This course examines the different financial intermediaries in our economy, the financial risks they are exposed to, and how these risks are measured and managed. Topics include: the different financial institutions and their assets and liabilities; types of risk including liquidity risk, interest rate risk, market risk, credit risk, off-balance sheet risk, technology risk, foreign risk, and sovereign risk; and techniques for managing risk including asset/liability management, liquidity management, deposit insurance, capital adequacy, product and geographic diversification, futures, forwards, options, swaps, caps, floors, securitization, and loan sales.
Prerequisite: BBUS 415, BBUS 417