This course is about evaluating the quality of financial information and using the information to reveal the economics of firms. A significant element in the course is analyzing the financial statements of a major bank. These are core skills for equity and credit analysis, in investments, and investment banking and advisory work. The course is designed for anyone planning a career in which they will have to evaluate or make decisions based on financial data. The course is particularly suitable for financial analysts, bankers, investment bankers, security analysts, institutional investors, and consultants. Students from all programs are welcome as long as they have some accounting background (in addition to the core course).
This course will provide a framework for identifying digital companies and assessing their potential values. It will highlight why digital companies are fundamentally different both operationally as well as financially. Students will analyse opportunities for digital companies as well as discuss the significant risks facing such companies. The course will illustrate the key financial reporting considerations of digital investing, and students will learn where to find key financial reporting disclosures for digital companies and how they vary between types of digital companies. Leading executives and analysts will provide their insights into where the digital space is going.
The course will cover the financial reporting implications of consolidations, joint ventures, leveraged buyouts and recapitalizations, spin-offs, carve-outs, and special purpose entities. The complexity of these issues has resulted in companies pushing the reporting envelope in order to achieve desired financial reporting objectives. We will focus on understanding the link between underlying economic events and the information in financial statements, and on how this link affects our assessment of the firm.
This course covers the main concepts, techniques, instruments and institutions involved in the private equity investment. We present a broad set of deals to gain familiarity with the private equity investment model and the opportunities set. Specific themes include: the structure and strategy of the private equity firm, valuation, financing, deal processing, and harvesting.
The course stresses fundamental analysis to isolate value drivers and focuses on a disciplined approach to security analysis and valuation. It does this through the use of financial statements and the development of an analytical framework for understanding business performance and financial structure. The course shows how to use accounting information to produce a full financial model of the firm and how investors and analysts employ the financial model to appraise and value companies. The course covers several alternative methods of valuation and appraisal.
The focus will be on the valuation of securities that embed credit risk. This includes, but is not limited to, corporate bonds, credit default swaps, credit indices, asset backed securities, emerging hard currency bonds, and capital structure. By the end of the course the students should have a sound understanding of (i) the trading conventions of these securities, (ii) determinants of the returns of the these securities, (iii) the role of fundamental analysis and structural models in identifying mispriced credit securities, and (iv) how risk and transaction costs affect your ability to build a portfolio of credit instruments. In addition to understanding the drivers of returns, risk and trading costs of credit related securities, the students will via 'hands-on' exercises develop investment skills via experiential learning. This course is aimed at individuals looking for a career in active asset management.
This course analyses the relationships between the financial system, central banks and the economy. We will explore the following questions: What purpose does the financial system serve? How are money and credit created in the modern economy? How do banks, central banks and financial markets interact? How have central bank tools and objectives evolved? How should the financial system be regulated? We will make frequent references to current debates among policy-makers and financial market participants.
The objective of this course is to expose business students to applications of machine learning tools in business and finance. The course covers some of the most commonly used machine learning algorithms ranging from ridge and lasso and deep neural network for regression and classification problem to clustering and principal component dimensionality reduction. The course will end with a look at more advanced techniques commonly employed for specific tasks in economics and finance. The approach of the course is profoundly practical. For each algorithm we provide the essential theoretical intuition, most of the focus is on the practical implementation of these learning techniques. We will be using Python. No knowledge of Python is required. Students will work on the Python implementation of the various machine learning techniques to real-world data and applications in the second part of each class.
The aim of the course is to give a balanced evaluation of the opportunities and pitfalls for businesses in the main emerging markets of Russia, Central and Eastern Europe, Latin America, South and East Asia, Middle East, and Africa. A detailed framework will be provided within which to evaluate the risks and gains from doing business in a wide variety of emerging markets, particularly the BRIC (Brazil, Russia, India and China) economies.
This course deals with the international financial environment in a globalised economy. It will provide tools for assessing the impact of economic policy shocks and financial disturbances on financial markets, exchange rates, and capital flows. The course is suitable for anyone seeking further understanding of the international macroeconomy, whose importance the recent crisis has revealed. It will be especially relevant for careers in investment analysis, asset management, hedge funds, capital markets, corporate finance, and the finance/treasury function of corporates. GCMC gives the global macroeconomic context for international financing decisions.
Every country around the world is ageing. Currently 1 in 11 people in the world are over 65, by 2050 it will be 1 in 6. In China, Europe and North America it will be 1 in 4. Further around the world life expectancy is increasing making longer lives a reality raising major issues for how to maintain health, finances and employment. These trends define one of the fastest growing markets of the future. However, it is trend little understood right now by firms and very little studied in business schools.
Digital networks shape our society and businesses by determining:o the information we access, o the people we interact with, o the products and services we access. But: o How do networks form, and what are their properties? o What is the impact of network homophily on how information diffuses and opinion forms? o How can we ``manipulate" digital connections to make our product or idea go viral? o How should we measure financial contagion, or more generally, systemic risk in an interconnected system? o How can we measure segregation in society and what is the effect of segregation on social mobility and inequality? This elective will equip you with the tools to better navigate in the real world where digital networks are more and more pervasive. Content and delivery: Made-to-measure teaching notes, scenario-based simulations & Class experiments.
This is a course in game theory and its application to business strategy. It offers an introduction to a selection of the methods and results of modern game theory. Special emphasis is placed on the practical applications of these tools. Many (if not all) business decisions depend upon the actions taken by others in the marketplace, either at the same time or in the future. Such decisions include optimal pricing rules, supply decisions, innovating, and capacity choices. When making a choice in these settings, a business faces a classic interactive decision-making problem: its best move depends on the likely moves of others. To anticipate these moves it must empathetically "walk in the shoes of others" so that it can assess what they might do.
This course will focus on introducing you to some of the key issues in macroeconomics and international finance. We study and provide an answer to key questions, among many others: What is GDP and what does it really measure? What is the economic meaning of value added? What makes a nation succesful and what are main drivers of growth in the long run? What is money and how does it relate to inflation? The course enables students to be able to recognise and construct logical economic arguments, read macroeconomic reports, and understand when and why the government makes important policy decisions such as a change in the target interest rate or changes in the tax rate. The aim is to provide a set of general skills portable across a range of industries, professions, and countries, which will make it possible to understand the forces that will dominate the domestic and global business environment in the immediate future, as well as over the coming years.
The aim of this course is to provide you with the knowledge of what the major issues affecting the global economy and financial markets are likely to be in the next five years and beyond. Therefore, as well as providing a deeper insight into policy and market issues, the course aims to give you greater experience in applying analytical tools developed during Understanding the International Macroeconomy (or a similar basic macroeconomics course) as well as extending your existing theoretical toolkit. We analyse developments of countries and regions of the world as examples on the basis of which we build the understanding of broad economic issues.
Through in-depth cases and discussion of topical issues, discover the multitude of ways that corporate finance theory can be applied to practical problems, with all the complexities that the real world entails. Cover advanced topics in valuation and financing
In the past, the field of finance developed a successful paradigm based on the assumption that investors and managers are rational and that the market is efficient. Anecdotal evidence and research means we now know that this paradigm is insufficient to describe real financial markets. This course adds institutional, social, cognitive, and emotional biases into an analysis of financial market phenomena
Develop an in-depth understanding of credit risk and credit derivatives, with a focus on modelling and valuation. Understand the balance between developing a conceptual framework and market understanding and insight. Learn about topics including: historical default experience and recovery rates, applications of structural models and default-intensity models of credit risk and credit spread options
Become a sophisticated and informed user of derivative instruments such as futures, swaps and options. Develop a sound understanding of the real-world details of the products and the models used to analyse them, as well as their limitations
Understand this innovative and influential area of corporate finance and private equity activity globally. Assess best practices in the field with reference to case studies, practical examples and lessons learnt. The course draws from The course draws from the experience of senior investment professionals and distressed fund advisors.
The Equity Investment Management course covers Strategic and Tactical asset allocation, Portfolio Optimization, Risk Measurement, Factor models of returns, Active-Passive management, Long-Short investing, Behavioural Finance, Style Analysis and Performance Measurement. It highlights some recent developments and how they are having an impact on all aspects of investment management
Multiple new technologies are finding their way into financial services, including artificial intelligence, machine learning, distributed ledger technology, cryptography, digital identity, SaaS platforms, chatbots, robotic process automation, and augmented reality. This has triggered the opportunity to fundamentally morph the business model of practically every financial services vertical - including payments, deposits & retail banking, lending, capital raising, wealth management, insurance, financial infrastructure, and regulation.
Learn about the hedge fund industry, which has grown rapidly over the last decade and is gaining recognition as an alternative to the traditional mutual fund investment. Examine the reasons for this, the modus operandi of hedge funds, their legal, organisational and operational structures, their risk-return characteristics, their model of aligning the interests of investors and managers and the likelihood of their success in the future
Examine corporate re-organisations, including mergers and acquisitions, re-organisation through workouts and bankruptcy, divisional spin-offs and divestitures, and leveraged buyouts
The Project and Infrastructure Finance course focuses on the application of techniques and principles to structure, value and finance large-scale infrastructure and industrial projects. The course describes the many ways in which project finance techniques can be used to redistribute and mitigate the risks typically found in these complex projects. Students will work through a series of case studies to apply project finance techniques to real-life projects such as Public-Private Partnership (PPP) infrastructure concessions and commodity development opportunities
Students will learn Python coding and will apply the skills in a variety of financial problems, such as devising and evaluating trading strategies, portfolio construction, and risk assessment, among others. Students are expected to have basic level of coding experience in any other language and a good technical background (namely should be familiar with linear regression and basic linear algebra).
Gain the concepts and tools you need to understand real estate markets and manage real estate assets with a focus on value creation. Most of the course will focus on commercial real estate. Topics covered include valuation and investment analysis, financing, economic, legal, political and taxation issues and recent trends and challenges
There are some $90 trillion dollars of professionally managed assets globally. Where does the money come from? Where does it go? What factors shape how it is managed? Together we take a tour of the world of investment management. We look at the investment challenge through the eyes of the principal actors on the global money management stage - and the current trends shaping the industry in which they work. After 5 days you will be better prepared for a career in investment or one in which investors are your clients. Please note: this course is not a masterclass in how to invest; it is a unique look at how and why investors invest the way they do and the investment industry in which they operate. The block week runs dawn to dusk. It features a parade of practitioners. The level of assignments is not particularly difficult - but the pace and continuous participation required is demanding. Do not take this course unless you can devote the entire week to it
Value Investing course is intended to teach students the principle of value investing as developed by Graham and Dodd and as practiced by prominent buy-side investment professionals. Students would be taught fundamentals of long/short equity investing. This would be done through a combination of formal lectures, speaker sessions and in-class discussion on real world ideas. The emphasis would be on real world Investing decisions with a goal to provide students theory and practice of investing and help students develop business acumen and industry experience
This course provides an introduction to an industrial sector of worldwide importance, and one in which there are now many business challenges through market restructuring and the development of low carbon technologies.
This course covers the emerging field of business analytics (BA) or data mining and expands and develops the students' analytical tool kit in analyzing massive data sets. Using case studies and hands-on data sets, students will learn advanced data query techniques, data cleaning and organization, explore various machine learning techniques including supervised and unsupervised classification schemes, text classification, clustering techniques as well as predictive analytics. Students will gain hands-on experience with a variety of software tools, including Tableau and XLMiner.
This is a practical course developed to extend statistical capabilities and critical understanding in the analysis of time series data. The main emphasis will be upon analysing financial and commodity data, mostly high frequency. Although various advanced regression-based methods are reviewed, the course will not be mathematically demanding and students who were comfortable with the pre-programme, or first term, statistics course will be able to move on to this material without difficulty. Students should, however, have an interest in model-based analysis. The course material will be developed intuitively, rather than theoretically, through the exploration of many examples and practical workshops. The course will start with the fundamental basics of time series analysis and lead to a look at recent techniques for algorithmic forecasting and value-at-risk. Two of the later sessions will be led by Dr Peter Bolland, who was formerly head of electronic market making at Morgan Stanley.
There are many books, articles & courses on managing crises. Most focus on the structures, processes that companies can instil within their corporate framework to mitigate the risk & aftermath of a potential crisis. We believe these are important aspects organizations should take into account. However, we also believe it is critical to understand how crises change the dynamic of human decision-making & communication, & the resulting behaviour of individuals who face crises. It is the human factor, on which we focus in this course, that is the single greatest variable & often hardest to manage and control during a crisis. Integrating evidence-based knowledge from marketing, organizational behaviour, & public-policy, this course will focus on three inter-related critical areas of crisis management: decision-making, communication & learning. The course will be interactive, immersing students in a crisis simulation involving actors, real time decisions, & communication to the media.
Why this elective? As described in the school's Elective Portfolio Review (2012), "recruiters are increasingly demanding that students are equipped with a broader set of 'softer' skills which will allow them to be more effective in the workplace. Currently, such skills are not formally delivered as part of the elective portfolio." Building and maintaining effective relationships is at the core of career and business success. This elective has been developed to give you an opportunity to refine your relationship building and management skills and to ensure that you are well equipped to meet the inter-personal challenges that often become increasingly complex and demanding the more senior you get. The objective of this course is thus to help you develop your ability to build more effective professional relationships. This involves a set of skills that are evidence-based and can be learnt through practice. Given that this course is about building relationships, being a passive observer wi
The purpose of this course is to help you develop skills and knowledge critical for leading groups of people effectively in organisations. Through assessment tools, exercises, films, cases, role-plays, and other assignments, you will gain a stronger understanding of what it takes to excel in leadership positions. This course builds from the premise that leadership skills complement the technical and diagnostic skills learned in other London Business School courses. Because most candidates seek or encounter leadership responsibilities, this course is relevant for every student pursuing a managerial career.
We negotiate every day. We negotiate with potential employers, co-workers, roommates, landlords, parents, bosses, merchants, service providers, spouses, and even our children. Although people negotiate all the time, most know very little about the strategy and psychology behind effective negotiations. The course will highlight the components of an effective negotiation and teach students to analyze their own behavior in negotiations. The course will be largely experiential, providing students the opportunity to develop their skills by participating in negotiations and integrating their experiences with the principles presented in the readings and course discussions.
Power is one of the most fundamental concepts in the social sciences. Throughout history, people have been fascinated by power. From philosophers, to politicians, to even comic book writers, people have observed that regardless of whether you have a desire or disdain for it, power plays a pivotal role in societies and organizations. The purpose of this course is to help you (i) understand, (ii) analyze, and (iii) harness power. Both anecdotal evidence and decades of research have shown that power can dramatically impact the way we think, feel and behave—in ways we do not expect. The skills you will learn in the course through conceptual models, tactical approaches, and simulation exercises will allow you to lead effectively regardless of where you are in your career trajectory.
The course is aimed at students who want to reflect on how to live more fulfilling personal and professional lives. . Wisdom is an expertise in dealing with difficult questions of life and adaptation to its complex requirements. Wisdom takes a long-term perspective and underpins individual and societal happiness. Wisdom and happiness are founded on a healthy relationship with reality, with oneself, and with other people. This course will address how to grow in wisdom and happiness, drawing on diverse disciplines and traditions, including psychology, systems theory, philosophy, and the humanities.
Explore the issues and practices of financing entrepreneurial businesses, including start-ups, emerging growth companies, management buy-outs and buy-ins.
Seven of the top ten companies in the world by market capitalisation, and the vast majority of unlisted ‘unicorn’ companies, are players in the digital economy: they sell primarily digital products (or hardware for accessing digital products), they operate with platform-based business models that give them increasing returns to scale, they have few tangible assets and they employ relatively small numbers of people.
These features make digital organisations fundamentally different to “industrial” organisations such as food manufacturers, oil & gas companies or automobile companies, who make physical products and operate in the world of decreasing returns to scale on which traditional economic theories were built.
The purpose of this course is to help students understand the differences between industrial and digital organisations, and to provide them with frameworks and practical advice for how to manage and work in digital organisations.
MIRB explores whether and how the adoption of Responsible Business practices by companies, in association with the integration of ESG factors by investors, can be an effective way to address these global challenges. MIRB thus aims to fundamentally transform the way students think about the role of business and finance in society by empowering them to understand, develop and implement a model of broader stakeholder value maximisation in conjunction with positive societal impact. Despite highlighting the importance of creating value for society, the course also stresses the criticality of companies generating profits. Indeed, one of the punchlines is that an approach to business based on responsibility can be more profitable than one focused on shareholder value.
Get an overview of the process and challenges associated with starting an entirely new business, the skills required to prepare a persuasive business plan, approach prospective investors and launch your venture. Gain a clear understanding of how to assess an entrepreneurial opportunity, the resources needed to start a new business and the costs and challenges involved. Give an entrepreneurial bias to your career using this course as a springboard. A number of graduates who have taken the New Venture Development course and gone on to set up their own business or pursued careers in venture capital.
If you have fancied yourself as an entrepreneur or intend to work in the venture capital industry or in professional businesses supporting entrepreneurial firms this is the perfect entry level entrepreneurship course for you. You explore the many dimensions of entrepreneurship and new venture creation and growth, including: conceptualising, developing and managing successful new ventures. The emphasis in this course is on applying and synthesising concepts and techniques from the functional areas of accounting, finance, managerial economics, marketing, operations management, and organisation behaviour in the context of new venture development.
Focus on and explore business-unit level strategic concepts and frameworks that are relevant for professionals in any industry, including finance, investment management and financial services.
Learn about a wide variety of concepts, tools and frameworks that will enable you to understand the environment that a company finds itself in, the resources it needs to obtain, and the organisation it needs to build to establish a sustainable competitive advantage. In this sense, you will investigate how to develop and implement a consistent and coherent strategy in today’s dynamic and competitive business world.
Explore more advanced and contemporary issues in the domain of corporate social responsibility and sustainability, technological innovation, and organisational ambidexterity, adaptation and agility in the longer term. Concluding with an innovative in-class strategic simulation that focuses on strategy implementation.
Thinking about joining a technology startup when you graduate? About starting your tech venture? Considering joining a VC? If your answer is yes, we encourage you to apply to TEL.
Accelerate your finance career. Whether you want to move to a different function or step up to the next level, we provide skills and support to help you get there.
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