Impact Finance

Catalog description

This course provides a detailed study on multiple financial markets including bonds, forwards, futures, swaps, and options and their role in addressing major issues facing humanity. In particular, we plan to study specific topics on the role of financial markets in addressing important issues like funding cancer cure, tackling climate change, and financing educational needs for the underserved. Relative to a traditional finance class, we take a broad approach and think of finance as a way to get things done and financial instruments as a way to solve problems. We explore topics related to diversification and purpose investing, including a highly innovative idea of a mega-fund developing cancer treatment. We examine how financial instruments can help solve or hedge some societal issues, particularly on climate change. As an example, we will be studying a financial solution to deal with California forest fire. We also examine the potential for social impact bonds for educating pre-school children and reducing prisoners' recidivism.