Formations

Master 2 Financial market and risk evaluation (FI)

Formation initiale

contact

Milo BIANCHI
Responsable pédagogique

Elodie PEREZ
Responsable administratif

master2.finance@tsm-education.fr

candidature

Applications for the academic year 2020/2021 took place from February 3 to April 10, 2020. They are now closed.
Whether you are a TSM student or you are considering joining our community:

  • it is no longer possible to complete a submitted application;
  • you can now follow the progress of your application evaluation on the eCandidatures platform;
  • you can view the decision of the education committee (the results will be published on June 18, 2020);
  • you must confirm your interest in registering for this programme (from 18 to 23 June 2020).

    label contrôlé par l&aposEtatEPAS TSM

 

The TSM Master in Finance among the top 10 Masters in Finance that are EPAS-accredited worldwide

EPAS is delivered by the European Foundation for Management Development (EFMD). It is the most thorough programme accreditation system for business and management programmes with an international perspective. According to EFMD: "The TSM Master in Finance is a robust academic programme with a commendable connection with the world of practice. The programme demonstrates several examples of best practices among which the use of ILOs to develop the provision but also to conduct programme delivery and assessment. The programme also offers a unique academic approach combined with the purpose of applying knowledge and skills to solving real-life problems and practical learning opportunities through internships."

The Master “Financial Market and Risk Evaluation” (FiRE) offers theoretical and practical insights on financial markets.


Theoretical insights are all the more needed after the great financial crisis of 2008 that has shown that blind applications of valuation and risk management models could prove unproductive. These theoretical insights are acquired by students with the instruction offered by world-class academics who have contributed to building them.

Practical insights are also offered to ensure that students are accustomed to the functioning and vocabulary of financial markets, the strategies of investors and the pricing of financial assets, with a particular emphasis on risk measurement and evaluation.


Students pursuing the Financial Market and Risk Evaluation track will also learn to:

  • Use modelling and computational tools to price financial assets ;
  • Understand the functioning of financial markets ;
  • Identify and manage operational and financial risks.

 

Semestre 3

UE 01 - Asset pricing

ECTS : 5.00

HCM : 30.00

HTD :

Langue d'enseignement : Anglais

  • Présentation et objectifs pédagogiques

    This course covers the fundamentals and practice of asset pricing. The first part of the course will pay special attention to fixed income products. Financial institutions and corporations use fixed income products to manage their assets and liabilities. They can use financial derivatives such as futures, options, and swaps to hedge their risks or to change the returns of their portfolios. The purpose is to provide students with the necessary skills to value and to employ fixed income instruments. We will specifically focus on instruments that are mostly used by portfolio managers, treasurers and traders, namely interest rate derivatives, currency forward contracts, interest rate swaps and options. The approach will be very market oriented in order to offer a link between the theory (pricing models) and the market practices.

     

    The second part of the course will uncover the fundamentals of asset pricing models, starting from notions of market efficiency and anomalies linked to return predictabilities. We start by introducing basic concepts and dynamic asset pricing models building on the CAPM, with the aim of understanding how these models can be used to explain asset prices. We develop consumption-based asset pricing models and explore how asset prices depend on future expected payoffs and investors’ preferences about consumption and risk, and how they are affected by consumption and payoff shocks. We introduce factor models and give an outlook on their use and role in practice.

     

    By the end of this course, students should be able to:

    • apply consumption-based asset pricing models to assess risk premia
    • explain the market efficiency hypothesis and its empirical validity
    • discuss the use and role of factor models
    • apply asset pricing models to evaluate investment performance
    • compute the value of fixed income instruments
    • choose the right fixed income instrument according to a financial objective

     

  • Prérequis

    Students are expected to have a minimum preparation in mathematics, statistics and econometrics. An introductory course of Asset Pricing is a plus.
    Students are expected to have a basic knowledge of standard financial instruments (bonds, forward contracts, options).

Syllabus

UE 02 - Corporate finance

ECTS : 5.00

HCM : 30.00

HTD :

Langue d'enseignement : Anglais

  • Présentation et objectifs pédagogiques

    The course covers several topics in corporate finance and emphasizes the interaction between financial decisions and strategic choices of corporations. The objective of the course is to apply concepts and tools from finance theory to analyze actual problems faced by firms, and to provide insights on the practice of corporate finance.

    At the end of this course, students should be able to:

    • apply standard conceptual frameworks used in finance to major corporate events (like e.g. IPOs, M&A, dividend distribution, corporate governance decisions, early stage fund raising,...)
    • evaluate the financial implications of these events
    • identify the ethical issues at stake for corporations
    • appreciate the role of corporate governance.
    • provide concise summaries of complex cases in both written and oral form
    • work effectively in a group
  • Prérequis

    Foundations on corporate finance theory (Modigliani-Miller, trade-off theory, agency issues, asymmetric information and financial decisions)
    Basics of corporate valuation and accounting (financial statements, valuation methods: DCFs, multiples, cost of capital)

Syllabus

UE 03-1 - Information technology for finance (Introduction to SAP)

HCM : 12.00

HTD :

Langue d'enseignement : Anglais

  • Présentation et objectifs pédagogiques

    Enterprise resource planning (ERP) systems are used by organizations looking to manage their business functions within a centralized and integrated system. The course is intended to explain how the fundamental business processes interact within an ERP system in the different functional areas such as sales and distribution, materials management, production planning, financial accounting, controlling, and human resource management. Special attention will be dedicated to SAP as it is the most common ERP system which is used among large entreprises. The course is given on a hands-on approach: after an introductory part, students learn to use an ERP through practical applications in computer lab.

     

    By the end of the course, students should be able to:

    • explain the main concepts of an ERP and discuss its opportunities and challenges
    • describe the structure of an SAP system
    • navigate through an SAP system
    • execute simple SAP transactions.
    • work effectively in a team

     

  • Prérequis

    •  Basic knowledge in business processes   
    •  Basic knowledge of personal computer

Syllabus

UE 03-2 - Information technology for finance (VBA for finance)

HCM : 18.00

HTD :

Langue d'enseignement : Anglais

  • Présentation et objectifs pédagogiques

    Visual Basic for Applications (VBA) is an implementation of Microsoft's programming language Visual Basic, and associated development environment, built into Microsoft Office applications. Excel VBA is widely used in the finance industry, to create complex financial spreadsheet models. This intermediate course aims at providing students with a solid background and understanding of VBA structured and event-driven programming techniques, along with best programming practices, such that students write good quality, easy to maintain code. 

    At the end of the course, students should be able to:

    • maintain an existing application through bug fixing, code cleanup, and feature developments
    • develop new applications using event-driven and object oriented programming techniques
    • enhance code quality through good coding practices
    • synthesize information and present the results in a written form. 
    • work effectively in a group

     

     

  • Prérequis
    • General knowledge of personal computer.
    • Excel (intermediate).
    • Programming (beginner).

Syllabus

UE 04 - Financial econometrics

ECTS : 5.00

HCM : 30.00

HTD :

Langue d'enseignement : Anglais

  • Présentation et objectifs pédagogiques

    Financial econometrics is the application of statistical methods to financial data. It provides a set of tools that are useful for modeling financial data and testing hypothesis about how markets work and prices are formed. The course is designed to cover the essential tools of financial econometrics and empirical finance with a moderate degree of sophistication. In this sense, the course will be applied to give students the useful tools to become fully autonomous when carrying out empirical analysis in a professional context.

     

    On completion of this course, students should be able to:

    • describe the statistical properties of the OLS estimator
    • translate an economic argument into a formal econometric test
    • implement simple statistical tests of hypothesis
    • use statistical packages to estimate econometric models
    • provide an economic and statistical interpretation of a regression output
    • communicate effectively in oral and written form
    • work effectively in a group

     

  • Prérequis

    Intermediate knowledge in finance theory and in econometrics.

Syllabus

UE 05 - Economics for finance

ECTS : 5.00

HCM : 30.00

HTD :

Langue d'enseignement : Anglais

  • Présentation et objectifs pédagogiques

    This course introduces some fundamental economic concepts and tools and shows how these can be used to understand financial behaviors as well and the functioning of financial markets.

     

    Upon completion of this course, students will be able to:

    • describe the drivers of international trade and capital flows 
    • analyze the functioning of global financial markets (exchange rates, parity relations, international arbitrage)
    • master the fundamental tools for international risk management
    • work with economic models that underpin theories of intermediation and corporate finance
    • understand the interactions between financial markets and financial decisions
    • undertake a model-based analysis of financial decision-making by companies, investors and intermediaries
    • apply ethical considerations to global issues 
    • provide concise summaries of complex cases in written form

     

  • Prérequis

    Previous exposure to basic finance concepts is a plus.

Syllabus

Semestre 4

UE 06 - Asset management and trading

ECTS : 4.00

HCM : 24.00

HTD :

Langue d'enseignement : Anglais

  • Présentation et objectifs pédagogiques

    This course explores the conceptual and practical aspects of asset management and trading. The focus is on investment policies, market efficiency, investment and trading strategies, and performance evaluation. Particular attention is devoted to the factors influencing securities’ prices including asymmetric information and investors’ psychology. These various topics are introduced through lectures, class discussions, readings, and computerized applications. A web-based 10-week simulation is organized in order to provide students with a first-hand experience in asset management and trading.

     

    After this class, students should be able to perform the following tasks: 

    • describe the asset management process
    • identify mispriced financial assets
    • design investment strategies
    • assess the performance of investment strategies
    • implement trading strategies
    • apply ethical considerations to management decisions
    • work effectively in a group
  • Prérequis

    Basic mathematics and statistics.

Syllabus

UE 07 - Derivatives

ECTS : 4.00

HCM : 24.00

HTD :

Langue d'enseignement : Anglais

  • Présentation et objectifs pédagogiques

    There has been a dramatic growth in markets for financial derivatives in recent years. The purpose of this course is to provide the student with the necessary skills to value, to assess the risks and to employ futures, swaps, options, and other related financial instruments. In order to provide a useful treatment of these topics it is necessary to stress fundamentals and to explore topics at a highly technical level.


    By the end of this course, students should be able to:

    • explain the arbitrage pricing methodology
    • describe how financial intermediaries may hedge their position when they issue derivatives
    • compute the price of complex derivative instruments (e.g., American or exotic options) or and other related financial instruments
    • construct investment strategies using derivatives
    • discuss regulation of derivatives contracts
    • incorporate ethical dimensions and implications for sustainability in financial decisions

     

    It covers both theoretical results as well as practical approaches. For this reason, it includes reading, case studies and a practical project.

    Students are expected to:

    • work effectively in a group
    • synthesize information in written and oral form

     

  • Prérequis

    This course is a technical course. Students are expected to have a minimum preparation in mathematics, statistics, econometrics, and programming.
    The course builds on introductory courses in market finance and risk management. Students are expected to have a basic knowledge of standard derivative instruments (forward contracts, options) and of the notion of pricing by arbitrage.

     

Syllabus

UE 08 - Risk management

ECTS : 4.00

HCM : 24.00

HTD :

Langue d'enseignement : Anglais

  • Présentation et objectifs pédagogiques

    The Risk Management class aims to provide an overview of risk management within financial institutions, with a focus on market risk.

    By the end of the course, students will be able to:

    • describe the objectives of risk management (shareholder value maximization and beyond)
    • evaluate exposure to different sources of risk (market risk, credit risk, liquidity risk, operational risk)
    • apply the standard tools for Risk Management in Finance and Insurance

     

  • Prérequis

    This course requires the understanding of:
    - Financial instruments basics;
    - Pricing basics (Black-Scholes, Pricing parameters, Discounting);
    - Greeks basics (Delta, Vega, Gamma);

Syllabus

UE 09 - Psychology for finance

ECTS : 4.00

HCM : 24.00

HTD :

Langue d'enseignement : Anglais

  • Présentation et objectifs pédagogiques

    Traditional finance typically considers that financial markets are efficient because populated by rational investors who maximize their expected utility from consumption. This course departs from this view by showing how inefficiencies can arise due to investors’ psychology and limits to arbitrage. Psychology shapes investors’ preferences: Anticipatory utility, others-regarding preferences and mood are important in understanding investors’ behavior. Psychology also affects investors’ perception: overconfidence, confirmation bias and several heuristics may impair their judgment. Whether these psychological factors have an impact on financial markets ultimately depends on rational speculators’ ability to fight against mispricings. These topics will be covered through lectures and class experiments and will trigger discussions of issues such as momentum, bubbles and crashes.

     

    At the end of the course, students should be able to: 

    • identify the sources of financial markets’ inefficiencies
    • list the various types of investors’ preferences
    • describe the various types of investors’ cognitive biases
    • use cognitive biases to design trading strategies
    • critically evaluate the impact of psychology on corporate decision-making
    • work effectively in a group

     

  • Prérequis

    Basic mathematics and statistics.

Syllabus

UE 10 - Financial computing

ECTS : 4.00

HCM : 24.00

HTD :

Langue d'enseignement : Anglais

  • Présentation et objectifs pédagogiques

    Computers and digital transactions become evermore important in the financial industry. Algorithms and models are the driving forces behind the software used for this ever increasing automatisation. In this course, students learn the basics of programming, how to construct algorithms and work with structure data. They will get a brief introduction on how data driven modelling can be used to automate tasks and decision making. They entire course is given on a hands-on approach where the students code together with the instructor. The course end goal is to finish a end-to-end project in groups of two and write a paper on the progress.

     

    At the end of the course, students should be able to:

    • write a basic Python program;
    • apply different programming paradigms like functional and object oriented programming;
    • use versioning control software;
    • read in and manipulate structured data using dedicated libraries;
    • create some basic models and algorithms in a structured and documented way;
    • synthesize information and present the results in a written form. 

     

  • Prérequis

    Laptop or access to university computers.

    Basic understanding of math and logic.

Syllabus

UE 11 - Internship / Entrepreneurial project

ECTS : 15.00

HTD :

Langue d'enseignement : Anglais

  • Présentation et objectifs pédagogiques

    The objective of the internship is to help students develop social, communication and technical skills useful for their future career. 

    By the end of the internship, students should be able to:

    • apply academic concepts in a practical situation in a professional environment
    • pursue career goals
    • expand content specific and transferable skills
    • reinforce the professional network
    • respect and integrate the opinion of others
    • synthesize information and make focused presentation
    • apply ethical considerations to management decisions

     

  • Prérequis

    Students should have attended the M2 classes before starting the internship.

     

Syllabus

Internal TSM candidates

→ Successful completion of 240 ECTS

→ An English language test for non-English speakers (B2 required). List of the English language certificates accepted here.

→ Examination of candidate’s application and possible interview (choice of track)

 

External candidates (non TSM)

→ Successful completion of 240 ECTS

→ An English language test for non-English speakers (B2 required). List of the English language certificates accepted here.

→ Examination of candidate’s application and possible interview

 

Need help? Consult our FAQs or contact assistance-admission@tsm-education.fr

 

This Master is a programme in partnership with Toulouse School of Economics (TSE).

The FIRE Master is a great programme. It strikes the perfect balance between theoretical and applied finance, including useful tools in the industry such as VBA programming and Excel techniques. Another strong point about it is that professors come from both academia and the financial industry, making the programme very appealing for someone who wants to become a practitioner with a strong technical background. I joined the programme after completing the first year of the Master in Economics at TSE and would definitely recommend this programme to others.

Juan David GOMEZ

Class 2013/2014

83%* of students have found a job within 3 months after graduation.
31%* of students have found a job abroad.
The average annual net salary two years after graduation was above 40,000€*.

 

Career opportunities:

  • Risk analysis
  • Brokerage
  • Asset management
  • Trading
  • Middle office
  • Design of structured products
  • Private equity
  • Consulting


Preferred sectors: senior financial management and general management committees of groups, banks and financial institutions, private equity and venture capital firms and consultancies, international corporations.

*Source: 2016, 2017, 2018 graduate survey 2 years after completing the M2 FiRE.

Les autres formations

Master 2 Corporate finance (FI)

Master 2 Finance and information technology (FI)

Master 2 Corporate Finance - double diplôme HEC Liège (FI)

Master 2 Financial Market and Risk Evaluation - double diplôme HEC Liège (FI)

Master 2 Master of Science in Finance (parcours recherche)

Master 1 Finance (FI)