International Financial Management - Fixed Income and Foreign Exchange Markets

Aim

On completion of the course, the student should be able to - demonstrate a theoretical and practical knowledge of money markets, bond markets and foreign exchange markets, and the main types of financial instruments that are traded with on these markets. - independently analyse pricing of interests and currencies. - independently analyse risks that arise and are handled on money, bond and currency markets, and apply financial methods for risk management within the framework of these markets.

Content

The course covers, inter alia, the following: - The money and bond market from a Swedish and international perspective. - Pricing of interest bearing instruments. - Interest rate formation and yield curve from a Swedish and international perspective. - Risks and risk management on the money and bond market. - Foreign exchange markets and the market conventions regarding currencies. - Pricing of currencies and parity conditions. - Risks and risk management on the foreign exchange market with a focus on term contracts and swaps. - Handling of currency exposure from a business perspective.