Projects and evaluation

 

Evaluation is only a means and not end. It is means to value addition - which is our common objective.

While I do understand that there has to be some means of objective assessment of the learning process, ultimate consummation of the education process is in the assimilation of inputs and not in the evaluaiton per se. Hence, please do not take evaluation as the be-all-and-end-all of the course.

I intend to classify the batch into 2 Types:

Type 1:

This is the group which commits to an intrinsic interest in structured finance and looks at structured finance/structred credit as a career option. I would expect these students to reflect unwavering dedication to the course.

For this group, the relative weightages of mid-term, end-term and project will be 20:30:50.

Type 2:

For this group, the relative weightages for the mid-term, end-term and project will be 30: 50: 20. Evaluation of the project will be based on a short viva (phone call).

I would encourage Type 2 students to anytime walk-over to Type 1.

• If you have your own idea of a project topic, please discuss it with me.

• Collective project work: While I do appreciate collective efforts, there have been problems in the past in evaluating the role of a group member in the project. By definition, if we accept the existence of a group, we cannot make distinction between the group members - but that is, unfortunately ruled out by reality. The other option leads to a subjectivity, edging towards arbitrariness.
• Hence, unless the project involves fundamental research or variegated know-how, I would discourage group work.
• For Type 2 students, please do understand that I am not expecting you to come up with path-breaking scholarly research papers. Hence, instead of spending time in cut-paste jobs, it would make better sense to focus on assimilation and absorption of ideas. If this process helps in any extent of value addition, the purpose of the evaluation exercise if fulfilled.

Relating to Securitisation and structured finance
1. Modelling of default and prepayment behavior of a pool from real life data
2. Preparation of cashflow model for a real life RMBS transaction
3. Preparation of cashflow model for a real life whole business transaction
4. Preparation of cashflow model for a master trust structure securitisation transaction
5. Computation of OAS for several structured finance transactions

Relating to credit derivatives and risk transfer
6. Paper on pricing of single name credit default swaps
7. Paper on pricing of basket swaps
8. Paper on pricing of synthetic CDO transactions
9. Arbitrages between the cash and synthetic credit market - why do they exist, evidence and opportunities
10. Potential model for an arbitrage synthetic CDO for India

Relating to leasing and asset based financing
11. Problems and pitfalls for operating lease business in India
12. Off balance sheet finance - international overview and measures to bring off-balance sheet entities on books
13. Approach to pricing of leases: credit risk and asset risk

Relating to Basle II, economic capital
14. Assessment of probabilities of default and loss given default for corporate portfolio of a bank
15. Excel-based model for computation of capital under IRB approach for a bank
16. Explanation of Basle II IRB norms (supervisory formulae) with justification for the underlying formulae
17. Preparedness of Indian banks for Basle II
18. Computation of VaR for a real life bank's treasury portfolio

Relating to Hedge funds/ REITs
19. Position paper on Hedge fund activity globally and in Asia
20. Position paper on REIT activity globally and in Asia

Relating to corporate taxation
21. Corporate tax issues relating to mergers and acquisitions
22. Corporate tax issues in ownership structure of a venture capital fund in India (sources of capital, domicile of investors, and form of investment by the venture capitalist)

23. Doing business in India - Taxation implications