Overview

 

Through interactive case studies using actual market data, participants will gain a thorough understanding of market dynamics by learning to analyze current market conditions and form educated views about future markets. The learning environment is highly interactive, and enhanced by the live simulations, mini cases/projects/debates and the use of tools like Excel.

Why this course

 
  • This 3 days focused and highly practical course will enable participants with little or no prior knowledge of the capital market to gain a good understanding of the various types of equity, debt, and derivatives and how they are issued by companies.

What to expect

 
  • Identify the different types of markets
  •  Understand the difference between equity and debt
  • Exam how securities are issued and traded
  • Review the main valuation principles

What is the course schedule?

 

Day 1 8.30 AM to 4.30 PM

 

  • Introduction to Capital Markets:

    • Key securities and players 

    • Basics of capital structure 

    • Sources of liquidity

     

    Equity issuance:

    • IPO process 

    • Pricing vs. valuation 

    • Follow-on offerings
    • Rights issuance

     

    Secondary trading:

    • Order types 

    • Direct market access 

    • Liquidity
    • Free float
    • Short interest

Day 2 8.30 AM to 4.30 PM

 

  • Fundamentals of debt:

    • Obligation
    • Contract
    • Security
    • Series of cash flow

     

     

    Credit analysis:

    • Security and collateral 

    • Subordination
    • Covenants
    • Credit ratings

     

    Key securities:

    • Loans 

    • Bonds
    • Hybrid instruments

     

    Bond pricing:

    • How bonds are quoted 

    • How the bond price is determined 

    • Trading “like a bond” on yield not price
    • How yield is determined

    Price yield relationship

Day 3 8.30 AM to 4.30 PM

 

  • Futures and Forwards:

    • Obligation
    • Unique settlement dates
    • Typical settlement conventions
    • Margin requirements

     

    Financial futures:

    • Futures defined 

    • Spot – future pricing relationship 

    • Spot + Carry = Future Price

     

    Cash and carry arbitrage:

    • Fair value vs. market value 

    • Arbitrage free channel 


     

    Swaps:

    • An exchange of cash flows 

    • A series of forward contracts

     

    Types of Swaps:

    • Interest rate swap 

    • Asset swap 

    • Equity swap
    • Total return swap “TRS”
    • Credit default swaps “CDS”

     

    Equity options:

    • Types and characteristics 

    • Conventions 

    • Open interest 

    • Volume 

    • Liquidity 

    • Quotes 

    • Intrinsic value
    • Time value
    • Pricing fundamentals
    • Greeks
    • Understanding the risk implications
    • Dynamics of being long vs. short

  • Who should attend?
  • The course will be of great benefit to those who might be involved with the capital market as well as those who wish to learn more about the dynamics of the capital market. CEO, CFO, Head of strategy, corporate finance director, head of business development, authorized dealers, rising finance professionals.

  • Participants
  • The course will have a maximum of 12 people who will be selected based on the type of business they are in and their job role to ensure a thorough mix of industries, ideas and experience.

  • Training Style
  • The programme is designed to enhance learning through group and individual cases and exercises. There are a number of opportunities to practice techniques and evaluate skill levels. The programme will be supported with handouts and post course references. The design of each course will provide for each participant’s preferred learning style and optimize experiential learning processes.

    Contact our training division