Capital Markets & Trading Essentials

This course will start by providing an overview of capital markets and various financing alternatives. The spectrum covers commercial paper, syndicated bank loans, leasing, investment grade and high yield bonds, asset backed securities, mezzanine financing, convertibles and various types of equity instruments, such as preferred stock, common equity and venture investments.

The topics will then focus on major concepts and features of fixed income instruments, such as yield, duration and convexity. Options and derivatives will be elaborated on as well. The course will then go a step further to cover main trading strategies along with detailed intricacies, both from the sell-side and the buy-side perspectives. Aspects of risk management will also be discussed.

Instructors will also cover advanced math topics relevant to various trading activities, along with modeling techniques. Macro-economy and international markets will be integral components of the class discussions.

Topics Covered

  1. Overview of international capital markets and various financing alternatives
    • What is capital market? How does money flow? Different roles of individuals and institutions? Efficient Market Theory
    • History and timeline of US and international markets
    • Regulatory Environment
    • Overview of credit rating systems
  2. Detailed coverage on
    • Commercial Paper, Syndicated Bank Loans, Leasing
    • Investment Grade and High Yield Bonds, Asset Backed Securities,
    • Mezzanine Financing, Convertibles
    • Various Types of Equity Instruments, such as Preferred Stock, Common equity and Venture Investments
    • Foreign Exchanges
  3. Dedicated discussions on
    • Options
    • Other Derivatives (Futures & Forwards)
  4. Main Trading Strategies with detailed intricacies
    • Sell-side
    • Buy-side
  5. Major concepts and features of fixed income instruments
    • Yield
    • Duration
    • Convexity
    • Conventions
    • Pricing
  6. Risk Management