Course description
Introduction to Capital Markets
The Introduction to Capital Markets course is a comprehensive and intensely practical four-day program designed to give participants a clear idea of how the capital markets work, the range of instruments and securities issued and traded, and the roles played by the various participants in the market.
Participants will have an opportunity to put each topic into hands-on practice with real-life case studies, challenging workshops, and engaging simulations.
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Upcoming start dates
Who should attend?
Who Should Attend?
Anyone working in the global capital markets.
Prerequisites
None
Training content
Introduction to Capital Markets
- Introducing the Capital Markets
- Services provided – what the markets are for
- Participants in the markets – who uses the markets
- "Buy-side" vs. "sell-side"
- Investors, borrowers, and intermediaries
- Role of investment, retail and commercial banks
- Origination vs. trading
- Government borrowers
- Corporate and commercial borrowers
- Institutional investors
- Mutual and hedge funds
- Pension funds and insurance companies
- Individual investors
- Regulation and control
Introducing the Cash Markets
- The connection between investors and borrowers
- Primary vs. secondary markets
- The Equities Markets
- Offerings, Research, Valuation, and Sales
- Equities trading
- The Money Markets
- Fixed Income Securities
- Treasury and corporate bonds
- High-yield and emerging market debt
- Repos
- Foreign Exchange
- The products in context
- Applications for banks
- Applications for clients
Market Dynamics and Trading
- Market-making vs. price-taking
- Trading venues
- What drives market prices?
- What factors influence supply vs. demand?
- How to manage trading risk
- Equities simulation
Introducing Time Value of Money
- Time value of money principles
- Present and future values
- Interest and discount factors
- Simple vs. compound interest
- Discounting and compounding
- Annuities
- Discounted cash flows
- Net present value
- TVM Workshop
Equity Capital Markets
- Review of international equity markets
- Type of equity product
- Issuing procedures – IPO vs. SPACs
- Analysing a recent IPO
- Role of the Stock Exchange
- The increasing importance of electronic, algo, and high-frequency trading
- Understanding the balance sheet, income and cash flow statements
- Debt vs. equity financing
- Company valuation techniques
- Stock indices
- Mergers and acquisitions
- Valuation exercise – how much is AAPL worth?
The Money Markets
- Discount vs. coupon securities
- Bills
- Commercial paper (CP)
- Interbank deposits
- Certificates of deposit
- LIBOR, SOFR, SONIA, and €STR
- Repos
- Comparing short-term investments
- Comparing returns on money-market investments
Debt Capital Markets
- Bonds vs. equities
- US Treasuries
- Bunds, OATs, BTPs, JGBs and UK Gilts
- Corporate bonds
- Capital structure and seniority
- Bond rating
- Investment grade vs. high-yield
- Default and recovery rates
- Bond issuance
- Analysing a recent bond issue
- Introduction to bond math
- Exploring price and yield
- Duration and the DV01
- Convertible bonds
- Securitised bonds
- Mortgage-backed securities and covered bonds
The Foreign Exchange Market
- Functions and purposes of the FX market
- Market mechanics
- Quotation conventions
- Influences on the market
- FX spot simulation
- Outright forwards and FX swaps
- Relation between spot and forward markets
- Handling transaction risk from overseas revenues
Derivatives Overview
- Futures contracts
- Stock index and bond futures
- How are stock index futures priced?
- Tactical asset allocation using futures
- Interest rate swaps
- Currency swaps
- Equity swaps
- Credit default swaps
- Credit default indices
- Swap applications
- Option terminology
- An intuitive insight into option pricing
- Stock and FX options
- Interest rate caps, floors, and swaptions
- Hedging FX risk with options
Investment Portfolio Management
- What is risk?
- What is return?
- The risk-return trade-off
- Comparing fixed-income with equities
- Investor preferences
- Combining securities
- Measuring investment performance
- Investment benchmarks for equities and fixed-income
- Understanding beta and alpha
- Relative vs. absolute returns
- Passive vs. active investment
- Asset management simulation
Costs
- New York: $3,850
- London: £3,100 (plus VAT)
- Virtual: £2,775 (plus VAT)
Certification / Credits
CPD: 28 hours
Learning Outcomes
By attending this course, you will:
- Obtain a clear overview of the global capital markets
- Explore each market, and the services and products that each provides
- Appreciate the role of financial institutions and other players
- Examine a wide range of essential financial products from cash markets to derivatives
- See how each product is used in practice by issuers, investors, and other participants
- Gain insight into the techniques of equity valuation and modelling
- Understand the process of investment management and the goals of different types of investors
- Recognise the role of risk management
- Obtain practical hands-on experience
Why choose ACF Academy?
Over 100,000 professionals trained globally
Award-winning practical financial simulations
Consistently high ratings
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ACF Academy
ACF Consultants are a global leader in providing practical and effective training for financial professionals. Leading banks, companies and financial institutions from all over the world partner with us to develop their people to achieve their goals. They trust our...