The course on global financial systems and financial instruments is designed to set the stage for the module on Corporate Finance and Financial & Risk Management. Given the forces of globalisation, integration, and innovation, the course examines the structure, conduct, and performance of financial markets from a global perspective. In particular, we focus on the organisational and institutional structure of the global financial markets, their functions, and how these functions contribute to the efficiency of markets.
Also demonstrated is the use of these markets by firms (both financial and non-financial) in their investment, financing, and risk management decisions. We follow up on the distinction between financial intermediaries (banks, insurance firms, mutual funds, pension funds, etc.) and market mediaries (investment banks). We will see how market mediaries design, price, market, and trade many of the innovative instruments that exist today in global financial markets.