Overview
Interest rates in the economy are fundamental to financing, banking, valuation, and investing. Moreover, observed differences between short- and long-term Treasury rates (the “term structure”) provide a powerful macroeconomic forecasting tool. This seminar explores the myriad of interest rates in the economy, demonstrates the importance of the interest rate environment in security prices and business valuation, details the methods and importance of interest rate forecasting, and investigates how the shape of the Treasury yield curve forecasts the future economic climate.
- What are the major benchmark interest rates and how are they determined?
- How does the interest rate environment evolve and how does it impact security markets and business valuation?
- How are interest rates quoted and appropriately converted for application?
- What gives rise to a term structure in interest rates, and how is the term structure used to forecast future rates and the macroeconomy?
- What are liquidity premiums and how should they alter our interpretation and use of the Treasury yield curve?
Faculty
Timothy R. Burch is Associate Professor of Finance at the Miami Herbert Business School and Academic Director of the full-time Master of Science in Finance (MSF) program. His research on mergers and acquisitions, investor behavior in crisis periods, and equity financing is published in leading academic journals, and his current research focuses on mutual funds and asset bubbles. Professor Burch’s industry experience includes full-time work as an actual analyst at a global pension consulting firm, serving as a board member of a mutual fund family, and providing a wide variety of financial consulting services.
