Master of Science in Finance & Investments (MScFI)

Master of Science in Finance & Investments (MScFI) Electives Info Session Prof.dr. Mathijs A. van Dijk Academic Director MScFI November 15, 2017

Outline of this presentation MScFI update By me Elective registration procedure By Anna de Waard-Leung, MSc Programme Management Presentation of select electives + Q&A By various instructors

MScFI Career Panel & Alumni Event 1. Follow your interests 2. Do an internship 3. Reach out to alumni and others

Your feedback on MScFI so far Overall, positive Investments Quality of the workshops Corporate Finance Workload Connection of cases to lectures Number of articles Workshops

Redesigning the MScFI Preliminary plans: One- or two-week introduction with guest speakers Three core course spread over two blocks Financial analytics becomes core More cases in core Have assistant professors instead of PhD students teach in core Streamlining electives?

MScFI curriculum: Electives Block Elective (6 ECTS) 3 Portfolio Management Derivatives Banking and Financial Intermediation Mergers and Acquisitions (offered twice in block 3) Advanced Business Analysis and Valuation Financial Modeling (also offered in block 5) Sustainable Finance 4 Treasury Management Advanced Valuation & Value Creation (offered twice in block 4) Real Estate Finance & Economics Household Finance Quantitative Methods for Finance Behavioral Finance Corporate Governance 5 Trading & Exchanges Financial Modeling (also offered in block 3) Entrepreneurial Finance & Private Equity (offered twice in block 5) Fixed Income Markets and its Applications FinTech Financial Distress and Corporate Restructuring Financial Analytics Choice of 3 MScFI electives (one per block) or 2 MScFI electives plus 1 elective from another RSM MSc Programme (in any block)

MSC ELECTIVE REGISTRATION ANNA DE WAARD-LEUNG MSC PROGRAMME MANAGER

ELECTIVE REGISTRATION 1. Elective registration rounds 2. Switch weeks 3. FAQ 4. Questions?

ELECTIVE REGISTRATION ROUNDS Two rounds of elective registrations: Round 1: Friday 24 Nov Monday 27 Nov Round 2: Monday 11 Dec Wednesday 13 Dec Round 1: Goal: 2 programme electives Procedure: rank all programme electives across all blocks Round 2: Goal: 1 programme elective or free elective Procedure: rank 15 electives for the remaining block Previous cohort student: >1 electives left Round 1 1 elective left Round 2 Rule: One elective per block.

ELECTIVE REGISTRATION ROUNDS myeur.nl > SIN-Online > My Registrations

ELECTIVE REGISTRATION ROUNDS

SWITCH WEEKS What is a switch week? Overview of switch weeks 22 December 2017 2 January 2018 15-21 January 2018 5 11 March 2018 23 29 April 2018 Rules: 1 elective per block At least 2 programme electives

FAQ Current Master Students (http://www.rsm.nl/current-students/msc/) > Elective Registration

QUESTIONS? Anna de Waard-Leung MSc Programme Manager msc.fi@rsm.nl

Bernard Madoff s Ponzi scheme Amount missing was almost $65 billion. Actual losses to investors of $18 billion. On June 29, 2009, Madoff was sentenced to 150 years in prison, the maximum allowed. 2

Corporate governance: F Urzúa I. How do financiers make sure that they get an adequate return on their investments? How do they convince managers to return part of the profits? Why don t managers abscond with the money? Topics: Boards of directors, executive compensation, ownership structures, etc. Course is 50/50 split between theory/applications Each class we have case discussions Invited speakers from government and financial industry 3

MSc FINANCE & INVESTMENTS DERIVATIVES: COURSE INFORMATION DR. MATHIJS COSEMANS

2 Nobel Prize in Economics for Derivatives Pricing

3 Derivatives Markets are Huge!

4 Derivatives: Misunderstood Monsters?

Course Objectives and Prerequisites Course objectives: 1) Understand main features and uses of derivatives instruments 2) Understand derivatives pricing (forwards, futures, options) 3) Improve your problem solving and logical thinking skills Course setup: 4 Theory meetings and 1 Guest lecture 3 Applied meetings (problem sets + case study) Focus is on deep analytical understanding and creativity, not on memorizing formulas and replicating exercises Course prerequisites: Solid background in investments and quantitative methods You like playing with equations and solving math puzzles Challenging course that requires strong analytical skills! 5

BMME116 Financial Analytics Mancy Luo Rotterdam School of Management, Erasmus University November 15 th, 2017

Structured Data

Structured Data Unstructured Data

Structured Data Unstructured Data Tools

Structured Data Unstructured Data

1. This is not a programming course.

1. This is not a programming course. However, learning ability is required.

1. This is not a programming course. However, learning ability is required. 2. This is an empirical course. However, basic knowledge of econometrics and statistics and econometrics is required.

Why does financial distress matter? More insolvencies (of large firms) during last 15 years Capital structure decisions of (healthy) firms Customers Suppliers Investors

Financial Distress and Corporate Restructuring Learning goals Become familiar with the legal framework of bankruptcy procedures Know the firm managements options to resolve financial distress Understand the implications of financial distress for capital structure choices Apply financial distress prediction models Features Discussion of scientific articles HBS case-studies In-class simulation of a bankruptcy negotiation Prerequisites Corporate finance theory Ability to interpret regression results

MSc FINANCE & INVESTMENTS FINTECH

2 The future of finance is called FinTech

Course contents Crowdfunding / peer-to-peer lending Cryptocurrencies / ICOs Blockchain Payment systems InsureTech Regulating technology (e.g.payment Service Directive 2) Teaching methods: combination of academic literature, industry & policy reports, cases, assignments, guest lectures 3

Fixed Income and its Applications Why Fixed Income? Today, the world s fixed income markets are valued at nearly $87 trillion! Largest part of capital markets: bonds, loans and much more Associated with major financial risks Fixed income derivatives help managing these risks (swaps, ) Essential for bankers, regulators, and managers at pension funds, mutual funds, hedge funds, and other investment companies

Fixed Income and its Applications This course is about Discovering the world of fixed income instruments: basics on valuation and interest rate risk management Expect mathematics but no financial engineering! Assessing the place and role of FI instruments in the global economy Academic evidence on securitization and the 2008 crisis, on the term structure, on the market for corporate debt, etc. Getting insights into practice during a guest lecture

Household Finance What is this course about? We will survey what households actually do and compare it with our body of knowledge about what they should do The main theme is household wealth management Household preferences and risk attitudes; their portfolio decisions; investment mistakes; role of financial literacy and behavioral biases; challenges in the retail finance industry; etc. Learning objectives / Career focus Students who aim to understand opportunities in retail finance industry, and who may want to work for or with retail finance companies, invest in them, consult to them, or regulate them are encouraged to take this course

Behavioral Finance What is this course about? We will survey how investors and managers make financial decisions, and discuss whether (and how) their behavior may deviate from the behavior predicted by the standard economic theory We will discuss the nature of those deviations, their potential reasons using insights from psychology, and further examine their implications for asset prices, investor behavior, and corporate decision making Learning objectives / Career focus Students will gain both an overview of the general topics in behavioral finance and an understanding of how insights from behavioral finance can help to complement the traditional finance paradigm

Portfolio Management Egemen Genc Rotterdam School of Management Erasmus University egenc@rsm.nl

Portfolio Management The art of selecting the right investment policy for the investors in terms of minimum risk and maximum return Objectives: Understanding both fundamental and cutting-edge portfolio theories Apply these theories to solve portfolio management problems. Course Plan: First part Technical details in portfolio constructions : Mean-variance optimization, portfolio construction models such as Treynor-Black, Black- Litterman Based on lectures/the use of financial data and requires quantitative background Second part The performance of professionally managed active portfolios (i.e. mutual funds) vs. passive investing, and the strategies to exploit apparent violations of market efficiency. Case studies, academic papers

Why these courses? Career opportunities: Because that is where the money is Willy Sutton Top 400 Asset Managers 2015: Global assets top 50trn More than 50 employers in the Netherlands (DUFAS, 2015) 30% of top 20 employers of RSM graduates is asset management firms Personal investment requires a fundamental knowledge of portfolio management: Saving for your kids Saving for your retirement

(Office dr. Hoyong Choi)

Real estate finance and investment Master Elective Finance and Investment 2017-2018 Dr. Peter Neuteboom

Why study real estate IMPORTANCE of real estate : IMPORTANCE of real estate for society, industries, firms and individuals, Studying sophisticated* asset market and underlying space markets, ranging from offices, shopping, housing to hospitals and prisons. Career opportunities are (nowadays) great! 2/3 of national wealth is real estate; 15-25 percent of GDP stems from real estate activities (Roosevelt, Piketty). Can also be a burden: financial crisis of 2008. Industry e.g. raw materials, construction, to banking and exploitation - employs nearly 20 percent of the labor force (Oliver and Wyman). Simply look at the balance sheets of a typical firm were 40 percent of the book value constitute of real estate (nelson et al.) Housing is both the largest expenditure of a household as well as heavily over weighted in the household portfolio.

What is the course all about COURSE TOPICS : COURSE TOPICS include valuation, market analysis and financing of real estate (development). The course provides a theoretical framework to study these topics combined with empirical facts. Guest lectures, property visit will introduce actual practices of agents in real estate markets (which is nit that far away from the academic view. Real estate investment opportunities Valuation, including an application of net present value method to real estate, statistical approaches and the practitioners approach (CBRE, PGGM) Preceded by an real estate market analysis, including working with big data (OVG) Real estate finance, i.e. the role of debt in various stages of the real estate cycle (Kempen & co)

Sustainable Finance What is the course about Climate Change Science and Policies Markets for Carbon Allowances Financing Sustainable Start-ups Financing Large-scale Green Investments Sustainable Investing Strategies Active Ownership Not Only Climate: What ESG Stands For What you should expect No textbook. (Many) policy and academic papers I will assume good familiarity with corporate finance, asset pricing and portfolio theory How you will be assessed (25%) Group homework on a crowdfunding campaign for a sustainable venture (incl. video) (25%) Group homework on crafting a Sustainable Investing product (50%) Final written exam

Treasury Management What is the course about The CFO Job: Strategy and Tactics Working Capital Management Multinational Financial Management Tactical Financing: Leases and Hybrids Equity Transactions Dividends, Repurchases and Cash Management Risk Management What you should expect Textbook + some practitioners papers I will assume good familiarity with corporate finance, asset pricing and derivatives How you will be assessed (30%) Group homework on a case study (70%) Final written exam

Why this course? Trading and Exchanges Trading venues are major economic players The organization of trading venues and trading processes have impact on: Capital raising, cost of capital payed by companies Investment decisions in the short and in the long run The stability of financial markets Essential for traders, broker/dealers, managers at exchanges or listed companies, asset managers and regulators

Trading and Exchanges This course is about How trading processes and the organization of financial markets determine trading decisions and price dynamics Detailed overview of the current state of trading venues Theoretical foundations (quantitative!) and empirical findings In-depth analysis of current topic on technology and finance (including student presentations) Insights into practice during 2 guest lectures Regulators (AFM) High frequency trader