Video session on: Introducing the program,its coverage,target audience,career opportunities,nature of work in target companies etc.
Concept of Money: Introduction to money; standardized unit of exchange.
Concept of Interest: Simple and Compound Interest.
Compounding and CAGR: Compounding, Effective Interest (Yield); CAGR & its usage.
Time Value of Money: Future Value, Present Value, NPV, IRR - Illustrations & Excel functions.
Inflation: Inflation, Nominal Rate and Real Rate.
|Raising Money - Instruments||
Raising Capital: Ways of raising capital for a business.
Equity and Equity Instruments: Types - common and preferred stock - and key attributes: face value, etc.
Depository Receipts (DRs): ADRs and GDRs.
Debt: Sources of debt; the concept of debt instruments.
Loan from Institutions: An Overview.
Issuance of Debt Instruments: Issuance process; key features - Face Value, Maturity Period etc.
Classification of debt instruments: Classification, basis tenor & Issuer - T-bonds, T-notes, Gilts, JGBs etc.
Types of Money Market Securities: T-Bills, CDs, CPs, Repos, Fed funds rate.
|Investing Money – Asset Management||
Investment Cycle: The stages - Financial planning, Risk profiling, Asset allocation, Portfolio Maintenance; the role of Asset Management Companies (AMCs).
Mutual Funds (MFs): Structure of a fund; US terms - sales charge, contingent deferred sales charge (CDSC), NAV calculations.
Categorization of MFs: Basis liquidity, Investment objective & Investment plan.
|TOTAL RECOMMENDED LEARNING HOURS||5|
|Investment Banking: Overview||
Functions of investment banking
Overview of risk management: Understanding risk, Importance of risk management, Steps in risk management
|Securities Markets: Overview||
Market participants: Sell side, buy side
Market players: Custodian banks, global custodians, depository, clearing firms
Types of transactions: Outrights, Repos
Deal components: Trade Date, Value Date etc.
Global security identifiers: CUSIP, SEDOL,ISIN etc.
Activities in the securities market - Front office, middle office, back office
|Securities Markets – Issuance and Pre-trade||
Introduction to Trade Life Cycle
Issuance: Government and corporations
Primary markets: Types of offering (IPO, FPO, private placement), issue process
Pre-trade analysis: Fundamental, technical, simulation models
Investor trading account: Securities account, margin account
FINRA: Know your customer (KYC) policy
|Securities Markets – Trading||
Secondary markets classification: Listed markets (Open outcry, order matching system) and OTC markets
Trading conventions: Bid & offer ; trading position
Over-the-counter (OTC) markets
Order types: Based on price, based on time, based on volume
Trading Workflow - end-to-end: A detailed understanding of the trading process step by step.
|Securities Markets Post trade||
Clearing and settlement
Types of settlement: Designated-time net settlement, real time gross settlement(RTGS)
Listed markets: Parties, trade matching, confirmation, affirmation, netting, settlement (with a section on settlement process in US)
OTC markets: Trade capture, position updation and calculation, trade enrichment, trade validation, trade agreement, settlement instructions.
|Securities Markets - Asset Servicing||
Income collection: Dividend processing
Corporate actions - Mandatory: Mergers, stock-split, liquidation, spin-off
Corporate actions - Voluntary: Convertibles, tender offer, rights
Valuation / reporting
Cash management, Securities lending, Margin trading
Video session on :Collateral Management; types of collateral,measuring and monitoring collateral,margining etc.
|TOTAL RECOMMENDED LEARNING HOURS||12.0|
|OTC FX cash Markets - Introduction||
Market overview: participants, key terms – base currency,quoted currency,quoting conventions.
|The Spot Market||
Quoting Conventions: How exchange rates are quoted, bid and offer.
Cross Rates: Calculation of cross rates, and thumb rules used in practice.
Margins: How margins are built in, for quoting customer rates.
|Spot Market - Trading & Operations||
Trading Position: How trades actually take place, live conversations, interpretation of trading conversations for settlement purposes
Trading Position/Valuation: How to calculate trading position, MTM of FX portfolio
|The Forwards Market||
Forward Transactions: Nature of forward contracts in terms of cash flows.
Calculation of Forward Rates: How to mathematically compute forward rates using interest rates.
|The Swap Market||
Swap Markets: What are swaps, and how they are used for computing forward rates in the inter-bank market.
Swaps – Market conventions
Live conversations, interpretation of trading conversations for settlement purposes
|FX Markets - Post Trade||
Middle Office - Risk Limits: How different risk limits are set in practice - calculation of SR and PSR for credit risk, position and loss limits for market risk etc.
Continuous Linked Settlement: Concept of CLS and how it is used to reduce settlement risk.
Back Office - Settlement & Delivery: A detailed example on how a trade is settled, and the various SWIFT messages to be sent for settlement instructions.
Back office - Other Functions: Nostro reconciliations etc.
|TOTAL RECOMMENDED LEARNING HOURS||5.5|
Convertibles, MTNs , Eurobonds, MBS
|Credit Derivative Products||
Types of Credit Derivatives: Credit Default Swaps (CDS), Total Return Swaps, Credit Linked Notes, CDOs and their workflow
|TOTAL RECOMMENDED LEARNING HOURS||1.5|
|Introduction to Derivatives||
Introduction: What are derivatives? Why do people use it?
The building blocks: Credit extension products, price fixing products, and price insurance products.
|Price Fixing Products - IRS||
Swaps: A discussion on the typical parameters of a swap (such as - 'Notional Principal', 'Benchmark Rates', 'Settlement Frequencies', etc.)
Interest Rate Swaps: Key terminologies (such as - terms related to fixed rate payment, and floating rate payment, etc.)
Forward Rate Agreements (FRAs): Introduction to FRAs and its calculation for swap pricing.
Need for Currency Swaps, with an example.
Variants of Currency Swaps: Principal Only swap, Coupon only swap, Amortising swap.
|Introduction to Options||
An overview of Options: Important features
Options Terminology: Terminology using which, options are traded, such as - 'Underlying', 'Strike Price', 'Premium', 'Intrinsic Value', etc.
Types Of Options: 'Put' and 'Call'
Types of Option Strategies: 'Call Spread', 'Put Spread', 'Long Straddle', 'Short Straddle'etc.
Exotic Options ‘Barrier Options’, ‘Caps’, ‘Floors’ and ‘collars’.
|Hedging Option Positions||
Introduction to 'Option Greeks'.Measuring different dimensions of risk in an option position.
Steps: Processes involved in a derivative transaction (such as - document verification, MTM/ valuation, handling cashflow maturities, etc.)
Risk Management: Discussion on market risk exposures (such as - PV01, factor sensitivity limits, etc.), credit risk exposures (settlement risk, etc.), and netting arrangements (such as 'Close-Out' and 'Cross-Product' netting, etc.).
Operational Aspects of an Option Deal: Key operations specific to options (such as - type of deal, settlement date, exercise etc.).
|TOTAL RECOMMENDED LEARNING HOURS||5.5|
|COURSE RECOMMENDED LEARNING HOURS||29.5|