FINANCE LABORATORY

This course investigates modern techniques of asset management, focusing on the composition and rebalancing of investment portfolios process (particularly bond portfolios). Given their relevant role, the main links between macroeconomic and financial market, the main sources of risk associated with an investment (credit and market risk) and the most important market volatility measures will be analyzed.

The topics covered during the lessons and the study of the material made available will allow students to develop sound basic knowledge in asset management and to understand the connections between the economy and the financial markets. The adoption of a problem solving study approach, the space given for discussion during the lessons and the use of tools such as Bloomberg will allow students to acquire an adequate language and to argumentative and communicative skills that guarantee the application of the concepts learned. The development of critical skills in economic and financial analyzes as well as a basic autonomy in the composition and management of a financial portfolio is the main goal expected from the course of the Finance Laboratory. Students will improve their ability to analyze financial markets and learn to read the main macroeconomic indicators from an asset manager perspective.

Knowledge of macroeconomics fundamentals, functioning of financial markets and financial statement analysis.

1. Introduction to the use of Bloomberg
2. The peculiarities of the volatility in bond prices
3. Scenario analysis and investment strategies
4. The investment process
5. Scenario analysis in the investment process
6. Active and passive portfolio strategies
7. Global Macro trading and investment strategies
8. Introduction to technical analysis
9. Rules of investology

Lecture notes and transparencies (about 500 pages).
Fabozzi, Frank J.. 1997. Managing Fixed Incombe Portfolios, Frank J. Fabozzi Associates
Tainer, Evelina M.. 2006. Using Economic Indicators to Improve Investment Analysis, John Wiley & Sons, Inc.

Testing is done through a written test (contribution to the determination of the final exam mark: 70%) and active and constant participation is required (contribution to the determination of the final exam mark: 30%).

The student's interest in reproducing econometric analysis using the appropriate software is very much appreciated.

Italian

Participation to the course can replace the working stage. This choice determines a different way of final exam. It is provided for compulsory attendance for all students and participation in at least 5 seminars organized as part of the course of Econometrics. They are necessary but not sufficient conditions.

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