154-0566/02 – Trends and Innovations in Financial Markets (TIFM)

Gurantor departmentDepartment of FinanceCredits4
Subject guarantorIng. Martina Novotná, Ph.D.Subject version guarantorIng. Martina Novotná, Ph.D.
Study levelundergraduate or graduateRequirementChoice-compulsory type B
Year1Semestersummer
Study languageEnglish
Year of introduction2019/2020Year of cancellation
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
NOV33 Ing. Martina Novotná, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Examination 2+0

Subject aims expressed by acquired skills and competences

The course is focused on selected topics of financial markets with the emphasis on current trends, innovative financial instruments and alternative investments. The course covers main aspects of asset securitization which provides an important source of financing for a variety business. In this course, students will be provided with an overview of securitized products and alternative investments, recognize the main risks and understand the impact of regulatory changes on the market. At the end of the course, students will be able to: - Evaluate the importance and types of financial innovations, - understand the concept and process of asset securitization, - characterise the main types of securitised products, - discuss the role of rating agencies in the financial markets, - distinguish between the principal classes of alternative investments, - access the importance of adding an alternative investment to a portfolio, - characterise current trends in the financial markets. The prior knowledge of basic concepts and tools of financial markets is essential in this course.

Teaching methods

Lectures

Summary

The aim of the course is to provide an overview of current trends in financial markets. The main focus is on asset securitization and the creation of securitized products, the role of credit rating agencies in capital markets and the essence of alternative investment.

Compulsory literature:

CHAMBERS, Donald R, Mark Jonathan Paul ANSON, Keith H BLACK a Hossein KAZEMI. Alternative investments: CAIA level I. 3rd ed. Hoboken: Wiley, 2015. ISBN 978-1-119-00336-6. FABOZZI, Frank J. Bond markets, analysis, and strategies. 8th ed., global ed. Pearson, c2013. ISBN 978-0-273-76613-1. HU, Joseph. Asset securitization: theory and practice. Singapore: John Wiley & Sons (Asia), 2011. ISBN 978-0-470-82603-4.

Recommended literature:

BAIG, Suleman a Moorad CHOUDHRY. The mechanics of securitization: a practical guide to structuring and closing asset-backed security transactions. Hoboken: John Wiley & Sons, Inc., 2013. ISBN 978-0-470-60972-9. HU, Joseph. Asset securitization: theory and practice. Singapore: John Wiley & Sons (Asia) Pte. Ltd., 2011. ISBN 978-0-470-82603-4. CHAMBERS, Donald R, Mark Jonathan Paul ANSON, Keith H BLACK a Hossein KAZEMI. Alternative investments: CAIA level I. Third edition. Hoboken: Wiley, 2015. ISBN 978-1-119-00336-6.

Way of continuous check of knowledge in the course of semester

Tasks, combined examination (written and oral part)

E-learning

Další požadavky na studenta

There are no other requirements on studnet.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. Financial innovations - the principle of financial engineering, new financial products 2. Principles of asset securitization - basic concept of securitization, basic terminology 3. Securitization process - process of creation of securitized products, types of underlying assets 4. Market participants in securitized products - originator, servicer, SPE, investors, brokers, state agencies 5. Residential mortgages - the characteristics of mortgage loans, mortgage market, standards of state agencies, types of mortgage loans according to credit quality 6. Securitization of residential mortgage loans (MBS) - prime and subprime mortgages, agency MBS, pass-through securitized products, prepayment risk 7. Tranching, collateralized mortgage obligations (CMO) - cash flow tranching and redistribution, CMO structure 8. Asset-Backed Securitized Products (ABS) - underlying assets of ABS products, credit risk, payment waterfall 9. Importance of securitization and current trends - causes of financial crisis, current trends in securitization 10. The role of rating agencies in capital markets - the essence and process of rating evaluation, characteristics of rating agencies 11. Regulation and current trends in rating industry - current trends in the regulation of rating agencies and the development of the rating market 12. Fundamentals of alternative investment - the definition of alternative investments and the importance of alternative investment 13. Characteristics and types of alternative investments - real assets, hedge funds, private equity 14. Investing in real assets - benefits, risk and ways of investing in natural resources, commodities, real estate and land

Conditions for subject completion

Full-time form (validity from: 2019/2020 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Examination Examination 100  51
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2020/2021 (N0488A050004) Finance and Accounting (S01) Finance P Czech Ostrava 1 Choice-compulsory type B study plan
2020/2021 (N0412A050005) Finance P English Ostrava 1 Choice-compulsory type B study plan
2019/2020 (N0488A050004) Finance and Accounting (S01) Finance P Czech Ostrava 1 Choice-compulsory type B study plan
2019/2020 (N0412A050005) Finance P English Ostrava 1 Choice-compulsory type B study plan

Occurrence in special blocks

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