The first part of the course aims to present fixed-income securities and the methods for evaluation and risk assessment in the fixed-income markets. At the end of this part, the students will know the features of fixed-income securities, the functioning of the fixed-income market, the methods for fixed-income evaluation and the fundamentals of credit analysis.
The second part of the course aims to provide an introduction to ethics in financial markets and related risks. This part explores the principles and practices of financial ethics with a focus on real-world cases of corporate misconduct. Students will examine the ethical responsibilities of financial professionals, the importance of ethical decision-making, and the impact of unethical behavior on organizations and society. The course will analyze case studies where early warning signs ("red flags") were evident in the management's behavior but overlooked or ignored, leading to significant ethical and financial failures. At the end of the second part of the course the students will be able to detect and understand theoretical concepts but also apply them in real-world contexts.
Prerequisiti
Basic knowledge of Linear Algebra, Statistics, Econometrics
Metodi didattici
Computer lab lectures
Verifica Apprendimento
For the first part: The students can choose between a written text and an oral presentation.
For the second part: The students can choose between a written text and a presentation.
Testi
Slides and codes shared during the course. Some suggested (not mandatory) readings for the second part: Code of Ethics and Standards of Professional Conduct, CFA Institute, 2014; - Guidance for Standards I–VII, Standards of Practice Handbook, Eleventh Edition, CFA Institute, 2014; - Research Objectivity Standards, CFA Institute, 2005;
Contenuti
Contents of the first part: - Fixed-Income Securities: Defining Elements; - Fixed-Income Markets: Issuance, Trading, and Funding; - Introduction to Fixed-Income Valuation; - Understanding Fixed-Income Risk and Return; - Fundamentals of Credit Analysis.
Contents of the second part: - Introduction to Financial Ethics; - CFA Institute “code of Ethics”, Standard of Professional Conduct” and “Standard of Practice Handbook”: ethical principles and macro-area of application; - Red Flags in corporate management; - Analysis of major financial scandals (e.g., Enron, Wirecard, Wells Fargo).
