Financial Markets and Instruments

Financial markets and Instruments course is focused on the features and the use of various types of financial instruments including stocks, bonds and derivatives. It covers financial intermediation, market infrastructure and regulation. The emphasis is made on general economic intuition rather than on quantitative models. The course syllabus corresponds to the majority of learning outcome statements of CFA levels 2 and 3 and can be used a preparation resource for CFA certification. In comparison to other courses of this topic, this course covers such financial institutions as rating agencies, pension funds, hedge funds, venture capital and private equity funds, sovereign wealth funds).

The course is a major professional core course of the online degree Master program. Financial Markets and Instruments is the basic course, which is required for the further study of asset pricing using various quantitative models. These topics are covered in the Theory of Finance.

The main objective of the course is to provide detailed and thorough understanding of how financial markets work. Having successfully completed the course, students should be able to explain the differences between various types of financial instruments, understand the role of financial institutions in different types of financial markets. The course is also aimed to develop analytical and practical skills in the area of financial markets.

This Course is part of HSE University Master of Business Analytics degree program. Learn more about the admission into the program and how your Coursera work can be leveraged if accepted into the program here https://inlnk.ru/bvD1E.

• Overview of the financial system. Emerging and growth leading economies. Trends in financial markets
• In this week we first make the overview of the global financial system. In this lecture we discuss the nature of financial markets and financial institutions and their role in the economy, introduce securities and other financial instruments and contrast two types of financial systems: Anglo-Saxon versus Continental. In the second lecture we consider the definition of emerging and growth leading economies and understand why they are so attractive for investors and how they differ among each other. After this we explore what is common in investors perception across the emerging markets. Then we deep dive into the two largest emerging economies: China and India and understand the similarities and differences between them. Lastly, we will examine how the fourth industrial revolution affected global financial markets and what are the most interesting future trends in financial markets.
• Equity securities. Equity markets
• In these two lectures we will give 360 degrees overview of equity securities and equity markets. In the first lecture we will focus on fundamentals of equity securities, consider types of stock, discuss possible corporate actions and touch upon the equity-based derivative securities. We also discuss equity indices and ways of their calculations. In the second lecture we will elaborate the role which financial intermediaries plays in financial markets. That we get to the core and learn how the primary and secondary equity markets are working. Then we will get acquainted with two exchanges – one from the developed market (NASDAQ) and second is from emerging market which is Moscow Stock exchange. Of course, we will discuss the process of initial public offering and consider the example from the Russian market. And in the last section we elaborate how the exchanges can embed sustainability within their operations. And do not forget to view the exciting interviews with equity market professionals from emerging market.
• Fixed income securities. Corporate debt market. Credit Risk Analysis and the Role of Credit Ratings
• This week is devoted to fixed income markets. In the first lecture we will give the definition of fixed income securities, classify them, and consider the basic features of each types of them. In the second lecture, an expert from the rating industry will talk about his first-hand experience in assigning and maintaining credit ratings in international and national rating agencies. We will deep dive into the methodologies of rating agencies for various types of fixed income securities as well as critique the international rating agencies, discuss their regulations and the future. Be sure to watch our interviews. An analyst from Fitch Ratings will talk about the specifics of rating banks from emerging markets. And the director of KPMG will tell you about the interesting profession of a rating advisor.
• Mezzanine Financing. The Nature of Financial Assets Trading
• We will start this week with a lecture by our graduate-the executive director of one of the largest Russian banks - on the topic of mezzanine financing. He focuses on the specifics of this type of financing, as well as the differences between mezzanine financing in emerging and developed capital markets. In the second lecture we will build the knowledge and explain the concepts needed to understand how managers and traders interact with markets and choose trading strategies and tactics. We will start with the refreshing of positions an investor can take in an asset. Then we discuss the markets microstructure, get understanding of elemental orders and see how various orders can be constructed from elemental orders. Then we will discuss the types of traders, their preferred order types as well as trade execution decisions and tactics. And as the world becomes more digital, we will discuss features of algorithmic trading and will try to uncover the future of trading.
• Final Project: Financial Market Analysis
• Now we are ready for the final course project. Good luck!