NBS8001 : International Finance and Capital Markets

Semester 1 Credit Value: 15
Semester 2 Credit Value: 15
ECTS Credits: 15.0


The module aims to provide you with the knowledge and skills needed for the critical appraisal of
investment decision-making methods within a real-world context, and the ability to interpret real world
investment data in order to discriminate between different investment opportunities

Outline Of Syllabus

Investment Appraisal and the Foundations of Finance

1. Methods of investment and project analysis for corporations
2. Sources of finance: how companies raise capital through debt and equity
3. Valuing assets: an application of how the market values debt and equity
4. Market efficiency: why it matters to companies and investors
5. Portfolio theory: applications to real-world data
6. The concept of capital asset pricing within a single-period setting
7. The capital structure decision and the dividend decision: do they matter?

Financial risk and derivatives

1. Futures (forward) contracts and hedging strategies
2. Stock options
3. Swaps
4. Managing Financial Risk

Bond investment and equity fund management

1. Valuation and duration: why they matter to investors
2. and the benefit of bond convexity
3. A look at bonds with embedded options. Styles of fund management and the special case of market timing through beta management
4. Evaluation of fund performance: methods, applications and empirical evidence from international surveys
Contemporary issues in finance

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Guided Independent StudyAssessment preparation and completion184:0084:00N/A
Scheduled Learning And Teaching ActivitiesLecture232:0046:00N/A
Scheduled Learning And Teaching ActivitiesPractical32:006:00Computer Cluster
Guided Independent StudyDirected research and reading180:0080:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching11:001:00Seminars
Scheduled Learning And Teaching ActivitiesSmall group teaching42:008:00Seminars
Guided Independent StudyIndependent study175:0075:00N/A
Teaching Rationale And Relationship

The lecture mode is used to impart basic knowledge and understanding, although lecture sessions will also involve some elements of discussion and workshop activity. Student discussion of issues develops understanding and helps develop certain key skills. The subject requires a good deal of additional reading to supplement the lectures and provide a greater depth of understanding, as well as increasing exposure to the research literature. The coursework provides an opportunity to practise certain professional and cognitive skills and gain feedback thereon.

Assessment Methods

The format of resits will be determined by the Board of Examiners

Description Length Semester When Set Percentage Comment
Written Examination1802A80N/A
Other Assessment
Description Semester When Set Percentage Comment
Report1M201200 words (excluding references, tables, appendix)
Formative Assessments
Description Semester When Set Comment
Prob solv exercises1MSeminar questions provided
Prob solv exercises2MSeminar questions provided
Written exercise2MOpportunity to submit practice attempts at past exam questions.
Assessment Rationale And Relationship

1. The coursework allows for students to apply theory into practice in the setting of investment decisions. Students are required to both critically and mathematically evaluate the scenario provided to them.
2. The unseen examination seeks to assess the broad range of understanding across the module.

Reading Lists