Learning outcomes of the course unit
After the course completion, students shall develop capabilities related to:a) Knowledge and understanding - overview about financing instruments, savings, trade financing instruments, different payment systems and cash management instruments, risk management instruments to protect against unfavourable developments in interest rates and exchange rates and which products banks are offering to corporate customers - knowledge about how interest rates are quoted, which components are charged by banks - knowledge on how rating is affecting the credit spread of a firm.b) Applying knowledge and understandingExperience and practice on how short- and long-term financing are used within a company for the financing of operational business, cash management and operational risk management.c) Making judgementsStudents shall develop judgement capabilities based on chasing relevant data supporting the analysis of different financing instruments.d) Communication skillsstudents shall develop skills to communicate problem framing and the related solution strategy to the instructor, showing financial literacy and sound vocabulary to approach financial intermediaries. e) Learning skills:Attained via a “Problem-Solving Learning” approach: represent the problem (frame the problem in the students’ own words - define key terms and concepts - determine statements that accurately represent the givens of a problem - identify analogous problems - determine what information is needed to solve the problem);devise and implement a strategy for solution (identify the general model or procedure they have in mind for solving the problem - set sub-goals for solving the problem - identify necessary operations and steps - draw conclusions - carry out needed operations)
There are no compulsory prerequisites.
Course contents summary
The course aims at providing students with an overview about banking instruments through which corporate customers can finance in a short-term as well as long-term perspective, via bank debt, manage payment systems and cash, protect against risks in exports/imports. They should be also in the position to know, which other products banks are offering, so that corporations can do their business.
Cross-border payment transactionsThe demand for investment services and financing instrumentsBank and postal depositsCorporate bondsEquity securitiesShort-term lending facilitiesEndorsement loans, bank acceptances, notes and commercial papers, short-term financing billsMedium and long-term lending facilitiesRisk hedgingDerivatives
Munari L. (Ed.), “STRUMENTI FINANZIARI E CREDITIZI 3/ED, McGraw-Hill, 2017 – chapters 3, 5, 6, 8, 9, 11, 14, 16,17.
Formal and expository lectures. Exercises and short case studies will complement the theoretical aspects of the class.
Assessment methods and criteria
Assessment format: The course is given marks expressed out of 30. The assessment is based solely on a general written test, for both attending and non-attending students. A mark from 0 to 17/30 is a fail and the student must retake the exam.A mark from 18 to 30/30 is a pass, and ECTS are awarded. A Board of Examiners can decide to assign a 30 “cum laude” mark.Students are not allowed to repeat an exam they have passed. Test structure: 3 essay-type questions, 3 multiple choice-type questions, 3 true/false-type questions and 3 exercises.Grading: Grades are entirely based on the final written exam (100%). Evaluation by question type: - essay-type questions: up to 3 marks each - multiple choice-type questions: 1 mark each - true/false-type questions: 1 mark each - exercises: up to 5 marks each
This course is open to all students of the program Bachelor of Management Engineering. Active participation and discussion of the course contents is encouraged. Therefore, study of the given literature in advance of each class is strongly recommended. Slides used in class can be downloaded from the Elly platform.