AFF9260

Australian capital markets

Ms Kathy Avram

6 points
* 3 hours per week
* Second semester
* Caulfield, in-house

Objectives On successful completion of this subject students should have developed an analytical framework of the operation of Australian capital markets; be able to evaluate and implement funding decisions in capital markets; appreciate the implications of economic policy decisions on financial institutions and markets.

Synopsis Topics include development of money and financial markets and financial flows analysis; intermediation; economic role of the different financial institutions; determination of interest rates and yield curve analysis in financial markets; exchange rates and money supply; sources of short-term, medium-term and long-term finance; sources of overseas borrowing; an introduction to interest rate and exchange rate management; performance of the financial system.

Assessment Assignment (6000 words): 40%
* Examination (2 hours): 60%

Prescribed texts

Bruce R and others Handbook of Australian corporate finance 4th edn, Butterworths, 1991
Felmingham B and Coleman W Money and finance in the Australian economy Irwin, 1995
Juttner D J Financial markets, interest rates and monetary economics 3rd edn, Longman Cheshire, 1994