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An essential, comprehensive guide to understanding the markets, players and products of the global capital markets.

What you will learn

 

You’ll be able to apply all the concepts of financial math, including NPV, IRR, PV, FV, to real business problems.

 

You’ll learn how to describe the players, products, markets and applications of capital markets instruments.

 

You’ll be able to interpret the meaning of yield curves and how financial markets and instruments drive pricing.

 

You’ll be able to explain the full range of fixed income instruments, their issuers and investors, and the ways these instruments are structured.

 

You’ll be able to detail equity markets products, players and market dynamics.

 

You’ll be able to determine uses and applications of futures and options.

Description

The Capital Market Immersion program provides a solid and deep introduction to the global capital markets. This course is designed to deliver a comprehensive, deep-dive into the functions and roles played by modern financial institutions and their key lines of business. The program is intended for professionals (or those about to enter the business) with foundational knowledge of the industry’s basic products and service, and how each functions.

The program’s framework consists of lectures covering 7 separate topics:

1. The Capital Markets Road Map – Highlights the primary participants, issuers, investors, intermediaries in capital markets, what they trade there, and the applications to which market participants make use of the instruments and the roles they play.

2. Fundamental Financial Math – Introduces you to a wide variety of calculations and related concepts that are used by financial market participants in a plethora of applications – calculating prices, rates of return, and yields for example.

3. Yield Curve Dynamics – Covers a variety of issues relating to yield curves, their construction, and their use in a variety of analytical applications to assess risk and return.


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4. Fixed Income Securities – Introduces you to the market for fixed income securities, provides you with a lot of details on the characteristics of fixed income securities in general, as well as discuss specific characteristics of specific sectors of the fixed income market – insurers, investors, and a wide variety of concepts relating to the analysis and validation of those securities.

5. Equity Products – Introduces equities by providing an overview of the types of products, including both direct and indirect products; and demonstrating types of shares and exchanges, investors, diversification and volatility.

6. Futures & Options – Introduces derivatives in general, to demonstrate the common features of derivatives and how they differ from other sorts of financial instruments. Futures and options contracts’ key characteristics will be identified, and contract features, pricing, applications, risk management, and hedging will be discussed.

7. Interest Rate Swaps – A look at interest rate swaps in detail. First, swaps in general are introduced, then the structure of the most common type of interest rate swap – the fixed or floating interest rate swap – will be addressed. A variety of different structures, pricing and valuation, and applications – both risk management and speculative – will be discussed.

In all, there are 142 total lectures (video clips) and over 24 hours of total view-able content. This program also includes supplemental PDFs as downloadable attachments that you can use to follow along with each lecture’s instructor.

 

English
language

Content

Capital Markets Road Map

Major Market Segments and Types of Instruments
Economic Functions of Capital Markets
Securities Markets and Important Market Participants
Commercial Banking and Investment Banking
Primary and Secondary Markets
Primary Market Offerings
Roles of Financial Intermediaries
Comparing Securities to Derivatives
Introduction to Fixed Income Securities
Fixed Income Securities: Sources of Return and Types of Risk
Government and Government Agency Securities
Corporate Securities and Structured Securities
Bond Pricing and Valuation
Yield Curves, Credit Markets and the Business Cycle
Yield Curves, Monetary Policy and the Real Economy
Introduction to Equity Securities
Investment Characteristics and Valuation of Equity Securities
Valuation of Equities Using Earnings Multiples (P/E Ratios)
Currency Markets and Factors Affecting Exchange Rates
Types of Derivative Contracts and Economic Exposures
The Real Meaning of “Derivatives” and Their Use in Managing Risk
Capital Markets Road Map Assessment

Fundamental Financial Math

Interest Rates and Yields
Interest Rates and Rates of Return
Interest Rate Conventions and Time Value of Money Part 1
Interest Rate Conventions and Time Value of Money Part 2
Compound Interest
Time Value of Money and Bond Pricing
Pricing Zero Coupon Bonds
Pricing Coupon Bonds
Bond Pricing Versus Bond Valuation
Pricing Discount Securities
Discount Rates Versus Bond Equivalent Yield
Bond Yields
Yield to Maturity
Yield to Maturity Versus Rate of Return
Yield to Maturity as an Expression of Current Value

Yield Curve Dynamics

Introduction to Yield Curves
Types of Yield Curves and Yield Curve Spreads
Introduction to Duration
Types of Duration
Modified Duration
Duration Illustration
Duration of Callable Bonds
Yield Curve Shapes and the Level of Interest Rates
Yield Curve Theories
Yield Curves and the Business Cycle
Spot Rates and Spot Rate Curves
Calculation of Spot Rates
Bond Valuation and Rich/Cheap Analysis
Treasury Strips and the Strip Rate Curve
Forward Rates
Calculating Forward Rates
Forward Rate Applications
Total Return Analysis
Total Return Analysis Illustration

Fixed Income Securities

Introduction to Fixed Income Securities and Markets
The Primary Market: Issuing Bonds to Borrow Funds
Similarity of Bonds to Loans & Bond Valuation Issues
Bond Contact Features
Bond Coupons, Accrued Interest and Bond Pricing Conventions
Day Count Conventions & Bond Retirement
Types of Risk
Sources of Return & Bond Yields
Bond Yields, Yield to Maturity and Rate of Return
Yield Curves
Yield Curves & Government Securities
Government Bonds & US Treasury Securities
Corporate Fixed Income Securities
Credit Risk of Corporate Securities & Trust Indentures
Secured and Unsecured Bonds
Convertible Securities
Preferred Stocks & Introduction to Structured Securities
Asset Securitization & Introduction to Mortgage Backed Securities
Mortgage Backed Securities
CMOs & Introduction to Asset Backed Securities
Credit Card and Auto Loan Asset Backed Securities
Collateralized Debt Obligations
CDOs and Money Market Instruments
Agency Securities & Regional/Local Government Debt Securities

Equity Products

Types of Products/Shares
Buying Shares & Equities
Tesco Example
Types of Shares and Exchanges
Depository Receipts
Types of Investors, Diversification and Volatility
Types of Indices Part I
Types of Indices Part II
Tracking Funds
Exchange Traded Funds (ETF’s)
Introduction to Derivatives
Forward Contracts
Futures
Equity Swaps
Options
Structured Products (Warrants, Certificates and Notes)

Futures & Options

Types of Derivative Contracts and Their Characteristics
Derivatives Compared to Securities
Derivatives Defined
Futures Terminology and Contract Features
Physical Delivery to Close a Futures Position
Cash Settlement, OTC Derivatives
Futures Clearinghouse and Third Party Contracts
Futures Margins and Futures Contracts
Clearinghouse and Futures Trades
Comparing Futures Versus Underlying Positions
Futures Positon Cash Flows and Hedging with Futures
Futures Positions: Risk and the Cost Taking Position
Cost of Carry/Carrying Charges
Cost of Carry Pricing and The Forward Pricing Curve
Option Fundamentals: Contract Features and Terminology
Option Contract Example: Long Call Positions
Option Pricing Basics
Time Value, Instrinsic Value and Moniness
Short Option Positions
Investment Characteristic of Options
Overview of Long Put, Short Call and Short Put Positions
Option Pricing and Sensitivities (Option “Greeks”)
Option Deltas
Delta Hedging
Delta Neutral Hedging Example
Black-Scholes and Option Volatility (Vega)
Implied Volatility and Volatility Trading

Interest Rate Swaps

Introduction of Swaps
Interest Rate Swap Basics
Interest Rate Swap Contract Features
Fixed for Floating Interest Rate Swaps
Periodic Settlement Payments on Interest Rate Swaps
Hedging Cash Flow Uncertainty with Interest Rate Swaps
Net Interest Cost of a Synthetic Fixed Coupon Bond
OTC Clearinghouses
Cleared Swaps Versus OTC Swaps Ex-Clearinghouse
Functioning of OTC Clearinghouses
Terminating a Swap Before Maturity
Interest Rate Swap Pricing
Pricing Fixed for Floating Interest Rate Swaps
Valuing Swaps, Hedging Cash Flow Uncertainty
Managing the Cash Flow Risk of Fixed and Floating Rate Assets
Basis Swaps (Fixed Versus Floating Swaps)
Capital Market Equivalents for the Fixed and Floating Rate Payers
Value Hedging, Asset Swaps
Variations in the Structure of Interest Rate Swaps
Structuring and Pricing Basis Swaps