The program covers key concepts in banking and finance such as Interest, Financial statements, risk etc. It gives you an overview of the different financial markets,with specific focus on US/UK geographies. It also takes you through the entire trade life cycle of an instrument – from issuance to asset servicing.
|Understanding Money||Concept of Money: An introduction to money, as a standardized unit of exchange.Concept of Interest: What 'Interest' is; Simple and Compund Interest.Compounding and CAGR: Compounding, Effective Interest (Yield); CAGR & its usage.Time Value of Money: Future Value, Present Value, NPV, IRR with illustrations & the Excel functions.|
Inflation: Inflation, Nominal Rate and Real Rate.
An overview of financial statements - Income statement, Balance Sheet and Cashflow - format and key terms.
|Understanding Risk||Identifying Risk: Types of risk a Financial Institution faces.Measuring & Managing Risk: Factors considered to measure risk globally; risk management techniques such as diversification, hedging, risk limits.|
The Risk-Return Framework: How return changes, with the associated risk.
|Financial Framework||The Financial System Framework: Instruments, markets, market players and regulators.Investment Banking: An introduction to Investment Banking, its purpose and its functions.Global Markets and Treasury: An overview of Global Markets and Treasury.|
Regulators & Regulations: SEC,FSA, Federal Reserve and Bank of England). Key regulations-International Basel Norms, Reserve requirements etc.
|Raising Money||Raising Capital: The broad ways of raising capital for a business.Equity and Equity Instruments: The types of equity instruments (common and preferred stock) and key attributes (such as face value etc.).Depository Receipts (DRs): ADRs and GDRs - how they work.Debt: Sources of debt; the concept of debt instrumentsLoan from Institutions: A brief discussionIssuance of Debt Securities: The issuance process; key features of Debt Securities such as, Face Value, Maturity Period etc.Classification of debt instruments: Classification , basis tenor & Issuer - T-bonds, T-notes, Gilts, JGBs etc..Bonds & Debentures: Key - and often poorly understood - concepts such as Coupon & Yield. Types of Money Market Securities, such as: T-Bills, CDs, CPs, Repos, Fed funds rate.|
The Capital Structure decision: How different factors affect the decision; concept of WACC
|Investing Money||Investment Cycle: The stages: Financial planning, Risk profiling, Asset allocation, Portfolio Maintenance; the role of Asset Management Companies (AMCs).Funds (MFs): The structure of a fund, key features (US terms - sales charge, contingent deferred sales charge(CDSC), NAV) and benefits.Categorization of MFs: Categorisation of MFs basis Liquidity, Investment objective & Investment plan.|
The Investment decision: The trade-off between Returns, Safety and Liquidity - based on investment objectives and priorities.
|Financial Markets - Generic Framework||Trade Life Cycle: Issuance, Pre-trade, Trade, Post trade, and Asset servicing.Issuance: Types of Issues (such as 'IPOs', 'FPOs' and 'Private Placements'), & the entire Issuance Process - US Dutch auction and European French auction process.Pre-Trade Analysis & Trading: Systems needed for pre-trade; trading process followed in international markets.Post-Trade: The stages :Clearing, Settlement, Settlement Conventions.Post trade systems and Monitoring systems.Asset Servicing: Income collection, Corporate actions, etc.|
Role of Banks/FIs: Managing the issuance process, Research and Proprietary trading.
|Financial Markets - Equity||Working of a Stock Market: A basic understanding of how stock trading works.Stock Market Participants: The participants of a stock market and their roles, such as: Member Firms or Brokers, Prime brokers, Specialists, Custodian Banks/ Agencies, Depositories, and Clearing Firms; understanding a Demat account.Stock Indices: What indices are; Key markets and their indices (Dow Jones, NASDAQ, DAX , etc).|
Stock Valuation: Mark to Market (MTM);Realised and unrealised losses.
|Financial Markets - Bond and Currencies||Bond Markets: Various participants & their roles: Government/corporation, commercial banks, investment managers/mutual funds, depository agency & clearing corporation, regulators.Bond pricing and valuation of bonds: Based on Present Value. Understanding coupon, bond price and yield.Money markets: Money Market Instruments - the difference from Bonds.Foreign Exchange Markets: Players, traded currencies etc.Exchange Rates and its key drivers: Factors affecting the Exchange Rate, Market Conventions.|
Valuation of currencies: Valuation of currencies, with an illustration.
Jai joined ANZ Grindlays from campus, and moved on to Citibank, and then to Deutsche Bank, as head of Foreign Exchange & short term Derivatives trading for India.