Course Code: 500

Duration: 1 day

Level: Basic

Fee: $795.00

Instructor: Douglas Carroll

CPE Credits: 7

Prerequisite: No Prerequisite Required.

This seminar provides an expansive overview of the international capital markets, major participants and types of financial instruments. The program begins with an introduction to capital markets and their role in the operation of the economy. The bulk of the presentation will be devoted to a detailed exploration of the structure and operation of four major sectors of the global financial system: foreign currency markets; securities markets (both debt and equity); derivatives markets (futures, options and swaps).

Much of the focus of the seminar will be on basic concepts: terms and definitions; the structure and operation of markets; characteristics of securities and derivative contracts as well as risk management and speculative trading applications. In that regard the program would be especially helpful to individuals starting a career in the markets or experienced professionals new to the securities industry.

The seminar would also be helpful to experienced mid career professionals from support areas such as clearance and settlement, compliance, financial control and information technology who would benefit from a comprehensive look at the markets in which their companies operate.

Capital Markets

•  Market Sectors
  • Foreign exchange
  • Credit/debt
  • Equity
  • Insurance
  • Derivatives

•  Role of capital markets in functioning of the economic system
•  Markets
  • Primary and secondary
  • Exchanges
  • Over-the-counter

•  Financial instruments, intermediaries and institutions

Central Banks, Monetary Policy and Financial Markets

Foreign Exchange Market

•  Exchange rates
  • Flexible
  • Fixed
  • Pegged
  • Managed float

•  Foreign currency trading
  • Spot
  • Forward

•  Economics of spot and forward currency exchange rates

Fixed Income Markets

•  Debt market and instrument fundamentals - terms and definitions
•  Fixed income security prices and yields, risk and return, yield curves
•  Types of fixed income instruments 
  • Treasuries 
  • Corporates
  • Municipals
  • Mortgage/asset backed securities

Equity Markets

•  Equity market fundamentals - terms and definitions
•  Analysis and valuation of equity securities

Derivatives Markets

•  Characteristics of derivative contracts 
  • Futures 
  • Options 
  • Swaps

•  Risks and cash flows of derivatives contracts; compared to securities
  
• Risk management and trading applications

After completing this program participants should be able to:

• Recognize and describe the primary functions and key features of the sectors of the capital markets: securities, derivatives, foreign exchange markets
• Discuss the key differences of debt securities versus equities: contractual relationship to issuer; capital structure implications; investment characteristics
• Describe the basic features common to most fixed income securities as well as the distinguishing characteristics unique to the various sectors (treasury, corporate, municipal, mortgage and asset backed)
• Recognize the main types of derivative instruments (futures/forwards, options and swaps) and how they are used to manage risks
• Explain the basics of the foreign exchange markets: direct versus indirect quotes; spot and forward exchange rates; covered interest arbitrage/interest rate parity