Ben Bystrom: (bbystrom@hawaii.edu) Tu/Th 3:00

This course teaches the practical skills necessary to work for and deal with commercial and investment banks. Banking is the business of providing loans and credit; therefore, we start by learning corporate credit through financial statement analysis, consumer credit by statistical analysis of auto and credit card loan portfolios, and real estate credit by learning commercial property valuation models. Once a bank has originated investments, the objective is to efficiently fund and manage its portfolio. For this step, we learn to develop diversified funding sources (deposits, bonds and securitization), asset-liability management, risk hedging with derivatives and liquidity management. Finally, we cover regulation and accounting for bank management. While this course is perfect for students interested in a banking/finance career, in today?s volatile markets, understanding credit and how to efficiently raise capital is key to any business? success.