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MBA 703, Financial Markets
Syllabus, Fall 2014

Prof. Alexander Philipov
Enterprise 227
(703) 993-9762
email: aphilipo@gmu.edu
http://mason.gmu.edu/~aphilipo

Last modified: September 30, 2014 at 07:52:41 PM *


Online access to this syllabus: http://somfin.gmu.edu/courses/mba703/

Outline

  1. Class meetings
  2. Course Description
  3. Reading materials
  4. Exams and Grading
  5. Make-up exams
  6. Honor Code
  7. Grading
  8. Class schedule

Meeting Schedule

Class meetings and locations
Part of term CRN Subj Crse Sec Title Days & Time Date (MM/DD) Location Office Hours
Module 1 (B1) 73934 MBA 703 001 Financial Markets T 6:30pm - 10:05pm 08/18-10/25 ENT 173 TR 2-3pm
Module 2 (B2) 77984 MBA 703 002 Financial Markets M 6:30pm - 10:05pm 10/29-01/24 Arlington: Founders Hall 466 TR 2-3pm

Course Description and Objectives

This course explores the workings of today's financial markets and institutions. It reviews interest rate relationships, money markets, corporate and government bond markets, and mortgage markets. It then proceeds with a detailed review of the central banking system, financial regulation, and focuses on the regulation of banking. Of special interest are also the recent financial crisis and the ensuing changes in financial regulation. These issues are presented within a unified framework intended to encourage critical thinking and problem-solving skills in students.

Prerequisites

Completion of MBA core requirements, or permission of instructor.

Reading and other class materials

  1. The textbook for the class is:
    A course pack based on Anthony Saunders and Marcia Cornett, 2011, Financial Markets and Institutions , 5th ed., (McGraw-Hill/Irwin). The course pack includes the subset of chapters that will be covered. It is only available to our class at the Mason bookstore. Its ISBN number is: 9781308149066.
  2. Lecture notes, practice problems, and extra materials will be posted on Blackboard and my web site.
  3. Book: Paulson, Hank, 2013. "On the Brink". The book is required reading and one assignment will be based on it.
  4. We will be using the online resource 'McGraw-Hill Connect'. If you opt for the basic Connect package, you will have access to the online problem sets and online exam. You can choose additional options with Connect which give you access to the electronic version of the textbook.
  5. We will be using Bloomberg extensively in the class. You can learn how to setup an account and about the Mason Bloomberg terminals here: http://somfin.gmu.edu/courses/mba703/starting_with_bloomberg.html
Other supplementary materials for the class include:
Purposes and Functions of the Federal Reserve System
Inside the Meltdown
Report of the national fiscal commission (Bowles-Simpson report)
Senate hearing on Goldman Sachs
American Finance Association Panel on the Financial Crisis
Roll, 2011, The Possible Misdiagnosis of A Crisis
The ABACUS Deal
SEC vs. GS complaint

Ben Bernanke Lecture Series at GWU:
Lecture 1 video      Lecture 1 slides
Lecture 2 video      Lecture 2 slides
Lecture 3 video      Lecture 3 slides
Lecture 4 video      Lecture 4 slides


NEW


CRS Report R41398: Dodd-Frank and Derivatives
CRS Report R42083: Dodd-Frank and the Financial Stability Oversight Council
CRS Report R42150: Dodd-Frank and Too-Big-To-Fail
CRS Report R43262: Dodd-Frank and the Pay Ratio (Executive Compensation)
CRS Report R42545: Systemic Risk


U.S. Banks Bigger than Ever (posted Wed 10 Sep 2014 02:20:50 PM EDT)

Exams and Grading
The final grade will be based on a set of problem sets, two written assignments, a final exam, and class participation. Assignments, problem sets, and the final exam will contribute 30% toward the final score each. Class participation will carry 10%.
Grade Allocation
Type Weight
Assignments 40%
Final exam 20%
Problem sets30%
Class participation   10%
The final grade will be based on all the points earned for the course. There will be a total of 1000 points. All exam questions will be 10 points each. A total of 20 exam questions will carry 200 points. Assignments 1 and 2 will be 100 points. Assignment 3 will be on the book by Paulson and will carry 200 points. Both assignments will generally require that students write and present a summary and/or critique of the assigned material/book.

Make-up exam policy

There will be no make-up exams.

Honor Code

By registering for this class, students agree to abide by the honor code, which describes the standards of conduct, academic violations, and the treatment of academic offenses. The Honor Code states that all students "pledge not to cheat, plagiarize, steal, or lie in matters related to academic work." Visit http://academicintegrity.gmu.edu/honorcode/ to read more about the GMU academic integrity code. School of Business Honor Code guidelines are posted at the end of this syllabus.


Class Schedule
Week Date Topic CH. PROBLEM SETS
1 08/19 Determinants of interest rates
Interest rates and security valuation
US Public debt crisis
Bowles-Simpson report
2&3
CRS on Greek Debt
CRS on US Euro Debt
End of chapter problems
All end of chapter problems
2 08/26 The Federal Reserve System
PS1 due (Blackboard/Connect)
4
3 09/02 Federal Reserve, (cont'd)
PS2 due (Blackboard/Connect)
4
4 09/09 Assignment 1 due (see Blackboard)
Money Markets
5 All end of chapter problems
5 09/16 Bond markets
PS3 due (Blackboard/Connect)
6
In class problems
All end of chapter problems
6 09/23 Mortgage markets
PS4 due (Blackboard/Connect)
Duration file (Excel)
7 In class problems
All end of chapter 7 problems
7 09/30 Ch. 12 Commercial Banks
PS5 due (Blackboard/Connect)
12 In-class problems
All end of chapter 12 problems
8 10/07 Regulation of Commercial Banks

PS6 due (Blackboard/Connect)
13 In-class problems
All end of chapter 13 problems
9 10/14 No class, Monday classes meet 13
10 10/21
Regulation of commercial banks, Reserve requirements
Appendix 13C&D
Assignment 2 due (see Blackboard)
Assignment 3 Due (see BB)
Financial Reform Bill Summary
Bank consolidation graph
Roll, 2011, The Possible Misdiagnosis of A Crisis
Sovereign risk in bank regulation and supervision: Where do we stand?"

Final exam practice problems
Online, TBA
FINAL EXAM (20 questions)

Honor Code



* This syllabus is subject to change to best fit the needs of the class.