Learning objectives
At the end of the course , students will have acquired
a. The knowledge needed to understand the main operations involved in investment banking, risks and real estate investment vehicles, the strengths and weaknesses of risk management and structured finance operations on financial and real estate market, as well as the role and functions of the actors involved in the examined markets;
b . the ability to apply the acquired knowledge to critically analyze tools of risk management and financial operations and real estate investment, the characteristics of the insurance and structured finance transactions in the world of finance and real estate, in order to make decisions regarding management of risk and investment consciously and consistently with the needs of individuals at risk or investors;
c . the critical capacity (independent judgment) to evaluate independently issues related to risk management and to selection of the means to solve them, to the analysis and selection of investment banking operations and of real estate investment vehicles and corporate finance transactions related to them ;
d. the ability to use a consistent appropriately technical language in communicating with the operators of insurance and financial markets , such as, for example, risk managers, technicians of the company, agents, brokers and asset management companies or operators of investment banking and real estate funds, etc..
e. the ability to learn through the logical method of identifying problems and critical analysis of the solutions adopted.
Prerequisites
- - -
Course unit content
The course is divided into two modules:
- In the first module , the issues related to business risks are analyzed, considering the different alternatives available . Among these, particular attention is paid to insurance coverages and insurance brokerage and to the products and the management of insurance companies . The view is an economic and financial investigation, providing the necessary skills to be able to properly address the risk coverage, both for business and for retail customers.
- In the second part of the course, fundamental knowledge of investment banking and of economy of real estate market and of the techniques of analysis of structured finance transactions and outstanding related to the real estate sector is provided. The problems of evaluation of risk/return of investment and the actual cost of real estate financing are showed. Finally, real estate investment vehicles on the italian market and abroad are analyzed.
Full programme
The course is divided into a structured discussion of the following aspects.
The first part speaks about:
1. Logics of risk analysis and Taxonomy of business risks
2. Representation of the risks in the company financial statements
3. Business Interruption Risks
4 . The insurance process
5. Co-insurance and Re-insurance
6 . Life and non-life insurance
7 . The main non-life insurance contracts
8 . The main life insurance contracts
9 . Agents
10 . Brokers
11 . The innovative and alternative channels
12 . The insurance brokerage : the rules
13 . The insurance brokerage : the italian situation
14 . The insurance brokerage : the european situation
15 . The settlement of claims
16 . Pension funds and supplementary pension schemes
The second part speaks about:
17. Investment Banking and Real Estate Finance: activity and operations
18.The business plan
19.M &A
20. Spin off and newco
21.IPO
22. Debt pooling, bonds and collateralization
23.Crowdfunding
24.Debt restructuring
25. The italian real estate investment funds: financial and management issues
26. The risk in real estate
27. Leasing, mortgage and SPV
28. Real estate funds
29. Real estate fund financial management
30. SIIQ and SICAF
31. Pension funds and insurance: asset allocation and real estate investment
32. Ethical investment
Bibliography
Insurance module: C. Porzio, D. Previati, R. Cocozza, S. Miani, R. Pisani, Economia delle imprese assicurative, McGraw-Hill, 2011 (capp. 1-8 e 11-13) and any supplementary materials reported by teachers
Investment Banking and Real Estate module: “Real Estate - Economia, diritto, marketing e finanza immobiliare", III edizione, Egea, 2012, a cura di C. Cacciamani (capitoli 12, 14, 15, 16, 17, 18, 19, 20, 21, 23, 24, 25, 26) and any supplementary materials reported by teachers.
Teaching methods
- Acquisition of knowledge: lectures;
- Acquisition of the ability to apply knowledge: evidence from experts in the sector
- Acquisition of independent judgment: During the course, students will be encouraged to identify strengths and weaknesses of the various instruments of risk management and insurance business, of structured finance transactions in investment banking world and in the field of real estate, real estate investment vehicles and operators involved in the market, making critical comparisons.
- Acquisition of learning skills: for each topic, the start is from the illustration of the problem to solve, analyzing critically the solutions adopted.
- Acquisition of technical language: during teaching, students will learn the meaning of terms commonly used in the sector, also using newspapers and trade press (Il Sole 24 Ore, Milan, Finance, etc.).
Assessment methods and criteria
Normally, outside of any emergency situation, the final profit exam will take place in written or (at the request of the student) oral form.
For the duration of the epidemiological emergency from Covid 19 (and limited to it) the exam will be held online, in oral form (without the possibility of further integration) on the Teams platform.
During the test it is not allowed to consult any educational material or electronic device.
The final exam will take place through 4 open-ended questions, with possible sub-questions (2 relating to the part of insurance and 2 relative to the part of investment banking and real estate finance), accounted for up to 8 points each. For each question, the maximum score can be reached as follows:
- Up to 5 points with reference to the establishment of knowledge;
- Up to 1 point with reference to the ability to communicate through the use of appropriate technical language;
- Up to 2 point with reference to the ability to learn, to apply the knowledge and independence of judgment.
The "laude" will be attributed to the achievement of an evaluation of at least 31/32 points.
The results of the exam are published on the ESSE3 portal.
N.B. The teachers reserve the right to provide during the course any intermediate tests in oral form, that replace the final exam. Each partial exam will be evaluated in thirtieths. The final grade will be given by the average of the grades of the two tests in itinere, provided that both are sufficient (minimum score of 18/30).
Other information
The activities will take place in streaming through the use of the Teams and Elly platforms. Lessons will be held in both synchronous (via Teams) and asynchronous mode (uploaded on the Elly page of the course). During the lessons in synchronous mode (direct), mainly frontal moments will alternate with interactive moments with the students.
