QTM3625 Financial Modeling Using Simulation and Optimization with Applications to Finance, Marketing, and Management
4 Advanced Liberal Arts CreditsThis course is an introduction to quantitative techniques that enable marketing, finance, and management professionals to make optimal decisions under uncertainty. While theoretical background for these techniques is provided, the focus is on their applications and mastering software that is widely used in industry, such as Excel, Solver, @RISK, and MATLAB. Topics include simulation of important probability distributions, bootstrapping, random walks, linear and nonlinear optimization. Lectures draw on examples such as asset allocation under different definitions of risk; index tracking; scenario approaches to project and portfolio management; hedging and arbitrage; and derivative pricing.

Prerequisites: AQM2000

FIN4505 Financial Trading Strategies and Risk Management
4 General CreditsIn this course, students learn to develop and implement institutional (firm-level) financial trading strategies. These strategies are guided by quantitative models that identify, quantify, and manage risks and expected return. In so doing, students learn how to make decisions in an uncertain environment. The course is based on an experiential learning approach, in which trading simulation software provides a platform for delivering learning-by-doing cases. Specific cases covered in the course include: agency trading; principal (liability) trading; algorithmic market making; managing risk capital with value-at-risk; transportation, storage, and production arbitrage in commodity futures markets; and agricultural hedging. The course also covers fundamental concepts in market microstructure, such as bid-ask spreads, price discovery, information asymmetry, liquidity, and inventory risk.

Prerequisites: SME2021 or FIN2000

FIN7545 Financial Trading Strategies
3 Elective CreditsIn this course, students learn to develop and implement institutional (firm-level) financial trading strategies. These strategies are guided by quantitative models that identify, quantify, and manage risks and expected return. In so doing, students learn how to make decisions in an uncertain environment. The course is based on an experiential learning approach, in which trading simulation software provides a platform for delivering learning-by-doing cases. Specific cases covered in the course include: agency trading; principal (liability) trading; algorithmic market making; managing risk capital with value-at-risk; transportation, storage, and production arbitrage in commodity futures markets; and agricultural hedging. The course also covers fundamental concepts in market microstructure, such as bid-ask spreads, price discovery, information asymmetry, liquidity, and inventory risk.

FIN3535 Financing and Valuing Sustainability
4 General CreditsThis course will examine the intersection of sustainability, corporate social responsibility and socially responsible investing with the traditional theories and tools of finance. Students will learn to describe the sustainability landscape and then analyze sustainable technologies, strategies, and business models from the perspective of managers, entrepreneurs, and investors. Basic financial tools such as discounted cash flow, capital budgeting, capital structure, and risk/return will be used to evaluate the feasibility and financial implications of sustainable products and practices in a variety of industries and applications. Students will learn how to balance the needs of all stakeholders in organizations to create both financial and social value.

Prerequisites: SME2021 Finance

EPS7510 Financing Your Entrepreneurial Business
(Formerly Entrepreneurial Finance)

3 CreditsFocuses on raising seed and growth capital from venture capital, business angels, investment banking, and commercial banking sources; and financial problems unique to the small- and medium-sized firm undergoing rapid growth. Examines actual proposals made to venture capital firms, particularly in terms of their financial viability. Course also examines financial management for entrepreneurs over the life of a business project. Includes financing start-ups, financial planning for the nonpublic smaller enterprise, going public, selling out, bankruptcy, sources of capital, and other related topics.

Prerequisites: None

FIN3502 FinTech
4 Advanced Management Credits

The financial services industry is changing rapidly with the emergence of financial technology (FinTech). This course is designed to introduce key financial technology and its applications in financial services. Students will develop a broad and solid understanding of the recent innovations in FinTech, and their benefits and limitations. Students will also have hands-on problem-solving experiences that are useful in the FinTech venture. Ultimately, this course aims to help students identify entrepreneurial opportunities in FinTech and equip them with relevant knowledge and skills. The course will use a mixture of lectures, hands-on programming, case studies, guest speakers, and group projects. This course emphasizes and builds on Entrepreneurial Thought & Action, and Diversity, Equity, and Inclusion in the context of the financial services industry.

Learning objectives for this course:
- Understand key financial technology, including artificial intelligence (AI) & machine learning (ML) & natural language processing (NPL), blockchain & cryptocurrency, smart contract & ethereum. Develop relevant programing skills.
- Explore recent innovations in the financial services industry, including payment, credit, capital markets, insurance, SMB, and real estate.
- Assess the value creation of FinTech. Analyze the limitations and challenges of FinTech (e.g., inclusion, regulation)
- Identify entrepreneurial opportunities in the FinTech space. Propose a FinTech startup idea and develop a business plan.

Evaluation of undergraduate program learning goals:
- Collaboration: Students will work in teams to prepare for the final project report and presentation.
- Communication: The course will be highly interactive. Students need to actively participate in case studies and guest lectures. The final project will require students to pitch a startup idea both through a written report and a presentation. The quality of the written project and oral presentation will be used as a key evaluation criterion.
- Problem-Solving: Students will develop problem-solving skills through hands-on programming and assignments, case studies, and final projects. Students will be able to apply knowledge and skills learned from this course to identify real opportunities and challenges in the FinTech industry, propose new startup ideas, and develop business plans.

Prerequisites: SME2021

FIN7532 FINTECH

3 Elective Credits

The financial services industry is changing rapidly with the emergence of financial technology (FinTech). This course is designed to introduce key financial technology and its applications in financial services. Students will develop a broad and solid understanding of the recent innovations in FinTech, and their benefits and limitations. Students will also have hands-on problem-solving experiences that are useful in the FinTech venture. Ultimately, this course aims to help students identify entrepreneurial opportunities in FinTech and equip them with relevant knowledge and skills. The course will use a mixture of lectures, case studies, guest speakers, and group projects. This course emphasizes and builds on Entrepreneurial Thought & Action, and Diversity, Equity, and Inclusion in the context of the financial services industry.

Prerequisites: None

SEN1344: First Impressions: How to Present Your Best Self

Instructor: Nairi Enright 

FYS1000 First Year Seminar

1 Credit

This course will challenge students to critically examine important aspects of college student life, such as engaging in scholarly dialogue, becoming a proactive learner, and valuing a diverse and inclusive environment. Students will also be asked to reflect on their own abilities and how they can make an impact on campus and beyond. Additionally, students will develop important relationships with fellow students, peer leaders, faculty, and administrators. Students will earn a grade and one academic credit for their successful participation in this program.

Participation in FYS is a graduation requirement for all Babson students.

FIN7513 Fixed Income (Formerly Fixed Income Portfolio Management)
3 Elective CreditsThis advanced quantitative course is designed for students interested in fixed income portfolio management, as well as students interested in the sales and trading of fixed income securities and their related structured products. Topics covered include: (i) bond pricing and day count conventions; (ii) relative value and yield curve construction; (iii) duration, basis point value, and convexity; (iv) pricing and hedging of interest rate currency swaps; (v) Treasury bond futures, conversion factors, and the concepts of cheapest-to-deliver and implied repo; (vi) the repo (GC and special) market; (vii) credit risk and the pricing of high yield bonds and credit default swaps; and (viii) securitization, mortgage-backed securities, and collateralized mortgage obligations.

Prerequisites: FIN7200 OR FIN7800