|Application deadline:||31 October 2014, 9 January 2015, 13 March 2015|
|Tuition fee:|| |
|Start date:||September 2015|
|Duration full-time:||9 months|
|Delivery mode:||On Campus|
|More information:||Go to university website|
The UK’s number 1 Masters in Finance programme
The Oxford MSc Financial Economics (MFE) is a full-time nine-month programme that will provide you with outstanding training in the tools of financial economics sought by many financial institutions, companies, and public organisations. It combines a rigorous academic core with tailored practical applications, designed in consultation with leading financial recruiters.
The MFE is run jointly by Saïd Business School’s finance faculty and the University’s Department of Economics. The finance faculty at the Business School is one of the fastest growing and most prestigious in Europe and they work closely alongside the most diverse and well-known groups of economists in the world.
This unique programme is delivered through the Business School which means that, unlike other graduate courses, it features interactive classes, use of case studies, practitioner teaching, and proactive careers support. The programme is currently ranked first in the UK and seventh in the world by the FT ranking for Masters in Finance 2014.
The Oxford MSc Financial Economics programme combines:
The Oxford MSc Financial Economics (MFE) is run jointly by Saïd Business School’s finance faculty and the University’s Department of Economics. The finance faculty at the Business School is one of the fastest growing and most prestigious in Europe, and works alongside the most diverse and well-known groups of economists in the world. Together they publish prolifically in top journals, speak at academic and practitioner conferences, and advise companies, financial institutions and governments.
The MFE is delivered through Oxford University’s Saïd Business School. This means that, unlike other graduate programmes, theMFE features interactive classes, use of case studies, practitioner teaching, and proactive careers support.
Throughout the programme we stress the links between financial economics theories and key finance activities. Topics are chosen in the economics courses for their relevance to finance. As an example, we list below some of the key finance activities undertaken in financial institutions and, alongside these, their financial economics underpinning and the MFE courses where this underpinning is provided.
The MFE has been designed in close consultation with a panel of advisers from leading financial institutions. This panel has helped ensure that the choice and content of courses match the needs of employers. The panel continues to play an important role on the MFE, providing up-to-date practitioner advice on course content, supplying adjunct faculty and representing major recruiters.
Once accepted on the programme we will provide you with pre-course reading so that, if you lack a background in finance or economics, you can become familiar with key concepts and techniques that will be introduced early on in the programme. Before the first term you will be required to take pre-course classes in maths (depending on your existing level), in Matlab (a computer language), and in accounting. You will also attend pre-course careers training. A maths workbook has been prepared for students to study over the summer before the programme starts. During the first term there will also be additional mathematics and computing classes should you need further practice and support.
Modules are assessed using a combination of examinations and assignments. They vary in the way they are assessed, with core modules placing the emphasis on examinations, and electives stressing written assignments, some of which may be undertaken in teams. Although classroom participation is not graded, many modules give credit for case study write-ups that form the basis of classroom discussions.
All students take core modules in corporate finance, asset pricing, financial econometrics, and economics. These modules are all carefully integrated: the economics and econometrics modules apply theories and methodologies to finance, and the finance modules provide the underlying economic principles of financial practice.
The asset pricing module covers the theory and practice of valuing claims to uncertain cash flows; for example, stocks and stock options, bonds and foreign-exchange instruments. The module covers standard material such as CAPM and the Black-Scholes formula, and some advanced material such as consumption-CAPM and pricing formulas for "exotic options". About half of the module is dedicated to the application of advanced statistical methods to the area of asset pricing and to practical work with real-world data.
Corporate finance studies the financing, valuation and corporate governance of firms. During this module, you will learn the fundamental principles of financial accounting, the valuation of firms' assets and the determinants of firms' financial structures. You will be taught the key components of firms' financial decisions and the operation of financial markets, including new issues of securities, debt, and dividend policy. You will learn about the relevance of different financial institutions to the financing of firms, the takeover process, corporate restructurings, and financial distress.
The module in financial econometrics provides students with a background in the fundamentals of empirical modelling and testing in finance. This will allow you to better understand crucial concepts like risk, evidence, and prediction.
Microeconomics is the study of how financial and commercial frameworks and conditions impact on individual situations and business units. During this module you will learn to apply the basic tools of market and firm analysis, game theory, incentive theory, and auctions. In addition, the module will provide an introduction to fundamental ideas in macroeconomics, reinforced by lectures from leading policy experts.
The wide range of electives available enables you to gain a deeper knowledge of areas of special interest. You will be expected to complete five elective modules. Electives on offer are subject to change from year to year depending on demand.
Capital raising and finance
This module, taught by Andreas T. Angelopoulos, examines the role of capital raising for entrepreneurs, investors and companies based on: theory, cases and financial modelling, speakers and a project following the ‘Connect Theory with Practice‘ approach aiming students to acquire not only the required theory of the finance instruments and methods but also to develop their execution and modelling skills for their interviews and career. We will cover:
Finance instruments: Debt (loans and bonds), quasi-equity (shareholder loans, convertible bonds, preference shares), equity (preferred ordinary shares, ordinary shares)
Finance methods: Equity and quasi-equity finance: growth capital, IPO (primary & secondary offer), primary (rights issue and capital increase), secondary (follow on), equity linked (convertible bonds) and debt finance: leverage finance, project finance, infrastructure finance
Cases in finance and investments
The purpose of this module, taught by Andreas T. Angelopoulos, is to provide real cases and modelling experience to students in the finance areas of leverage finance, mergers & acquisitions, private equity finance (LBO and distress), project and infrastructure finance based on:
Managers of firms have many responsibilities. A critical one is to ensure that the firm makes appropriate investment and financial decisions. This module focuses on how to make good decisions. While it will also focus to some extent on the mechanics of corporate valuation, it is more directly a module on how to create (and destroy) corporate value. As such, we are more interested in the decisions you make after you have conducted the valuation analysis.
Who should take this class? Consultants, entrepreneurs, general managers, marketers, investment bankers, and other finance professionals — basically, if you are interested in business, you should take this class.
The entrepreneurial finance elective aims to help future executives, facing financing and investment decisions in a broad range of entrepreneurial environments, to make better decisions and achieve better outcomes. The module covers all stages of the financing process from initial financial planning to harvesting value.
While the module will inevitably involve looking at a number of technology driven businesses, the emphasis is on gaining insights into the entrepreneurial financing process rather than looking at the financing of technology businesses per se.
Entrepreneurial environments considered will include not just young, growing, independent businesses but also those around the buy-outs and spin-outs of units from more established businesses, as well as entrepreneurial joint ventures, that are established with a view to their becoming independently viable entrepreneurial businesses in their own right.
One of the eight sessions will also be devoted to looking at the venture capital industry with a view to providing candidates with a broad understanding of current developments in this area and the likely future impact on the range of financing options and alternatives available from these sources going forward.
The module requires candidates to be very comfortable with and confident in using basic financial concepts. It is designed to focus on the numbers and analytic techniques for gaining insight, although continual attention will also be paid to the incentives facing each of the parties in the financing process.
The module will be highly relevant for future executives who may be involved in an entrepreneurial venture at some point in their careers, whether in a turnaround, a management buy-out, a young company or a start-up. It will also be highly applicable for future private equity and venture capital decision makers.
Fixed income and derivatives
This elective will develop the analytical tools necessary to understand and price fixed income and derivatives financial instruments. The properties of these financial instruments will be analysed and related to risk management, portfolio diversification, systemic risk, financial fragility and contagion. Emphasis will be put on applying these techniques on problems emerging in the marketplace.
Topics to be covered include: bond valuation, properties and trading; swaps; risky debt; fixed income and hedging applications; the yield curve; derivatives markets; properties and trading; derivatives pricing and hedging applications; Black-Scholes Model; real options, credit derivatives and securitisation, credit derivatives and financial stability.
Mergers, acquisitions and restructuring
The market for corporate ownership is one of the hallmarks of capitalism. Within that market, vast amounts of corporate wealth have been created – and destroyed. The objective of this module is to understand the market, the institutions that were created in order to execute these complicated transactions, and the strategies that are employed by the major players.
One role of the market is to allocate assets to the owners who can extract the maximum value out of them; bankruptcy is an alternative mechanism. Hence, the two mechanisms are often studied together under the heading of restructuring.
The first four sessions are taught by Oren Sussman and focus on finance. Subsequently, Duncan Angwin will teach four additional sessions that would focus on strategy and organisational behaviour.
Throughout the year there are many different seminars, events and conferences involving private equity professionals and those faculty researching in the area. These provide a useful introduction to the sector, and essential background knowledge for students taking the private equity course.
There are three main objectives of the private equity course:
to develop an understanding of the roles played by the various participants involved in private equity. The module will consider the attractions of private equity as an investment class. The organisation and incentive structures of private equity funds, and the complex relationship with the companies in which they invest are also analysed.
to apply many of the ideas and theories developed in the core finance modules to a particular sector of the financial industry. The private equity sector – involving both venture capital and buy-outs – is a particularly interesting sector to analyse. Private equity is used to finance many companies where the generic problems encountered when financing companies – such as uncertainty or asymmetric information – are especially acute and complex.
to critically evaluate the valuation techniques employed in private equity transactions. By their very nature, private equity investments (which lack market valuations provided by public equity markets) are those where valuation is often difficult, being highly sensitive to assumptions and methodology. This module reviews a variety of valuation techniques in the context of real private equity transactions.
Actuarial society exemption
Actuaries provide commercial, financial and prudential advice on the management of assets and liabilities - especially where long term management and planning are critical factors. Actuaries traditionally work in finance, investment and risk management, general insurance, life insurance, pensions and social security.
The Institute of Actuaries and the Faculty of Actuaries are the two chartered professional bodies for UK actuaries, working closely together across the UK as The Actuarial Profession.
The Oxford MFE has been approved by the Actuarial Profession as being of the required standard and leads to blocks of exemptions from the Profession's exams, providing that a suitable overall standard is achieved.
The subjects covered by this agreement are:
Chartered Financial Analyst
The CFA (Chartered Financial Analyst) Institute is a global organisation which administers the CFA qualification, a rigorous three-tiered professional qualification open to those working within the finance sector which is highly regarded by recruiters.
Saïd Business School is the founder member of the CFA Educational Partnership programme, which officially recognises that 70 per cent of the CFA qualification's required body of knowledge is embedded within the MFE curriculum.
A large proportion of MFE students are registered with the CFA Institute. This partnership gives them the opportunity to:
The MFE and the CFA do not provide exemptions from each other's exams. MFE students receive tailored training to help them prepare specifically for the CFA exams.
Research trackFurther research in financial economics
For those interested in pursuing doctoral research in financial economics, it is possible to use the MSc Financial Economics coursework as preparation. There are excellent doctoral facilities in finance at Oxford University in the Business School, Economics and Mathematics Departments. Please go to the Oxford Financial Research Centre website for more information.
Prospective doctoral students will be required to write a research-oriented project report in the third term and will also be required to take certain advanced electives. Admittance to a doctoral programme is then subject to excellent performance on the MFE, possibly some additional coursework, the development of a promising research programme, and the identification of an appropriate supervisor.