University of Piraeus

M.Sc. in Banking and Finance

Finance and Investments

Money and Capital Markets

Michalis Anthropelos, Ph.D. University of Piraeus, Department of Banking and Financial Management

Goal and short description

The goal of the course is to explore the basic principles of money and capital markets, as well as ways to deal with the investment risks inherent in the existing internationalized environment.
The first part of the course examines the way currency market functions, and presents the forces that determine and change exchange rates. This analysis discusses ways to predict the exchange rates as well as the uses of the relevant derivative securities for investment or hedging purposes.

The second part deals with the structure and management of internationalized investment portfolios. In this context, the main functions of the global bond market are presented. Particular emphasis is given to the analysis of the particular investment risks faced by international portfolios and on the assessment of the ways they are hedged. The principles of managing international investment funds and the characteristics of exchange-traded funds (ETFs) are also being studied. Particular emphasis is given to the study of key investment strategies used by larger hedge funds.

Students are invited to work in groups on a case study related to the curriculum towards the end of the course. The course aims to familiarize students with the key concepts needed to understand and interpret current developments in global financial markets and investment options.

Course structure

First part

• The function and structure of the currency market.
• The factors that form the exchange rates.
• International parity conditions.
• The concept of foreign exchange risk and how to deal with it.

Second part

• The global bond market.
• Internationalized portfolios and their risks.
• Mutual funds and ETFs.
• Hedge funds’ most popular investment strategies and how they are likely to affect global financial developments.

Grades

• 70% Final Exams.
• 30% Case study.

Literature

Lecture slides will be distributed as well as chapters of selected books and research papers. The course will also analyze selected articles from the Greek and international financial press.

Recommended Bibliography

Shapiro, A.: “Multinational Financial Management”,10^th edition; Wiley, 2013.

2015. Eun & B.G. Resnick: “International Financial Management”, 7^th ed., McGraw-Hill. 2015.

Eiteman, K., Stonehill, A. I. and Moffett, M. H., “Multinational Business Finance”, 10^th edition; Pearson Addison Wesley. 2004.