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COURSE NAME: "Financial Institutions and Capital Markets"
SEMESTER & YEAR: Fall 2023

INSTRUCTOR: Alessandro Antonelli
EMAIL: [email protected]
HOURS: MW 11:30 AM 12:45 PM
PREREQUISITES: Prerequisite: FIN 301
OFFICE HOURS: By appointment

This course covers the structure and role of financial markets and institutions such as commercial banking, investment banking, and major equity, debt, and derivative markets and includes discussion of management, performance, and regulatory aspects. The course also examines the functions of central banks and monetary policy for these financial markets and institutions. Case studies and real life examples are also disseminated throughout the course to allow students the additional exploration of national and international implications of financial markets, including those concerning credit crisis, their causes, and the likely reverberations and regulatory reforms.
*  Overview of the financial environment.

*  Central Banks and monetary policy.

*  Debt security markets.

*  Equity markets.

*  Derivative security markets.

*  Commercial banking: introduction to bank management.

*  Nonbank operations.

*  Regulatory reform in financial services.

*  Ethics and best practices in finance.

* Understand the types of financial markets that facilitate the flow of funds, the types of securities traded within financial markets, the role of financial institutions within financial markets.

* Evaluate main financial institutions products, operations, earnings, performances and risk profiles.

* Deepen the ability to interpret information and announcements by the financial media.

* Be aware of major strengths and weaknesses of the financial system and the world economy, of the existence of important ethical issues, and of the need of substantial structural reforms.

* Familiarize with high quality networks of information, delivering business and financial news, insight and information around the world.

Book TitleAuthorPublisherISBN numberLibrary Call NumberCommentsFormatLocal BookstoreOnline Purchase
Financial Institutions and Capital MarketsMishkin, EakinsPearsonLast or previous editions     

FIRST EXAM, FINAL EXAM, CLASS PARTICIPATION (INCLUDING POSSIBLE PRESENTATIONS)The TWO EXAMS (35% + 40%) consist of quizzes/multiple-choice questions and essay-type questions, graphic analysis, as well as some problems that require quantitative analysis, in which the student is asked to explain and/or solve with accuracy and clarity issues of a particular topic covered by the syllabus. The CLASS PARTICIPATION grade (25%) will reflect: 1) Students' attendance and their level of appropriate active involvement in class discussions (grade: up to a maximum of 12.5%; unjustified absences and unauthorized use of computers will negatively affect the class participation grade. 2) The quality of class presentations or researches assigned by the professor (grade: up to a maximum of 12.5% for excellent presentations; up to a maximum of 10% for very good researches by students choosing the option not to present in class).35% + 40% + 25% (12.5% + 12.5%)

AWork of this quality directly addresses the question or problem raised and provides a coherent argument displaying an extensive knowledge of relevant information or content. This type of work demonstrates the ability to critically evaluate concepts and theory and has an element of novelty and originality. There is clear evidence of a significant amount of reading beyond that required for the course
BThis is highly competent level of performance and directly addresses the question or problem raised. There is a demonstration of some ability to critically evaluate theories and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture and reference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments.
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings.
DThis level of performances demonstrates that the student lacks a coherent grasp of the material. Important information is omitted and irrelevant points included. In effect, the student has barely done enough to persuade the instructor that she/he should not fail.
FThis work fails to show any knowledge or understanding of the issues raised in the question. Most of the material in the answer is irrelevant.

The University attendance policy is described in the catalogue. Persistent absence or tardiness usually precludes satisfactory performance in the course. Students are expected to arrive to class on time and are responsible for all material covered by the syllabus and/or discussed in class, whether or not they are actually present in class.
As stated in the university catalog, any student who commits an act of academic dishonesty will receive a failing grade on the work in which the dishonesty occurred. In addition, acts of academic dishonesty, irrespective of the weight of the assignment, may result in the student receiving a failing grade in the course. Instances of academic dishonesty will be reported to the Dean of Academic Affairs. A student who is reported twice for academic dishonesty is subject to summary dismissal from the University. In such a case, the Academic Council will then make a recommendation to the President, who will make the final decision.
John Cabot University does not discriminate on the basis of disability or handicap. Students with approved accommodations must inform their professors at the beginning of the term. Please see the website for the complete policy.


1   Role of financial markets and institutions.

2    Time value, risk and statistics.

          3      Commercial bank operations.

          4      Bank regulation.

          5      Bank management.

          6      Bank performance; Financial modeling.

          7      Determination and structure of interest rates.

          8      Functions of the Central Bank and Monetary policy.

                  Cryptocurrencies. Fintech.

          9      Money markets.

         10     Bond markets.        6.   Valuation and risk of bonds.      7.      Mortgage markets.

  11     Stock valuation and risk.

         First exam, October 18, Wednesday (from 1 to 11, 35% weight)

         12      Financial futures markets.

         13      Option markets. 

         14      Interest rate derivative markets.

         15      Foreign exchange derivative markets. 

         16      Banks Risk Management.

         17      Thrift operations.

         18      Finance company operations. 

         19      Mutual fund operations.

         20      Securities operations.

         21      Insurance and pension fund operations.

         22      Compounding.

         23      Regulatory reforms, ethics and best practices in finance.

        Second exam (from 12 to 23, 40% weight), see JCU final exam schedule for date and time.