Overview:

Introduction:

Never before have financial issues been so often been the headline news. It is therefore crucial that today’s business professionals expand their financial knowledge to allow them to contribute to daily decisions and debates. This course is designed specifically for non-financial personnel; this intensive seminar educates and informs delegates of the key financial markets/products/risks and hazards.

Course Objectives:

At the end of this course the participants will be able to:

• Know what are the major market indices and how are they linked?
• Know what is meant by a dual listing?
• How is a forward rate determined?
• Profit from interest differentials?
• Know what’s the role of correlation in reducing risk?
• Know how do I judge whether my performance in the market is good or bad?
• Know what are futures and options?
• Know how can futures and options be used to protect the value of my portfolio?
• Know what is meant by spread trading?
• Know what is the role of bonds in a portfolio?
• Know the difference between fundamental and technical analysis.

Targeted Audience:

• Experienced finance managers wishing to update their knowledge
• Early-career financial analysts wishing to accelerate their progress
• Planning managers responsible for evaluating new opportunities
• Supply chain and logistics specialists
• Research and development scientists and engineers
• Human resource and organizational development staff

Course Outlines:

Unit 1: An Introduction to the Equity Markets:

• IPO’s.
• Market Indices.
• International Equity Market Links.
• Dual Listings.
• GDR’s and ADR’s.

Unit 2: An Introduction to Bond Markets:

• Long Term versus Short Term.
• Treasury versus Corporate.
• Types of Bond.

Unit 3: An Introduction to the FX Market:

• The spot and forward market.
• Exchange Rate trends and linkages.
• Carry Trades.

Unit 4: An Introduction to Portfolio Theory:

• The link between risk and return.
• The role of correlation.
• The Markowitz model of Portfolio Risk.
• The benefits of diversification.
• The Capital Asset Pricing Model.
• Benchmarking.

Unit 5: An Introduction to the Derivatives Market:

• Futures.
• Options.

Unit 6: The Cost of Carrying Model:

• Cash and carry arbitrage.
• Reverse cash and carry arbitrage.
• Using Options to provide portfolio insurance.
• Using Futures to provide portfolio insurance.
• Using futures to change a portfolio’s “beta”.

Unit 7: Spread Trading:

• Intra-commodity spreads.
• Intra-commodity spreads.
• Option trading strategies.

Unit 8: Bond Portfolio Management:

• Bond pricing.
• Bond Duration.
• The term structure of interest rates.
• The convexity of a bond.
• Bond ratings.
• Immunizing a bond portfolio.
• Structured products.
• Money Market Deposits/CD’s/Commercial Paper/Treasury Bills.

Unit 9: Fundamental and Technical Analysis:

• Technical versus fundamental analysis.
• Yields and ratios.
• Valuation.
• Chartism.
• Technical Trading Rules.