=====Course unit: Finance =====
** <color red> Beware! Under construction. </color> **

==== Course metadata ====
  * Title in French: Finance
  * Course code: tba
  * ECTS credits: 4
  * Type: advanced course
  * Semester 9 (Fall-Winter)
  * Teaching period: Mid-November to Mid-February
  * Teaching hours: 100h
  * Language of instruction: English
  * Coordinator: tba
  * Instructor(s): Grégoire Hug (WeeFin), Réda Rahal (BNP Paribas), Julien Belon (Arx Corporate Finance), Vincent Bonnamy (La Banque Postale Asset Management), , Sitraka Forler (Post Luxembourg), Lirone Samoun (smartpush)
  * //Last update 02/09/2025 by C. Pouet//

==== Brief description ====
This course is taught by highly skilled professionals in finance. Some of them are Centrale Méditerranée alumni.

This course unit is divided into four parts:
  * ** Portfolio management ** (24 hours) taught by Grégoire Hug.
  * **  Financial risk modelling ** (24 hours) taught by Réda Rahal: this part is dedicated to credit risk and its role in banking regulation.
  * **Applied finance ** (24 hours) taught by Julien Belon and Vincent Bonnamy: this part is about the theoretical aspects of corporate and market finance applied in real life. 
  * **Data Project: data sources and preprocessing** (20 hours) taught by Sitraka Forler and Lirone Samoun.

==== Learning outcomes ====

  * Learn what is the asset management industry and what are each player’s target
  * Understand the portfolio management theory basics – how to build a portfolio
  * Cover all major asset classes to have a deep financial culture
  * Understand how the supervision financial risks organized
  * Know how to model and compute the associated capital charges are computed
  * Understand the similarities in the concepts of market and corporate finance
  * Understand how finance products can be used to manage risk
  * Know how to evaluate and to value a company


==== Course content ====


=== Portfolio management ===

  - Introduction to portfolio management
    - The asset management industry
    - The investment theory basics
    - Main asset classes
  - Fixed income asset class - basics
    - Sources of risk and return
    - Main strategies
    - Application on a fixed bond
  - Fixed income asset class - advanced
    - Fixed Income products and associated strategies
    - Calculation example - fixed bond
    - Rate curves bootstrapping
    - Application on a callable bond
  - Back to Equity
    - Equity Market history and overview
    - Classic steps in an investment process
    - Active vs Passive Investment management
    - Application on an equity European portfolio
  - Alternative asset classes
    - Currency
    - Private Equity
    - Real Estate
    - Private Debt
    - Infrastructure
  - Risk and Performance Measurement
    - Performance Measurement
    - Risk and Performance Metrics
    - Risk Measurement
  - Asset allocation
    - Asset allocation based on investment profile
    - Capital Protection
  - Innovation in Asset Management
    - Smart Beta portfolios & passive indexing
    - Alternative data sources
    - ESG (intro)
    - Crypto funds

===  Financial risk modelling ====
  - Introduction: bonds and OTC transactions
  - Modeling defaults: structural models and ratings
  - Banking regulation on credit risk; market and counterparty credit risk
  - Overview of the VaR methodologies and pros/cons for each
  - Monte-Carlo techniques applied in Finance

=== Applied finance ===
  - Applied corporate finance – From startup to IPO… and LBO
    * Introduction / Presentation 
    * Application areas of 
    * Accounting Basic Methods
    * Valuation methods
    * We know how to value a company. Now what? Different types of operation
    *  Introduction to Fintech and start-up ecosystem
  - Applied market finance – Options: Pricing, Hedging & Risk Management
    * Market finance: players and products
    * Future and forward: pricing & hedging
    * Options: replication and pricing
    * Sensitivity of options: the greeks
    * Volatility and stress tests
=== Data Project: data sources and preprocessing ===
Tba
==== Bibliography ====
You can check the availability of the books below at [[https://www.centrale-mediterranee.fr/fr/centredoc|Centrale Méditerranée library]].
  - Portfolio management
    * Portait, R. and Poncet, P. (2014). Market Finance.
    * Fabozzi, F. J. (2012). The Handbook of Fixed Income Securities.
    * Hull, J. (2021). Options, Futures & Other Derivatives. 11th Edition. Pearson.
  -  Financial risk management
    * Jorion, P. (2006). Value at Risk: The New Benchmark for Managing Financial Risk, 3rd Edition. McGraw Hill
    * Gregory, J. (2015). The xVA Challenge: Counterparty Credit Risk, Funding, Collateral, and Capital.  ‎ Wiley.
    * Roncalli T. (2016). Risk Management & Financial Regulation ([[http://thierry-roncalli.com|website]])
  - Applied finance
    * Vernimmen, P. (2021). Finance d’entreprise. Dalloz.
    * Hull, J. (2018). Options, Futures, and Other Derivatives, 10th Edition. Pearson