Investment Banking: Loan Pricing and the MPS–Mediobanca Exchange Offer

Three banking and capital markets cases. The first sets the minimum price of a corporate loan for a bank (BPER), starting from funding cost, credit risk and cost of capital. The second analyzes MPS’s public exchange offer for Mediobanca: shareholder dilution, acceptance thresholds, the premium implied in the exchange ratio and a “fair” improved offer. The third covers the conversion of savings shares into ordinary shares under a no-arbitrage logic.

Risk-adjusted loan pricing, analysis of M&A transactions and public offers, valuation on real market data.

Excel (Goal Seek), Bloomberg, Chatham Financial and Damodaran data.

Funds transfer pricing, expected loss (PD × LGD), capital on RWA, CAPM, hurdle rate, linear interpolation of the swap curve, exchange ratio premium and discount.