Learning objectives
Module "Investment Banking"
The module will aim at examining what follows: instruments and intermediaries of investment banking; methodologies and related problems of corporate evaluation; extraordinay corporate transactions; debt restructuring; syndicated loans; IPO; credit guarantee consortia; project financing; role of main intermediaries such as banks, advisors; role of main planning tools (e.g. business plan).
Module "Real Estate Finance"
The module aims to examine the Italian real estate market and its related investment vehicles (e.g. real estate investment trust, SIIQ, real estate company), that will be compared also thanks to contributions and presentations made by external experts.
The real estate instruments will be outlined and analyzed in its main features, with focus on risk/return and their correlation, with reference to single investment or portfolio.
The theme of the financing of direct real estate investments will allow us to describe and compare mortgage and leasing, net of tax effects.
Furthermore, all the previous themes will be addressed from specific points of views represented by different intermediaries: e.g. SGR, institutional investors, etc.
At the end of the course, students will have acquired:
a. the knowledge necessary in order to understand the technical characteristcs, strenghts and weaknesses of investment banking and real estate operations; and also the role and functions of the examined instruments and intermediaries;
b. the ability in applying the acquired knowledge in order to critically analyze the investment banking and real estate instruments and to make aware investment chioces that are consistent with the needs of a potential investor;
c. the critical capacity (making judgments) in independently evaluating problems associated with the analysis and selection of real estate investment vehicles and corporate finance trasactions that will solve a specific problem;
d. the ability in using a consistent technical language enabling communication with financial market operators, such as financial advisors, SGR, real estate investments trusts, ect;
e. the ability to learn through a logical method, which consists of identifying the problems and critical analyzing the adopted solutions.
Prerequisites
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Course unit content
Module “Investment Banking”
1. Investment banking: scenarios and intermediaries
2. Role of banks
3. Demand for investment banking services
4. Corporate evaluation
5. Business plan
6. Extraordinary corporate transactions
7. IPO
8. Credit guarantee consortia
9. Debt restructuring
10. Mediobanca case
11. Indipendent advisory
12. Syndicated loans
Module “Real Estate”
13. The real estate market: performance and future outlooks. Relevance of finance in real estate
14. The risk of real estate investment: measurement and management
15. The project financing
16. The correlation between real estate investments and loans: mortgage, leasing, vehicle company
17. The Italian real estate investment trusts: legal and fiscal issues
18. The Italian real estate investment trusts: management
19. The listing of real estate investment trusts: analysis of the determinants
20. The financial management of real estate investment trusts
21. An economic and financial comparison of different property investment vehicles
22. The private welfare and assistance funds
23. The ethical investments
24. The social housing
25. The real estate investments of institutional investors
Full programme
The course provides knowledge and main techniques allowing for the analysis of investment banking and real estate finance. In fact, market and regulations evolution has led to diffusion of innovative forms of financial intermediations.
As a first step, focus is on objectives and technical features of main corporate and investment banking operations. The second step is represented by the focus on real estate economics, analyzing operations' specific features, as well as problems in evaluation of the risk/return of investment and of the actual cost of real estate financing.
In the end, the course addresses the real estate vehicles in Italy and abroad.
Bibliography
Module "Investment Banking":
- texts and articles indicated by the teacher;
- slides produced by external experts.
Module "Real Estate Finance":
- Cacciamani C. (edited by), "Real Estate. Manuale di economia e finanza immobiliare. Terza edizione", Egea, Milano, 2012 (chapters 12, 14, 15, 16, 17, 18, 19, 20, 21, 23, 24, 25, 26);
- slides produced by external experts.
Teaching methods
a. Knowledge and understanding: lectures;
b. Applying knowledge and understanding: presentations and contributions by external experts;
c. Critical capacity (making judgments): during this module, students will be encouraged to identifiy strengths and weaknesses of investment banking and real estate instruments and intermediaries;
d. Communications skills: the teacher will illustrate the meaning of the most common terms used by the financial community;
e. Learning skills: each topic will be addressed first, explaining the problem to be solved, and then critically analyzing the adopted solutions.
Assessment methods and criteria
Written or oral test (chosen by the student).
In details:
- Written test, with the possibility of oral integration for scores equal to or greater than 27/30;
- Oral test, without the possibility of integration.
The final test will include 8 open-ended questions (4 questions for module “investment banking” and 4 questions for module “real estate finance”), evaluated up to 4 points each.
For each question, the maximum score can be reached as follows:
- up to 2,5 points with reference to the check of knowledge and understanding;
- up to 0,5 points with reference to the communication skills with technical language;
- up to 1 point with reference to the learning skills, applying knowledge and understanding , making judgments.
Other information
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