Study-Unit Description

Study-Unit Description


CODE BFI5406

 
TITLE Securitisation and Structured Finance

 
UM LEVEL 05 - Postgraduate Modular Diploma or Degree Course

 
MQF LEVEL 7

 
ECTS CREDITS 5

 
DEPARTMENT Banking, Finance and Investments

 
DESCRIPTION This study-unit introduces students to the tools and structures used in structured finance and also acquaints them with the different asset classes currently available in this area.

The study-unit is envisaged to be both technical and practical, in that it aims to familiarise students with the current trends in structured finance both abroad and locally.

It aims to give students a view of the potential tools that can be used to raise finance and how to view financial statements so as to be able to extract value from assets in the balance sheet of companies and use a myriad of tools to monetise these assets or use them as a financing tool.

Study-Unit Aims:

The study-unit aims to give students a view of the potential tools that can be used to raise finance and how to view financial statements so as to be able to extract value from assets in the balance sheet of companies and use a myriad of tools to monetise these assets or use them as a financing tool.

Learning Outcomes:

1. Knowledge & Understanding:

By the end of the study-unit the student will be able to:

- List and explain the mechanics of the international debt and capital markets and the various options of structured finance;
- List and explain the key risks of investing in various structured finance products and markets;
- Explain the methodology used by the major credit rating agencies to rate funds and securitisations assets and explain its potential weakness;
- List and explain the advantages and disadvantages of funds and securitisation products and the regulation associated with each type;
- List and explain the current market statistics on these products;
- List and explain the Maltese and EU legislation on funds and securitisation;
- List and explain the potential upside and risks of these technologies.

2. Skills:

By the end of the study-unit the student will be able to:

- Assess funds and securitisations;
- Assess how funds and securitisations can be used in channelling financial resources to where they are needed most;
- Determine the pricing and trading of securities resulting from structured finance;
- Analyse financial statements with a view to analysing the assets that have value and could be used to obtain financing.

Main Text/s and any supplementary readings:

Main Texts:

"Securitization and Structured Finance." Handbooks in Financial Globalization: Handbook of Key Global Financial Markets, Institutions, and Infrastructure (2012): Handbooks in Financial Globalization: Handbook of Key Global Financial Markets, Institutions, and Infrastructure, 2012. Web.

- Lecture notes given to students and online resources

 
ADDITIONAL NOTES Pre-requisite Qualifications: B.Com. (Hons.) Banking & Finance, B.Com. Banking & Finance Major or equivalent

 
STUDY-UNIT TYPE Lecture

 
METHOD OF ASSESSMENT
Assessment Component/s Sept. Asst Session Weighting
Analysis Task Yes 30%
Case Study (Exam Conditions) (2 Hours) Yes 70%

 
LECTURER/S Alexia Farrugia

 

 
The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints.
Units not attracting a sufficient number of registrations may be withdrawn without notice.
It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years.

https://www.um.edu.mt/course/studyunit