The Center will translate the industry needs and developments into curricular and extra-curricular programs, focusing on the needs of financial services institutions throughout the Midwest. The foremost focus will be on educating a diverse pool of financial services professionals in ways that fulfill the industry talent needs. Through its lecture series and other sponsored forums, the Center will regularly expose students to practitioners and the contemporary issues facing the industry.
Beginning in fall 2007, graduate concentrations in Banking and Investment Management will be available for the benefit of professionals seeking mid- to upper-level managerial positions within the financial services industry.
The required courses in the Banking concentration are designed to study money, capital markets, and banking as a means to understanding how financial markets determine interest rates and why different assets earn different rates of returns. The economic functions of financial services firms, the role and function of central banks in the economy and how the actions of central banks interacting with asset markets affect the macro economy will be studied. The present structure of banking will be studied with particular emphasis on the relationship between commercial banking practices and economic stabilization goals. Issues in bank asset management, liability management and capital adequacy will be presented. Finally, new dimensions in banking will be considered.
Required courses (2)
- Money, Capital Markets, and Banking (FIN 513): This course is designed to study money, capital markets, and banking as a means to understanding how financial markets determine interest rates and why different assets earn different rates of returns; the economic functions of financial services firms (especially commercial banks); the role commercial banks play in financial markets and how their operations affect the functioning of our economic system; the role of regulation of financial services firms (including thrifts and commercial banks in influencing their behavior; and the role and function of central banks in the economy and how central banks actions interact with asset markets to affects the macro economy.
- Commercial Banking (FIN 512): The purpose of the course is to analyze the role of commercial banks in the financial system. The present structure of banking will be studied with particular emphasis on the relationship between commercial banking practices and economic stabilization goals. Issues in bank asset management, liability management and capital adequacy will be presented. Finally, new dimensions in banking will be considered.
Select one course from the following list:
- Credit Risk Management (Special Topics FIN 798): New tools, technology and markets have greatly transformed the management of credit risk over the past ten years. Banks, insurance companies, hedge funds and corporations are all adopting more sophisticated credit risk management strategies and making use of a wider array of models and market tools as appropriate for their specific enterprises. This course is designed to provide the fundamental concepts of credit risk management, from the practitioner's perspective, including: 1) what is credit risk and what models are available to measure and manage it; 2) the tools in use today to manage credit risk from a practitioner's perspective, e.g., loan and bond markets, credit derivative market, management of customer risk (e.g. accounts receivable and extensions of credit), securitization market; and 3) applications and issues in managing credit risk as illustrated by two cases and articles from current news publications.
- Applied risk management (FIN 562): This course is designed as an introduction to derivative instruments; their characteristics, their pricing, the market's infrastructure, trading mechanics, and applications. The course introduces the binomial pricing model, the Black & Scholes continuous time pricing model, the associated properties i.e. "the Greeks" and forward pricing. The course examines the characteristics and market infrastructure for each of the four derivative instruments: forward, futures, options, and swaps. Then trading strategies and hedging applications for each of these instruments are discussed. The course concludes with an introduction to Value at Risk.
- International Finance (FIN 557): International Finance integrates the financial activities, financial institutions, and multinationals of the global finance arena. In addition to extending the tools of financial analysis to an international setting, the course studies the strategies available to a multinational because of operations in a multiple of countries. Topics include foreign currency and political risk, capital budgeting in a multinational setting, and cash flow management between countries.
- Investment Banking (Special Topics FIN 798): This course is designed to provide the students with a broad overview of investment banking and the structure of the industry. The focus will be on the major activities of investment banks:
- raising capital for clients,
- brokerage functions and market making activities,
- trading and investing for the bank’s own account,
- management of third party assets, and
- advice regarding the execution of mergers and acquisitions.
- Students who successfully complete the course will develop the skills necessary for an entry-level analyst position with an investment bank. Spreadsheet skills, valuation, company, deal and market analysis will be emphasized. The course will also emphasize the development of presentation and writing skills.
- Alternative Investments (Special Topics FIN 798): The class will study a variety of alternatives to traditional investment assets, including hedge funds, private equity (including venture capital, merger arbitrage, and leveraged buy-outs), managed futures, real estate, and commodities. The curriculum will include an overview of each asset group, including the investment characteristics and sources of return. The course will cover much of the curriculum for the Level 1 Chartered Alternative Asset Analyst exam. The class is not a “prep” class but students interested in taking the exam will have a head start in preparing for this exam.
Investment Management Concentration
The required courses in the Investment Management concentration are designed to provide an overview of the investment environment for the institutional money manager, including the market mechanism, market equilibrium and the relationship between risk and return and the valuation of various investment instruments.
Students will study contemporary theories and techniques of security selection and management available to the institution portfolio manager. Students will develop financial analysis skills from the view of an outsider using a corporation’s publicly available financial statements.
Required courses (3)
- Investment Analysis (FIN 523): This course provides an overview of the investment environment for the institutional money manager. The market mechanism, market equilibrium, the relationship between risk and return and the valuation of various investment instruments are investigated.
- Financial Statement/Security Analysis (FIN 524): This course develops financial analysis skills from the view of an outsider using a corporation’s publicly available financial statements. Techniques such as common sizing, ratio analysis, decomposition and the use of a comprehensive DuPont Model are used as a basis to teach analytical thought processes necessary to make projections for a company based on its financial statements. The use of spreadsheets as an analytical tool will be strongly emphasized.
- Portfolio Management (FIN 525): This course analyzes contemporary theories and techniques of security selection and management available to the institution portfolio manager. Significant literature which emphasizes the role of the modern portfolio manager in achieving diversification and client investment goals is reviewed and evaluated.