- How Financial Markets Really Work
25 September, 2019
9:30 am - 5:00 pm
- City of London
Course Fees (excl. VAT)
- Multiple Booking £535.50 (GBP)
- Single Booking £595.00 (GBP)
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.
So join us for this course and we’ll help you bust through the jargon and better understand how capital flows. You’ll learn the mechanics of today’s worldwide financial marketplace and how different instruments (and markets) interact.
- Appreciate the scale and depth of the world’s financial markets
- Understand the relationship between cash and derivatives markets
- Consider the role of the markets in the pricing of risk
- Recognise the role of the markets in raising money for governments and corporates
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?
Meet The Tutor
Paul started his Investment Management career at Royal Insurance in 1983. Paul joined the small team managing Royal’s in-house long term UK Equity portfolios. In 1990, following the lifting of exchange controls in Stockholm, he joined the Swedish insurer Trygg-Hansa’s London start-up operation to manage its UK Equity exposure. In 1994 Paul moved into the Private Client arena, as part of the Investment Unit of Lloyds Private Banking followed by a move in 1996 to head up the global Equity research at Bank of Butterfield
In 2000, Paul moved into full time training with DC Gardner, the in-house tailored training arm of Euromoney Institutional Investor, specialising in Fund Management, Equity Markets, Private Banking & Hedge Funds. In 2004 he set up his own company, Chadley House Training Limited, structured to work with existing training providers in the market place. The business has grown & diversified the Client base, establishing fresh local relationships with providers in Asia, the Middle East & West Africa.
Paul is also a member of the London Stock Exchange Academy Training Team & an Adjunct Teaching Fellow with the UCL School of Management, delivering a one term Masters level Investment Management module at their newly established location in Canary Wharf.
Who is this course for?
This one-day briefing has been designed for:
- New employees of financial services firms
- Employees wishing to update their knowledge
- Students of foundation level qualifications
Training that makes a difference
Experienced engaging trainers
With first hand industry knowledge and an intimate understanding of the regulatory environment, we always guide you with an expert (and friendly) hand.
Packed with relevant information
We know you’re busy, so we’re careful not to waste a minute of your time. Our training courses are fast paced, insightful and filled with valuable information.
Get personalised attention
Sessions are practical workshops not PowerPoint lectures. All courses are limited to no more than 14 attendees, so we’re able to explain concepts in the context of your business.