International financial management

Teacher(s)

Knaepen Denis;

Language

English

Main themes

This course provides a deep analysis of the risks : market, credit and exchange rate. It proposes to measure them and hedge them. The course deals with the different measures for volatility and correlations and how optimal portfolio allocation can decrease the risk via diversification.  Systemic risk and its different measurement will also be considered. The course relies on quantitative approaches.

Learning outcomes

At the end of this learning unit, the student is able to :
1	Having regard to the LO of the programme, this activity contributes to the development and acquisition of the following LO Have a good understanding of the major concepts and topics of international finance Be able to examine factors encountered by finance managers of multinational corporations in making financing and investment decisions with a global perspective On successful completion of this program, each student will acquire the following skills : Corporate citizenship Communication and Interpersonal skills Critical thinking skills Teamwork and leadership

Content

• Credit risk
• Interest rate risk
• Currency risk
• Spot foreign exchange markets and forward contracts
• Future contracts and currency options
• Interest rate and currency swaps
• Measuring and managing FX exposures

Teaching methods

Lectures, Case Studies, Presentations

Evaluation methods

Other information

LECTURE SCHEME (INDICATIVE)
Introduction to International Financial Management
Understanding the international environment: Country risks, Banking risk, Economical and geopolitical risks
The time value of Money – Interest rates – Bonds – Yield to Maturity - Inflation
Interest Rate Exposure Management
Foreign Exchange Exposure Management
International Trade Finance: short term and long term type transactions (financing, structuring)
International Cash Management: payments, cash pooling
International Financial Markets
- Equity Capital Markets
- Debt Capital Markets
-Bank financing
International Tax considerations and how they impact International Financial Management

Bibliography

D. D. Wu Quantitative Financial Risk Management Springer
Slides posted in Moodle

Faculty or entity

CLSM