. Insurance and pensions
16
18/5
10-12
2
14. The securities’ industry
15. Other intermediaries17
25/5
10-12
2
16. Derivatives.
18
27/5
9-12
3
16. Derivatives. Q&A
Seminar (dott. Piserà): SRI/ESG investing (10.30-12)
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Any changes will be announced as early as possible. Last update: 27/05/2021
Final results updated as of 31/05/2021
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TOPICS
DEADLINE (END OF DAY)
LINK
1
1, 2
14/03
GOOGLE FORMS 2
3, 4
21/03
3
5, 6
04/04
4
7, 8
11/04
5
1-8
11/04
6
9, 10
18/04
7
11, 12
02/05
8
13, 14
21/05
9
15, 16
30/05 (direct feedback)
10
1-16
30/05 (direct feedback)
Results: based on the ID for privacy concerns, please find below the summary of additional activities so far. Participants (ranked by total score), individual scores, and - the only thing that matters - the participation rate. Please be sure, in following activities, to fill correctly the first three questions: your SURNAME, your NAME, your ID. And there is no point in trying with a fictious name and then take the test with your true name, or take the test many times to improve your score: I hope you have better things to do with your time than this.
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Results File PDF
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Here you can find presentations, readings and other useful teaching materials.