Build practical skills in portfolio risk modeling and funding liquidity analysis to make informed decisions in modern financial markets. This course is designed for learners who want to understand how portfolio risk, market stress, asset liquidity, and funding conditions influence investment strategies and financial institutions. You’ll explore modern portfolio theory, diversification, risk-return trade-offs, portfolio constraints, volatility, drawdowns, tail risk, risk parity, and optimization limitations. You’ll also examine advanced portfolio strategies, including index tracking, enhanced indexing, and pairs trading using spreads, asset relationships, and market-neutral positioning.
The course then connects portfolio risk management with funding liquidity risk. You’ll analyze liquidity shortfalls, deposits, cash flows, asset quality, market confidence, central-bank operations, interbank conditions, liquidity pricing, auction data, spreads, and lessons from the 2008 financial crisis. By the end, you’ll be able to assess portfolio vulnerabilities, calculate and interpret risk and drawdown measures, evaluate portfolio strategies, analyze funding pressure, and critically assess liquidity-risk models during normal and stressed market conditions. The course uniquely connects investment portfolio risk with banking liquidity risk for a broader view of financial risk management.
