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Trends and Innovations in Financial Markets

Type of study Follow-up Master
Language of instruction English
Code 154-0566/02
Abbreviation TIFM
Course title Trends and Innovations in Financial Markets
Credits 4
Coordinating department Department of Finance
Course coordinator Ing. Martina Novotná, Ph.D.

Subject syllabus

1. Financial innovations - the principle of financial engineering, new financial products
2. Principles of asset securitization - basic concept of securitization, basic terminology
3. Securitization process - process of creation of securitized products, types of underlying assets
4. Market participants in securitized products - originator, servicer, SPE, investors, brokers, state agencies
5. Residential mortgages - the characteristics of mortgage loans, mortgage market, standards of state agencies, types of mortgage loans according to credit quality
6. Securitization of residential mortgage loans (MBS) - prime and subprime mortgages, agency MBS, pass-through securitized products, prepayment risk
7. Tranching, collateralized mortgage obligations (CMO) - cash flow tranching and redistribution, CMO structure
8. Asset-Backed Securitized Products (ABS) - underlying assets of ABS products, credit risk, payment waterfall
9. Importance of securitization and current trends - causes of financial crisis, current trends in securitization
10. The role of rating agencies in capital markets - the essence and process of rating evaluation, characteristics of rating agencies
11. Regulation and current trends in rating industry - current trends in the regulation of rating agencies and the development of the rating market
12. Fundamentals of alternative investment - the definition of alternative investments and the importance of alternative investment
13. Characteristics and types of alternative investments - real assets, hedge funds, private equity
14. Investing in real assets - benefits, risk and ways of investing in natural resources, commodities, real estate and land

Literature

CHAMBERS, Donald R., Hossein KAZEMI and Keith H. BLACK. Alternative Investments: An Allocator's Approach. Hoboken: Wiley, 2021. ISBN 9781119651697 .
MADURA, Jeff. Financial Markets and Institutions. Boston: Cengage, 2021. ISBN 978-0-357-13079-7 .
TURI, Abeba N. Financial Technologies and DeFi. A Revisit to the Digital Finance Revolution. Cham: 2023. ISBN ISBN978-3-031-17997-6 .

Advised literature

BODIE, Zvi, Alex KANE and Alan J. MARCUS. Investments. New York: McGraw-Hill Education, 2021. ISBN 978-1-260-57115-8 .
JONES, Colin A. and TREVILLION, Edward. Real Estate Investment. Theory and Practice. Cham: Palgrave, 2022. ISBN978-3-031-00967-9 .
SHRIER, DAvid L. and Alex PENTLAND. Global Fintech. Financial Innovation in the Connected World. Cambridge: MIT Press, 2022. ISBN 9780262543668 .