Since the ’80s, banks have become huge financial supermarkets offering a wide range of different services and products. Employees in these large banks have specialized expertise in the area they make a career. Also, the fast developments in information technology has resulted in large IT departments staffed by people without financial and banking knowledge.
Key Takeaways
In this unique 8 session course (4 days) you will learn:
- What essentially happens on the Financial Markets.
- Finance terminology and practice
- The role of banks and other market participants.
- Which product (types) exist, how are these priced and why use them, for example Bonds and Interest Rate Swaps?
There are no prerequisites for taking this course and you do not need to have an economic background to do this training. This training is for professionals that work in the financial sector and want to know more about financial markets. After this course you have an overview of the financial markets landscape. You understand financial products and why they are used. Your new financial expertise can support your career progress in the finance industry.
This course is also available for Dutch groups
Mail for information: info@financialtraininghub.com
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PROGRAM OVERVIEW
Session Introduction
1. Core activities of banks and major income sources
2. Basic banking risks (case)
3. Capital of banks and supervision (BIS ratio)
4. General activities on financial markets
5. Traditional products and Derivatives (plain vanilla / client)
6. Financial Market Participants and bank activities
7. Organisation of financial markets
8. Financial market prices, volatility and price influencing factors
9. Dealing room: transaction purposes / activities
10. Yield curve shapes and interpretation
11. Credit spreads (Rating Agencies)
12. Main factors influencing short and long term interest rates
13. Nominal and real interest rates
14. Basic interest rate conventions
15. Present value (discounting) calculation technique (practice)
16. Implied forward interest rate concept and basic calculation (quick & dirty) (case)
Session Money Markets
1. Activities and participants on the Money Markets
2. Macro economics: inflation and deflation basics
3. Money types, fractional reserve banking and money creation (film)
4. Task of a Central Bank (film)
5. Monetary policy ECB:
a. Connection real and financial economy
b. Execution and instruments (film)
6. Fed – US monetary police (simulation))
7. Official ECB rates and the connection to EURIBOR
8. Money market paper and price setting (case)
9. Forward Rate Agreement:
a. Product characteristics and pricing
b. Applications (cases)
10. Money Market Futures: Product characteristics and pricing
11. Repo’s: Product characteristics and pricing
Session Capital Markets
1. Activities and participants on the Capital Markets
2. Capital Market Equity: Product characteristics and pricing
3. Capital Market Fixed Income:
a. Product types (case)
b. Securitization (film)
4. Product characteristics and pricing of bonds
a. Yield to maturity
b. Clean and Dirty prices (case)
c. (Modified) Duration (case)
Session Interest Rate Swaps (IRS)
1. Introduction Asset & Liability Management
2. IRS Product characteristics and pricing
3. Applications (case)
4. IRS Market value (case)
Session Currency Markets
1. Activities and participants on the Currency Markets
2. Spot market
a. Product characteristics and pricing
b. Trading (simulation)
3. Forwards (Outright)
a. Product characteristics and pricing
b. Applications (case)
4. Currency Swaps
a. Product characteristics and pricing
b. Applications (case)
Session Options
1. Introduction of options: options on shares
a. Product characteristics and pricing
b. Applications
2. Embedded Options (Convertibles)
3. Currency Options
a. Product characteristics and pricing
b. Applications (case)
c. Plain vanilla option constructions (case)
4. Interest Rate options
a. Product characteristics and pricing
b. Applications (case)
Session Risk Management
1. Banking Risks and Supervision of banks
2. Credit Risk and Capital
3. Value at Risk introduction (case)
4. Basel Agreements
5. Basel I: 1988 and 1995
6. Basel II: 2004
7. Current supervision based on Basel III (2008)
8. Supervision and impact on Financial Markets
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