MFIN5710 Global Investments
In recent years international financial markets have become more closely integrated, with cross-border capital flows reaching $4.4 trillion by the end of 2010. In particular, the sovereign debt markets have exploded, with government borrowing rising rapidly during the ongoing credit crisis. International financial markets present unique challenges to investors, offering a wider variety of opportunities along with an additional set of risks relative to domestic markets. Successful global investing requires an in-depth understanding of the types of products that are traded, how international investing can increase diversification benefits, how international investors are exposed to foreign exchange and sovereign risk and other factors unique to the international markets. The course covers each of these topics in detail along with a discussion of hedging strategies, including extensive coverage of foreign exchange derivatives.