Financial Markets 2400-M1FiRRF
1-2. Major elements of financial markets functioning and analysis. Mathematical, statistical and computational methods-their role in investment finance. A review of major legal, accounting and organizational issues related to financial institutions.
3-7.Exchange and OTC markets. Analysis of financial markets for major classes of instruments: market participants, microstructure, major sources of supply and demand, their impact on volume dynamics. Stock markets. Fixed income markets. Forex. Major commodity markets. Derivative markets. Structure of derivative contracts. Margin deposits. Leverage and its influence on market dynamics.
8-9.Prices of financial instruments and their dynamics. Practical aspects of basic financial models. Investment return measures and their analysis and construction in practice. Measuring investment risk-real-life issues.
10-12.Institutional investors. Investment funds. Regulated and alternative funds. Sovereign funds. Fund fee, legal and organizational structures. Active and passive investment strategies. Major classes of active investment strategies, risk and returns of hedge funds.
13-15. Financial markets 2007-2018: major developments, mechanisms and transaction structures. Credit and mortgage derivatives. Operations, decisions and intervention mechanisms of major central banks.
Type of course
Upon the completion of the course the student:
-is familiar with microstructure, participants and major supply and demand operations in main classes of financial markets,
-is familiar with the major mechanisms behind financial market crises
-is familiar at an advanced level with the major classes of active investment strategies and the functioning of institutional investors in the financial markets
-is familiar with the details of crisis intervention mechanisms of major central banks
-is able to analyze at advanced practical level the return and risk of investment strategies
-is able to analyze interconnections between participants in financial markets
-understands the role of data in analyzing financial markets
-understands the role of computational details in the analysis and interpretation of financial market and investment data
KU05, KU06, KK01, KK03, KU04, KU03. KU02, KU01, KW03, KW02, KW01
Written test exam
Grabowski W. Financial markets-lecture notes.
International Monetary Fund, Global Financial Stability Report (selected issues, fragments and data).
ECB, Euro area accounts (selected data).
Federal Reserve, Financial Accounts of the United States (selected data).
Grabowski W., 2015. Wealth and leverage in the euro area and the United States. Are the recent crisis developments in both areas different? w: Strategie gospodarcze i społeczne Unii Europejskiej. WNE-NBP Conference 2015.
Information on level of this course, year of study and semester when the course unit is delivered, types and amount of class hours - can be found in course structure diagrams of apropriate study programmes. This course is related to the following study programmes:
- Finance, Investments and Accounting, part-time, second cycle
- Finance, Investments and Accounting, full time, second cycle
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: