Capital Markets

Dr. Mihnea Constantinescu

Scope of the Course:

This course examines capital markets for the Real Estate firm. Topics include:

1. Financial Institutions in international context

2. Risk Analysis (liquidity, interest rate and gap analysis, credit risk analysis)

3. Securitisation and credit products

4. Off-balance sheet activities

5. Hedging techniques

6. Risk capital, Risk-Adjusted Return on Capital (RAROC)

7. Risk of survival, capital adequacy

8. Information economics in financial intermediation

9. Agency theory in financial intermediation

10. Credit contracting

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.

Further Information:

See the Course Schedule to find out when this course is offered.

Download a copy of the Course Syllabus .