Topics related to capital markets, with emphasis on the financial crisis of 2007–2008. The design, pricing, and trading of corporate bonds, credit derivatives, and money market instruments; bond restructuring, bond ratings, and financial crises; basic tools used to address such issues, including fixed income mathematics, binomial option pricing, and swaps.
Prerequisites: intermediate microeconomics and econometrics.
Note: Econ 360a “Capital Markets” is cross-listed with SOM MGT 947a and have spots for only five undergraduates.
[Also MGT 947a]