Le Grand Syllabus 2016/2017
Teachers : Nicolas PAINVIN (Group Credit Ofﬁcer for Infrastructure, Project Finance and Public Finance, Fitch Ratings). Prerequisite : A good understanding of the basic macro-economic principles (economic growth, unemployment, interest rates, inﬂation and budgetary policy), is necessary for this course. Pedagogical format : Elective Course validation : Quick Multi-Choice Questionnaires on readings and previous session in each class (10%) ; 1 focused case study presentation (groups of 4 students, 30%), lecture note taking (groups of 4, 20%), active class participation (30%). Final MCQ in class (10%). Workload : 6 seminars of two hours each (12 hours). Credits : 2. Some preparation is required before each class : brief reading, lecture note taking and presentation for the case studies (group work). Pedagogical method : Mix of presentations, case studies (some done in classroom and some prepared by students as home work ; all groups prepare on different subjects of their choice from a list). Analysis and comments of documents (written and video). Active class participation is strongly encouraged. Course Description : Students will learn how to assess credit risk through the use of credit ratings and how a credit rating is made. Role of credit rating agencies, their functions on the capital markets, their relationships with other industry players (issuers, investors, regulators) and their limitations. Identify qualitative, quantitative and market indicators of vulnerability. The course will be based on case studies, in particular the current and previous crises in various regions of the world. The analytical overview will encompass the history of sovereign defaults and episodes of acute macro-economic crises. The risk analysis will include macro-economic policies, public ﬁnance, external ﬁnances and ﬁnancial sector (systemic risk). See short video teaser : http ://youtu.be/iFa2POSKaQI Required reading : Rating methodologies on Sovereign Credits (available on the rating agencies websites) ; Allen, F., Gale, D., 2000, Bubbles and Crises, The Economic Journal, vol. 110 (January), 236-255 ; Fitch Macro-prudential Risk 2190
Monitor (to be distributed to registered students) ; 85th Annual Report (2014-2015, dated 28 June 2015), Bank for International Settlements ; "Is the unthinkable becoming routine ?".
SOCIOLOGY OF FINANCIAL MARKETS
Semester : Autumn Number of hours : 24 Language of tuition : English
Teachers : Olivier GODECHOT (Chargé de recherche - CNRS). Pedagogical format : Seminar Course validation : Validation will be based on several elements : a 3,000 words essay (50%), a twenty minutes oral presentation of a scientiﬁc paper (20%), a one page report of a scientiﬁc article and two written questions raised while reading a scientiﬁc article (10%), assiduity and class participation (20%). Workload : Students will have to read at least one paper each week and prepare an oral presentation (in English), a one page report of a scientiﬁc article (in English or in French) and two written questions raised while reading a scientiﬁc article (in English). They will also write an essay (in English or in French) of approximately 2,000 to 3,000 words where they will analyze sociologically some material related to ﬁnance and put to the test some sociological approach studied during the class. This material can be books written by ﬁnance people or journalists, interviews, press coverage methodically collected, videos, statistics, etc. Pedagogical method : Each lesson will be divided in two parts. During the ﬁrst 75 minutes, the professor will do a lecture. During the last 45 minutes, one or two students will do an oral presentation of a paper that will be followed by an interactive discussion with the students and the professor. Course Description : Financial markets have become a central institution of market societies but remain obscure. Courses on ﬁnance and ﬁnancial markets are generally devoted to technical dimensions such as option pricing, asset allocatio