Option Area(s):

Finance (Corporate Track)
Finance (Investment Track)

Course Description :

The course will use text readings, problems, and case analyses with two objectives. First, it will broadly indentify financial risks impacting the firm (principally foreign exchange and interest rates but touching commodities). It will review how firms assess these risks looking at integrated risk management, Value at Risk (VaR), etc. and discuss the financial tools (i.e., derivatives) available to manage that risk. There is no particular order necessary to take certain finance electives but the intent is for the first portion of the course to pull together the International Financial Management class, the Fixed Income class, and Liability Funding which is covered in this course. Second, MGMT 643 will address liability funding (bonds, commercial paper, bank lines of credit, etc.), what drives the cost of those instruments, liquidity, etc. To understand the cost of corporate debt, it will briefly touch upon the debt versus equity financing decision, the impact of credit ratings, and potential investors other investment alternatives (U.S. Treasuries, Mortgage Backed Securities, Municipal Bonds, etc.).

Prerequisites :

MGMT 61000 and MGMT 61100