Advanced Financial Markets - MAN00147M

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Module summary

The module will cover the fundamentals of financial markets and istitutions, including theoretical analysis and modeling for key financial instruments such as bonds, exchange rates, options, swaps, MBSs, and CDOs.

Module will run

Occurrence	Teaching period
A	Semester 2 2025-26

Module aims

This module will:

• Equip students with the knowledge and understanding of the fundamentals of the financial markets and institutions

• Introduce students to the interplay between financial markets, financial institutions, managers and agents, and financial instruments.

• Build students’ understanding of the main theories and models for valuing financial market instruments, measuring risk and return and analysing the characteristics and structure of financial institutions and markets,

• Discuss ongoing and controversial issues related to the financial market.

Module learning outcomes

After successful completion of the module, students will be able to:

Subject content

• Demonstrate an understanding of the basic tools used in financial markets

• Critically evaluate the role of financial markets, instruments and institutions

• Evaluate the professional, theoretical and applied techniques required for international financial management

• Understand current issues significant for the operation of financial markets and the financial system

Academic and graduate skills

• Advanced subject-specific knowledge and understanding

• Cognitive (thinking) skills: through self-study and assessments

• Interpret empirical evidence

• Analytical skills required to undertake finance calculations

• Solve numerical problems in finance

• Communicate complex ideas effectively, both verbally and in writing via written assignments

Module content

Indicative content:

Introduction to the module and different market settings and participants (P, chapters 1, 2, 3,)

Monetary Policy and Interest Rate Determination (P, chapter 4)

Domestic and International Money Markets (P Chapter 5)

The Domestic and International Bond Market (P. Chapter 6)

The Foreign Exchange Market (P, Chapter 11)

Theories of Exchange Rate Determination (P, chapter 12)

Financial Futures, Options and Swaps (P, chapters 13, 14, 15, 16)

Financial Innovation and the Credit Crunch (P chapter 17)

Regulation of the Financial Sector. (P chapter 18)

Indicative assessment

Task	% of module mark
Closed/in-person Exam (Centrally scheduled)	60.0
Essay/coursework	40.0

Special assessment rules

None

Indicative reassessment

Task	% of module mark
Closed/in-person Exam (Centrally scheduled)	60.0
Essay/coursework	40.0

Module feedback

Feedback will be given in accordance with the University Policy on feedback in the Guide to Assessment as well as in line with the School policy.

Indicative reading

Note: Given the broad scope of this module there is no one core book. Instead, chapters from several books such as the following will be used. Pilbeam, K. (2018) Finance and Financial Markets., (4th ed.) Bloomsbury, London. Bodie Z., Kane A. & A.J. Markus (2023) Investments, (Int. Student Ed.) McGraw Hill Mishkin, Frederic S., (2022) Economics of Money, Banking and Financial Markets, (Global Ed.) Pearson. UK. Other useful Texts include: Copeland, T. E., Weston, J. F., & K. Shastri Financial Theory and Corporate Policy. (4th ed.) Pearson Addison Wesley. Fabozzi, F.J., Jones, F.J., Fabozzi, F.A. and S.V. Mann (2019) Foundations of global financial markets and institutions. (5th ed.) MIT Press. Hull, J. C. (2021) Options futures and other derivatives. (Global ed.) Pearson Education. Bradford D.J., Ross S.A., Westerfield, R.W., & J. Jaffe (2021) Corporate Finance. (Int. Student Ed.) McGraw-Hill Education.