Financial Skills: Banking and Finance Introduction

Course Overview

This is a highly participative programme designed for those who are new to the world of banking and international finance, but who do not necessarily have a financial background.

We will look at the market participants - the buy-side and the sell-side -and explore the various financial instruments and discuss their uses and practical applications.All terminology will be fully explained, and new financial market initiatives explored. No prior knowledge is assumed.

Course Outline

DAY 1
GLOBAL FINANCIAL MARKETS

• Background and development
• Defining our terms -capital market inter-relationships
• International time zones
• Why regulation is critical

MARKET PARTICIPANTS

• Range of banks -central, clearing, merchant, investment, universal
• Brokers -voice vs. ECN
• Fund managers -pension funds, mutuals, hedge funds
• Information vendors - Reuters, Bloomberg
• Exchanges -CME, CBOT, Euronext Liffe, EUREX

MONEY MARKETS

• Definition and key features of
• LIBOR
• T.Bills, loans and deposits, CP -in GBP, USD, EUR

FIXED INCOME MARKETS

• Role of the issuer, investor, intermediary
• Governmentvs. corporate bonds, domestic vs. eurobonds
• Fixed rate bonds, FRNs and MTNs
• The role of the rating agenices
• High yield/emerging market debt
• Yield curves
• Repo/reverse repo

DAY 2
EQUITY MARKETS

• Types of equity
• Common stock vs. preferred stock
• Primary markets - issuance
• Secondary markets - trading
• Using equity indices- FTSE, S&P, NASDAQ, STOXX
• Settlement, clearing and custody

FOREIGN EXCHANGE MARKETS

• Market development
• Why exchange rates move -short and long term factors
• Range of currencies -major, minor, cross, EM
• Spot and forward FX transactions
• New developments

DERIVATIVES MARKETS

• Definition and key features of
• Exchange traded/OTC
• Market volumes
• Futures,swaps, options
• Risk management tools
• Practical uses and applications

Financial Skills: Banking and Finance Introduction / F-IBF