This course examines the goals, roles, and structure of financial intermediaries and the growth, financial, risk management, and marketing decision problems facing the managers of these institutions. For the most part, the course will take the viewpoint of the managers of the various kinds of financial institutions and concentrate on developing frameworks and solution procedures for the decision problems facing them. The use of derivative securities to hedge financial intermediary and corporate risk will be covered extensively in the second half of the course. The course will consist of a blend of lectures, readings, and case analysis, and it will emphasize the practical application of financial analysis tools and techniques. The descriptive material in the early part of the course, and all the case analysis, will focus on Canadian financial institutions and markets, such that students who expect never to work in Canada may find the course content less pertinent to their careers.
Requirements: This course is restricted to students enrolled in the 3rd or 4th year of their program.
Prerequisites: COMM 121 or COMM 221/621