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| FINA0062-1 | Financial Economics
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| Duration : | 30h Th |
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| Number of credits : |
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| Lecturer : | Roland Gillet, Georges Hübner |
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| Coordinator : | Georges Hübner |
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Language(s) of instruction :
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| English language |
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Organisation and examination :
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| Teaching in the second semester |
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Course contents :
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| This course provides an overview of the interactions between financial markets and financial institutions with an emphasis on the analysis of the recent economic and financial crisis.
The first (theoretical) part of the course studies the main aspects of financial risk and returns at rational expectations equilibrium and the sources of deviation from this equilibrium. Students' participation is solicited through group works on the analysis of research papers on this topic.
The second (applied) part begins with a review of the concept of interest rates and the different theories on the term structure of interest rates. An application in interest-rate risk management is covered with exercise sessions in the trading room.
A second part is dedicated to financial institutions and the economic analysis of financial crisis and the recent subprime meltdown. Banking and the management of financial institutions as well as their regulation is detailed with a particular focus on monetary policy and the role of Central Banks during the financial crisis.
Finally, the course prioritizes contacts with market professionals as selected guests intervene during some sessions. |
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Learning outcomes of the course :
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| The course pursues the following objectives:
1. To endow students with the basic insight regarding the formation of financial prices at equilibrium and the deviations thereof.
2. To provide students with the body of knowledge necessary to understand the interactions between financial markets participants and regulators.
3. To train students to the application of interest-rate theory to fixed-income portfolio management, and to the analysis of academic papers.
4. To confront students with real issues through the experience of high-level market practitioners.
Intended Learning Outcomes addressed by the courses :
- Gaining the knowledge and understanding of one of the following fields: supply chain management, financial engineering, performance management systems or intrapreneuriat; being able to mobilize them in order to solve concrete management problems or cases
- Ability to speak 2 foreign languages: C1 in English and B2 in one other language
- Capacity to research autonomously and methodically the information needed to solve a complex, transversal management problem, to perform a rigorous analysis of it and to suggest pertinent solutions
- Understanding and being capable of using modelization methods when seeking a solution for a concrete management problem
- Being capable of professional team work
- Professional capacity for oral communication
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Prerequisites and co-requisites/ Recommended optional programme components :
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| An introductory course in Financial Markets |
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Planned learning activities and teaching methods :
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| Exercise sessions in the trading room, featuring:
- The appropriation of a financial database platform (Bloomberg)
- The resolution of a virtual case study (Interest-rate risk management)
Evening seminars with senior finance executives, with an essay on a topic in financial economics |
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Mode of delivery (face-to-face ; distance-learning) :
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| 22 hours of ex-cathedra lectures
2 x 2 hours of exercise sessions
2 x 2 hours evening seminars with senior finance executives |
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Recommended or required readings :
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| PowerPoint presentations (available on university's website).
While building mainly on
- LeRoy, S. and J. Werner, "Principles of Financial Economics"
- Mishkin, F. "The Economics of Money, Banking and Financial Markets" (Pearson Educ., Ninth Edition)
- Allen, F. and Gate, D. : "Understanding Financial Crises" (Oxford University Press), this course also includes material not found in the book (research papers, press). |
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Assessment methods and criteria :
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| - Oral exam (50% of the final mark)
- Collective work (50% of the final mark)
Exercises on interest-rate risk management
Assignments (analysis of academic papers, essay)
Relative weighting of individual assessment : 50% |
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Training(s) :
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Organizational remarks :
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Contacts :
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| Teachers
Danielle Sougné
N1, Office
Danielle.Sougne@ulg.ac.be
04/2327305
Georges Hübner
N1, Office 111
g.hubner@ulg.ac.be
04/2327428
Assistant
Thomas Lejeune
N1, Office 111
tlejeune@ulg.ac.be
04/2327432 |
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