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Course List
Introduction to the Securities Industry
 
Introduction to the Securities Industry
Introduction to U.S. Securities Processing
Securities Lending and Borrowing : An Operations Perspective
Foundations of Investment Management and Buyside Operations
Dealing with Change in the Financial Markets
Collateral Management: An Operations Perspective
International Issues
 
International Securities Operations
International Portfolio Accounting
Foreign Currency: Markets, Clearance, Settlement & Accounting
Foreign Exchange: Lifecycle of a Trade
Corporate Actions
 
U.S. Domestic Corporate Actions
Global Corporate Actions
Capital Markets
 
Capital Markets Overview
Capital Market Economics - Investigating the Linkages Between the Real Economy and the Financial Markets
Portfolio Management
 
Portfolio Management
Securities Analysis
Managing Risk
 
Risk in a Global Market - Management and Operational Challenges Looking Forward
Financial Management
 
Financial Accounting and Financial Mathematics
Financial Statement Analysis
Fixed Income Securities
 
Bond Math: Mathematics of the Fixed Income Market
Structured Securities: MBS, ABS, CDOs
Introduction to Fixed Income Products
Accounting for Fixed Income Securities and Derivatives
Mortgage-Backed Securities
Collateralized Debt Obligations and Credit Default Swaps (CDOs and CDS)
Fixed Income Analytics
Interest Rate Swaps and Credit Default Swaps
Fixed Income Securities Trade Processing and Operations
Accounting, Regulatory & Management
 
Stock Brokerage Accounting & Securities Regulations
Introduction to Private Equity Markets
Trading After the Volcker Rule
Dodd-Frank for Non-US Derivatives Users
Complying with the MiFID II/MAR Rules
Derivatives
 
Introduction to Derivative Products
Derivatives: Markets, Operations, Accounting & Control
Derivative Products: Risk Management and Valuation
Option Valuation and Trading
Equity Derivatives: Futures and Swaps
Interest Rate Futures and Swaps
Introduction to Options: Products, Trading & Processing
Swaps Processing and Operations
Commodity Futures: Energy, Metals and Agricultural
Equity Options: Strategies, Accounting and Operations
Mutual Funds
 
Introduction to Mutual Funds
Mutual Fund Operations

Course Description
Capital Market Economics - Investigating the Linkages Between the Real Economy and the Financial Markets
Available Dates:
There are no dates available.
Course Code: 501
Duration: 1 day
Level: Basic
Fee: $795.00
CPE Credits: 6
Prerequisite: No Prerequisite Required.

This one-day seminar explores the linkages between capital markets and the real economy. The program is designed to provide participants with a conceptual framework for understanding the mechanisms through which markets reflect and respond to developments in the real economy. The primary focus will be the analysis of markets as discounting mechanisms; the process by which markets try to incorporate new information into market prices.

The session opens with a review of financial markets and global economies over recent decades, highlighting the interaction or business cycles and financial market cycles. This discussion sets up a review of macroeconomic concepts used to quantify and evaluate economic activity; gross domestic product (GDP), inflation and unemployment among others. The balance of the program will investigate the theory and practice of pricing a broad range of financial assets to include fixed income securities, derivatives and equities.

Topics for Discussion Include:

Linkages Between the Real Economy and the Capital Markets

  • Capital Markets and the Business Cycle
  • Role of the Capital Markets in Functioning of the Economy
  • Financial Markets as Leading Indicators 
    • Equity Markets 
    • Credit 
    • Spreads 
    • Yield Curve

Economic Policy, the Real Economy and Capital Markets

  • Policy Benchmarks
    • Gross Domestic Product (GDP)
    • Unemployment 
    • Inflation 
  • Fiscal Policy: Activist Tools Versus Automatic Stabilizers 
  • Monetary Policy: The Fed, Interest Rates and Inflation

Fixed Income Securities Pricing and Valuation

  • Prices and Yields - Yield to Maturity Reconsidered
  • Yield Curves and Valuing Fixed Income Cash Flows 
  • Government Versus Investment Grade Corporate Yield Curve 
  • Investment Grade Versus High Yield Bonds

Derivative Instrument Pricing and Valuation

  • Futures/Forwards - Cost of Carry Arbitrage Pricing
  • Swaps - Swap Coupons and Off Market Swap Pricing

Equity Securities Analysis and Valuation

  • Valuation Models - Earnings Multiples and Discounted Cash Flows, Dividends or Earnings

Please bring a calculator.

After completing this program, participants should be able to:

  • Discuss the connections between financial market conditions and the business cycle as well as yield curves and equity markets as leading economic indicators
  • Explain the use of spot rate curves in the valuation of fixed income securities
  • Describe the concepts of real interest rates, expected inflation and credit spreads and their implications for credit market conditions and discount rates for valuing securities 
  • Discuss the concept of equity risk premium and discount rates along with their role in equity valuation models
  • Describe price/earnings (P/E) ratios and how earnings multiples are used in equity securities valuation
  • Identify the primary factors influencing the movement of currency exchange rates
  • Describe the role of arbitrage in derivative pricing