The Fundamentals of Financial Markets - Level 2

Training Description

The Fundamentals of Financial Markets - Level 2 training deepens the concepts and mechanisms covered in Level 1, providing a more advanced understanding of financial instruments and portfolio management approaches.

Designed for professionals looking to strengthen their mastery of financial markets, this training will enable you to analyze the interactions between different market players, evaluate market dynamics, and understand the factors influencing asset prices.

This program covers complex financial instruments such as derivatives (options, futures, swaps), hedging and arbitrage strategies, as well as advanced valuation models. You will also explore market risk management, quantitative analysis, and market structure concepts.

Through a combination of theory and practical applications, you will develop in-depth expertise, allowing you to interpret market movements, optimize portfolio management, and make informed decisions in a constantly evolving financial environment.

Training Objectives

• Understand the financial markets ecosystem.
• Identify different asset classes.
• Grasp Markowitz's "efficient diversification" model.
• Understand its application in portfolio management.
• Learn the main valuation methods for asset classes.

Target Audience

• Fund managers
• Wealth managers
• Portfolio assistants
• Financial analysts
• Bank treasurers
• Corporate treasurers

Training Duration

• 2 days (14 hours)

Training Program: Financial Markets Fundamentals - Level 2

I. The Financial Markets Ecosystem

• Different market participants: investors, speculators, hedgers, and arbitrageurs

Practical Case:

Identify the type of participant based on a given scenario.

• Different asset classes:
• • Money market
  • Bond market
  • Equity market
  • Foreign exchange (FX) market
  • Derivatives market

Practical Case:

Match different types of products with their corresponding asset classes.

II. Fundamentals of Portfolio Management

• Market efficiency: A challenged concept
• Modern Portfolio Theory (MPT)

Practical Case:

Determine which asset class to include in a portfolio based on the monetary cycle.

III. Focus on the Equity Market

• Different valuation methods
• Key financial metrics: P/E ratio, ROE, EPS, Enterprise Value, FCFF, FCFE, WACC
• Investment styles: Value, Growth, Technical Analysis, and Fundamental Analysis

Practical Case:

Valuation of a stock using different methods.

IV. Focus on the Bond Market

• Bond pricing: Relationship between interest rates and bond prices
• Different types of bonds: Corporate, Government, Inflation-linked, Convertible, Callable, and Putable bonds
• Key bond metrics: Yield to maturity, Duration, Sensitivity, and Convexity
• Role of credit rating agencies

Practical Case:

Pricing a bond.

V. Focus on Foreign Exchange (FX)

• General overview: Market size, key players, and role of the FX market
• Factors influencing currency price movements
• Key terms: Carry trade, Triangular arbitrage, Bid-ask spread

Quiz

VI. Focus on Commodities

• Different types of commodities
• Factors influencing commodity prices
• Key parameters for valuing commodity futures contracts
• Benefits of including commodities in a portfolio

Quiz

VII. Focus on Derivatives

• Definition and role of derivatives as hedging instruments in portfolio management
• Futures contracts
• Swaps
• Options

Practical Case:

Examples of hedging strategies.

VIII. Asset Valuation

• Valuation of simple financial instruments:
• • Stocks
  • Bonds
• Pricing and valuation of derivatives:
• • The No-Arbitrage Principle
  • Option pricing methods
  • Futures pricing methods

Ready to get the most out of your training?

Before diving into the session, quickly assess your knowledge and pinpoint exactly what to focus on!

• ✅ Identify your strengths and areas to improve.
• ✅ Maximize the relevance of your learning experience.
• ✅ Start the training fully prepared!

It only takes 5 minutes!

👉 Take the Quiz Now!