The purpose of this seminar is to give you a good, practical and all-round understanding of global financial markets and of their instruments.
We start with a general overview and discussion of recent developments in the global financial markets, including trends such as globalization, credit crisis, European debt and currency crisis, new regulation (Basel III, Solvency II, MiFID II) etc.
We then take a closer look at equity markets. We present and describe different types of equity instruments, and we explain how these instruments are used in corporate financing. We also explain, how they are traded in the primary and secondary markets, and we discuss their risk and return characteristics from the investor’s perspective.
After this, we turn to look at fixed-income markets. We explain the differences between “money markets” and “capital markets”, and we give examples of instruments traded in these markets. We also look at the instruments’ role in public and corporate financing, and we describe their investment characteristics.
Further, we explain developments in the global money and FX markets and explain the importance of these markets in international financial intermediation. We also discuss how the global credit and sovereign debt crises have affected the functioning of money markets, in particular the interbank market.
We then give a thorough introduction to derivatives markets. We explain the main characteristics of derivative instruments, and we discuss the differences between listed and OTC instruments. We also discuss the (proposed) regulatory changes and the move to centralized trading and clearing. We present and describe instruments such as futures, options, swaps, credit derivatives, and we explain their uses in trading and risk management.
Finally, we look at developments in the markets for structured and leveraged finance. We present structures such as “asset-backed securities” and “leveraged loans”, and we explain their uses from both a financing and an investing perspective. We also discuss possible future developments in these financing techniques, including the possible use of securitization in the financing of public debt.