Docstoc

FORMATO DE SYLLABUS

Document Sample
FORMATO DE SYLLABUS Powered By Docstoc
					                   UNIVERSIDAD DE ESPECIALIDADES ESPÍRITU SANTO
                      FACULTAD DE ESTUDIOS INTERNACIONALES
                                    SYLLABUS
                                 ENGLISH VERSION
                                        FOR DAC 11 VER 12 03 09


  SUBJECT Financial Institutions & Capital Markets                CODE : UFIN 435
  FACULTY Oscar Briones                                           CREDITS 3
  CONTACT HOURS 48                                                NON-CONTACT HOURS 96
  YEAR 2010                                                       PERIOD Fall 2010
  DAYS Mon - Thu                                                  SCHEDULE 19:30-20:50
  ROOM F-207                                                      SYLLABUS DATE October
                                                                  2010


  1. DESCRIPTION
         The purpose of this course is to introduce the student in the world of Financial
  Instruments and Markets. The course describes the changes of the financial markets in the
  previous decades, and the wide array of financial securities available today for investing,
  operations, and controlling various types of risk. Emphasis will be placed on the practical
  implications of recent innovations in financial institutions: banks, insurance companies, trust
  and mortgage loan companies, investment banks, credit unions and pension funds.

  2. JUSTIFICATION
          This course enhances students understanding of financial markets, financial
  institutions and economics, demonstrating the deep interrelations among them and the
  circular effect of money on the real, service, and financial sectors.

  3. OBJECTIVES
  a. GENERAL
  To obtain understanding of depository and non depository institutions
  b. SPECIFIC
  1. Markets for Government Debt
  2. To review the historical events, implications and effects of FI on businesses and
  individuals.
  3. Organization and Market Structure
  4. Markets for Corporate Securities
  5. Mortgage and Securitized Asset Markets

  4. COMPETENCIES
  Identify and understand the purpose of the different financial institutions in the economy.

  5. COURSE CONTENT OUTLINE

  DATE           Specific           Content         Homework/projects/assignments ASSESSMENT
               competencies                              (Non-Contact Hours)        (performance
                                                                                     indicators)
Session 1                       Chapter 1.          Studying. (pages: 1-13).      Identifies and
Thursday 4                      Introduction to
November                        Financial           13 pages                             differentiates
                                Institutions.                                            Financial
                                Financial Assets.                                        institutions in
                                Financial Markets.                                       the markets
                                Globalization of
                                Financial Markets.
                                Derivative
                                Markets.
            Identifies          Chapter 2. FinancialStudying. (pages:17-31) 15 pages.
            financial           Intermediaries and Studying (pages: 31 -52) 22 pages
            innovation on       Financial Innovation.
            Securities          Role of Financial
                                Intermediaries.
                                Overview of Asset/
                                Liability
                                Management for
                                Financial
                                Institutions.
                                Financial
                                Innovation. Asset
Session 2                       Securitization as a
Monday 8                        Financial
November                        Innovation.
                                Chapter 4.          Studying. (pages: 52-78) 27 pages.   Measures the
                                Depository          Studying (pages: 79 – 121) 43        effects of
                                Institutions:       pages.                               interest rate
                                Activities &                                             fluctuation and
                                Characteristics.                                         the effects on
                                Asset/Liability
                                Problem of
                                                                                         assets and
                                Depository                                               liabilities
                                Institution
                                Commercial
                                Banks. Savings &
                                Loans Institutions.
Session 3                       Savings Banks.
Tuesday 9                       Credit Union.
November                        Part I.
            Analyze financial Chapter 4.
            crisis on different Depository
Session 4   FI and the effects Institutions:
Wednesday   on customers        Activities &
10                              Characteristics.
November                        Part II.
                                Chapter 7.          Studying. (pages: 122-135) 14
                                Insurance           pages
                                Companies.
                                Fundamental
                                Characteristics of
                                the insurance
                                industry.
                                Life Insurance
Session 5                       Companies.
Thursday                        Property and
11                              Casualty Insurance
November                        Companies.
                                Financial Trends in
                                the International
                                Insurance
                                Companies. (pages:
                                122-135)
Session 6                       Workshop            Cases & Problems. 32 pages
Monday 15
November
             Understand how     Chapter 8.            Studying. (pages: 139-156) 18    Discuss the
             investment         Investment            pages.                           specific
             companies work     Companies.                                             differences
             in the U.S. and    Types of                                               between
                                Investment
             Ecuador,                                                                  Ecuadorian
                                Companies.
             similarities and   Structure and
                                                                                       and US
             differences        expenses of a fund.                                    investment
                                Types of funds by                                      companies
                                Investment
                                objective.
                                Economic
                                motivations for
                                funds. Regulations
                                of funds.
                                Commercial Banks
                                & Mutual Funds.
                                The concept of a
                                Family of funds.
                                Industry
Session 7                       concentration.
Tuesday 16                      Mutual Funds in
November                        Other Economies.
                                Chapter 9.            Studying. (pages: 159-169) 11    Differentiates
                                Pension Funds.        pages                            how Pension
                                Introduction to                                        plans work in
                                Pension Plans.                                         the US and
                                Types of Pension
                                                                                       compares and
                                Plans. Investment.
                                Regulation.
                                                                                       discusses the
                                Managers of                                            retirement plan
Session 8
                                Pension Funds.                                         on Ecuador
Wednesday
17                              Pension Funds in
November                        other countries.
             Evaluates          Chapter 10.           Studying. (pages: 173-192) 20
             financial assets   Properties &          Pages.
                                Pricing of            Studying (pages:193-216) 24
                                Financial Assets      pages
                                Properties of
                                Financial Assets.
                                Principals of
Session 9                       pricing of
Thursday                        Financial Assets.
18                              Price Volatility of
November                        Financial Assets.
Session 10                      Chapter 6.            Studying. (pages 217 – 242) 26
Monday 22                       Pricing Fixed-        pages.
November                        income Securities.
                              Bonds & Duration.
                              Problems.
           Identifies the     Chapter 14.               Studying. (pages: 271-284) 14    Analyzes how
           process for        Primary Markets           pages                            the process of
           issuing securities and the                                                    issuing
                              Underwriting of                                            securities takes
                              Securities.                                                place
                              The Traditional
                              Process for Issuing
                              New Securities.
                              Investment
                              Bankers.
                              Regulation of
                              Primary Markets.
                              Variations in the
                              underwriting
Session 11                    process. Private
Tuesday 23                    placement of
November                      Securities.
                              Chapter 14.
                              Primary Markets
Session 12                    and the
Wednesday                     Underwriting of
24                            Securities.
November                      Part II
                              Chapter 15.               Studying. (pages: 288-296) 9
                              Secondary                 pages
                              Markets.
                              Functions of
                              Secondary
                              Markets. Trading
                              Locations.
                              Market Structures.
                              Perfect Markets.
Session 13                    Role of Brokers
Thursday                      and Dealers in Real
25                            markets. Market
November                      Efficiency.
Session 14                        MIDTERM
Monday 29                         TEST
November
             Revises and          Chapter 16.           Studying. (pages: 300-321) 22    Compares
             differentiates the   Treasury and          Pages                            government vs.
             several              Agency Securities                                      private
             Government           Markets.                                               securities
                                  Treasury
             securities
                                  Securities. Federal
                                  Agency Security.
Session 15                        A look at Non U-S.
Tuesday 30                        Government Bond
November                          markets.
                                  Chapter 18.           Studying. (pages:338-360) 23
                                  Common Stock          pages
Session 16                        Markets in the        Studying (pages: 361 – 392) 32
Wednesday                         United States.        pages.
1 December                        Trading Locations.
                              Trading
                              Arrangements for
                              Institutional
                              Investors. Stock
                              Markets Indicators.
                              Pricing Efficiency
                              of the Stock
                              Market. Stock
                              Market Crash of
                              1987.
           Determines the     Chapter 13.            Studying. (pages 408 – 441) 34   Revises the
           price of a         Equity Valuation.      pages.                           price of
           variable income Calculate the value                                        securities and
           securities         of a firm with                                          determine a fair
                              constant growth.
                                                                                      market price
                              Calculate value of
                              a firm using
                              dividend discount
                              model. Assessment
                              of the Risk level of
                              companies using
                              Betas.
Session 17                    Additionally:
Thursday 2                    Estimating the Beta
December                      of a firm.
                              Chapter 20.            Studying. (pages:385-398) 14     Determines the
                              Markets for            pages                            fair credit rate
                              Corporate Senior                                        for securities
                              Instruments I.
                              Credit Risk & the
                              Role of Rating
                              Companies.
                              Commercial
                              Papers. Medium-
Session 18                    Term Notes.
Monday 6                      Euronotes.
December                      Bank Loans.
           Illustrate the     Chapter 22. The        Studying. (pages:423-432) 10
           differences of     Market for Bank        pages
           several securities Obligations.
           of banks           Types of Banks
                              operating in the
                              United States.
                              Large
                              denominations
                              negotiable CDs.
Session 19                    Federal Funds.
Tuesday 7                     Banker’s
December                      Acceptance.
                              Chapter 23. The        Studying. (pages:435-451) 17
                              Mortgage Market.       pages
                              What is
                              Mortgage?.
Session 20                    Mortgage
Wednesday                     origination. Types
8 December                    of mortgage
                               design. Investment
                               Risks.
             Demonstrates      Chapter 24.         Studying. (pages:454-485) 32         Analyzes the
             how to obtain     Mortgage-Backed pages                                    options FI has
             liquidity using   Securities Market                                        when they
             previously issued Development of                                           issue a liability
                               the Secondary
             securities
                               Mortgage Market.
                               Mortgage Pass-
                               Through Securities.
                               Collateralized
                               Mortgage
                               Obligations.
                               Stripped Mortgage-
                               Backed Securities.
Session 21                     Yield on
Thursday 9                     Mortgage-Backed
December                       Securities.
                                Risk Rating        Studying. (pages: 1 - 40) 40 pages
                                Institutions in
                                Ecuador.
                                Institutions and
                                securities, rating
                                process, F.I.
Session 22
                                categories and
Monday 13                       ratings, Risk
December                        Central.
             Informs the        Risk Rating        Studying. (pages: 1 – 29) 29 pages   Evaluates the
             audience the       Institutions in    Cases & Problems. 28 pages           criteria
             influence and      U.S.                                                    employed for
             scope of           Rating: Banks,                                          rating FI
             regulating         Mutual Funds,
             agencies in the    Fixed Income
             U.S.               Instruments,
                                Commercial
Session 23
                                Papers, IPO’s,
Tuesday 14                      Securitization,
December                        Stocks.
                                Chapter 25.        Studying. (pages:488-496) 9 pages
                                Asset-Backed
                                Securities Market.
                                Asset-Backed
                                Securities
Session 24                      Insurance. Cash
Wednesday                       Flow of Asset-
15                              Backed Securities.
December                        Credit Risk.
             Differentiates     Chapter 26.        Studying. (pages:499-519) 21         Exposes the
             forwards and       Financial Futures pages                                 usefulness of
             futures, purpose   Market                                                  derivatives for
Session 25   and applications   Futures Contracts.                                      controlling
Thursday                        Futures vs.
                                                                                        uncertainty
16                              Forward contract.
December                        The Role of
                            Futures in the
                            Financial Market.
                            U.S. Futures
                            Financial Markets.
                            The GAO study on
                            Financial
                            Derivatives.
                            Financial Futures
                            Markets in other
                            countries. Forward
                            rate agreements.
                            Chapter 27.           Studying. (pages:523-546) 24
                            Options Market.       pages
                            Options Contract.     Studying. (pages 590 – 616) 27
                            Differences           pages.
                            between Options &
                            Futures Contract.
                            Risk & Return
                            Characteristics of
                            Options. Economic
                            Role of the Option
                            markets.
                            U.S. Options
                            Markets. Options
                            Markets outside the
                            United States.
                            Futures Options.
                            Chapter 30.
                            Interest rate
                            swap & Interest
                            rate agreement
                            market.
                            Interpreting a
                            swap position.
                            Role of the
                            intermediary.
Session 26
                            Primary
Monday 20                   determinants of
December                    swaps spreads.
Session 27                  Final Test                                             TEST
Tuesday 21
December
Session 28                  Grade review
Wednesday
22
December
 Total                                            653 pages


 6. METHODOLOGY
 Lectures will be given using the Socratic method of questions and answers.
 Before the daily Lecture, in every class a small review session will be conducted by the
 instructor. Students must stay abreast with current evens and economic and business news
 and events that have taken place in Ecuador, Latin America, and United States for class
discussion and analysis. Student participation will be graded by the instructor. Additionally
the instructor will assign homework, workshop, projects all of which must be turned in time.
Read the material before coming to class. Projects and homeworks must be turned in on
time, (NO excuses for late assignments). Assignments MUST be done using MS EXCEL
and presentations must be done using MS POWERPOINT. NO handwritten work will be
accepted. Each group must turn in the presentations in both: digital and printed formats ON
TIME.
The University code demands the utmost respect to the Professor of the class and the
classmates as well. Any attempt to demonstrate disrespect to the Professor or the
classmates will be sanctioned with the permanent removal of the student from the class. Any
student that promotes the act of sedition will be sanctioned with the permanent removal of
the student from the class. It is up to the discretion of the Professor to determine what is
considered: Disrespect and / or sedition.
If any student due to any circumstance does not has the required background from the areas
of: Business, Accounting, Economics, Finance, Marketing, Math, and Statistics for the class,
the student must do the research of his /her own time outside the current class time. It is not
up to the Professor to fill in for the material of other courses.
Students are allowed to work with pencils, but NO complains will be accepted afterwards.
Students are expected to review class problems and end of the chapter exercises.
Attend every class; be on time, students are expected to participate in every class, and class
participation will be graded.
According to University policy: Six absences are allowed. If you are late three times it will be
counted as an absence. Students will not be admitted after the first 5 minutes of class. There
are no excused or unexcused absences.
Plagiarism will not be tolerated.
Turn Off the Cell phone in class. There will be NO allowance for coffee, cigarette or cell
phone breaks.
Class punctuality will be monitored ususing the atomic watch of the army (dial the free
number 109) please synchronize your watch.
This is a Finance course bring a calculator to classes.
On Quizzes and tests cell phones are prohibited to be used as calculators, they must
be off. Only Calculators are allowed on Quizzes and tests to perform calculations.

7.- EVALUATION

7.1 Assessment Criteria
Quiz
Project
Class Participation
Test

7.2 Performance Markers
Identifies and differentiates Financial institutions in the markets
Measures the effects of interest rate fluctuation and the effects on assets and liabilities
Discusses the specific differences between Ecuadorian and US investment companies
Differentiates how Pension plans work in the US and compare and discuss the retirement
plan on Ecuador
Analyzes how the process of issuing securities takes place
Compares government vs. private securities
Revises the price of securities and determine a fair market price
Determines the fair credit rate for securities
Analyzes the options FI has when they issue a liability
Evaluates the criteria employed for rating FI
Exposes the usefulness of derivatives for controlling uncertainty

7.3 Weighting
The bimester has two terms, on each term the student will have a written test which counts toward 50% of
the term grade, the other 50% is made out of the following activities:

              First Term                              Second Term
              Quiz                    65%             Quiz                    65%
              Project                 25%             Projects                25%
              Class Participation     10%             Class Participation     10%

Quizzes and Tests must be taken on the dates specified by the instructor; there are no
excuses for missing the tests.
Class participation will be graded daily and counts only toward that specific session. If a
student misses a session he/she will loose the chance to participate.
Oral Examinations an oral evaluation of the assigned material will be conducted by the
instructor. If a student misses the session he/she will loose the chance to take the
evaluation.
Homework and Workshops must be turned on time in full. Homework’s must be done
using Microsoft, Word, EXCEL, and PowerPoint if needed.


8. BIBLIOGRAPHY

       8.1 REQUIRED
       Fabozzi, Modigliani, Ferri, 2002, Financial Institutions and Financial Markets, Second Edition,
       Prentice – Hall.

       8.2 COMPLEMENTARY
       Ritter, Silber, Udell. 2003. Principles of Money and Banking and financial markets.
       Eleventh edition

       8.3 HANDOUTS:
       Guidelines in digital version provided by the instructor

       8.4 WEBLIOGRAPHY:
       www.pearsonhighered.com
            EBSCO DATABASE

9. FACULTY INFORMATION


   NAME:      Oscar Briones

   ACADEMIC CREDENTIALS--UNDERGRAD:
   Bachelor of Arts. Major in Economics. Minor Business Administration
   University of South Carolina

   GRADUATE:
   Master of Business Administration - University of Québec

   E – MAIL: obriones@uees.edu.ec
10.
Prepared by:   Oscar Briones       Date: October 2010.


Reviewed by: Dean Monica Reynoso   Date: October, 2010

				
DOCUMENT INFO