Financial Markets, Institutions, and Instruments

Course Number 1433

Assistant Professor Daniel Bergstresser
Winter, 20 Sessions
Paper
Enrollment: Limited to 68

Career Focus

FMI is primarily intended for students who plan to serve in corporate roles (Treasurer, CFO, CEO) that will involve significant interaction with financial markets and institutions. The course is also suitable for students who plan to pursue careers working inside of financial institutions, for example students who anticipate working as investment bankers or investment managers.

Educational Objectives

The course will develop and apply a coherent framework for guiding decisions along dimensions including raising capital and risk management. Using the lens of these decisions, students will develop an understanding of the various types of financial markets, institutions, and instruments that exist. Cases will allow students to explore how a CFO can create value when these financial institutions and markets function smoothly and also when they break down. Overall, students will develop an understanding of how to use the different financial tools at their disposal to support the operation of the firm.

Background and Training

The course will build directly on the tools developed in RC Finance 1 and RC Finance 2. In particular, students should be enthusiastic about deepening and applying the tools developed in Finance 2 for pricing fixed income securities and derivative instruments.

Course Organization

The course will be organized around financial decisions that the CFO has to make. The first part of the course will focus on raising capital, with cases on short-term and long-term capital markets, specifically credit markets. These cases will also explore issuing equity and hybrid securities, and explore topics in corporate financial engineering.

The final part of the course will be integrative, and will add a focus on the role of the CFO in today's rapidly changing environment.