Capital Markets - An Introduction

Course level

Introductory

Delegates

This course will be of benefit to those new to investment banking and investment management, or those who work within specific areas and are looking to gain an overview of the bond, equity and derivative markets.

Overview

This two-day course provides a comprehensive understanding of the products and terminology used by issuers, investors and intermediaries in the capital markets. It will enable you to understand the workings of the equity markets, describe the major characteristics of bonds, bond markets and bond mathematics, explain the distinctive features of derivative instruments, and ensure a full understanding of the roles played by the major institutions in the capital markets. No prior knowledge of capital markets is assumed.

Learning outcomes include obtaining a greater understanding of:

• Capital Markets: Overview
  • The structure of the capital markets
  • Disintermediation versus bank intermediated finance
  • The roles of the participants
• Equities
  • Definition of an equity
  • Who issues and who invests?
  • Features of equity
  • The issuing process
• Bonds
  • What is a bond?
  • Who issues and who invests?
  • Features of a bond
  • Interim reports (IAS 34)
• Morning Meeting Reconstruction
  • Bond issuance considerations
  • Borrower/Investor strategies
  • The role of macroeconomics
• Essential Bond Mathematics
  • Using an HP17B calculator
  • Present value, future value and Discounted Cash Flow (DCF)
  • Yield to maturity
  • Fixed and floating bonds
• Credit Ratings: The Role of Ratings
  • The agencies
  • The process
• Distributing a New Bond Issue
  • A bond issuance case study
• Forward Rate Agreements
  • Distinctive features
  • Pricing FRAs
  • Hedging using FRAs
• Futures & Options
  • Descriptions and definitions
  • Hedging or speculation

Course Dates