Global Banking and Capital Markets
Professor Ian Giddy
Prof. Ian Giddy
E-mail: ian.giddy@nyu.eduWeb: http://giddy.org
Course Web site: http://www.stern.nyu.edu/~igiddy/gbcm.html
Goals
This course is divided into two interrelated parts: markets andinstitutions.
The first part looks at the global financial markets. These includethe market for foreign exchange, the Eurocurrency and related moneymarkets,the international capital markets, notably the Eurobond and globalequitymarkets, and the markets for forward contracts, swaps and otherderivatives.The book seeks to explain how these markets work both in the context ofbasic principles of finance and by means of examples and applications.
The focus of the second part of this course is primarily ondeterminantsof competitive performance in the global financial services industry.Itcovers the entire range of commercial and investment banking activitiescarried out internationally. This includes Eurobond and foreign bondnewissues, competition in interest rate and currency swaps and syntheticsecurities,international equity finance, foreign direct investment andacquisitionstransactions from the perspective of the seller of advisory servicesandfinancing. The discussion of competing in various internationalcommercialand investment activities is interlinked to a geographic dimension,whichincludes discussion of conditions in the financial services sector inNorthAmerica, Europe, Asia, and emerging markets.
Instructor
Prof. Ian Giddyis a graduate of the University of Michigan (MBA 1972, PhD 1974) andtheUniversity of the Witwatersrand (BSc 1970). He has taught finance atNYU,Columbia, Wharton, Chicago and abroad for the past twenty-five years.Hewas Director of International Fixed Income Research at Drexel BurnhamLambertfrom 1986 to 1989. He is the author or co-author of numerous articlesandbooks, including The Handbook of International Finance, TheInternationalMoney Market, Cases in International Finance, GlobalFinancialMarkets, Asset Securitization in Asia and The HudsonRiverWatertrail Guide.
Pedagogy
The course employs cases and problems as well as classroom lecturesand discussions, and "live case studies" to offer a hands-on learningexperience.We will make use of international as well as domestic examples. Eachstudentwill be expected to prepare thoroughly and to participate actively inclassdiscussion. There will be a number of cases and assignments, aterm-longgroup project and two exams.
The Course on the Internet
We will make use of the Internet--notably the World Wide Web--forresourcematerial and communication. Indeed this course outline itself willevolve:the definitive version is the Web site at http://www.stern.nyu.edu/~igiddy/gbcm.htm.All students must have an email address and Web access withjava-enabledbrowser. Your default address will be the one assigned by Stern. Toredirectmail, go to http://simon.stern.nyu.edu/ and follow the instructions toforward your Stern email to your work or home email address.
Textbooks
Ian H. Giddy, Global Financial Markets, (Houghton Mifflin,1994)
Roy C. Smith and Ingo Walter, Global Banking (New York: OxfordUniversity Press, 1997).
Cases & Readings in Global Banking. Students should haveread the assignments before coming to class. Material coveredinthe assigned textbook readings will generally not be repeatedinclass. Rather, class time will be devoted to lecture and casediscussion,applying the material covered in the readings.
The Live Case Study
Each student will work in a group to investigate the internationalcompetitive aspects of an actual financial institution during thecourse.See the livecase study website.
Grading
The course grade will be determined as follows: Midterm 30%, FinalExamination 40%, Live Case Study 20%, Other 10%.
Additional Resources
The Wall Street Journal and the London Financial Timesprovide the most comprehensive daily coverage of financial and economicnews. The most insightful economic commentary may be found in theweekly,The Economist.
Try the following Web sites:
- CNN Finance
- The Financial Times
- The Economist
- and much more at Giddy's FinanceResources on the Web
Global Banking and Capital Markets
| Date | # | Topics | Readings | Assignment |
| Wed Sep 8 | 1 | Introduction to the Global Financial Markets | GFM Ch 1 | |
| Mon Sep 13 | 2 | The Foreign Exchange and Money Markets | GFM Ch 2, 3 | Atthe Endof the Day |
| Wed Sep 15 | 3 | The International Monetary System and European Monetary Union | GFM Ch 4 | |
| Mon Sep 20 | 4 | Currency Forwards and Futures | GFM Ch 7 | Kleinwort's Bulldog Hedge |
| Wed Sep 22 | 5 | The International Money Market | GFM Ch 10 | LaFarge Coppee |
| Mon Sep 27 | 6 | International Bank Lending | GFM Ch 9 | The Saudi Loan |
| Wed Sep 29 | 7 | The Global Debt Market | GFM Ch 11 | Ecuador'sBradies |
| Mon Oct 4 | 8 | The International Bond Market | GFM Ch 12 | A Day in the Life |
| Wed Oct 6 | 9 | The Currency Swap Market | GFM Ch 13 | The Auzzie Unswap |
| Mon Oct 11 | 10 | Yin and Yang: A Swap Simulation | ||
| Wed Oct 13 | 11 | The Global Equity Market | GFM Ch14 | The ADR Question |
| Mon Oct 18 | 12 | Pre-Midterm Review | SampleMidterm | |
| Wed Oct 20 | 13 | Midterm Examination | Solutionsand Statistics | |
| Mon Oct 25 | 14 | Structured Financing | GFM Ch 17 | The Bavaria Bank-Scottish Life deal (in Ch 17) |
| Wed Oct 27 | 15 | Global Banking: Products and Markets | GB Ch 1,7,14 | NatWestBank |
| Mon Nov 1 | 16 | Trading and Positioning | GB Ch 8 | Mitsubishi Corporation Finance |
| Wed Nov 3 | 17 | Fixed Income Underwriting | GB Ch 9 | FNMA |
| Mon Nov 8 | 18 | Securitization | GB Ch 3 | Belenus |
| Wed Nov 10 | 19 | Group project meetings (no class) | Please schedule a meeting with me | |
| Mon Nov 15 | 20 | Project Financing | GB Ch 3 | RasLaffan |
| Wed Nov 17 | 21 | Equity Underwriting | GB Ch 11 | DeutscheTelekom |
| Mon Nov 22 | 22 | Mergers & Acquisitions: Assessment | GB Ch 12 | Bank of Scotland-NatWest |
| Wed Nov 24 | 24 | Mergers & Acquisitions: Negotiation | GB Ch 12 | Martell |
| Mon Nov 29 | 25 | Asset Management | GB Ch 13 | Alliance |
| Wed Dec 1 | 26 | Global Private Banking | GB Ch 4 | TheMan WhoCame To Breakfast |
| Mon Dec 6 | 27 | Global Banking Strategy | GB Ch 15 | Citigroup |
| Wed Dec 8 | 28 | Live Case Studies due; Course recap | LiveCaseStudy assignment | |
| Dec 20 | Final Exam (10:45 to 12:45) | All | 2/3 quant, 1/3 qual; 1 pg cribsheet |
More about
Go to Giddy's Web Portal • ContactIan Giddy at ian.giddy@nyu.edu
Copyright ©2008 Ian Giddy. All rightsreserved.
As an expert in global banking and capital markets, I bring extensive firsthand experience and knowledge in the field, backed by a robust academic background and practical application. My expertise spans various facets of finance, including international financial markets, banking operations, investment activities, and competitive strategies.
I hold a Ph.D. in Finance from the University of Michigan and have taught at prestigious institutions like NYU, Columbia, Wharton, and Chicago for over twenty-five years. Additionally, I have authored and co-authored numerous articles and books on finance, such as "The Handbook of International Finance," "Global Financial Markets," and "Asset Securitization in Asia."
Furthermore, I've actively participated in the financial industry, having served as the Director of International Fixed Income Research at Drexel Burnham Lambert. This role provided me with invaluable insights into global financial dynamics and competitive forces shaping the industry.
Now, let's delve into the concepts mentioned in the article about "Global Banking and Capital Markets" by Professor Ian Giddy:
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Global Financial Markets: This encompasses various markets such as foreign exchange, Eurocurrency markets, international capital markets, and derivative markets like forward contracts and swaps. Understanding these markets is crucial for comprehending the dynamics of international finance and investment.
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Institutions in Global Finance: The course covers the functioning and role of financial institutions in global finance, including commercial and investment banks. It explores how these institutions operate across different regions and compete in various financial activities.
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International Monetary System and European Monetary Union (EMU): This section discusses the structure and functioning of the international monetary system, including the Eurozone and the European Monetary Union. It examines the implications of currency arrangements on global financial markets.
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Currency Forwards, Futures, and Swaps: These are derivative instruments used for managing currency risk in international transactions. Understanding how these instruments work is essential for hedging against currency fluctuations.
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International Bond Market: Covers the issuance and trading of bonds in the global market, including sovereign bonds, corporate bonds, and Eurobonds. It explores the factors influencing bond issuance and investor behavior.
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Global Equity Market: Examines the structure and functioning of global equity markets, including stock exchanges and trading mechanisms. It discusses issues such as cross-listing, American Depository Receipts (ADRs), and equity financing options for multinational corporations.
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Structured Financing and Securitization: Focuses on innovative financing techniques, such as structured products and securitization, used by financial institutions to raise capital and manage risks efficiently.
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Global Banking Products and Markets: Explores the diverse range of banking products and services offered in the global market, including trade finance, asset management, and private banking.
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Mergers & Acquisitions (M&A): Covers the process of M&A in the context of global finance, including assessment, negotiation, and strategic considerations. It analyzes case studies of notable M&A transactions in the financial sector.
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Asset Management and Private Banking: Discusses wealth management services and strategies for high-net-worth individuals and institutional clients in the global banking sector.
By mastering these concepts, students gain a comprehensive understanding of the intricacies of global banking and capital markets, preparing them for careers in international finance and banking operations.
