Reference no: EM133935302
Homework
Overview
You are required to write a two-part report that responds to questions posed in 2 individual case studies that apply knowledge and skills to key themes that have been introduced through the lectures, readings and workshops.
The purpose of this homework is for you to understand the dynamics of key issues impacting on a particular segment of the money and debt markets, provide a prognosis of the likely direction for this issue into the future and provide a solution to this problem.
Learning Outcomes
A. Explore and evaluate various fixed income securities and their respective markets
B. Apply finance theories and tools to value different types of fixed income and money market securities.
C. Analyse the impact of monetary policy on debt markets and conduct credit risk analysis.
D. Develop practical risk management techniques.
Homework Details
The report is to be written for the Manager of the financial institution where you have recently been employed as a graduate trainee. The Manager has asked you to prepare two short reports on issues that affect the day-to-day operation of the business and require the business to understand the impact of these issues.
The response to the case study may include peer-reviewed academic, and non-academic articles and financial institutions' publications and research.
The following structure is required for each case study for your report:
Statement of problem or issue
Interpretation and critical analysis
Results of the research/recommendations
The following specific questions will need to be addressed in each case study
I. Case Study I: Monetary policy
A. What are the objectives of monetary policy in Australia?
B. How does the Reserve Bank of Australia deliver changes in monetary policy?
C. What indicators does the Reserve bank use to make policy decisions about the setting of monetary policy?
D. Recommendation: What is the future direction for monetary policy?
II. Case Study II: Credit Ratings Agencies (CRA)
A. What issues emerged for the CRA's during the Global Financial Crisis?
B. What are conflicts of interest, when might these conflicts of interest arise for CRA's and how might they mitigate these risks? Discuss the effectiveness of the mitigants. Get the instant assignment help.
C. Recommendation: What role could regulators play in the future in addressing conflicts of interest for CRA's?
D. Note: The main guidance for the homework comes from topics and themes in the lectures, readings and workshops. Students will gain insights into completing this homework by attending all workshops. Use of tables and figures is encouraged.