NYU Stern School of Business

Undergraduate College

FINC-UB.0045.002 (C15.0045): INVESTMENT BANKING

Spring 2013

Instructor Details

Murphy, Charles

cmurphy@stern.nyu.edu

998 0013

See below

KMC 9-67


Available Monday through Thursday 9am -5pm , unless in class.. Do NOT simply " show up" at my door.   Please Email with a suggeted time and we will schedule a meeting.

NO EMAIL, NO MEETING, NO EXCUSES.

 

Course Meetings

MW, 3:30pm to 4:45pm

Tisch T-200


Final Exam: May 15?

Schedule exceptions
    Class will not meet on: Feb. 18, week of March 18
    Class will meet on:

 

Course Description and Learning Goals

This course provides a broad overview of investment banking, the financial service industry  and of the forces that are continuing to change it worldwide. This business has evolved into an integrated group of products and services as part of a large financial service firm or a smaller group of specific products or services within a boutique framework. It focuses on three big questions:  (1) How are things done in this business?  (2) Why are they done that way?  (3) How are they likely to be done in the future?  Our approach will be to examine each of the principal businesses in which various financial service firms have been involved, including: raising capital; financial advisory; broker/dealer positions; trading; investing the firm’s own capital; managing the assets of others, both institutions and individuals and risk management and administrative functions..

 

Throughout, there are a number of integrated themes. Among these are: the interplay of regulation , politics, globalization, and technology; the emergence of private equity funds and hedge funds as both critical clients and potential competitors for the major investment banks; the search for new, high-margin products, and whether that process has reached its limits; and the changing relationships among the different groups within a financial service organization.

 

By the end of the semester, each student should be well prepared either for an entry-level position in a financial service firm or for a comparable position at a client firm, where he or she needs to interact with financial service firms. All students should find that they are able to understand the financial press and economic commentary with a new perspective of the global financial system.

 

Course Pre-Requisites

C15.0009 Corporate Finance

 

Course Outline

Schedule of Classes

 

January 28 & 30 —Overview of the Financial Services Industry and the Role of Investment Banking

Readings: Course Packet (“CP”), Articles starting with: JPMorgan; JPMorgan; Morgan Stanley

February 4,6 & 11 — Private Equity and Hedge Funds

Readings: CP, Articles starting with: The Economics of;David Rubenstein;  Profits for Buyout Firms; The Operators; Wasserstein's;  Hedge Funds

February 13,20 & 25—Raising Public Equity

            Readings: CP , Articles starting with: Overview of the Securities Act; Inside the Deal

February 27 & March 4 — Investment Grade Public and Private Debt

Readings: CP, Article starting with: Shelf Registration

March 6 & 11-- Syndicated Lending, Leveraged Lending and Leveraged Finance

     Readings: CP, Article starting with: Stars of the Junkyard; Bankers of the Apocalypse; Encouraging Signs of Distress

 

March 13 - MIDTERM  EXAM

 

March 25 & 27 - Convertible Securities and Structured Products

 

April 1 & 3 - Financial Engineering and Securitization

              Readings : CP, Article starting with: Securitization; Guaranteed to Fail

April 8,10 & 15 — Secondary Market Sales & Trading

Readings: CP, Articles starting with: What Traders Do; Inside the Machine

April 17, 22 & 24 — Mergers, Acquisitions, and Strategic Advisory

       Readings: CP, Articles starting with: The Deal of the Century

April 29 & May 1 — Asset Management and Private Wealth Management

              Readings : CP, Article starting with: The Bull Whisperer; Game Changer

May 6 & 8 — Managing  the Firm : Risks, Administrative Functions and the Prospective Business Models

Readings: CP, Article starting with: IGlobal banking After the Cataclysm;Rethinking Bob Rubin

May 13  – Final Review

May 15? - FINAL EXAM

                     

 

Required Course Materials

Required Readings

 

A  digital course packet (in lieu of a text) is available at the NYU  Bookstore. Other required readings – e.g., current articles- will be distributed in class. Students are expected to keep up with the financial news throughout the course. The Financial Times, The Economist and Bloomberg.com are recommended.

For those students who would like to refer to a textbook, David P Stowell's " An Introduction to Investment Banks, Hedge Funds and Private Equity" is a good reference text. It is NOT required for this course .

All students are expected to view the movie " Inside Job" prior to taking this Course.

 

Assessment Components

The final grade will be allocated according to the following formula:

Midterm Exam 40%

Final Exam       60%

The answers to the exams will be posted for a few days following the exam and students are invited to compare their answers to the answer key. If you believe a grading error has occured please review first with the TA . Should the disagreement continue I will review the entire exam and determine if the grade need be revised .

I also reserve the right to add ( or subtract) up to 10 points to the student's total grade for noteworthy ( or lack thereof) contribution to the class discussion.

Attendance,preparation and class participation are an integral part of this course. In particular, students who have a large number of unexcused absences , who have consistently arrived late or who disrupt the class will have their course grade reduced as a result.

At NYU we seek to teach challenging courses that allow students to demonstrate differential mastery of the subject matter. Assigning grades to reward excellence and reflect differences in performance is important to ensuring the integrity of our curriculum.

The grade distribution will follow the Stern guidelines, I.e. ,no more than 35 % of the grades will be "A" or A-".

All students are expected to abide by the NYU Stern Honor Code.

 

 

 

 

 

 

 


 

 

Grading

At NYU Stern we seek to teach challenging courses that allow students to demonstrate their mastery of the subject matter.  In general, students in undergraduate core courses can expect a grading distribution where: 

Note that while the School uses these ranges  as a guide, the actual distribution for this course and your own grade will depend upon how well  you actually perform in this course.

 

Professional Responsibilities For This Course

Attendance

 

Participation

In-class contribution is a significant part of your grade and an important part of our shared learning experience. Your active participation helps me to evaluate your overall performance.
You can excel in this area if you come to class on time and contribute to the course by:

 

Assignments

 

Classroom Norms

 

Stern Policies

General Behavior
The School expects that students will conduct themselves with respect and professionalism toward faculty, students, and others present in class and will follow the rules laid down by the instructor for classroom behavior.  Students who fail to do so may be asked to leave the classroom. 

 

Collaboration on Graded Assignments
Students may not work together on graded assignment unless the instructor gives express permission. 

 

Course Evaluations
Course evaluations are important to us and to students who come after you.  Please complete them thoughtfully.

 

Academic Integrity

Integrity is critical to the learning process and to all that we do here at NYU Stern. As members of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which includes a commitment to:

The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:

Undergraduate College: http://www.stern.nyu.edu/uc/codeofconduct
Graduate Programs: http://w4.stern.nyu.edu/studentactivities/involved.cfm?doc_id=102505

To help ensure the integrity of our learning community, prose assignments you submit to Blackboard will be submitted to Turnitin.  Turnitin will compare your submission to a database of prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications.  Additionally, your document will become part of the Turnitin database.

 

Recording of Classes

Your class may be recorded for educational purposes

 

Students with Disabilities

If you have a qualified disability and will require academic accommodation of any kind during this course, you must notify me at the beginning of the course and provide a letter from the Moses Center for Students with Disabilities (CSD, 998-4980, www.nyu.edu/csd) verifying your registration and outlining the accommodations they recommend.  If you will need to take an exam at the CSD, you must submit a completed Exam Accommodations Form to them at least one week prior to the scheduled exam time to be guaranteed accommodation.

 

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