| CODE | ECN4220 | |||||||||
| TITLE | International Corporate and Wholesale Markets | |||||||||
| UM LEVEL | 04 - Years 4, 5 in Modular UG or PG Cert Course | |||||||||
| MQF LEVEL | Not Applicable | |||||||||
| ECTS CREDITS | 4 | |||||||||
| DEPARTMENT | Economics | |||||||||
| DESCRIPTION | This study-unit will be taught by a series of lectures and discussion seminars. The unit will introduce students to the main trends and developments in international and wholesale markets. Against this background the module will examine some of the main techniques used by banks to finance large and international companies. The following topics will be discussed during lectures: Session 1 - Origins of Modern International Banking Session 2 - Trends in Banking Session 3 - The Banking Crisis Session 4 - Disintermediation in Wholesale Finance Session 5 - Syndicated Lending Session 6 - Syndicated Lending Session 7 - Eurocurrency Facilities Session 8 - Eurobond Market Session 9 - Interest Rate and Currency Swap Market Session 10 - Revision Session Study-unit Aims: To examine the important practical and strategic issues in international and corporate wholesale markets within the current legal and institutional framework; and to develop relevant transferable skills. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Analyse the fundamental market developments and product innovations that have taken place in the international corporate and wholesale markets. - Compare and contrast the relative advantages associated with a number of important private placement mechanisms and vanilla products. - Evaluate alternative methods of raising finance on capital and financial markets. - Identify some of the legal and practical issues relating to the vanilla products in the wholesale markets. 2. Skills: By the end of the study-unit the student will be able to: - Record and summarise developments in the World’s private and capital and financial markets. - Prepare written responses to questions on market developments, vanilla products and wholesale finance. - Use appropriate normative and analytical approaches to explain and substantiate arguments. - Make effective written communication in an academic style. - Analyse and use qualitative and quantitative data to substantiate written and oral discussion Main Text/s and any supplementary readings: Recommended Text Book Valdez, S and Molyneux, P, An Introduction to Global Financial Markets, Macmillan Business, 6th Edition, 2010. Session 1 - Buckle, M and Thompson, J L, The United Kingdom Financial System in Transition, Manchester, 1992, Chapter 4. - Duffey, G and Giddy, I, “The International Money Market”, Prentice-Hall, 1978. - Eiteman, D K, “International Capital Markets”, in International Banking: Principles and Practice, N Roussakis (Ed), Praeger, 1983. - Heffernan, S, Modern Banking in Theory and Practice, Wiley, 1996, Chapter 2. - Howcroft, J B, “The Dynamics of Responsibility and Risk in Corporate and Wholesale Finance”, LUBC Research Paper No 116/97, 1997. - Lewis, M K and Davis, K T, Domestic and International Banking, Philip Allan, 1987, Chapter 10. - Llewellyn, D T, “Modelling International Banking Flows: An Analytical Framework”, in Problems of International Finance, J Black and G Dorrance (Eds.), Macmillan. - Madura, J, International Financial Management, 2nd Edition, 1989. - “Transnational Banks and the International Debt Crisis”, United Nations Centre on Transnational Corporations, United Nations, New York, 1991. - Valdez, S and Molyneux, P, An Introduction to Global Financial Markets, Macmillan Business, 6th Edition, 2010, Chapters 1, 2, 6. Session 2 - Matthews, K. and Thompson, J., The Economics of Banking, Wiley, 2005, Chapter 1 - Valdez, S and Molyneux, P, An Introduction to Global Financial Markets, Macmillan, 6th Edition, 2010, Chapters 16. - Benston, G.J. Universal Banking, Journal of Economic Perspectives Vol 8, No, 3, pp121-143. - Boyd, J. and Gertler, M. Are Banks Dead? Or are the reports greatly exaggerated? Federal Reserve Bank of Minneapolis Quarterly Review, summer, 1994 Session 3 - Valdez, S and Molyneux, P, An Introduction to Global Financial Markets, Macmillan, 6th Edition, 2010, Chapters 9 and 16. - Turner Review: A Regulatory Response to the Global Banking Crisis, FSA, March 2009. - Buckley, A, Financial Crisis, Causes Context and Consequences, Prentice Hall, 2011, Chapter 1 and 4 Session 4 - Bank for International Settlements, 79th Annual Report, 1 April 2008 – 31st March 2009, Basel, June 2009. - Gardener, E P M, “1992 and the Future of Securitisation in Western Europe”, Institute of European Finance RP 89/23, 1989. - Heffernan, S, Modern Banking in Theory and Practice, Wiley, 1996, Chapter 1. - Henderson, J, Securitisation, Woodhead-Faulkner, 1988, Chapter 1. - Howcroft, J. B., Ul-haq, R. and Hammerton, R., “Bank Regulation and the Process of Internationalisation: A Study of Japanese Bank Entry into London”, Service Industries Journal, Vol.30, Nos. 7-8, 2010, pp.1359-1375. - Kasi, V, “The Impact of Securitisation on UK Bank Corporate Lending”, Institute of European Finance RP 90/19, 1990. - Llewellyn, D T, “The Future of Banking: Is Banking a Declining Industry?”, LUBC Research Paper No 84/94, 1994. - Valdez, S and Molyneux, P, An Introduction to Global Financial Markets, Macmillan, 6th Edition, 2010, Chapters 6. - Walmsley, J, New Financial Instruments, Wiley, 2nd Edition, 1998, Chapter 8. Sessions 5 and 6 - Altunbas, Y., Gadanecz, B. and Kara, A., “The Evolution of Syndicated Loans Markets”, The Service Industries Journal, Vol. 26, No.6, 2006, pp.689-707. - Bond, I D, The Syndicated Credits Market, Bank of England, 1985. - Donaldson, T H, Lending in International Commercial Banking, Macmillan, 1981, pp 39-42. - Garner, J, “What Price Credit Worthiness”, Chartered Banker, Chartered Institute of Bankers, February, 1997. - Howcroft, J B, “International Syndicated Lending: Some Practical and Legal Issues”, Accounting and Business Review, Vol. 5, No 1, 1998, pp 123-140. - Howcroft, J B and Solomon, C, “Syndicated Lending by Banks”, Bangor Occasional Paper in Economics, University of Wales Press, 1985. - Penn, G A, Shea, A M and Arora, A, The Law and Practice of International Banking, Sweet and Maxwell, 1987, Chapter 7. - Valdez, S and Molyneux, P, An Introduction to Global Financial Markets, Macmillan, 6th Edition, 2010, Chapters 4 and 6. - Wood, P. Law and Practice of International Finance, Sweet and Maxwell, 1980, various chapters. Session 7 - Buckle, M and Thompson, J L, The United Kingdom Financial System in Transition, Manchester, 1992, Chapter 12. - Certificates of Deposit on the London Market – Market Guidelines, British Bankers Association, London, 1996. - Gardener, E P M, “Securitisation and the Banking Firm”, Institute of European Finance RP 86/15, 1986. - Howcroft, J B, “The Dynamics of Change Innovation and Risk in Corporate and Wholesale Finance, European Journal of Innovation Management, Vol1, No 2, 1998, pp 85-93. - Lewis, M K and Davis, K T, Domestic and International Banking, Philip Allan, 1987. - London Market Guidelines – Commercial Paper, British Bankers Association, London, 2000. - Mitchell, C (Ed), The Sterling Commercial Paper Market, Woodhead Faulkner, 1988. - Penn, G A, Shea, A M and Arora, A, The Law and Practice of International Banking, Sweet and Maxwell, 1987, Chapter 10. - Recent Innovations in International Banking, Banking Information Service, April, 1986. - Walmsley, J, New Financial Instruments, Wiley, 2nd Edition, 1998, Chapter 8. - Watson, A and Altringham, R, Treasury Management: International Banking Operations, Chartered Institute of Bankers, 1986, Chapter 12. - Valdez, S and Molyneux, P, An Introduction to Global Financial Markets, Macmillan, 6th Edition, 2010, Chapter 6. Session 8 - Buckle, M and Thompson, J L,The United Kingdom Financial System in Transition, Manchester, 1992, Chapter 12. - Gallant, P, The Eurobond Market, Woodhead Faulkner, 1988. - Geisst, C R, A Guide to the Financial Markets, Macmillan, 2nd Edition, 1989, Chapter 3. - International Capital Markets, Euromoney Publications, 1984. - Kerr, I A, A History of the Eurobond Market - The First 21 Years, Euromoney Publications, 1984. - Maude, D, “Eurobond Primary and Secondary Marketing”, in Investment Banking, E P M Gardener and P Molyneux (Eds.), Euromoney Publications, 1996, Chapter 13. - Recent Innovations in International Banking, Banking Information Service, April, 1986. - Saltzgiver Wright, S, Getting Started in Bonds, Wiley, 1999, Chapters 10, 11, 12 and 14. - Solnik, B, International Investments, Addison Wesley, 3rd Edition, 1996, Chapter 9. - Valdez, S and Molyneux, P, An Introduction to Global Financial Markets, Macmillan, 6th Edition, 2010, Chapter 6. - Walmsley, J, New Financial Instruments, Wiley, 2nd Edition, 1998, Chapters 2 and 9. - Watson, A and Altringham, R, Treasury Management: International Banking Operations, Chartered Institute of Bankers, 1986, Chapters 24 and 25. Session 9 - Arnold, G, “Risk Management Using Financial Derivatives, in Investment Banking, E P M Gardener and P Molyneux (Eds.), Euromoney Publications, 1996, Chapter 18. - Arnold, T S, “How to Do Interest Rate Swaps”, Harvard Business Review, September/October, 1984. - Gossage, J and Goode, T, Swaps, Woodhead-Faulkner, 1988. - Grumball, C, Managing Interest Rate Risk, Woodhead-Faulkner, 1987. - Hempel, G H and Simonson, D G, Bank Management: Text and Cases, 5th Edition, Wiley, 1999. - Howcroft, J B and Storey, C, Management and Control and Interest Rate Risk, Woodhead-Faulkner, 1989. - Inside the Swap Market: The Practical Implications of a Major Financing Technique, IFR Publishing Ltd, 1988. - “New Moves in Swaps”, Supplement to Euromoney, July, 1987. - Penn, G A, Shea, A M and Arora, A, The Law and Practice of International Banking, Sweet and Maxwell, 1987. - Redhead, K and Hughes, S, Financial Risk Management, Gower, 1988. - Solnik, B, International Investments, Addison Wesley, 3rd Edition, 1996, Chapter 11. - “The International Swap Market”, Supplement to Euromoney, September, 1985. - Valdez, S and Molyneux, P, An Introduction to Global Financial Markets, Macmillan, 6th Edition, 2010, Chapter 14. - Walmsley, J, New Financial Instruments, Wiley, 2nd Edition, 1998, Chapter 5. - Watson, A and Altringham, R, Treasury Management: International Banking Operations, Chartered Institute of Bankers, 1986, Chapter 19. Session 10 Revision Essential Reading Bank of England Quarterly Bulletin The Banker Euromoney Investors Chronicle Financial Times |
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| STUDY-UNIT TYPE | Lecture | |||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Charmaine Portelli |
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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. |
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