Comprehensive Understanding of Financial Markets

Day 3: Swaps and Equities

Interest Rate and Currency Swaps:
  • The Swaps Mechanism
  • Types of Swaps
Applications of Swaps in:
  • Speculation
  • Hedging
  • Arbitrage
  • Risk Management
  • Creating Synthetic Instruments
The Principle of Swap Pricing:
  • The Need for Forward Rates
  • The Need for Spot Rates
Interest Rates (II) and Yield Curve Analysis
  • Par Curve
  • Spot Curve
  • Forward Curve
The Equity Markets:
  • Equity markets in US, UK, Japan and Europe
  • Emerging Markets
  • Valuing Equities
  • Technical Analysis
  • Quantitative Analysis
  • Fundamental Analysis
Equity Origination:
  • Underwriting and Syndicating New Equity Issues
  • Rights Issues versus Block Building
  • Pricing New Issues
Portfolio Management:
  • Traditional versus Modern Approach
  • Active versus Passive Portfolio Management
  • Modern Portfolio Theory (MPT)
  • Diversification Effects
  • Asset Allocation
  • Performance Measurement
Other Issues:
  • Capital Asset Pricing Model (CAPM)
  • Arbitrage Pricing Theory (APT)

Variant for afternoon of Day 3 if no suitable trainer can be found for equities!

Case Study on Debt Origination with Swaps:

  • Issuing a New Eurobond under the Fixed-price Re-offer Procedure
  • Benchmark Selection
  • Size of the Issue
  • The Pricing
  • Setting the Re-offer Spread
  • Deciding on the Coupon
  • The Price to Syndicate Members
  • The Price to Investors
  • The All-in cost to the Borrower
  • Target Cost of Funding

Another area that is not covered in the outline:

  • Loans and Syndicated loans

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