Course Methodology

The course includes presentations, case studies, explanations of modelling tools and mechanics of financial instruments within Excel workbooks, and interactive Q&A. There will also be a relevant site visit to highlight some of the course discussions.

Course Objectives

By the end of the course, participants will be able to:

• Define and describe the functions and various business models employed by financial institutions
• Apply the principles of asset classes to differentiate between bonds and equities
• Evaluate the key features of options and swaps, identifying their roles in financial markets
• Integrate knowledge of foreign exchange (FX) and futures markets to explain their functions
• Develop strategies for asset allocation and risk management using portfolio theory and hedge funds

Target Audience

This course is suitable for anyone in, or working with, the banking and financial services industry; including but not limited to banking and asset management executives, risk management executives and those working in treasury and traded risk.

Target Competencies

• Credit risk management
• Operational Risk Management
• Mitigating adverse developments
• Monitoring money market spreads
• Regulatory framework 

Business Models and Drivers of Capital Flows in Global Capital Markets

• Functions and business models of financial institutions
• Overview of global capital markets
• Macro-economic drivers of financial markets
• SITE VISIT: Bank of England

Primary Asset Classes

• Equities as an asset class
• Essential characteristics of fixed income securities
• Structured products and exchange traded funds (ETFs)

Monetary Policy and Credit Markets

• Monetary policy of central banks
• Interpreting credit market data
• Introduction to derivative instruments

Options and Swaps

• Key features of options
• Overview of interest rate swaps: pricing, risks and valuation
• Overview of Credit Default Swaps (CDS)

Foreign Exchange and Futures Markets

• Overview of the foreign exchange market
• FX forwards, options and swaps
• Exchange traded futures: features and risks

Portfolio Theory, Asset Allocation and Hedge Funds

• Portfolio theory and the risk/return trade off
• Asset allocation: overview
• Hedge funds

Financial Instability and Risk Management

• Indicators of stress and financial instability
• Drivers of asset bubbles
• Overview of risk management

The Regulatory Environment and Corporate Governance

• Regulatory environment and regulatory capital
• Governance and risk culture of financial firms
• Collation of themes and outlook for markets in the medium term