Scope of the Course:
This course examines capital markets for the Real Estate firm. Topics include:
Financial Institutions in international context
Risk Analysis (liquidity, interest rate and gap analysis, credit risk analysis)
Securitisation and credit products
Off-balance sheet activities
Risk capital, Risk-Adjusted Return on Capital (RAROC)
Risk of survival, capital adequacy
Information economics in financial intermediation
Agency theory in financial intermediation
The learning objectives for this course are to enable students to understand:
The international context for capital markets in general and the market for Real Estate finance in particular;
The pricing of financial instruments in the capital markets;
The operation of mortgage-backed securities and real estate capital markets;
The securitisation of Real Estate from the perspectives of both debt and equity;
The ways in which the theory of finance combines with the practice of Real Estate capital markets to enable business decisions in increasingly complex and turbulent real estate markets;
Methods used for evaluating Real Estate Investment Trusts;
Methods used for valuing and pricing mortgages, mortgage-backed securities, and derivatives.
See the Course Schedule to find out when this course is offered.
Download a copy of the Course Syllabus .