Global Financial Markets Training Course

Participants can connect macroeconomic data and policy decisions to asset-price movements.

• Gross domestic product, inflation and employment releases interpreted systematically
• Track policy rates, forward guidance and quantitative tightening announcements
• Business-cycle phases linked to asset-class return expectations
• Inflation expectations extracted from nominal and inflation-linked bond yields
• Analyse fiscal deficits, debt issuance and sovereign funding pressures
• Scenario assumptions translated into rates, currencies, equities and credit impacts

Participants can analyse short-term funding instruments and central bank transmission mechanisms.

• Calculate simple interest, discount yields and money-market day-count conventions
• Compare Treasury bills, commercial paper, certificates of deposit and repos
• Repurchase agreements explained through collateral, haircuts and margining
• Map policy-rate transmission through overnight and term funding benchmarks
• Assess liquidity conditions using repo rates, spreads and central bank facilities
• Build short-term investment choices around maturity, liquidity and credit constraints

Participants can price government bonds and interpret yield-curve changes.

• Bond cash flows priced using present value and market yields
• Calculate yield to maturity, current yield and holding-period return
• Spot rates, forward rates and par yields derived from curves
• Interpret steepening, flattening and inversion using key-rate movements
• Modified duration estimates price sensitivity to yield changes
• Convexity adjusts duration estimates for larger interest-rate movements

Participants can assess corporate bond risk, relative value and credit-spread movements.

• Credit spreads decomposed into default, liquidity and risk-premium components
• Review issuer business risk, financial risk and refinancing requirements
• Rating-agency methodologies compared with internal credit analysis methods
• Calculate option-adjusted spread and spread duration for callable bonds
• Credit-default swap spreads interpreted alongside cash-bond market pricing
• Structure bond recommendations using covenant, seniority and recovery analysis

Participants can analyse equity market drivers and prepare reasoned share valuations.

• Equity return sources separated into income, growth and valuation changes
• Read income statements, balance sheets and cash-flow statements for investors
• Discounted cash flow valuation built from free cash flow forecasts
• Compare price-earnings, enterprise-value-to-EBITDA and price-to-book multiples
• Analyse equity beta, systematic risk and required return estimates
• Dividend discount models applied to mature income-generating companies

Participants can analyse currency quotations, drivers and foreign-exchange transaction choices.

• Quote spot rates using direct, indirect and cross-rate conventions
• Purchasing power parity and interest-rate parity tested against market data
• Forward points calculated from interest-rate differentials and maturity dates
• Identify transaction, translation and economic foreign-exchange exposures
• Compare currency forwards, swaps, options and natural hedging approaches
• Analyse central bank intervention, capital controls and reserve management

Participants can evaluate derivative contracts for hedging, risk transfer and exposure management.

• Futures contracts distinguished from forwards through margining and standardisation
• Options payoffs mapped for calls, puts, collars and protective strategies
• Interest-rate swaps analysed using fixed, floating and basis exposures
• Calculate hedge ratios using contract size, exposure amount and beta
• Basis risk assessed when hedge instruments differ from underlying exposures
• ISDA documentation roles examined for over-the-counter derivative transactions

Participants can assess commodity-market fundamentals and associated price risks.

• Commodity spot prices linked to inventories, supply and demand balances
• Contango and backwardation interpreted through futures-curve shapes
• Roll yield separated from spot return and collateral return
• Energy hedges structured using futures, swaps and option contracts
• Analyse weather, geopolitics and transport constraints affecting commodity prices
• Compare physical commodity exposure with exchange-traded investment vehicles

Participants can compare pooled investment vehicles and assess their suitability for mandates.

• Mutual funds, exchange-traded funds and index funds compared
• Expense ratios, tracking error and securities lending evaluated
• Review hedge funds, private equity and infrastructure fund structures
• Liquidity terms assessed through dealing frequency, gates and lockups
• Benchmark selection matched to mandate, asset class and investment style
• Due diligence covers manager process, governance, fees and custody

Participants can build portfolios aligned with investment objectives, constraints and risk tolerance.

• Investment policy statements define objectives, constraints and governance arrangements
• Strategic asset allocation set using return, risk and liquidity assumptions
• Modern portfolio theory applied using expected returns and correlations
• Diversification assessed through concentration limits and factor exposures
• Tactical allocation decisions distinguished from long-term policy allocations
• Rebalancing rules set using calendar, threshold and cash-flow triggers

Participants can measure portfolio market risk and communicate stress-test results.

• Volatility calculated from historical returns and annualisation conventions
• Value at Risk estimated using historical, parametric and simulation methods
• Expected shortfall explained for tail-risk measurement and risk limits
• Stress tests model rate shocks, currency moves and equity selloffs
• Sensitivity reports use duration, delta, beta and basis-point value
• Risk limits monitored through exposures, concentrations and escalation thresholds

Participants can evaluate investment performance against relevant benchmarks and risk measures.

• Time-weighted return separates manager performance from external cash flows
• Money-weighted return calculated using internal rate of return
• Sharpe ratio, information ratio and tracking error compared
• Brinson attribution separates allocation, selection and interaction effects
• Benchmark-relative performance assessed against mandate and risk budget
• GIPS principles introduced for consistent performance presentation

Participants can assess execution choices, transaction costs and trade-control requirements.

• Market, limit, stop and algorithmic orders compared
• Execution quality assessed using implementation shortfall and volume-weighted average price
• Analyse market impact, timing risk and opportunity cost
• Order-management controls cover approvals, limits and segregation of duties
• Best-execution evidence reviewed using price, cost, speed and likelihood
• Settlement instructions reconciled with confirmations and custodian records

Participants can apply key conduct, governance and control principles to market activity.

• Basel III liquidity ratios linked to bank funding decisions
• Market-abuse controls address insider dealing and improper disclosure
• Know-your-customer requirements considered before counterparty onboarding decisions
• Treasury policies define permitted instruments, limits and delegated authorities
• Counterparty limits monitored using ratings, exposure and collateral data
• Valuation controls apply independent price verification and model governance

Participants can build, review and present a complete investment, hedge and market-risk recommendation.

• Define client objectives, constraints, horizon and investment governance requirements
• Form macroeconomic scenarios with explicit rates, inflation and currency assumptions
• Select asset classes using valuation, liquidity and diversification evidence
• Price bond, equity, currency and derivative positions consistently
• Construct risk measures, stress tests, limits and monitoring triggers
• Present recommendations, assumptions, trade-offs and implementation controls clearly