FIN 616 Syllabus - Page 1 of 4 University of Alberta, School of Business Department of Finance and Management Science
Syllabus - FIN 616 – Securities Markets and Financial Intermediation – Winter 2010
Professor Information Name: Ying Duan Email: [email protected]
Phone: (780) 248 1395 Office: 2-45 Business Building
Course Place and Time BUS 310
W 6:30PM – 9:30PM
Office Hours By appointment
Course Description
This course is intended to provide students with a basic understanding of the role of financial institutions in the financial system. We first look at the role of financial institutions in helping non- financial businesses raise capital. Next, we will cover risk management of financial institutions.
The last part of the class explores the evolution of the financial services industry, the 2008 financial crisis, and the response of regulations.
Prerequisites FIN 501: Financial Valuation and Management
Course Materials
The required textbook is Saunders, Cornett and McGraw, Financial Institutions Management – A Risk Management Approach, 3rd Canadian Edition, McGraw-Hill Ryerson (SCM).
The course will utilize the School of Business Blackboard system. Course information will be available to registered students when they log on at: https://ulearn.ualberta.ca/. Lecture notes, which outline each lecture, will be made available before each class via Blackboard. Please remember that these are just notes, which means they may not be complete. For completeness, you need to attend the class and read the textbook. Other handouts, such as additional readings, old exams, problem sets and solutions may be posted as well. All handouts will be distributed via the Blackboard system. Therefore, it is your responsibility to check the website for additional material.
I strongly recommend you to bring a copy of lecture notes to each class.
Attendance
Attendance is not mandatory, but strongly encouraged. If you miss a class, then you are responsible for getting whatever information you need from a classmate (not from me). This applies to questions regarding both upcoming exams and homework assignments.
FIN 616 Syllabus - Page 2 of 4
Use of cell phones is NOT allowed during the lectures. Recording is permitted only with the prior written consent of the professor or if recording is part of an approved accommodation plan.
Grading: This schedule is subject to change
What Weight When Where
Midterm Exam 40% 2/10 BUS 310
Case Write Up 20% April 7
Final Exam 40% University Schedule TBA
The University provides a suggested grade distribution for a 600 level courses, and this course’s grade distribution will be similar, and will be based on an absolute and relative understanding of the material.
Case Write Up
We will cover one case in class. The case is to be written up, and you are expected to prepare the written analysis in teams up to 3 students. The write-up (one per team) is due at the beginning of class on the day that we cover the case. Late submission will not be graded. Case questions will be available two weeks before the due date.
Exams
The midterm will be held in the regularly scheduled lecture times on their respective dates.
Exam Attendance: If you miss the midterm then your final exam grade will also be your midterm grade. Missed finals with legitimate reasons will have to be written at a later date. Requests for missed finals must be made in writing prior to the school scheduled final exam date.
Materials Tested: The midterm will include whatever materials we have covered up until the day of the exam. The final exam is cumulative; anything and everything covered throughout the course can be examined. Exam questions can cover anything in either the lectures, or the assigned articles that may be posted on Blackboard. Materials in the textbook that are not covered in one of these other sources will not be on the exam.
Exam Sheets and Other Materials: For each exam you may bring one 81/2” x 11” sheet of paper with hand writing on both sides. You may bring a calculator to the exams. No other reference materials or devices are allowed.
Re-Grading: You may request one full re-grading for each exam. Re-grading requests must be made in writing, and you must explain why the manner in which your exam was graded does not correspond to the information in the answer key, which will be made available after the exam. A full re-grading means that the entire exam is re-graded. Therefore it is possible for the re-graded score to be lower than the original score. Re-grading requests must be made within one week after the exam has been returned.
FIN 616 Syllabus - Page 3 of 4 Problem Sets
Problem sets will be available via Blackboard along with solutions. The problem sets are meant for practice and to test your understanding of the course material. It is strongly recommended that students attempt to solve the problems without first consulting the solutions.
Email Policy
Outside of class time or office hours, the most efficient method of contacting me is through e-mail.
Please include FIN616 in your message tile/subject line. When submitting questions, please allow two working days for a response. Also, please note that any e-mails (and the associated responses) may be posted on the internet or otherwise distributed. Student names will be removed from such postings.
Academic Integrity
From the General Faculties Council: “The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behavior and avoid any behavior which could potentially result in suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence. Academic dishonesty is a serious offence and can result in suspension or expulsion from the University.”
The Code of Student Behavior can be found here:
http://www.uofaweb.ualberta.ca/gfcpolicymanual/content.cfm?ID_page=37633 Tentative Course Schedule: This schedule is subject to change
Session Date Topic and Exam Suggested
Readings
1 1/6
Introduction: an overview of financial system and the role of
financial institutions
SCM Chapter 1-6
2 1/13 Mutual fund operations and
performance SCM Chapter 5
3 1/20 Banking and bank lending SCM Chapter 2
Articles posted
4 1/27 Interest rate risk SCM Chapter 8, 9
5 2/3 Market risk SCM Chapter 10
6 2/10 Midterm exam
7 2/17 No class
8 2/24 Credit risk SCM Chapter 11,
12
9 3/3 Credit default swaps SCM 25
10 3/10 Securitization SCM Chapter 27
11 3/17 Subprime mortgage credit Articles posted
12 3/24 Liquidity risk SCM Chapter 17,
18
FIN 616 Syllabus - Page 4 of 4
13 3/31 Universal banking SCM Chapter 21
14 4/7 Too big to fail and financial crisis
case Articles posted
