ITSM513 - Banking and Shipping Finance
(ITSM513)

 This course requires an enrolment key

Shipping operations are closely linked to provisions of capital from the banking sector. For example, the 2007 banking crisis and the introduction of stricter capital requirements on banks had a significant effect on shipping finance. It is therefore useful to approach shipping finance with an understanding of the basic elements of financial intermediation, banking and the broader financial markets. This course is designed to offer the prerequisite knowledge of the current banking system before moving onto the specific of shipping finance. In particular, upon completion of this course students could and should be able to: a) Understand the essential elements of money and the economic system of financial intermediation. b)Present an overview of the institutional characteristics of the banking system and appreciate the need of financial intermediation in the shipping markets. c)Distinguish the structure of Financial Markets including Debt and Equity Markets, Primary and Secondary Markets, Exchanges and Over-the Counter Markets and Money and Capital Markets. d)Understand the determination process of interest rates. e)Assess bond price sensitivity and hedge against interest rate risk. f)Evaluate alternative means of shipping finance including debt provisions, syndicated loans, private equity, bridge financing etc. g)Develop working knowledge of capital budgeting/project appraisal techniques applied to shipping finance scenarios. h)Identify shipping finance risks including interest rate risk, foreign currency risk and freight rate risk and the financial instruments used to counter these risks.

This course requires an enrolment key