1.

INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT Course Objective

This course provides a comprehensive coverage of the basic concepts, theories, and decision-making rules for financial investments. Students taking this course should expect to acquire skills in valuation techniques, the pricing of fixed-income securities, equities, as well as the principles of finance, including arbitrage, market efficiency, asset pricing models and portfolio theory, primarily portfolio selection and management on the basis of risk and return. The course will also provide an introduction to the institutions and the instruments commonly used to raise money.

Pre-requisites
Core Corporate Finance course

2. INTERNATIONAL FINANCE INTRODUCTION With the growing integration of the world economy, firms increasingly operate across national boundaries and are exposed to risks, as well as opportunities, arising from currency, country, interest rates and other related factors. There is a growing need to understand these risks and opportunities, as well as the products that have emerged to manage the risks. This course is meant to provide such understanding. COURSE OBJECTIVES To make participants aware of the following: Why exchange rates behave the way they do? The nature of currency risk and the products available to manage that risk The nature of interest rate risk and the products available to manage that risk The opportunities and risks associated with raising funds abroad, and The opportunities and risks associated with investing abroad

PRE-REQUISITE(S) Prerequisites include basic conceptual knowledge of corporate valuation. 3. BUSINESS ANALYSIS & VALUATION

Course Overview Financial statements are important sources of insight for the broader field of business analysis. Business analysis, a process of evaluating a companys economic prospects and risks is useful in a broad range of decisions such as investment in equity or debt, extending credit through loans of varying maturities, valuing a business in an IPO, M&A etc. Successful companies link their activities in line with the business strategy of the firm. A proper analysis of financial statements, helps the key internal and external stakeholders to

understand the current financial health, the mid-course correction, prospects and valuation of the company. The objective of this course is to develop a framework for business analysis and valuation using financial statements and apply it to various decision contexts. 4. FUTURES, OPTIONS AND RISK MANAGEMENT Introduction Futures and Options form part of the broad class of assets that are called derivatives. Derivativesassets that derive their value from another underlying asset- are ubiquitous today. Just three decades back they were considered exotic. This changed perception itself is an indication of the important role that derivatives play in the economy today. Though we will be looking at various types of derivatives, our focus in this course will be on financial derivatives; derivatives that have financial assets as underlying assets. Even within this, we will be primarily looking at futures and options. We will focus on understanding the pricing and valuation of derivatives in general and futures and options in particular. Importantly, we will also be looking at the design and usage of these derivatives within the context of risk management. Therefore, very often we will look at these instruments from the hedgers perspective. What are the risks faced by the hedger? How can the instrument be designed to handle these risks? How should the hedger optimize his/ her hedge?: these are some of the questions that we will address. We will also look at the characteristics of the markets in which these instruments trade and the nature of the players in the market. The exploding asset class of structured products with embedded derivatives will also be studied. Learning Objectives At the end of this course you will: 1. Be familiar with the design of financial derivatives and the types of players in the markets. 2. Be comfortable with general frameworks for valuation of derivatives. 3. Be comfortable with trading strategies using derivatives. 4. Understand how to identify risk and hedge it using derivatives 5. Understand how structured products are created, managed and used 5. FIXED INCOME SECURITIES (3 Credits) Introduction This course focuses on the fixed income market with emphasis on Bond and Mortgage market. The objective of the course is to further enhance the students understanding and awareness of the fixed income securities market. Topics include pricing of FI Securities, risks associated in investing, term structure of interest rates, and bond portfolio management strategies. This course is intended to be a blend of both the theoretical and practical aspects of fixed income investment decision making.

Course Objectives Recognize the relevance and features of various Fixed Income Securities as an Investment Avenue. Recognize the various types of auctions used for selling Treasury Securities. Understand the Price volatility characteristics of Bonds Understand the concept of yield curve, the risks that are present in the yield curve and analyse the factors which influence yield curve. Apply the Interest rate theories in forecasting yield curve. Apply the concept of valuation for Option free and Bond with embedded options. Analyse Bond Portfolio Management strategies. Understand the various types of Mortgages, the cash flow and yield and the risks associated with them. Understand the concept of MBS and apply the technique of valuation. 6. MANAGEMENT OF FINANCIAL SERVICES PREAMBLE Financial services have come into prominence in the last decade and today form a significant portion of the economy under the label BFSI. As an industry it has evolved to become high profile and highly specialized where continuous innovations and sweeping changes are taking place on the global and national front. COURSE OBJECTIVE To provide an understanding of Conceptual, Strategic and Operational issues in the Management of Financial Services COURSE TAKE AWAYS what are the advanced concepts underlying Financial services how these are translated into operational parameters what are the points of finesse in tailor-making schemes for customers in the face of cut-throat competition what are the strategic and managerial issues in managing these services what are the environmental threats/blocks and constraints imposed by Governmental agencies despite which one has to perform what are visible trends in the immediate future At the end of the course, students will have an intimacy with where lies the money in Financial services, strategies that go into formulating Financial services, evaluation of services, giving advice on how best to exploit these services, strategies for window-dressing and entry/exit options. The emphasis of the entire course will be to arm participants with a managerial perspective of this extremely dynamic industry.

7. PRIVATE EQUITY AND VENTURE CAPITAL The goal of the course is to equip the students with conceptual knowledge and relevant analytical tools to make investment decisions in highly uncertain private equity markets and to structure the terms of investments within venture capital industry settings. The aim of the course is to develop an understanding of the issues like: how private equity funds are raised, structured, and financed; contracting in private equity markets; valuation of private equity interests; sources of capital for private companies and entrepreneurial ventures; strategies for value creation; and venture exit strategies. 8. COMMERCIAL BANK MANAGEMENT Introduction From being mere takers and lenders of money, Banks have emerged as one-stop shops for all financial services. They operate in rapidly changing economic and regulatory environments, where the once distinctive lines between functions of commercial banks and other financial institutions are increasingly getting blurred. While this phenomenon has led to heightened competition, innovation and dynamism, it also spells increased risks. Understanding bank management therefore, implies understanding how to manage risks that affect the banking and financial environment, especially after the 2007 financial crisis. Course Objectives The course aims at providing a basic understanding of Conceptual, Strategic and Operational issues in the Management of Banks. Starting from the policy making level the Monetary Policy the course will trace the macro and micro level issues that modern day Bank management has to contend with. These are some of the more critical issues and concepts: The Monetary Policy of the central bank and its impact on the countrys banking industry and the economy How to read and interpret bank balance sheets and off balance sheet transactions Credit and investment decisions Managing Bank Capital Managing banking risks credit risk, interest rate risk and liquidity risk At the end of this course, students would have gained familiarity with all important managerial aspects of banking operations and their risk entailments. They would be able to evaluate banks macro role in the economy as well as individual bank performance. The emphasis of the entire course will be to arm participants with a managerial perspective of this extremely dynamic industry.