Investment and Financial Risk Management MSc

15 credits

This module will help you develop a broad understanding of the nature of derivative securities and how they are used by banks and other financial institutions. Initially you will learn about derivative securities; you will then look at the valuation methods available and the mathematics behind derivatives valuation. You will look at numerical schemes such as the binomial lattice to value derivative securities, and focus on market calibration of alternative derivative models and how these models can be fitted to observed derivative prices. The module finishes by focussing on risk management in terms of market risk and credit risk.

15 credits

This module focuses on the issues involved in managing a fixed income portfolio. It gives you a broad understanding of the nature of fixed income securities and how they can be used by banks and other financial institutions. You will start by examining fixed income securities markets, then move on to look at the valuation and pricing methods available and the mathematics behind them. You will also cover term structure analysis and the use of derivative instruments in bond portfolio management.

30 credits

This module will be especially useful for students interested in careers in the corporate or financial services sectors, as well as those interested in working as financial advisers, consultants or analysts. It will teach you about a unique combination of major contemporary theoretical and empirical developments in corporate finance, and the analysis and valuation of companies from both an accounting and financial perspective. The corporate finance section will help develop your critical knowledge and understanding of the core theories and concepts in the field of corporate finance. It aims to develop your ability to apply this knowledge and understanding in real corporate cases. The financial statement analysis section will develop your critical knowledge and understanding of accounting principles, and enable you to analyse financial statements and reports using financial ratios and other metrics. You will assess corporate profitability and financial stability, and learn to critically evaluate the corporate reporting choices.

30 credits

The Financial Modelling and Research Methods module is a core module for the postgraduate modular finance scheme. The module has two parts. The first part provides an underpinning and understanding of numerical techniques used in the business and finance world to aid strategic decision making. It aims to provide students with the accounting, mathematical and statistical foundations that are necessary in the areas of accounting and finance. The second parts deals with an understanding of research methodology and the research methods and skills that the students will need to complete their research project successfully during the summer period.

30 credits

During this module, you will gain a thorough understanding of modern portfolio theory and its implications for asset pricing, asset management, and investment decisions associated with risk management. The main topics covered include:

• portfolio diversification;
• optimal portfolio construction;
• expected utility theory;
• capital asset pricing model;
• arbitrage pricing theory with application;
• the formulation and implementation of various active and passive investment strategies; and
• the analysis and management of risks associated with particular strategies.

This module also looks at the different types of investment banks and the strategies they employ. You will cover:

• investment banks;
• private equity investment - types and techniques;
• debt and equity underwriting by investment banks;
• trading techniques;
• mergers and acquisitions;
• securitisation;
• hedge funds;
• mutual funds and other funds; and
• wealth management, and clearance and settlement.

You will construct and manage investment portfolios for a specific period and present the results. You will use the dedicated Bloomberg Trading Room and software packages to develop your practical experience of industry standard systems and use real, live data.

30 credits

This module will begin in Semester two, and is completed over the summer. It is an independent research project that you will work on with the supervision of an academic staff member with expertise in your chosen area. To complete this module, you will need to identify an issue to investigate, analyse the issue and structure your approach. You will need to:

• examine relevant source material;
• carry out your own research (including collecting an analysing original data, or analysing existing data in an original way); and
• produce an action-oriented report based on your findings.

120 credits

The Professional Placement module is a core module for those students following a Master's programme that incorporates an extended professional placement that follows completion of the first 180 credits of taught modules and project or dissertation. It provides students with the opportunity to apply their knowledge and skills in an appropriate working environment, and to develop and enhance key employability skills and subject specific skills in their chosen subject.

It is the responsibility of individual students to locate and secure a suitable placement opportunity; this will normally involve one placement which must be completed over a minimum period of 10 months and within a maximum of 12 months. The placement must be approved by the module leader prior to commencement to ensure its suitability.