Finance Research Seminar by qfc86623


									Courses > Doctoral Seminar in Finance > Syllabus

Summary: Syllabus of individual sessions

Session 1: Finance as I see it
Subject: Introduction to finance and its developments
Prior to attending this class, make sure that you have read and well understood basic
corporate finance texts. I find the intellectual convolutions and details of modern finance
fascinating. I spend a substantial amount of my time thinking about them. In this session, I
would like to share these thoughts with you. But you are likely to find the intellectual
convolutions and details less fascinating, and I do not have enough time to spend much on
them. I do, however, strongly recommend doing all the Farsi recommended readings before
coming to class. It provides a context that will make it much, much easier to recall and make
sense of the tools and techniques that are to be taught in the remaining sessions of this
Session 2: Crashes and Bubbles

Stock markets are volatile, and volatility is normally a healthy and self-corrective mechanism. They
reflect the collective fears and hopes of traders and investors as they attempt to discount all the
known factors affecting the traded instrument. But just occasionally- and that may even happen in
Iran- excessive liquidity, coupled with visions of a new era, leads to a massive, largely uncorrected
rise in valuations that discounts not just the present and the near future but the hereafter as well.
Such a rise is usually named bubbles. Asset bubbles bring in a very considerable economic cost
and it should be the goal of this session to introduce their causes and effects better if these costs
are to be contained to a manageable level.

For Bubbles and market crashes refer to


         FAMOUS FIRST BUBBLES? Webpage by Dave Smant (Erasmus University Rotterdam).
          Exposition of the fundamental explanations for a number of famous so-called bubbles
          (Tulipmania, South Sea Company, Mississippi Company, Stock market crash 1929).
          Largely follows Garber's (2000) excellent book.

         Financial Scandals. Webpage by Roy Davies (University of Exeter) providing a guide
          with links to information sources on episodes such as BCCI, Barings, etc.

         Extraordinary Popular Delusions and the Madness of Crowds By Charles
          Mackay. Electronic (html) version of this popular but rather moralistic book.

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Session 3: Crashes and Bubbles in Iranian Capital Market
Session 4: Market Making: a theoretical point of view
Session 5: Market Making: the Iranian experience
Session 6: An Overview of the Computational Finance
Session 7: Recent Developments in Behavioral Finance
Session 8: Agency Theory: An Introduction
Session 9: Agency Theory and MBO: Some Empirical Evidences
Management buy-out in Iran will also be discussed at this session
Session 10: Methodology of Finance
Session 11: The Optimal Allocation of Control Rights
Session 12: Principles of Housing Finance
Session 13: Housing Finance: Secondary Mortgage Markets

Session 14: Securitization

Globally, since its beginnings in the 1970s, securitization has evolved to a total aggregate
outstanding (as of the second quarter of 2003) estimated to be $10 trillion. Securitization is
a financial technique that pools assets together and, in effect, turns them into a tradable
security. This technique is classified under the umbrella of structured finance.

Securitization also has the benefit of removing a particular group of assets from a
company's balance sheet. This is particularly important when the assets are in the form of
debts owed to that company and the company is a bank. Securitization thus allows a bank
to, essentially, sell on its debt exposure, and use the money for more profitable purposes.

A major technique in this area is to engineer asset-backed securities (ABS). They are
bonds backed by a pool of financial assets that can not easily be traded in their existing
form. By pooling together a large portfolio of these liquid assets they can be converted into
instruments that may be offered and sold more freely in the capital markets.

In a basic securitization structure, the originator creates a pool of financial assets, such as
mortgage loans, and then sells these assets to a specially created investment vehicle that
issues bonds backed by those financial assets. These are asset-backed securities (MBS).

While residential mortgages were the first financial assets to be securitized, non-mortgage
related securitizations have grown to include many other types of financial assets, such as
credit card payments, trade receivables, leases, auto loans and student loans.

You may use following links to get familiar with more details on the


                                                  'ABSNet.Net
                                                  Securitization.Net
                                                  Collateralized bond obligation
                                                  Collateralized debt obligation
                                                  Mortgage-backed security
                                                  Pooled investment
                                                  Privatization
                                                  Structured finance
                                                  Privatization
                                                  Derivatives market
                                                  Mortgage
                                                  Pemex
                                                Federal National Mortgage Association
                                                Government sponsored enterprise
                                                Federal National Mortgage Association
                                                Securitisation
                                                Collateralized mortgage obligation
                                                Federal Home Loan Mortgage Corporation
                                                Pooling
                                                Mortgage-backed security
                                                Financial system in Australia
                                                The Link REIT
                                                Structured finance
                                                Securitizes
                                                Collateralized debt obligation
                                                Global debt levels
                                                Securitized
                                                Debt levels and flows
                                                Asset-backed security
                                                Government sponsored enterprise
                                                Danish mortgage market
                                                User:Mat334/CMBS
                                                Wikipedia:Orphaned Articles/S
                                                User:Khushwantjhaj
                                                Wikipedia:Articles for deletion/Log/2005 September
                                                Wikipedia:Articles for deletion/Securitized bond
                                                Securitize
                                                Bowie Bonds

Session 15: An Analysis of the New Iranian Capital Market Law

This is the link to NEW Iranian Capital Market Law'6428

Session 16: Overview of Previous Sessions

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