Better understand the financial industry by cutting through the complexities, decoding the jargon and looking at the bigger picture

It’s easy to forget the City is a marketplace like any other. Buried beneath the terminology and complexity, people are simply trading financial instruments. Yet it can be difficult to get your head around the bigger picture.

Strip away the mystique, and the world’s financial markets are based on a small number of broad concepts. Though the concepts may be used in the context of, say, bond markets, derivatives trading or foreign exchange, the fundamentals remain the same.

Take a bird’s eye view of the industry

See the bigger picture – Financial markets are essential for the healthy functioning of the economy. A thorough grounding in the fundamentals of the global system will help you see how the big picture fits together. You’ll better appreciate your role in the wider context of the industry and understand why things are they way they are.

Shore up your knowledge – For newcomers in the industry, the sheer complexity of the finance industry can be daunting. And conversations with your peers can quickly show you up as a newbie. This course will give you a firm grasp of the fundamentals, so you can speak with greater authority.

Deliver a better service – The range of financial instruments can be dizzying. A stronger grasp of the latest products (and an understanding of how they interact) will allow you to better serve your firm’s clients (whatever your role is in that process).

The Course Agenda

The most Liquid Market in the World – Foreign Exchange

• Geography of the Liquidity in the market
• Purchasing Power Parity. The Big Mac Index
• Spot vs Forward Foreign Exchange
• Functions of the Central Banks
• How do you forecast Currency movements?
• FX – Is it all a zero-sum game? Can it be considered as an Asset Class?
• Case Study – Most popular Currency Pairs

The Bond Markets – an Introduction

• Bond mechanics basics – Prices vs Yields, Par Values
• Bond structures – Fixed vs Floating Rate Coupons, Zero Coupons
• Bond universe – Sovereign to Corporate. Risk Free Rates & Credit Ratings
• Asset Backed, Eurobonds, Convertibles, Exchangeables, Callable, Puttable
• Understanding Yield Curves – Normal, Flat & Inverted
• Case Study – Sovereign Default probabilities – a look at the numbers

The Equity Markets and Equity-linked Instruments

• Equities in context – comparisons with Bonds as an Asset Class
• Depositary Receipts for Emerging Market Corporates
• Corporate Actions – Dividends, Scrip Issues, Rights Issues, Share Splits
• A changing world – Algorithmic Trading & Dark Pools
• Securities Lending – By whom & why exactly?
• Case Study – Share Turnover Velocities across the World’s Exchanges

An introduction to the Derivatives Markets

• What are they exactly, who uses them & why?
• Exchange Traded vs Over the Counter instruments
• Vanilla vs Exotic Derivatives
• Financial characteristics; Cash vs Physical settlement
• Liquidity & Credit Risks – importance of the Counterparty
• Inherent risks with Derivatives – what could possibly go wrong?