Do you understand the language of money?

Practical skills for the finance-minded

We are witnessing an evolution in the theory and practice of corporate finance as financial markets have become truly global and increasingly sophisticated analytical techniques and financial instruments have been developed. This evolution has increased the complexity of the theory and practice of corporate finance. Technology and innovation have led to enhanced tools to assess and implement capital budgeting and capital structure decisions. Risk measurement and identification has increasingly become integral part of corporate finance function. The ability to effectively manage in a value based management framework requires that finance professionals keep abreast of current developments in financial theory and techniques.

Designed and delivered by a team of academics and practitioners both from the US and Luxembourg, the certificate will benefit the following groups:

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    Key outcomes

    Provide you with an understanding of the theory of corporate finance

    Enable you to analyze financial decisions from the perspective of value based management

    Utilize case studies to demonstrate how to apply financial theory and techniques in practice

    Include instruction in current techniques in financial modelling and valuation

    Program of Study

    12 credits for certificate completion

    Required Course

    Corporate Finance

    This three-credit course examines corporate finance topics including working capital management, financial analysis, leverage, capital structure, capital budgeting and valuation. Emphasis is on creating financial models to analyze issues.

    Electives

    Choice of 9 Credits (CH) in Management Electives

    Global Financial Markets & Institutions

    Analyzes modern financial markets from the risk/management and risk measurement perspective. Presents overviews of key theories and recent developments in international securities markets. Emphasis is on managing risk on the balance sheet at various financial institutions. Implications of monetary policy decisions by international monetary authorities are also examined.

    Global Investments

    Course exposes students to the theory and practice of investments on a global scale. Key topics include: capital markets and instruments, efficient investment sets, basic equilibrium models such as CAPM and APT, bond prices and yields, equity valuation models, and an overview of portfolio theory and derivatives.

    Portfolio Management

    Develops the student’s ability to evaluate securities in the context of a portfolio. Topics include: portfolio construction rules based on risk and return goals, valuation measures and risk-reduction techniques using derivative products.

    Mergers & Acquisitions

    Examines the role of each of these strategies as part of the whole restructuring process faced by corporations in their attempt to compete and grow in the United States and abroad. Emphasis is on each method’s strategic and financial advantages. Group analysis of cases and computer applications are utilized.

    Mathematics for Finance Practitioners

    Risk managers and other finance professionals need to have a sound understanding of mathematics and statistics. The course covers important statistical concepts including volatility, regression analysis and hypothesis testing. Popular models of risk measurement, such as Value-at-Risk, factor analysis, Monte Carlo simulations, and stress testing are studied. Functioning of the mathematical/statistical concepts is demonstrated with practical risk management problems, e.g. bond pricing, portfolio credit risk, optimal hedging.

    Financial Crisis & Risk Management

    Risk management is becoming more important and more complex, while at the same time being viewed by regulators and investors as an essential and integral part of investment governance. The advent of new investment strategies (e.g., hedge funds and private equity) and new investment vehicles (e.g., CDOs and SIVs) has made risk more difficult to measure and to manage. This course reviews and assesses various techniques, both quantitative and qualitative, for the measurement and management of risk including how to price credit default swaps, counterparty credit risk, stress testing, and portfolio risk.

    Management of Resilient Portfolios

    The idea behind this series of four lectures is to convey some simple decision rules for investing money in the short-term while keeping an eye on the long-term objective of a portfolio. We will try to examine under which conditions a sequence of short-term decisions may lead to the satisfaction of a long-term investment objective, such as retirement.
    In order to do that, we will rely upon samples of readable texts from well-known short-term market viewers such as editorials from the FT or Market Perspectives presentations from well known Market Strategists. We will also look into long-term issues, such as financial planning for retirement purposes in light of the behaviour of stock and bond markets over a 20 year period. The objective of the course is to deliver a toolbox complete with simple decision rules, to assist in the process of portfolio selection. It is intended to deliver “math-light” lectures. Students should understand the statistical concept of mean and variance and the financial concept of the discounting factor.

    Credit Risk

    Credit risk analysis and management are of great interest to investment banks, commercial banks, traders, regulators, and rating agencies. This course provides an introduction as well as basic understanding of credit risk measurement and credit derivatives. The objective of this one credit course is to provide a practice-oriented balance between developing a sound conceptual framework and market understanding and insight.

    Corporate Finance

    Examines corporate finance topics including working capital management, financial analysis, leverage, capital structure, capital budgeting and valuation. Emphasis is on creating financial models to analyze issues.

    International Financial Management

    A study of financial management concepts and techniques, applied to international operations. Topics include: foreign currency spot and forward trading; exchange rate systems and determination, and country risk assessment; taxation and regulatory issues of non-U.S. markets; and sources and uses of funds for multinational corporations.

    Alternative Investments

    Examines financial concepts applied to current issues in finance such as risk management products and techniques.

    Derivatives

    An overview of derivative securities and their use in corporate strategy and risk management, this course employs quantitative methods to analyze, design, price and use derivative instruments in a managerial context. Basic derivative contracts such as forward, futures, options and swaps are covered, as well as the pricing of these claims, arbitrage, and hedging in these markets. Students apply the analytical models to real-life situations through case studies.

    Advanced Risk Management

    The complexity of the global financial system makes understanding risk management essential for anyone working in, or planning to work in, the financial sector. As the real economy is also exposed to financial risk, risk management has become more important to non-financial corporates and institutions. Students will become familiar with financial risk assessment and management and the regulations applicable for financial institutions. They will learn how important market participants, such as banks, insurance companies, pension funds, mutual and hedge funds, are looking at risk measurement and management. Risk mitigation strategies are explained. Various risk types such as market risk (interest rate risk, cross-currency risk, etc.), credit risk, operational risk, systemic risk are covered and risk management strategies and instruments are analysed. Recent risk management topics such as counterparty credit risk for derivatives, central clearing and collateralization will be covered. International regulations (Basel I-III, Dodd Frank Act) are studied in their historical development as well their most recent modifications meant to prevent further financial crises. Throughout the course case studies will put the theory learned into practice.

    Behavioral Finance

    A relatively new field in economics, behavioral finance studies how people’s behavior and decision-making process influence their investment choices. It challenges the claim that markets are fully rational and able to incorporate new information correctly into asset prices. The objective and purpose of this course is to provide an in-depth discussion of the modern development in behavioral finance. Both theory and empirical evidence will be discussed. We will review the decision-making process along with the different biases and paradoxes that go with it, learn about the major theories (Prospect Theory and SP/ A Theory), study the formation and burst process of speculative bubbles, and introduce the so-called Behavioral Portfolio Theory (BPT).

    Introduction to Private Equity

    This course provides an introduction to Private Equity (PE), Venture Capital (VC) and Infrastructure investments and funds. The course covers the actors of PE, their approach to structuring, managing and exiting investments. It focuses on type of investments targeted as well as investment structures, vehicles, set-ups and incentive mechanisms used. The course shows how capital is raised, deployed and harvested by PE and infra funds and which tools are used. It aims to provide an introduction to and understanding of the players and methods in PE and infrastructure as alternative asset classes. The is conceived as general introductory course into PE, it addresses: 1) students at the SHU that are interested in PE and would like to get an introduction on the subject and 2) financial sector professionals in Luxembourg wanting to get an overview of PE.

    Private Equity & Other Alternative Asset Classes

    This course provides an overview of and discusses the details of different alternative asset classes. Different types of alternative assets, such as Private Equity, Venture Capital, Real Estate, Infrastructure and Private Debt, their strategies, actors and structures applied are presented in this course. A general overview including but not limited to fundraising, typical transactions valuation, value creation, exit strategies and tax structuring will be followed by individual in-depth lectures on different asset classes. Practitioners such as fund managers, lawyers and auditors will be participating in the course and give a first-hand insight into their activity. The course is conceived as more detailed discussion of the alternative asset universe. It targets specifically financial sector professionals in Luxembourg with an aim to develop in alternative assets and Private Equity in particular, but it can as well provide a sound basis for anyone who aims to start a career in Private Equity and alternative asset classes. It can also be attended by SHU students who want to expand their understanding already built up in the overview course for Private Equity.

    9 CH of elective coursework is required for completion of the program. Students may select their choice of elective courses in Finance.


    * CH: Credit Hours
    3 CH = 12 class sessions of 3 hours, 36 hours of class contact
    2 CH = 6 – 8 class sessions of 3 hours, 18 – 24 hours of class contact
    1 CH = 4 – 5 class sessions of 3 hours, 12 – 15 hours of class contact

    Cost

    €4.900

    Tuition includes text books.
    Living expenses are additional.

    Admission requirements

    TOEFL

    TOEFL scores or other proof of English proficiency

    Minimum score of 570

    Relevant Work Experience

    Minimum 2 years

    Provide a CV + personal statement of interest

    Certificate programs

    (Blockchain & Big Data, Artificial Intelligence, and Digital Transformation)