Capital Markets: Markets in Evolution and Crisis

This program will review the essentials of the capital markets. However, over the two days, particular emphasis will be placed on those issues and products which led to, or contributed to the current economic crisis. In addition to the traditional review of the products, markets and key players in the capital markets, emphasis will be placed on the role of the rating agencies, securitizations, the mortgage market, credit spreads, and the proliferation and contribution of such derivatives as Swaps.

No sessions currently available. Contact client services to get the next available date.
CPE CREDITS
14.0
No advance preparation required.
Day 1
Key Players and Historical Background
  • How we got to where we are: Revocation of the Glass Steagall Act
  • Regulatory environment: Role of the SEC, and self regulation organizations, and the Federal Reserve Bank
  • Participants in the marketplace and their role (investment bankers, economists, traders, portfolio managers, hedge fund managers, brokers)

Equity Securities

  • Understanding the IPO process (and new DPO process) how to buy IPOs
  • Understanding how stocks trade on an exchange (role of the specialist)
  • How stocks trade OTC (role of NASDAQ)
  • Types of equity securities
  • ETFs explosive growth of this asset category, and its contribution to commodity volatility (how and why to trade gold, oil, indices as a security)

Day 2
Fixed Income
  • Understanding treasury securities and their role in financing out government deficit
  • Corporate bonds: Understanding credit spreads, the appeal of bonds to investors and the associated risks, Role of the rating agencies will be emphasized.
  • Mortgage backed bonds how they work. From high quality bonds to subprime we will review the MBS marketplace, how the mortgage companies operate, the various structures of bonds created will be reviewed.
  • Role of government agencies such as GNMA, FNBA and FHLB will be reviewed.

Derivatives

  • Defining and understanding the role of derivatives (options, futures, forwards and swaps)
  • Use of derivatives in hedging risk or speculation
  • Review of credit default swaps (CDS) and their role in the current crisis
  • Understanding CDOs, (bonds based on swaps) and their role in the crisis

Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

Lunch is included for all students taking day classes.