Emerging Markets Finance

Catalog description

The perspective in this course is that of an investment manager specializing in emerging and frontier markets and responsible for optimizing performance of investment portfolios at a bank, pension, endowment, or mutual fund. Investment opportunities in emerging financial markets around the world are examined in the context of performance optimization and global risk diversification against a typical backdrop of high per capita income growth, low leverage, favorable demographics, accelerating urbanization, and improving transparency at both the macro-policy and corporate governance levels. Challenges considered include political risk, currency risk, asymmetric information, speculative pressure, and market manipulation. Liquidity limitations, legal constraints, and varying accounting rules and standards also pose challenges to emerging market investors. These unique challenges also provide unique opportunities not available in developed markets. Asset classes range from equities, currencies, bonds, and derivatives to real estate and private equity. Class discussion and reading focus on both the theoretical background as well as practical knowledge necessary to successfully navigate the opportunities and pitfalls of emerging and frontier market investing. The course also includes a select group of guest speakers who share their firsthand knowledge and accounts of investing and operating in emerging markets.