Structured Finance
Professor Ian Giddy
Prof. Ian Giddy
E-mail: ian.giddy@nyu.edu Web: http://giddy.org
Web site: http://www.stern.nyu.edu/~igiddy/structured.html
Goals
Structured Finance is the design of debt, equity and hybrid financing techniques in order to resolve particular issuer or investor problems that cannot be solved by conventional methods. This course will be taught around five major topics employing in-depth group work on case studies and deal documentation. The focus will be on identifying situations that call for nonstandard corporate finance solutions, and the design and pricing of the situation-specific financing instruments. Examples of such situations include stress-induced financial restructuring, recapitalizations, private equity and leveraged buyouts, and arbitrage-driven hybrid notes
Instructor
Prof. Ian Giddy is a graduate of the University of Michigan (MBA 1972, PhD 1974) and the University of the Witwatersrand (BSc 1970). He has taught finance at NYU, Columbia, Wharton, Chicago and in 40+ countries abroad for the past thirty years. He was Director of International Fixed Income Research at Drexel Burnham Lambert from 1986 to 1989. He is the author or co-author of numerous articles and books, including The Handbook of International Finance, The International Money Market, Cases in International Finance, Global Financial Markets, Asset Securitization in Asia and The Hudson River Watertrail Guide.
Pedagogy
The course employs cases and problems as well as classroom lectures and discussions, and "live case studies" to offer a hands-on learning experience. We will make use of international as well as domestic examples. Each student will be expected to prepare thoroughly and to participate actively in class discussion. Material covered in the assigned readings will generally not be repeated in class. Rather, class time will be devoted to lecture and case discussion, applying the material covered in the readings.
The Course on the Internet
We will make use of the Internet for resource material and communication. Indeed this course outline itself will evolve: the definitive version is the Web site at http://www.stern.nyu.edu/~igiddy/structured.html.
Textbook
Readings may be downloaded from the links in the course outline
below. More articles and applications could be added after the course
gets underway.
Grading
The course grade will be based on class
participation, written on-line assignments and a final exam.
Additional Resources
The Wall Street Journal and the London Financial Times provide the most comprehensive daily coverage of financing news. Other key resources for structured finance include the Journal of Applied Corporate Finance and Euromoney magazine.
Try the following Web sites:
- Euromoney (click on "Debt")
- The Financier
- More journals
- ABSnet.net
- The Financial Times
- FinanceFixit.com
- and much more at Giddy's Finance Resources on the Web
Structured Finance
|
Date |
# |
Topics |
Readings |
Assignment |
Slides |
| April 1 |
1 |
Introduction to structured finance. |
Structured
Notes Introduction to ABS |
In-class: "A Day
in the Life" Ford Credit Auto Owner Trust |
sf-intro
sf-abs1 video |
| April 8 |
2 |
ABS: Ratings and Cost-Benefit Analysis Collateralized Debt Obligations: Structure and Pricing |
Collateralized
Loan Obligations Rating CLOs |
Wachovia
CMBS KKR's LBO CDO In-class: A CDO from Scratch |
sf-abs2 sf-CDOs video |
| April 22 |
3 |
Credit swaps, synthetic ABS, and related instruments |
Global
High Yield Bond Trust In-class:
Assignment .
|
sf-credit
|
|
| April 26 |
4 |
MTNs and equity-linked structured notes | Hybrid Instruments
|
DBS Pens; Endesa;
Keppel
T&T Convertible; Warrant
Loans; Lyons (In-class discussion) |
sf-equity video |
| April 29 |
5 |
Design and pricing of convertible, hybrids and mezzanine
debt |
Convertibles
|
In-class: Sealed
Air Convertible |
|
| May 6 |
6 |
Structuring leveraged finance | Leveraged
Finance Second Lien Loans |
Le
Meridien Hotels and work-throughs lbocapacity.xls The LBO of ISS How ISS Was Funded |
sf-LBO video |
| |
Online Final Exam | Due midnight, Sunday, May 14 | Sample
Final |
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Copyright ©2008 Ian Giddy. All rights reserved.