Code
MGFE FIN 6205
Level
M2
Field
Finance
Language
Anglais/English
ECTS Credits
2
Class hours
20
Total student load
40
Program Manager(s)
Department
- Data analytics, Économie et Finances
Educational team
Introduction to the module
The aim of this course is to familiarize you with the tools and instruments of structured finance and credit derivatives as well as the business contexts in which they are frequently used.
Learning objectives/Intended learning outcomes
- 2 - Produce and mobilise highly specialised knowledge, derived from critical thinking, in a field of expertise
- 2.1 - Develop a critical awareness of highly specialised knowledge, some of which is at the forefront of knowledge, with a view to formulating innovative contributions to complex issues, in line with the strategic plan of organisations and with scientific
- 2.2 - Drive creativity by mobilising ideation techniques and promoting interdisciplinarity and collaborative work to provide innovative solutions to complex issues in multicultural and international contexts.
- 2.3 - Conduct a reflective and detached analysis that takes into account the challenges, issues and complexity of a request or situation in order to propose appropriate and/or innovative solutions in line with regulatory developments.
Rubrics
At the end of this course, students are expected to
* characterize structured finance transactions and explain its role in financing both financial and non-financial corporations
* define credit risk and describe the approaches to estimate credit risk
* characterize the main features of credit derivatives, their cash flows and explain the principles of credit derivative pricing
* describe the securitization process and assess the cash flow structure of securitized assets
* Discuss the role of structured finance/credit derivatives in the 2008 financial crisis
Content : structure and schedule
• Course Introduction
• Time Value of Money, Bonds, Options
• Structured Finance & Credit Risk
• IRS, FRN and Asset Swaps
• Credit Default Swaps (CDS)
• Securitization & Collateralized Debt Obligations (CDO)
Sustainable Development Goals
This Structured Finance course incorporates a critical discussion of the 2008 financial crisis to highlight the systemic social responsibilities of financial institutions.
By examining governance failures, risk-taking incentives, and the broader social consequences of financial instability, the course fosters students’ awareness of the role of finance in supporting sustainable, inclusive, and responsible economic development.
The course contributes in particular to SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure), and SDG 16 (Peace, Justice and Strong Institutions).
Number of SDG's addressed among the 17
3
Learning delivery
Mixte
Pedagogical methods
The course rests on lectures and in-class exercises to introduce fundamental notions and to allow the students to put the concepts to work (Case studies).
Evaluation and grading system and catch up exams
FinalienableExam（50%）+ Assignments (40%) + Attendance (10%)
(CF2) : Onsite resit exam (2h) in case of failing.
The attendance is mandatory for this class. 20% of the grade will be taken in case of non justified absence.
Module Policies
Professor-Student Communication
● The professor will contact the students through their school email address (IMT-BS/TSP) and the Moodle portal. No communication via personal email addresses will take place. It is the student responsibility to regularly check their IMT-BS/TSP mailbox.
● Students can communicate with the professor by emailing him/her to his institutional address. If necessary, it is possible to meet the professor in his office during office-hours or by appointment.
Students with accommodation needs
If a student has a disability that will prevent from completing the described work or require any kind of accommodation, he may inform the program director (with supporting documents) as soon as possible. Also, students are encouraged to discuss it with the professor.
Class behavior
● Out of courtesy for the professor and classmates, all mobile phones, electronic games or other devices that generate sound should be turned off during class.
● Students should avoid disruptive and disrespectful behavior such as: arriving late, leaving early, careless behavior (e.g. sleeping, reading a non-course material, using vulgar language, over-speaking, eating, drinking, etc.). A warning may be given on the first infraction of these rules. Repeated violators will be penalized and may face expulsion from the class and/or other disciplinary proceedings.
● The tolerated delay is 5 minutes. Attendance will be declared on Moodle during these 5 minutes via a QR code provided by the teacher at each course start.
● Student should arrive on time for exams and other assessments. No one will be allowed to enter the classroom once the first person has finished the exam and left the room. There is absolutely no exception to this rule. No student can continue to take an exam once the time is up. No student may leave the room during an examination unless he / she has finished and handed over all the documents.
● In the case of remote learning, the student must keep his camera on unless instructed otherwise by the professor.
Honor code
IMT-BS is committed to a policy of honesty in the academic community. Conduct that compromises this policy may result in academic and / or disciplinary sanctions. Students must refrain from cheating, lying, plagiarizing and stealing. This includes completing your own original work and giving credit to any other person whose ideas and printed materials (including those from the Internet) are paraphrased or quoted directly. Any student who violates or helps another student violate academic behavior standards will be penalized according to IMT-BS rules.
Textbook Required and Suggested Readings
_Corporate Finance by Jonathan Berk and Peter DeMarzo, Pearson
_Options, Futures and Other Derivatives by John C Hull, Pearson
_Introduction to Structured Finance by Frank J Fabozzi, Henry A Davis and Moorad Choudhry, Wiley Finance
_Understanding Credit Derivatives and Related Instruments by Antulio N Bomfim, Academic Press
Prerequisites
Basic notions of stock and bond markets and pricing as well as options and derivatives