Master in International Finance

Contenido del curso Master in International Finance

TEMARIO

The greatest part of the program is taught in the IEB’s headquarters in Madrid, a city considered, in specialist environments, to be one of the most important financial centers in the world (after New York, London, Paris, Frankfurt and Tokyo). In addition, the Spanish capital, as well as possessing its own enormous intrinsic strength and vitality, has the advantage of being Europe’s door to the Iberoamerican world, many of whose emerging economies will play an important role in International Markets.

Students in the Master in International Finance follow some of their study plan in two of the most prestigious business schools in the world of finance: the London School of Economics in Great Britain and Wharton School in Pennsylvania (USA).

The students’ stay and study periods in these two world references in economic training and research not only provide quality teaching and content but also permit an insight into cities – London, New York and Pennsylvania – in those two countries which are the indisputable references of international financial leadership.

All the teaching is in English, as is communication between the teachers and pupils and any documentation, given that it is the usual language in the financial world.


Quantitative Methods Applied to Finance
1. Foundations of Financial Maths
1.1. Financial Operations. Profitability.
1.2. Capitalization and Discount Laws
1.3. Interest Rates
1.4. Capital Budgeting
1.5. Financial streams
1.6. Applications to the Financial markets.

2..Econometric Foundations Applied to Finance
2.1. Descriptive analysis of financial information
2.2. Univariate analysis
2.3. Two-variate analysis
2.4. Portfolio Correlations
2.5. Probability and random variables
2.6. Single variable probability models
2.7. Multivariate Models
2.8. Estimation
2.9. Hypothesis Testing

3. Econometrics Applied to Finance
3.1. Linear Regression Analysis
3.2. Stochastic Processes
3.3. The parametric VaR
3.4. Monte Carlo Simulations

Case Study: Analysis of the influence of macroeconomic factors on relevant financial variables through the application of linear econometric models.

ECONOMICS I
1. International Capital Markets
1.1. Structure of the International Capital Markets
1.2. Growth of the International Capital Markets
2. Regulating International Banking and Capital Markets
3. Exchange Rates
3.1. Exchange Rates and International Transactions
3.2. The Foreign Exchange Markets
3.3. Money Supply and Exchange Rates in the Short term
3.4. Money, Price Level and Exchange Rate in the Short term
3.5. Price Level and Exchange Rate in the Long term
3.6. International Interest Rate Differentials and the Real Exchange Rate
4. The Balance of Payments Accounts
5. The Standard Trade Model
5.1. Economies of Scale and Market Structure
5.2. External Economies and International Trade
6. International Trade Policy
6.1. Instruments of Trade Policy
6.2. Trade Policy in Developing Countries
7. Theories of Fluctuations
8. Economic Situation
8.1. Basic Indexes
9. Informational Asymmetries
9.1. Adverse Selection
9.2. Moral Hazard
9.3. Signaling and Screening
Case Study: Analysis of the impact of the establishment of barriers on international trade

ECONOMICS II
1. The US Economy and its global impact
2. The European Economy
3. Eastern Europe
4. The Asian Countries
5. Latin America and Africa
6. Historical Facts
6.1. Major international crisis
6.2. Rescue Plans

FINANCE I
1. Fixed Income Products
1.1. Public Debt
1.2. Private Fixed Income
1.3. Credit Risk
1.4. Ratings
2. Equities
2.1. Characteristics of equity shares
2.2. Structure of the Stock Exchange Markets
2.3. Dealing and Stock Exchange operations
2.4. Stock Exchange transactions
2.5. Stock Market Indexes
2.6. Introduction of Fundamental Analysis
Case Study: Cost analysis of trading in the International Stock Markets.

FINANCE II
1. Derivative Products
1.1. Description of the Derivative Products Markets
1.2. Foundations of Derivatives
1.3. Valuation of Plain Vanilla, Interest Rate, and Exotic Options
1.4. Structured Products description
1.5. Construction of Structured Products
2. The Foreign Currency Market
2.1. Main Currencies
2.2. Characteristics of the Foreign Currency markets
2.3. Prices formation
2.4. Operating in the FX Market
2.5. Strategies in the FX Market
3. Commodities Markets
3.1. Foundations of the Commodities Markets
3.2. The Commodities Futures Market
3.3. The Commodities Options Markets
3.4. Agricultural Commodities Markets
3.5. Metals Markets
3.6. Energy Markets
3.7. Other commodities Markets
3.8. Investment Alternatives in Commodities
4. Money Markets and short term interest rate derivatives
4.1. Conventions and basic concepts
4.2. Management Strategies
4.3. Money Markets Derivative Products
5. Swaps
5.1. Interest Rate Swaps
5.2. Valuation of Swaps
5.3. IRS management strategies
5.4. Immunization of a bond portfolio / IRS
5.5. Cross Currency Swaps
6. Long term interest rate derivatives
6.1. Notional Bond Futures
6.2. Bond Portfolio Hedging Strategies using the Notional Futures
6.3. Long term interest rate Options
6.4. OTC Options
6.5. Swaption´s
7. Interest rate management strategies
7.1. Main Management strategies
8. Foundations of Technical Analysis
8.1. Technical Indicators
8.2. Oscillators
8.3. Volatility Indicators
8.4. Automatic trading systems
8.5. Market profile
8.6. Introduction to intraday trading
8.7. Sentiment Indicators and trading psychology
Case Study: Application of Portfolio Hedging Strategies using Derivatives.

FINANCE III
1. Portfolio Management
1.1. Equity Portfolio Management
1.2. Derivative Products and Portfolio Management
1.3. Fixed Income Portfolio Management
1.4. Foreign Currency Portfolio Management
1.5. Institutional Portfolio Management
2. Performance Attribution and Portfolio Risk measures
2.1. The effects of performance Attribution
2.2. Linking performance attribution
2.3. Performance attribution models
2.4. Equity attribution
2.5. Fixed income attribution
2.6. Attribution in derivatives
2.7. Interpretation of an Attribution Report
2.8. Global Portfolio summary
2.9. Risk Attribution
3. Alternative Management
3.1. Legal and Tax situation of Alternative Investment Management
3.2. Hedge Fund Structure
3.3. Income and Cost Structure of Hedge Funds
3.4. Quantitative Tools for the selection and management of Hedge Funds and “FOHF”
3.5. Hedge Funds Strategies
3.6. Fund of Hedge Funds Management
3.7. The “Due Diligence” process and Hedge Funds selection
3.8. Hedge Funds Indexes
4. Investment Funds
4.1. Types of funds and investment companies
4.2. Investment Fund Analysis and Selection
4.3. Fund Selection Indicators
4.4. The investment Fund Selection Process
5. Risk Management
5.1. Introduction
5.2. Market Risk
5.3. Credit Risk
5.4. Liquidity Risk
5.5. Operational Risk
6. Wealth Management
6.1. Real Estate
6.2. Behavioural Finances
6.3. Relationship Management
6.4. Wealth Planning
Case Study: The allocation, security selection, currency and interaction effects on a Global Mixed Portfolio

CORPORATE I
1. The Finance Function
1.1. Basic Considerations
1.2. Evolution
1.3. Goals and Objectives
1.4. The Finance Role
2. Financial Statement Analysis
2.1. Accounting information as a measurement tool of the Firm.
2.2. Financial-Economic Diagnosis of the firm
2.3. Evaluation of the Financial Equilibrium of the Firm
2.4. Forecasting
2.5. The Cost of Capital
2.6. Determination of the optimal Capital Structure
2.7. Dividend and Buy back policies
2.8. Corporate Restructuring
2.9. Creative Accounting
Case Study: Practical application of ratio analysis

CORPORATE II
1. Corporate Finance
1.1. Basic Concepts
1.2. Valuation Methods
1.3. Value Creation and New Valuation Tools
1.4. Alternative Valuation Approaches to Specific Cases
2. Working Capital Management
2.1. The Treasury function
2.2. Operating Cash Flow Management in a firm
2.3. How to manage the liquidity position of a company
3. Capital Budgeting
3.1. Capital budgeting: an overview
3.2. Project cash flows
3.3. Forecasting cash flows: Quantitative/Qualitative/Judgemental
3.4. Project analysis under Certainty/Risk
3.5. International project appraisal
4. The Banking Relationship
4.1. Concept and negotiation planning
4.2. Contribution to financial management improvement
4.3. The negotiation
4.4. Quantification of the Banking business
4.5. Negotiation Objectives setting
4.6. Determination of Negotiation strategy
5. Mergers and Acquisitions
5.1. The Mergers and Acquisition Market:
5.2. Definitions and basic concepts
5.3. Origination/Advisory Mandate
5.4. The Process Design
5.5. Controlled Auction
5.6. M&A Financing Alternatives
5.7. How do finance providers value M&A deals?
5.8. Other M&A issues
5.9. Tax aspects: Maximize profitability for buyer - seller
5.10.The Family company
5.11.Private Equity
Case Study: Practical corporate valuation using the DCF and comparables

CORPORATE III
1. Basic Corporate Financing
1.1. Plain Vanilla and Syndicated Loans
1.2. Bonds and Obligations Issuance
2. Trade & Commodity Finance
2.1. The Financing of International Trade
2.2. Financing Instruments
2.3. Trade & Commodity Finance in Emerging Markets
3. Project Finance
3.1. Introduction and basic concepts
3.2. Project Finance
3.3. International Contracting and Guarantees
3.4. Financial Agreement, supplier contracts and guarantees
3.5. Case Study: Critical issues in the drafting of the International Memorandum
3.6. Internal and External Fiscal implications of Project Finance transactions
3.7. Base SVP project Cash flow
3.8. Available sources of financing
3.9. Project Finance risks
3.10.Governmental subsidies and organisms involved in Project Finance
3.11.Export Credit Agencies (ECAs)
4. Other Structured Financing
4.1. Asset Securitization
4.2. Leveraged Transactions
4.3. Tax leverage Lease
5. Corporate Governance
5.1. The concept of the corporation; key parties and organizational structure; separation of ownership and control
5.2. Roles of shareholders and directors; institutional investors; directors’ remuneration
5.3. Accountability and financial aspects; role of statutory auditors; non-executive directors and audit committees
5.4. Responsibilities, remuneration and rights of employees
5.5. Theories of governance - agency, stewardship, stakeholder theory
5.6. Regulation in major countries
5.7. Globalization; current developments in corporate governance
Case Study: Financing alternatives for a Cross-Border acquisition.

INTERNATIONAL FINANCIAL REGULATION AND TAXES
1. Banking and Securities Regulations
2. Mifid (Markets in Financial Instruments Directive)
2.1. Introduction 2.2. Key aspects
3. Collective Investments Regulations
4. International Accounting Standards
4.1. Introduction
4.2. Impact in the Financial Markets
5. Basle II
5.1. Definitions
5.2. Impact in the Financial Markets
6. Bankruptcy & Corporate Restructuring
7. Corporate Law
8. Mergers & Acquisitions Law
9. Emerging Markets Law
10.Taxation
10.1.Basic Concepts
10.2.Double Taxation Treaties
10.3.Transfer Pricing
Case Study: The impact of Basle II in the international financial crisis

TECHNICAL SKILLS IN FINANCE
1. Excel Applied to Finance
1.1. Basic Commands
1.2. Advanced Commands
1.3. Tables
1.4. Dynamic Tables
1.5. Basic Functions
1.6. Advanced Functions
1.7. Security
1.8. Solver
1.9. Introduction to Visual Basic Applications
2. Financial Information Providers
2.1. Main Suppliers
2.2. How do these systems work
2.3. Type of Financial Information that can be retrieved
2.4. Main functions
2.5. Real Time (RT) Financial information
2.6. How to link between RT information and a spreadsheet

MANAGERIAL SKILLS IN FINANCE
1. Communication
2. Negotiation
2.1. Multicultural Management and negotiation in multicultural environments
2.2. The Chinese market and negotiations with the Chinese
2.3. European Union
2.4. The Asian countries market
2.5. USA
2.6. Latin America
3. Presentation Skills
4. Negotiation Dynamics
5. Consulting skills

ETHICS AND VALUES IN FINANCE
1. Business Ethics: Concept, Need, Effects, Responsibility and Decision-making
2. Compliance
3. Information Barriers
4. Ethical, Social and Environmental Management in businesses
5. Codes of Conducts
6. Business Cases
7. Ethics in Finance
The Wharton School Sessions
1. Vision of the Future for Financial Services
1.1. The new face of the Financial Services Industry
1.2. Implications of the global financial crisis
1.3. Systematic risks during and after the crisis
1.4. Coordination across countries: recent experience and outlook
1.5. Use of Leverage in the "new Economic World"
1.6. The Future of Capitalism
2. Venture Capital and Private Equity
2.1. Overview of the private equity industry
2.2. Main private equity players
2.3. Structure of private equity funds
2.4. Performance of private equity funds
2.5. Future of the industry
3. Private Banking: Asset Allocation and Wealth Management
3.1. High net worth individuals
3.2. Asset allocation:
- 3.2.1. Correlation
- 3.2.2. Efficient frontier and the opportunity set
- 3.2.3. The Risk-free rate
3.3. The power of diversification
3.4. Practical application using software packages to:
- 3.4.1. Estimation of the efficient frontier
- 3.4.2. Monte Carlo simulations
- 3.4.3. Assessment of risk in the long run
4. Using Financial Information Intelligently
4.1. Financial Performance Evaluation Framework
4.2. Deepening the understanding of the three key financial statements
4.3. Role of outside regulatory bodies (FASB and the SEC)
4.4. Use of financial information to assess:
- 4.4.1. Risk/Return implications of various strategies in a range of businesses
- 4.4.2. How the business is managed
4.5. Questions financial statements cannot answer
4.6. Application of main financial ratios to evaluate company’s financial condition and comparisons between companies
4.7. Case Study: Use of GE annual report to analyze its strategy and the challenges in continuing its superior financial
5. International Cash Management
5.1. Introduction to International Cash Management
5.2. International Payment Systems and Instruments
5.3. Organizing a global treasury
5.4. Managing a global treasury
5.5. Selecting a partner bank
5.6. Technology in a treasury

The London School of Economics Sessions
1. International Financial Regulation
1.1. The Objectives of International Financial Regulation and current regulatory system.
1.2. The International Financial Institutions and their Role in Financial Regulation
1.3. Regulatory Structures in Individual Countries. The European Union: A Special Case
1.4. The Debate on Regulatory Structure and Need for Reform
2. Financial Risks
2.1. Global financial risk: Definition and as consequence of liquidity risk
2.2. Securitization and CDO
2.3. Liquidity and capital
2.4. Risk modelling
2.5. Volatility versus risk
2.6. Different models
3. Emerging Markets and the Global Economy
3.1. Economic might of Emerging Markets: The key players
3.2. G7 vs. BRICs ; China vs. OECD (less US and Japan)
3.3. Volatility & Growth
3.4. The BRICs and World GDP (PPP)
3.5. Long-run growth potential and Outlook
4. Risks and rewards of doing business in emerging markets
4.1. The Risks
4.2. The Rewards
5. Business in China: growth and reform
5.1. China’s path to market and Economic development
5.2. China’s potential market and Consumers
5.3. Chinese firms’ evolution
5.4. Implications for financial services
5.5. Multinational corporations and China
5.6. Long-term investment considerations
6. Fundamental to ABS and corporate fixed income: What has changed?
6.1. Subprime and CDOs
6.2. Major changes in mortgage markets and multiplying effects
6.3. Resettings in subprime mortgages
6.4. Rating agencies, ratings, implications, and credit warnings
6.5. Effect on BBB-ABS
6.6. Rating and Credit Warning
6.7. CDO: Only the beginning
6.8. ABCP, Siv, Siv Lite
6.9. Newsflow to date
7. An introduction to hedge funds
7.1. Definition, characteristics, types, and evolution
7.2. The hedge fund food chain
7.3. Strategies and Performance measurement
7.4. Hedge funds: current views and outlook

NOTA IMPORTANTE

Cost of Studies
The matriculation costs 35.000 euros also includes all the documentation, bibliography, access to installations and services of the IEB, as well as the travel to and stay in Wharton School (both in Philadelphia and the corresponding trips to New York) and to London School of Economics.

This payment can be made up front or in installments.
These should be made in the following manner:
- 11,000 euros once admission has been notified to reserve a place
- 6,000 euros between 1 and 15 February
- 6,000 euros between 1 and 15 April
- 6,000 euros between 1 and 15 June
- 6,000 euros between 1 and 15 August

Students who require it can benefit from financing through financial entities with which the IEB has special agreements.
Grants and aid have been programmed of which interested parties will be informed.

DURACIÓN

Duration, Calendar and Schedule
This program lasts 9 months from February to November, with a total of 800 lecture hours.
Classes are from Monday to Thursday, 9 a.m to 2 p.m. with the exception of those classes that take place during the academic stay at Wharton School and the London School of Economics.

A minimum attendance of 80% of the theoretical and practical classes is required unless justified and approved absence has been granted by the Master’s directorate.
Not complying with this attendance requirement means the qualification cannot be granted although the student might obtain an attendance certificate.

METODO DE ENSEÑANZA

The methodology followed is highly practical, based on rigorous and up-to-date contents to provide professional know-how. Each study module is accompanied by a practical case to be carried out by the students which relates to the covered material.

In addition, the complexity of Financial Economics – mainly due to the abstraction and intangibility of the products handled – means that certain Master subjects need to contain a technical component which will be assessed through appropriate exams, case studies and research papers.

So, theoretical classes alternate with practical ones and with the use of the appropriate IT tools, given that the IEB has an IT room and treasury desk similar to those of any brokerage firm.

The professional market profile of a wide number of teachers and the reduced size of student groups will enable the systematic analysis and study of real experiences and teacher directed presentations by the students in class.

Moreover, the creation of team spirit and group cooperation will be fostered.
Finally, all the students shall complete a Final Project which will require all acquired knowledge to be put into practice.

Students
As concerns the target public that can gain admission to this Master; the places are firstly offered to graduates, either Bachelors or Engineers in any of their specializations.
Those wishing to study this Master should logically both speak and write fluent English.
All candidates will attend several interviews with the members of the Admission Committee before joining the Master. An optional leveler course will take place before the beginning of the program for those students that the Master’s directorate consider should deepen their knowledge of the “basic tools” (computing, math, accounting etc.) that will be used in the Master.

Qualification
The qualification granted at the end of the studies is Master in International Finance, issued by the Academic Board of the IEB as an own degree sponsored by the Bolsa de Madrid (Madrid Stock Exchange).

The IEB, as academic collaborator of CFA Spain, includes within this Master the preparation for the CFA Level 1.

Faculty Staff
The academic staff of the Master program is composed of professionals from the financial sector and markets (directors of securities and brokerage firms, financial institutions, financial analysts, treasury desk managers, portfolio managers, etc).

All of the professors possess high level university training and many of them hold a postgraduate degree (Masters, Doctorates, CFAs, FRM, CAIA, EFA, etc.) issued by prestigious universities throughout the world. Furthermore, their teaching capacity and efficiency in transmitting knowledge have been largely demonstrated.

Director of the Master
Manuel Goudie Pujals

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