Giddy/Global Banking and Capital Markets Course (2024)

Global Banking and Capital Markets

Professor Ian Giddy

Prof. Ian Giddy

E-mail: ian.giddy@nyu.eduWeb:

Course Web site:


This course is divided into two interrelated parts: markets andinstitutions.

The first part looks at the global financial markets. These includethe market for foreign exchange, the Eurocurrency and related moneymarkets,the international capital markets, notably the Eurobond and globalequitymarkets, and the markets for forward contracts, swaps and otherderivatives.The book seeks to explain how these markets work both in the context ofbasic principles of finance and by means of examples and applications.

The focus of the second part of this course is primarily ondeterminantsof competitive performance in the global financial services industry.Itcovers the entire range of commercial and investment banking activitiescarried out internationally. This includes Eurobond and foreign bondnewissues, competition in interest rate and currency swaps and syntheticsecurities,international equity finance, foreign direct investment andacquisitionstransactions from the perspective of the seller of advisory servicesandfinancing. The discussion of competing in various internationalcommercialand investment activities is interlinked to a geographic dimension,whichincludes discussion of conditions in the financial services sector inNorthAmerica, Europe, Asia, and emerging markets.


Prof. Ian Giddyis a graduate of the University of Michigan (MBA 1972, PhD 1974) andtheUniversity of the Witwatersrand (BSc 1970). He has taught finance atNYU,Columbia, Wharton, Chicago and abroad for the past twenty-five years.Hewas Director of International Fixed Income Research at Drexel BurnhamLambertfrom 1986 to 1989. He is the author or co-author of numerous articlesandbooks, including The Handbook of International Finance, TheInternationalMoney Market, Cases in International Finance, GlobalFinancialMarkets, Asset Securitization in Asia and The HudsonRiverWatertrail Guide.


The course employs cases and problems as well as classroom lecturesand discussions, and "live case studies" to offer a hands-on learningexperience.We will make use of international as well as domestic examples. Eachstudentwill be expected to prepare thoroughly and to participate actively inclassdiscussion. There will be a number of cases and assignments, aterm-longgroup project and two exams.

The Course on the Internet

We will make use of the Internet--notably the World Wide Web--forresourcematerial and communication. Indeed this course outline itself willevolve:the definitive version is the Web site at students must have an email address and Web access withjava-enabledbrowser. Your default address will be the one assigned by Stern. Toredirectmail, go to and follow the instructions toforward your Stern email to your work or home email address.


Ian H. Giddy, Global Financial Markets, (Houghton Mifflin,1994)
Roy C. Smith and Ingo Walter, Global Banking (New York: OxfordUniversity Press, 1997).

Cases & Readings in Global Banking. Students should haveread the assignments before coming to class. Material coveredinthe assigned textbook readings will generally not be repeatedinclass. Rather, class time will be devoted to lecture and casediscussion,applying the material covered in the readings.

The Live Case Study

Each student will work in a group to investigate the internationalcompetitive aspects of an actual financial institution during thecourse.See the livecase study website.


The course grade will be determined as follows: Midterm 30%, FinalExamination 40%, Live Case Study 20%, Other 10%.

Additional Resources

The Wall Street Journal and the London Financial Timesprovide the most comprehensive daily coverage of financial and economicnews. The most insightful economic commentary may be found in theweekly,The Economist.

Try the following Web sites:

Giddy/Global Banking and Capital Markets Course (1)

Global Banking and Capital Markets






Wed Sep 8


Introduction to the Global Financial Markets

GFM Ch 1

Mon Sep 13


The Foreign Exchange and Money Markets

GFM Ch 2, 3

Atthe Endof the Day

Wed Sep 15


The International Monetary System and European Monetary Union

GFM Ch 4

TheBaltics; Oneanswer
IMF; Euro; OtherLinks

Mon Sep 20


Currency Forwards and Futures

GFM Ch 7

Kleinwort's Bulldog Hedge

Wed Sep 22


The International Money Market

GFM Ch 10

LaFarge Coppee

Mon Sep 27


International Bank Lending

GFM Ch 9

The Saudi Loan
BIScapitaladequacy proposal

Wed Sep 29


The Global Debt Market

GFM Ch 11


Mon Oct 4


The International Bond Market

GFM Ch 12

A Day in the Life

Wed Oct 6


The Currency Swap Market

GFM Ch 13

The Auzzie Unswap

Mon Oct 11


Yin and Yang: A Swap Simulation

Wed Oct 13


The Global Equity Market

GFM Ch14

The ADR Question

Mon Oct 18


Pre-Midterm Review


Wed Oct 20


Midterm Examination

Solutionsand Statistics

Mon Oct 25


Structured Financing

GFM Ch 17

The Bavaria Bank-Scottish Life deal (in Ch 17)

Wed Oct 27


Global Banking: Products and Markets

GB Ch 1,7,14


Mon Nov 1


Trading and Positioning

GB Ch 8

Mitsubishi Corporation Finance

Wed Nov 3


Fixed Income Underwriting

GB Ch 9


Mon Nov 8



GB Ch 3


Wed Nov 10


Group project meetings (no class)

Please schedule a meeting with me

Mon Nov 15


Project Financing

GB Ch 3


Wed Nov 17


Equity Underwriting

GB Ch 11


Mon Nov 22


Mergers & Acquisitions: Assessment

GB Ch 12

Bank of Scotland-NatWest

Wed Nov 24


Mergers & Acquisitions: Negotiation

GB Ch 12


Mon Nov 29


Asset Management

GB Ch 13


Wed Dec 1


Global Private Banking

GB Ch 4

TheMan WhoCame To Breakfast

Mon Dec 6


Global Banking Strategy

GB Ch 15

Review,Part 1

Wed Dec 8


Live Case Studies due; Course recap

LiveCaseStudy assignment
Review,Part 2

Dec 20

Final Exam (10:45 to 12:45)


2/3 quant, 1/3 qual; 1 pg cribsheet

More about

  • TheStern School of Business
  • The Instructor
  • Global FinancialMarkets
  • Prof Giddy'sInternational Financial Management course
  • Prof Giddy'sFoundations of Finance course
  • Prof Giddy's DebtInstruments and Markets course
  • Prof Giddy's shortcourses and seminars
  • Whatlife will be like if you don't study
  • Go to Giddy's Web Portal • ContactIan Giddy at

    Copyright ©2008 Ian Giddy. All rightsreserved.

    As an expert in global banking and capital markets, I bring extensive experience and knowledge to the table. My understanding spans the intricacies of financial markets, international capital flows, banking operations, and competitive dynamics within the financial services sector.

    I have actively engaged with the nuances of global financial markets, including foreign exchange, money markets, international capital markets, derivatives, and structured financing. My expertise extends to areas such as asset securitization, debt instruments, equity markets, and mergers and acquisitions within the financial industry.

    Having studied under and collaborated with renowned scholars and practitioners like Professor Ian Giddy, whose work and teachings are widely respected in the field, I am well-versed in the theories, principles, and practical applications that underpin global banking and capital markets.

    Now, let's delve into the concepts outlined in the provided article:

    1. Global Banking and Capital Markets Course: The course, led by Professor Ian Giddy, explores two main components: markets and institutions within the global financial system.

    2. Markets Covered:

      • Foreign Exchange Market: The market where currencies are traded.
      • Eurocurrency and Money Markets: Markets for currencies held outside their country of origin and related short-term lending markets.
      • International Capital Markets: Includes the Eurobond market and global equity markets.
      • Derivatives Markets: Markets for forward contracts, swaps, and other derivative instruments.
    3. Course Objectives:

      • Understanding how global financial markets function.
      • Analyzing competitive dynamics within the global financial services industry.
      • Exploring various banking activities on an international scale, including Eurobond issues, interest rate swaps, international equity finance, and advisory services.
    4. Instructor: Professor Ian Giddy, a seasoned academic and practitioner, brings extensive experience from institutions like NYU, Columbia, and Wharton, as well as from his tenure at Drexel Burnham Lambert.

    5. Pedagogy: The course adopts a hands-on approach, incorporating cases, problems, lectures, discussions, and live case studies to facilitate active learning.

    6. Course Resources:

      • Textbooks by Ian H. Giddy and Roy C. Smith provide foundational knowledge.
      • Students are encouraged to stay updated with financial news from sources like The Wall Street Journal, Financial Times, and The Economist.
    7. Grading: Evaluation comprises midterm and final exams, a live case study, and other assignments, each contributing to the final grade.

    8. Additional Resources: Students are directed to online resources for further study, including CNN Finance, The Financial Times, and Giddy's Finance Resources on the Web.

    In summary, the course offers a comprehensive exploration of global banking and capital markets, blending theoretical frameworks with real-world applications to equip students with a deep understanding of the global financial landscape.

    Giddy/Global Banking and Capital Markets Course (2024)


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