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Advanced Debt Capital Markets and Securitisation - LAWS8027
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Faculty: Faculty of Law
 
 
School:  Faculty of Law
 
 
Course Outline: See below
 
 
Campus: Kensington Campus
 
 
Career: Postgraduate
 
 
Units of Credit: 6
 
 
EFTSL: 0.12500 (more info)
 
 
Indicative Contact Hours per Week: 2
 
 
Enrolment Requirements:
 
 
Must be enrolled in Program 9200, 9210, 5740, 9230, 9270 or 5272
 
 
Excluded: JURD7427
 
 
CSS Contribution Charge:Band 3 (more info)
 
 
Tuition Fee:See Tuition Fee Schedule
 
 
Further Information: See Class Timetable
 
 

Description

Over the past 15 years one of the most significant developments in the Australian financial markets has been the growth of the private (as opposed to government or semi-government) debt capital markets. From a very low base in the early 1990s, the Australian debt capital market has grown, largely through the growth in securitisation, to have over $250 billion in outstanding instruments. Then, beginning in late 2007, the debt capital markets both abroad and in Australia froze precipitating a global financial crisis and, it appears, a world recession.

This course examines the nature of the debt capital markets and their regulation, the causes of the global financial crisis and proposals for further or changed regulation that have arisen from the crisis.


LLM Specialisations

Recommended Prior Knowledge

None

Course Objectives

A candidate who has successfully completed the subject should have:

1. Acquired expansive and comprehensive knowledge of:

  • the debt capital markets and securitisation in particular (how they operate and are regulated, particularly in Australia but also in other areas around the world;
  • the interaction of tax and stamp duty law with debt capital markets issues;
  • the role of rating agencies in a capital markets issue; and
  • the variety of structured capital markets products available.
2. By completing the take-home exam improved their:
  • ability to analyse, problem solve and think critically.
  • written communication skills.
3. Improved their oral communication skills by participating in class discussions where the seminars allow.

Main Topics

The course will cover the following:
  • What debt capital markets are.
  • What debt and hybrid instruments are.
  • Disclosure regimes for retail and wholesale debt instruments in Australia and overseas.
  • Relevant prudential regulation issues.
  • Traditional securitisations.
  • Credit default swaps and their use in synthetic securitisations.
  • General applications for derivatives in debt capital markets.
  • Covered bond structures.
  • Conduits and structured investment vehicles structures.
  • Tax and stamp duty charges on debt instruments.
  • Insolvency issues as they apply to insolvent issuers of debt instruments.
  • Marketing and pricing residential mortgage backed securitisation transactions.
  • The role of rating agencies in a capital markets issue.
  • Clearing houses.
  • Recent developments and future reforms.

Assessment

Class participation 10%
Take-home exam: End of session 90%
 

Course Texts

Prescribed
Course materials have been prepared and are available for students from the UNSW Bookshop.

Order from UNSW Bookshop


Recommended
As set out in the Course Outline

Resources

Please refer to Course Outline

URL for this page:

© The University of New South Wales (CRICOS Provider No.: 00098G), 2004-2011. The information contained in this Handbook is indicative only. While every effort is made to keep this information up-to-date, the University reserves the right to discontinue or vary arrangements, programs and courses at any time without notice and at its discretion. While the University will try to avoid or minimise any inconvenience, changes may also be made to programs, courses and staff after enrolment. The University may also set limits on the number of students in a course.