Course: Risk Management in the Global Economy

Interpreting the shape of the curves The figure above shows the yield curve for government bonds with maturities up to 30 years for the US and the UK. It also …

In this step we will calculate and interpret Value at Risk for a single asset, shares in the BT Group (the UK telecommunications company). In Week 3 we considered a …

In this article we will consider a call option on the stock of BT Group, the UK telecommunications company. We will use the Black-Scholes model to price the option, and …

Earlier, we discussed the farmer wanting to protect themselves against the risk of the cocoa price falling before harvest. We suggested they could use a forward contract, or sell futures …

Spot markets, forward contracts and futures markets: let us bring together these ideas with an example on cocoa beans. Consider a Brazilian cocoa farmer with main harvest between October and …

This step considers various values for beta, and what they mean for investment and risk management strategies. A beta close to one means that the returns on the company stock …

In this step you will consider purchasing the stock of two companies: Mondelez International Inc., the American multinational food, drink and confectionary corporation; and Tesla Inc., the American company manufacturing …

This step considers what we mean by a portfolio. In the following steps you will study the return and risk of portfolios in more detail. For illustration we will examine …

Suppose you are thinking about purchasing a bond. It could be part of a new bond issue – a company selling bonds to raise finance for long-term capital projects. Or …

Over the last four weeks we’ve had a look at many components of risk management. We started Week 1 by considering investors and financial and non-financial institutions, and the kinds …

What can emerging markets learn from the financial systems of advanced economies? In this short video, Sonja Ruehl from SOAS School of Finance and Management explores how tools such as …

As we have seen in our study of financial and non-financial firms across the globe, risk management practices are not without problems. To summarise the work of Stulz (2008) there …

“Markets can fall as well as rise”. What happens when aspects of the banking system intended to reduce risk, actually amplify it? Sonja Ruehl from SOAS Centre for Financial and …

You have seen how financial companies use derivatives. You have also seen how non-financial firms use derivatives to manage risk, concerning the prices they receive for the goods and services …