UCL School of Management

Module Fact Sheet

MSING034: International Capital Markets

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This is a past version of this module for MSING034 16/17.
Click here for the current version.
Level
Masters
Prerequisites
None
Eligibility
MSc Management Route B Finance pathway, and SoM PGT affiliate students only.
Terms
Term 2
Delivery method
3-hour lecture plus workshop (x 10 weeks)
Assessment
25% unseen, 1-hour, in-class final examination; 35% group presentation; 20% group report; 20% class participation

Course overview

This module introduces students to capital markets. As economic globalisation has broadened the possibility of where capital can be raised and invested, our perspective is necessarily international. We will analyse financial actors (e.g. issuers, commercial and investment banks and other intermediaries, and institutional investors) and the dynamics of their interactions as capital is exchanged using financial instruments to generate returns while managing risk. We will analyse the context in which these actors operate, i.e. the markets, as well as the regulations that are imposed on these markets. Considering recent history, there will be an exploration of financial crises and the roles of regulation and compliance in affecting their occurrence and outcomes.

To establish a base level of understanding of financial concepts, this module will set a required text.  The module will also make reference to relevant case studies as well as recent news from the financial markets.  The emphasis will be to impart students with a general understanding of the behaviour of financial actors, the market environment in which they operate, and the regulations to which they must comply.

Learning outcomes

Upon successful completion of the module, a student will be able to:

  • Identify and describe the main financial actors in capital markets, e.g. government and corporate issuers, banking intermediaries, and institutional investors, e.g. pension funds and insurers.

  • Understand the motivations and incentives that guide the behaviour of financial actors and their interaction.

  • Understand the international market environment that brings financial actors together to exchange capital.

  • Identify and describe the financial instruments, e.g. stocks, bonds, and derivatives, used by financial actors that exchange capital to generate returns and manage risk.

  • Understand the rationale that underpins government intervention in the markets to influence and control financial actors’ behaviour and interactions with each other.

  • Understand how regulation and compliance can lead to unintended consequences and leave the financial markets exposed to financial crises.

Topics covered

  • Financial actors, e.g. issuers, intermediaries, and institutional investors

  • Economic theory including rationality and profit maximisation, information asymmetry, moral hazard, and adverse selection

  • Risk and return

  • Financial instruments – stocks, bonds, and derivatives – and their valuation

  • Interaction dynamics between financial actors

  • Capital and other markets

  • Regulation and compliance

  • Global history of financial crises

Assessment summary

25% is awarded on the basis of the result of an unseen, 1-hour, in-class test at the end of the term. 35% is awarded for a group presentation and 20% is awarded for a 3,500-word group report relating to the presentation.  20% is awarded for classroom participation.

Essential reading

Arnold, G. (2012). Modern financial markets & institutions: a practical perspective. Harlow, England: Pearson Education Limited, Financial Times Press.

Past versions of this module

MSIN0084 18/19

MSING034 17/18

MSING034 16/17

Last updated Wednesday, 26 June 2019