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

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.

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.

BODIE, Zvi, Alex KANE and Alan J. MARCUS. Investments. New York: McGraw-Hill Education, 2021. ISBN 978-1-260-57115-8. JONES, Colin A. and TREVILLION, Edward. Real Estate Investment. Theory and Practice. Cham: Palgrave, 2022. ISBN978-3-031-00967-9. SHRIER, DAvid L. and Alex PENTLAND. Global Fintech. Financial Innovation in the Connected World. Cambridge: MIT Press, 2022. ISBN 9780262543668.

Tasks, combined examination (written and oral part)