course 2018 descriptions · table of contents page iv version 1018-1 © global financial markets...

Course

Descriptions

2018

Copyright © 2018 by Global Financial Markets Institute, Inc.

PO Box 388

Jericho, NY 11753-0388

+1 516 935 0923

www.GFMI.com

Version 1018-1

Table of Contents

© Global Financial Markets Institute, Inc. Version 1018-1 Page iii

Table of Contents

Alternative Investments Course Descriptions

Emerging Markets ................................................................................................................................ 2

Hedge Funds ......................................................................................................................................... 3

Hedge Fund Strategies ....................................................................................................................... 4

Hedge Fund Strategies — Advanced ............................................................................................. 5

Private Equity ....................................................................................................................................... 6

Asset Liability Management Course Descriptions

Applied Regulatory Stress Testing Techniques ............................................................................... 8

Asset Liability Management (ALM) in Banks ................................................................................... 9

Basel III for Banks and Non-Banks ................................................................................................. 10

Basel III Framework .......................................................................................................................... 11

Capital Adequacy (CCAR) and Stress Testing (DFAST) ............................................................. 12

Liquidity Risk Management ............................................................................................................. 13

Liquidity Risk Management Level II — Applied Liquidity Risk Management ........................ 14

Model Risk Management ................................................................................................................. 15

Capital Markets Course Descriptions

Artificial Intelligence in Finance ...................................................................................................... 18

Blockchain, Bitcoin, and Cryptocurrencies..................................................................................... 19

Blockchain Technology in the Capital Markets ............................................................................ 20

Crypto Wallet ................................................................................................................................... 21

Electronic Trading ............................................................................................................................. 22

Fundamentals of the Capital Markets/Securities Industry ........................................................ 23

Hedging Techniques in the Capital Markets ................................................................................ 24

Initial Coin Offerings ........................................................................................................................ 25

Market Structure — A Micro Look ................................................................................................. 26

Technical Analysis ............................................................................................................................. 27

Trading — Market Makers, End Users and Proprietary Traders ............................................ 28

Commodities Course Descriptions

Commodities Markets ....................................................................................................................... 30

Energy Markets ................................................................................................................................. 31

Natural Gas Markets ....................................................................................................................... 32

US Power Markets ............................................................................................................................ 33

Corporate Finance Course Descriptions

Corporate Capital Structure ........................................................................................................... 36

Corporate Capital Structure — Advanced.................................................................................. 37

Corporate Finance ............................................................................................................................ 38

Corporate Finance — Mergers and Acquisitions ........................................................................ 39

International Finance ........................................................................................................................ 40

Credit and Credit Analysis Course Descriptions

Commercial Real Estate Lending .................................................................................................... 42

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Consumer Credit ................................................................................................................................ 43

Counterparty Credit Risk ................................................................................................................. 44

Credit Portfolio Risk Management ................................................................................................ 45

Credit Risk Analysis — Banks ......................................................................................................... 46

Credit Risk Analysis — Corporates ............................................................................................... 47

Credit Risk Analysis — High Yield ................................................................................................ 48

Credit Risk Analysis — Municipals................................................................................................. 49

Credit Risk Analysis — Wholesale Credit for Small to Medium Enterprises (SMEs) ............ 50

Credit Risk Modeling ........................................................................................................................ 51

Crowdfunding and Online Lending ............................................................................................... 52

Detecting Early Warning Signs ...................................................................................................... 53

Loan Portfolio Risk Management ................................................................................................... 54

Credit Derivatives Course Descriptions

Collateralized Debt Obligations ................................................................................................... 56

Credit Default Swaps — Single Name and Index ..................................................................... 57

Credit Derivatives ............................................................................................................................. 58

Credit Derivatives — Advanced .................................................................................................... 59

Credit Trading Strategies ............................................................................................................... 60

Derivatives Course Descriptions

Derivatives ......................................................................................................................................... 62

Equity Derivatives ............................................................................................................................. 63

Fixed Income Derivatives................................................................................................................. 64

Futures and Forwards ....................................................................................................................... 65

Options ............................................................................................................................................... 66

Option Adjusted Spreads ................................................................................................................ 67

Options — Beyond the Basics ........................................................................................................ 68

Running an Interest Rate Swap Book............................................................................................. 69

Swaps .................................................................................................................................................. 70

Swaps — Intermediate .................................................................................................................... 71

Economics Course Descriptions

Economic Forecasting ........................................................................................................................ 74

Economic Issues for Equity Investors ............................................................................................... 75

Macroeconomics, Central Banks, and Their Impact on Asset Values ....................................... 76

Macroeconomics, the Federal Reserve, and Fiscal Policy.......................................................... 77

Equities Course Descriptions

Equity Markets ................................................................................................................................... 80

Equity Modeling ................................................................................................................................ 81

Equity Valuation ................................................................................................................................ 82

Financial Modeling ........................................................................................................................... 83

Market Structure and Risks .............................................................................................................. 84

Financial Statement Analysis and Accounting Course Descriptions

Financial Statement Analysis ........................................................................................................... 86

Financial Statement Analysis — A Critical View ........................................................................ 87

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Fixed Income Course Descriptions

Bond Math .......................................................................................................................................... 90

Fixed Income ...................................................................................................................................... 91

Leveraged Loan Fundamentals ...................................................................................................... 92

Money Markets ................................................................................................................................. 93

Yield Curve Analysis ......................................................................................................................... 94

Foreign Exchange Course Descriptions

Foreign Exchange — Spot and Forward FX and Their Applications ...................................... 96

Foreign Exchange Options .............................................................................................................. 97

Insurance Course Descriptions

Annuities — Return of a Pre-Financial Crisis Product ............................................................... 100

Asset Liability Management (ALM) and Risk Management in Insurance Companies ......... 101

Financial Statement Analysis — Insurance Companies — Overview ................................... 102

Fundamentals of Insurance ............................................................................................................ 103

Insurance Company Business and Financial Analysis — Level I ............................................. 104

Insurance Company Business and Financial Analysis — Level II ............................................ 105

Insurance Compliance ..................................................................................................................... 106

Municipals Course Descriptions

Municipal Securities ........................................................................................................................ 108

Municipal Securities — Advanced ............................................................................................... 109

Mutual Funds and Exchange Traded Funds Course Descriptions

Exchange Traded Funds ................................................................................................................ 112

Exchange Traded Funds — Advanced ....................................................................................... 113

Mutual Funds .................................................................................................................................... 114

Operations Course Descriptions

Beyond the Trade Lifecycle — Operations Uncovered .......................................................... 116

Collateral Management ................................................................................................................ 117

Corporate Actions ........................................................................................................................... 118

Clearing Houses, Settlement Systems and Depositories .......................................................... 119

Fails and Fails Management ......................................................................................................... 120

Global Securities Clearance and Settlement ............................................................................ 121

Hedge Fund Operations ................................................................................................................ 122

Lifecycle of a Trade ....................................................................................................................... 123

Lifecycle of a Trade — Commodities ......................................................................................... 124

Lifecycle of a Trade — Derivatives ............................................................................................ 125

Lifecycle of a Trade — Fixed Income ........................................................................................ 126

Lifecycle of a Trade — Foreign Exchange ................................................................................ 127

Lifecycle and Clearing of OTC Derivatives Trade ................................................................... 128

Mutual Fund Operations ................................................................................................................ 129

Operational Risk Management .................................................................................................... 130

US Brokerage Operations ............................................................................................................ 131

Portfolio Management Course Descriptions

Alternative Investments in Portfolio Management .................................................................... 134

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Asset Allocation ............................................................................................................................... 135

Derivatives — Applications in Equity and Bond Portfolio Management .............................. 136

Fixed Income Portfolio Management .......................................................................................... 137

Portfolio Management ................................................................................................................... 138

Risk Management in Investment Management........................................................................... 139

Quantitative Methods and Excel Course Descriptions

Algorithmic and High Frequency Trading ................................................................................... 142

Big Data ........................................................................................................................................... 143

Big Data — Advanced .................................................................................................................. 144

Big Data — Intermediate.............................................................................................................. 145

Business Intelligence (BI) — The Fundamentals of BI, What it Does, and Why It’s So

Essential ...................................................................................................................................... 146

Data Analysis ................................................................................................................................... 147

Microsoft Excel for Financial Service Professionals — Introduction ...................................... 148

Microsoft Excel for Financial Service Professionals — Intermediate Level with Shortcuts,

Tips, and Tricks ......................................................................................................................... 149

Microsoft Excel for Financial Service Professionals — Advanced ......................................... 150

Microsoft Excel for Financial Service Professionals — VBA ................................................... 151

Predictive Analytics ........................................................................................................................ 152

Quantitative Methods — Advanced ........................................................................................... 153

Quantitative Methods for Derivatives ......................................................................................... 154

Smart Beta and Factor Models .................................................................................................... 155

Statistical Analysis .......................................................................................................................... 156

Textual Analysis in Finance ........................................................................................................... 157

Regulation and Compliance Course Descriptions

Anti-Money Laundering/Anti-Terrorist Financing (AML/ATF) Compliance ........................... 160

Broker/Dealer Compliance ........................................................................................................... 161

Conducting an Internal Forensic Audit — A How-to Primer .................................................... 162

Corruption, Fraud, and Cyber Crime — How Market Integrity is Impacted....................... 163

Cybersecurity, Cybercrime and Information, and Data Compliance .................................... 164

Dodd-Frank Act ............................................................................................................................... 166

Due Diligence — How to Gather and Utilize Information to Make Informed Decisions ... 167

Emerging Trends in Securities Fraud............................................................................................ 168

Fintech Innovation — How to Keep Pace with Rapidly Evolving Digital Finance

Technologies .............................................................................................................................. 169

Foreign Currency Exchange (Forex) Lifecycle Compliance ..................................................... 170

Hedge Fund Compliance ............................................................................................................... 171

Investment Adviser Compliance Essentials .................................................................................. 172

Investment Adviser Compliance Program Focus ........................................................................ 173

Mutual Fund Compliance ............................................................................................................... 174

Volcker Rule Compliance ............................................................................................................... 175

Risk Management Course Descriptions

Corporate Governance for Financial Institutions....................................................................... 178

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Enterprise Risk Management......................................................................................................... 179

Fiduciary and Fiduciary Principles ............................................................................................... 180

Risk Management in Banks’ Capital Markets Trading Activities ............................................ 181

Risk Management in Financial Institutions — A Foundational Approach .............................. 182

Risk Management — Managing Market Risk in Financial Institutions ................................... 183

Risk Management Level I — Internal Controls, ERM, and the Three Lines of Defense ...... 184

Risk Management Level II — Applied Risk Management ....................................................... 185

Value at Risk (VaR) ......................................................................................................................... 186

Value at Risk (VaR) — Advanced ............................................................................................... 187

Securities Lending and Repurchase Agreements Course Descriptions

Repurchase Agreements and Securities Lending ....................................................................... 190

Securities Lending and Borrowing — An Operations Perspective ........................................ 191

Securitization and Structured Finance Course Descriptions

Asset Backed Securities.................................................................................................................. 194

Mortgage Backed Securities ........................................................................................................ 195

Securitization ................................................................................................................................... 196

Structured Products Course Descriptions

Convertible Bonds and Equity Linked Securities (ELS) .............................................................. 198

Structured Products and Their Applications ............................................................................... 199

Wealth Management Course Descriptions

Robo Advisers and the RIA Environment ..................................................................................... 202

Wealth Management Industry...................................................................................................... 203

APPENDIX — Course Descriptions in Alphabetical Order

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Emerging Markets

It is expected that the global economy could triple over the next four decades as emerging

market economies continue to grow economically and increase their political influence on the

international stage. In the last few years, a tremendous amount of investor focus has been on

opportunities in Brazil, Russia, India, and China. But what about opportunities outside of BRIC? In

this interactive course, you will learn about risks and investment opportunities in the emerging

markets, BRIC and beyond.

Course Objectives

By the end of the course, participants will be able to:

• Define what constitutes an emerging market

• Identify key country, technical and economic factors that are influencing emerging market

trading currently in:

o Fixed income and foreign exchange markets

• Define and identify risks in investing in BRIC countries and beyond, especially:

o Credit — Counterparty and concentration

o Liquidity

o Operational

o Legal

Suggested Prerequisites: None

Program Level: Foundational

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 7

Duration: 1 day



Hedge Funds

Hedge funds manage up to 2 trillion dollars of assets and have been cited as playing an

instrumental role in the financial crisis. Yet they manage up to 20-30% of assets in large

institutional investors, and their investment strategies are proliferating throughout the country. This

interactive program separates myth from reality, examines hedge fund strategies and a practical

framework for understanding them, the role of hedge funds in portfolio construction, key risk

elements within hedge funds, and the role of prime brokers and banks in sponsoring them.

Course Objectives


• Describe hedge funds and their role in asset management

• Evaluate and analyze hedge fund strategies

• Describe and analyze the role of the prime broker






Duration: 1 day



Hedge Fund Strategies

There is no one agreed way to classify hedge fund strategies, but they may be broadly grouped

into the following categories: Equity hedge, event driven, macro, relative value and fund of funds.

This one-day interactive course analyzes different strategies and their respective performance.

Course Objectives


• Explain why some investors choose to allocate part of their wealth to alternative

investments, including hedge funds

• Describe the organization, operation and regulation of hedge funds

• Explain how investors invest in hedge funds and identify key risk factors of which hedge

fund investors should be aware

• Analyze a variety of hedge fund strategies including:

o Event driven

o Equity Hedge

o Macro

o Relative value

• Describe and identify sources of risk and return in hedge fund strategies

Suggested Prerequisites:

• Hedge funds or equivalent capital market knowledge

Program Level: Intermediate




Duration: 1 day



Hedge Fund Strategies — Advanced

This course will provide an advanced look at hedge fund strategies used in modern investing. The

course will cover arbitrage strategies involving equities, options, fixed income, commodities, and

foreign currencies. Participants will discuss and examine risks and returns to each strategy in the

space.

Course Objectives


• Describe the strategies and opportunities targeted by hedge funds in the equities space

• Describe the strategies and opportunities targeted by hedge funds in the fixed income

space

• Describe the strategies and opportunities targeted by hedge funds in the options space

• Describe the strategies and opportunities targeted by hedge funds in the commodities

space

• Describe the strategies and opportunities targeted by hedge funds in the foreign

currencies space


• Hedge Funds, Hedge Fund Strategies or equivalent knowledge

Program Level: Intermediate – Advanced




Duration: 1 day



Private Equity

This course examines the private equity investment arena with a focus on investment approach,

policies and practices, risks in the space, and historical returns. The private equity landscape has

changed dramatically in the last three decades and this course gives participants a background in

how the industry has evolved over time and what the current industry standards are. Differences

between distinct areas of the industry are examined. Class participants review financial

statements and regulatory filings from major publicly traded private equity firms such as

Blackstone, Carlyle Group, and KKR.

Course Objectives


• Describe what private equity is

• Explain the investment approach of a private equity firm

• Discuss methods for private equity firms using debt to enhance returns

• Identify different verticals within the private equity industry

• Describe the typical private equity investor fee schedule

• Explain risks in the private equity model for both investors and portfolio companies

• Review the historical returns profile of major private equity groups

• Discuss the current landscape in the private equity field

• Describe emerging trends in the private equity universe






Duration: 1 day



Applied Regulatory Stress Testing Techniques

This course will provide course participants with an overview of the applications of techniques

used to address regulatory stress testing requirements for banks. Common governance

frameworks informed by regulatory guidance and best practices are reviewed. The issues

associated with obtaining the necessary data and making reasonable assumptions are explored.

Modeling techniques used to assess market, credit, and other risk factors are described at a high

level. Finally, issues associated with interpreting model output and ensuring proper reported are

discussed.

Course Objectives


• Discuss the current regulatory requirements and guidance for stress testing

• Describe at a high level the necessary components of a stress testing framework

• Assess the key factors involved in developing, implementing, and using forecasting models

for stress testing

• Explain the role of model validation and the independence required for this process to be

effective

• Evaluate common issues with data gathering and reporting of results


• Capital Adequacy (CCAR) and Stress Testing (DFAST) or equivalent knowledge



Computers and Financial Calculators: Calculators


Duration: 1 day



Asset Liability Management (ALM) in Banks

Asset Liability Management refers to the various risks found in a bank’s balance sheet including

interest rate, foreign exchange, prepayment, credit, liquidity and operational risk. From a

regulators viewpoint, specific focus is on the identification, measurement, monitoring and

controlling of these risks. ALM is not an exact science, but a process that if executed properly, is

built into the banks’ culture. Interest rate risk tends to dominate the risk category with models

running from simple static gaps, to the more complex models of income simulation and economic

value of equity. These models, along with scenario analysis, will be reviewed with specific

attention to their assumptions. Basel III has certainly made a splash by introducing a global

liquidity standard, specifically, the liquidity coverage ratio and net stable funding ratio. How

banks manage liquidity is addressed along with liquidity contingency plans. How is credit risk and

default probabilities integrated into their ALM process? Particular importance is being focused on

a transparent transfer pricing system such that profit, and loss are appropriately attributed to the

respective department. Performance measurements, such as risk adjusted return on capital, are

explored. This is followed by an attribution analysis; such that senior management can determine

where P&L is derived. Included in transfer pricing should be a cost for liquidity and capital. An

examination of the boundary between the trading book and bank book is explored.

Course Objectives


• Explain the ALM process

• Identify and apply the different interest rate risk models used in the ALM process

• List the different assumptions used in the various models

• Describe how a bank manages liquidity

• Analyze how to identify, measure, monitor and control the various risks banks are exposed

to

• Differentiate between ALM and risk management

• Describe the differences between qualitative and quantitative issues

• Determine what, if any, other measures are used for guidance

• Explain the price of liquidity and capital to the bank






Duration: 1 day



Basel III for Banks and Non-Banks

This course relates the Basel III concepts to trading and non-lending activities. Comparisons are

provided to other capital measurement regimes to better understand relative capital costs under

different measurement techniques. Both conceptual as well as practical applications are explored,

and participants will develop an understanding of capital theory and history, as well as the

relationships between risk measurement of asset and income activities in relation to funding.

Course objectives


• Recognize the development history and components of the Basel III capital standards for

different risk types

• Explain the impacts of GAAP and IFRS netting rules for Basel III capital

• Apply Basel III to bank and non-bank entities

• Describe potential weaknesses of the Basel III approach and identify regulatory steps that

have been taken to supplement Basel capital (e.g. stress tests)

• Analyze how Basel applies to activities in derivatives positions, especially credit default

swaps and total return swaps


• Fundamentals of Capital Markets/Securities Industry

• General understanding of banking or equivalent knowledge





Duration: 2 days



Basel III Framework

The Great Financial Crisis created many challenges for financial institutions and regulators alike.

The implementation of the new Basel III risk-based capital standards was intended to address the

risks that were inadequately addressed by the Basel II regime. While there are clearly many

positive aspects of the new international proposals, it is also clear that there are many

implementation issues from both a global and regional perspective.

This one-day seminar provides a concise but in-depth overview of the key components of the

Basel III framework, including specific exercises which reinforce the various methodologies used to

calculate capital and provision requirements under this new regulatory regime. In addition to the

regulatory requirements, practical considerations to facilitate the implementation of an

appropriate risk management program will be discussed to ensure that the delegates will be able

to translate the information from the seminar into action items in their institutions.

Course Objectives


• Discuss significant changes relative to the Basel II framework

• Recognize updated capital definitions (Tiers 1, 2 and 3)

• Identify risk-based capital ratio and explain capital charges for Systemically Important

Financial Institutions (SIFIs)

• Explain the approaches to:

o Credit risk

o Counterparty risk

o Market risk

o Operational risk

o Liquidity risk

• Identify and discuss Basel III principles for sound stress testing practices and supervision



• General understanding of banking or equivalent knowledge

Program Level: Foundational – Intermediate




Duration: 1 day



Capital Adequacy (CCAR) and Stress Testing (DFAST)

This course will provide an overview of the importance of capital adequacy, capital planning, and

stress testing. The recent financial crisis highlighted the need for significant reform in the way that

financial institutions were regulated, both domestically and internationally. This course will review

the current framework for measuring capital adequacy and stress testing at the largest and most

complex financial institutions.

Course Objectives


• Understand the importance of capital adequacy to regulated financial institutions subject

to Basel risk-based capital standards, Dodd-Frank stress testing (DFAST) standards, and

Comprehensive Capital Analysis and Review (CCAR) requirements to ensure institutional

and systemic safety and soundness

• Assess the effectiveness of existing capital planning processes and identify opportunities

to better align these processes with regulatory requirements and best practices

• Identify the similarities and critical differences between capital adequacy, CCAR capital

planning, and DFAST stress testing requirements

• Understand the data requirements and extract/transform/load processes from core

systems to the required reporting output of CCAR






Duration: 1 day



Liquidity Risk Management

This program is designed to give the participants the necessary foundation and analytical skills

needed to understand the practical problems that arise in assessing and managing liquidity risk in

banks. The course is designed to expose participants to practical management concepts and give

them the tools needed to conduct sources and uses of funds analysis and liquidity risk

management. Actual applications of these tools will be reviewed and discussed.

The course begins with a description of the various ways that firms’ measure liquidity, including

commonly used financial ratios. The second section evaluates the way that firms raise funds, both

in the short-term money markets and the long-term capital markets. The third section assesses

some common approaches to maintaining liquid investments to balance liquidity against desirable

return targets. The next sections look at liquidity management at banks, which are major providers

of liquidity to many firms, as well as asset managers. The course closes with best practices in

developing and implementing a Liquidity Contingency Plan (LCP).

There will be a strong emphasis on hands-on analysis and group discussion.

Course Objectives


• Define the two major types of liquidity risk and measure them

• Identify appropriate sources of funds for a variety of institutions

• Interpret the appropriate funding for business decisions that use funds

• Assess measures of the availability or scarcity of liquidity

• Develop a framework for a liquidity contingency plan (LCP)






Duration: 1 day



Liquidity Risk Management Level II — Applied Liquidity Risk Management

This course will provide course participants with an overview of the applications of techniques

used to address liquidity risk management and stress testing at banks. Common liquidity risk

governance frameworks informed by regulatory guidance and best practices are reviewed. The

issues associated with obtaining the necessary data and making reasonable assumptions to

calculate regulatory ratios and develop sources and uses of funds models are explored.

Contingency funding strategies will be discussed and evaluated. The specific liquidity risks

associated with wholesale funding strategies will also be reviewed.

Course Objectives


• Discuss the current regulatory requirements and guidance for liquidity risk management

• Describe at a high level the data necessary to calculate LCR and NSFR

• Assess the key factors involved in developing, implementing, and using forecasting models

for liquidity stress testing

• Evaluate common issues with collateralized wholesale borrowing sources

• Explain the critical components of a Liquidity Contingency Plan

• Describe the use of liquidity transfer pricing in the context of overall FTP


• Liquidity Risk Management or equivalent knowledge



Computers and Financial Calculators: Computers


Duration: 1 day



Model Risk Management

This course will provide course participants with an overview of model risk management with a

focus on the specific needs of banking institutions. The evolving complexity of products and

activities engaged in by banks has greatly increased the reliance banks place on models, with

uses ranging from risk measurement to valuation. This course will review the current regulatory

requirements and best practices for managing model risk and will describe the critical success

factors associated with implementing an appropriate model risk governance framework.

Course Objectives


• Discuss the current regulatory guidance for model risk management at banks

• Analyze the key factors involved in developing, implementing, and using models

• Explain the role of model validation and the independence required for this process to be

effective

• Describe at a high level the necessary components of a model risk governance framework






Duration: 1 day



Artificial Intelligence in Finance

This course examines the fundamentals of AI as it is being used in the financial industry. The

program helps participants understand, at a high level, how AI in finance works and what the

applications of it are. Risks and potential for errors in AI programs are also discussed, and

participants will walk away understanding how financial markets may change in response to the

move from human driven financial markets to AI-assisted financial markets.

Course Objectives


• Describe what AI is at a high level and how it works in the finance industry

• Discuss the current market outlook for applications of AI and where AI is already being

used

• Explain the risks around AI use in financial markets and how these risks can be minimized

• Discuss the outlook for evolution of the financial markets in response to changes driven by

AI





Recommended CPE Credits: 8 VILT / 7 ILT

Duration: 1 day



Blockchain, Bitcoin, and Cryptocurrencies

This course examines the fundamentals of cryptocurrencies like Bitcoin. The focus is on helping

market participants and regulators to understand the risks and opportunities in the rapidly

developing crypto arena. Starting with Bitcoin, and then moving to newer currencies like Ripple

and Ethereum, the course dives into where the market is going and what developments are

changing the field. The course also examines why cryptocurrencies are appealing to different

segments of the financial markets, and the impact that crypto trading can have on the broader

financial arena.

Course Objectives


• Describe what cryptocurrencies are including Bitcoin, and how the currencies relate to

Blockchain

• Describe the current market structure in the crypto landscape

• Explain how Bitcoin works and what its objectives are

• Describe trading in cryptocurrencies and the risks associated with that trading

• Discuss the outlook for cryptocurrencies and what the cutting-edge developments in the

space are


Program Level: Fundamental


Computers and Calculators: N/A


Duration: 1 day



Blockchain Technology in the Capital Markets

This course examines the fundamentals of Blockchain — what it is, why it is useful, and how it is

changing the financial services landscape. By now nearly everyone has heard of Bitcoin. What

most people don’t realize though is that while Bitcoin itself may be a long way from gaining

popular appeal, the technology underlying it is already being used by major financial firms

across the economy. That technology is called Blockchain and it useful for securely recording,

moving, and storing financial products of all types. From IBM to JPMorgan, many major

companies are exploring how Blockchain can be used in their business. A recent Harvard Business

Review article explored the uses and impacts of Blockchain and concluded that the technology

had myriad applications in the economy.

Course Objectives


• Describe what blockchains are and how they are useful

• Recognize the basics of using blockchains in the financial system including their

applications

• Explain how blockchains work

• Identify the limitations on blockchains and the risks they entail

• Diagram the movement and transfer of financial assets using a blockchain process versus a

conventional technique


• Market Structure — A Micro Look





Duration: 1 day

https://hbr.org/2016/05/the-impact-of-the-blockchain-goes-beyond-financial-services

https://hbr.org/2016/05/the-impact-of-the-blockchain-goes-beyond-financial-services



Crypto Wallet

This seminar examines how wallets work in the crypto currency space, and their possible use in a

regulatory context. The seminar will help participants to gain a greater understanding of

blockchain wallet technology and their interaction with various blockchains. This discussion will

focus on institutions such as Broker Dealer, Exchanges and Private Fund IA and not retail investors.

The seminar will explain how wallets work in specific crypto currency applications, the use of

public and private keys, and the security around wallets in specific crypto assets.

Course Objectives


• Definition of blockchain wallet

• General discussion of wallet creation:

o Private Key

o Public Key

• Wallet creation specific to:

o PoW

o PoS

o Bitcoin

o Ethereum

• How the wallets interact with blockchains

• The wallet technology that identifies transaction to the blockchain

• Discussion of hot and cold wallet storage





Recommended CPE Credits: 2 VILT



Electronic Trading

Electronic trading is transforming the volume, speed, transparency, liquidity and risk of trading in

instruments of virtually all major asset classes and has also facilitated the creation of new trading

strategies such as high frequency and algorithmic trading. This course is designed to introduce a

roadmap of current participants in electronic markets, to depict how trades are executed

electronically, to demystify the jargon, to describe various new trading strategies enabled by

electronic trading, to show how new risks arise in those strategies and in new instruments such as

ETFs, and to explore important regulatory considerations such as transparency, price execution

and clearing. Goals include understanding key dynamics in common sense and less quantitative

ways and gaining sufficient confidence to engage others on these topics. Participants should

expect an interactive and exercise-oriented format wherever possible.

Course Objectives


• Understand the nature and scope of electronic trading

• Describe how different asset classes are traded electronically

• Understand algorithmic and high frequency trading

• Discuss trading strategies facilitated by electronic trading

• Understand distinctions between exchanges, ECNs, SEFs and CCPs

• Identify risks associated with electronic trading


• Fundamentals of the Capital Markets/Securities Industry or equivalent knowledge





Duration: 1 day



Fundamentals of the Capital Markets/Securities Industry

This interactive one-day course describes how the capital markets operate and examines the

features and characteristics of the wide variety of instruments traded in the market. Specific focus

is on equities and fixed income although foreign exchange and commodities are discussed.

Fundamentals of economics and interest rates are explored and their relationships to asset values

are described. A final discussion involving an asset manager, their portfolio objectives and their

decision-making process and execution of trades will bring the main learning objectives together

at the end of the course.

Course Objectives


• Describe the securities industry, the instruments and the players

• Explain how the exchanges and over the counter markets function

• Recognize and define terminology of the securities industry

• Explain how new issues are brought to market






Duration: 1 day



Hedging Techniques in the Capital Markets

Hedging strategies are executed by various business functions including trading desks, asset

managers, liability managers and treasuries as well as across asset classes. This course explores

hedging techniques and the various aspects that need to be considered — such as using cash

versus derivatives — and the effectiveness of the hedge, among other things. The main focus will

be from a trading desk’s point of view, but client’s positions will also be explored.

Course Objectives


• Identify the specific risks and exposures to be hedged

• Assess the cash flows arising from both the target security and hedging instrument

• Discuss hedge effectiveness

• Analyze delta hedging

• Compare and contrast hedging a single security versus a portfolio


• Derivatives or equivalent knowledge





Duration: 1 day



Initial Coin Offerings

This course provides an in-depth look at Initial Coin Offerings of Cryptocurrencies. The program

examines raising capital through the use of initial coin offerings (ICOs) for cryptocurrencies

including how coins are marketed, investors who use coins, use of ICO proceeds, and use of

crowdfunding as an alternative to a traditional ICO (for instance the Tezos offering). The focus is

on understanding the legal and technical requirements for an ICO, the characteristics of successful

and unsuccessful ICOs, and the expectations of investors in ICOs. Participants will learn about

recent ICOs, regulatory developments in the area, and what businesses should know before

holding an ICO.

Course Objectives


• Describe what ICOs are and why they are of interest to business

• Identify the current market outlook in the ICO landscape

• Explain how ICOs works and what is needed to raise capital through an ICO

• Discuss regulation of ICOs and the risks associated with that mechanism for raising capital





Recommended CPE Credits: 8 VILT / 7 ILT

Duration: 1 day



Market Structure — A Micro Look

This course will provide a look into the inner workings of modern financial markets and the

structure of these markets. Participants will examine bid-ask spreads, liquidity, order flow, high

speed trading and other issues that impact the structure of markets and the pricing of the

securities trading on the markets. Participants will discuss changes to markets in the US and

abroad and the empirical evidence around the effects of those changes.

Course Objectives


• Describe the structure of securities markets and the key terms and concepts associated with

market microstructure

• Identify the role that variables like bid-ask spread and liquidity play in market efficiency

and securities pricing

• Discuss changes in the markets over the last two decades and the rise of new market

participants like high frequency traders

• Recognize the impact of regulatory and market driven changes in the microstructure of

markets

• Identify differences internationally in market structure and the empirical evidence

surrounding the effects of these differences


• Fundamentals of the Capital Markets/Securities Industry

• Electronic Trading





Duration: 1 day



Technical Analysis

This comprehensive program is both an academic learning process and a hands-on practical

exposure to technical analysis. It is designed to provide a foundation for professional users of

technical analysis.

Unlike other summary technical courses that focus on technical principles, participants will be

taught to use the material learned and attempt to create and innovate profitable investing and

trading strategies. They will also be exposed to academic research that may support or refute

some technical approaches. Current market situations that students may experience in their work

or personal experience in the bond, commodity, currency, equity, futures and options markets will

be discussed in class. Sample problems from actual historical market charts will also be discussed,

and recommended readings from leading textbooks will be listed for each course section.

Course Objectives


• Appreciate key technical analytical approaches to investing

• Differentiate between fundamental and technical analysis

• Explain the role of behavioral finance and technical analysis

• Describe the ethical and professional standards expected in technical analysis

• Identify reversal and continuation patterns

• Set measurement objectives for potential profits

• Adjust technical techniques to accommodate both trading and long-term investment

objectives

• Use inter market analysis, statistical and probability analysis

• Take current investment situations in the stock, bond, commodity markets and attempt to

achieve hands-on profits with technical analysis

• Understand the role of quantitative techniques and artificial intelligence programs in

technical analysis

• Utilize derivatives in technical strategies







Duration: 1 day



Trading — Market Makers, End Users and Proprietary Traders

Trading is a term that is used quite loosely in capital markets vernacular. The word implies

committing capital and accepting risk to earn a return on capital. However, there are many

different participants that commit capital for their respective firms. How does a market maker

decide on their quote? Is a portfolio manager executing trades or do they execute the trade

through their trading desk? What is the difference between a trading desk at a bank, at an asset

manager and a NASDAQ broker-dealer? This interactive one-day course answers these questions

and demonstrates how market makers decide on a quote and manage their positions. How do

market participants incorporate fundamental analysis and technical analysis in their decision-

making process? What are the risks of trading? The course analyzes reports that are required to

manage the position as well as reports required by senior management. How is the risk

controlled? The course concludes with the participants playing the role of a trader in a trading

simulation.

Course Objectives


• Differentiate between market makers, end users, portfolio managers and proprietary

traders

• Analyze the decision-making process of traders

• Describe the different reports required at the board, senior management and desk levels

• Explain different risk measurements that may be used in different asset classes to help

control risk

• Differentiate between qualitative and quantitative controls



• Fixed income and/or Equity Markets or equivalent knowledge





Duration: 1 day



Commodities Markets

Driven by demand from the emerging markets and speculation by traders and investors, volatility

in the commodity markets is rampant. As many prognosticators see inflation on the horizon, gold

and silver are in the crosshairs of many speculators. This hands-on course examines the factors

impacting the prices of commodities, their features and characteristics, pricing and risks.

Course Objectives


• Identify the various types of commodities with primary focus on energy and metals

• Describe the features and characteristics of commodities

• Differentiate between spot, forward and futures trading

• Explain and calculate pricing

• Compare and contrast investing and trading commodities

• Identify the risks associated with commodities






Duration: 1 day



Energy Markets

Energy markets play a key role in the economy, but the structure of these markets is complex and

analysis of factors driving pricing and risk can be difficult for outsiders with limited knowledge of

the physical operations involved in energy production. Taking this course will help you develop a

deeper understanding of how these dynamic and important markets work and make you better

prepared to take advantage of the opportunities they provide for trading on views of energy

prices or volatility and hedging energy price risk.

Course Objectives


• Describe the physical processes associated with natural gas and with crude oil

exploration, production and refining

• Identify factors affecting spot and forward prices for crude oil and natural gas

• Outline the ways in which physical crude oil and physical gas is traded

• Explain how financial contracts linked to crude oil, petroleum product markets and natural

gas, including futures contracts, fixed-for-floating swaps, basis or differential swaps and

synthetic storage, are used to express market views and hedge risks

• Define and explain key terms and concepts related to power generation

• Analyze the relationship between electricity prices and the costs of primary energy

sources

• Describe the major changes in regulation that have influenced the development of North

American electricity markets

• Identify factors affecting forward prices for electricity

• Describe and discuss applications of power swaps and other derivatives


• Participants should understand simple financial concepts such as present value and have a

basic knowledge of derivative instruments (forwards, futures, options and swaps)

• No prior knowledge of energy markets is assumed





Duration: 1 day



Natural Gas Markets

This course provides participants with an overview of the Natural Gas markets with a focus on

market risk management. The course starts by explaining the role of the different participants

before considering the market’s different demand and supply characteristics. The third part of the

course looks at the theory and practice of forward price formation. The final part of the course

presents a series of consumer and producer derivative risk management solutions.

Course Objectives


• Describe the main motivations for each of the market participants

• Explain the physical supply chain for natural gas

• Outline how prices are formed within the natural gas market

• Describe a number of price risk management techniques









Duration: 1 day



US Power Markets

This course provides participants with an overview of the US power markets with a focus on

market risk management. The course starts by explaining the role of the different participants

before considering the market’s different demand and supply characteristics. The third part of the

course looks at the structure of the US market as well as the theory and practice of forward price

formation. The final part of the course presents a series of consumer and producer derivative risk

management solutions.

Course Objectives


• Describe the main motivations for each of the market participants

• Explain the physical supply chain for power

• Outline how prices are formed within the power market

• Describe a number of price risk management techniques









Duration: 1 day



Corporate Capital Structure

This course will provide an introduction to the modern practices in corporate capital structure.

Participants will learn what capital structure is, why it is important to business, and how to

evaluate a firm’s capital structure for opportunities for improvement. The course will cover issues

ranging from understanding and calculation of WACC to capital structure timing.

Course Objectives


• Describe the what capital structure is and how it relates to businesses in the modern world

• Identify the key variables of interest in capital structure and how these variables should

be related to the underlying business

• Assess a firm’s capital structure to understand if changes to that structure can enhance

shareholder value and the risks associated with those changes

• Understand what WACC is, how it should be calculated, and why it matters to firms

• Explain why WACC is used to discount company free cash flows

• Calculate WACC, cost of debt and cost of equity






Duration: 1 day



Corporate Capital Structure — Advanced

Corporate Finance is an important foundation for all financial decisions of a firm. A vast range of

business decisions from credit analysis to merger and acquisition activity require knowledge of

basic financial principles. These concepts are taught by utilizing both theory and practical

applications. While there are procedures and formulas, they need to be integrated with good

business judgments. Included in the practical applications will be exercises and reference to a

company case. The ultimate objective is to explore methods of valuating a firm and enhancing it

with various corporate finance strategies.

Course Objectives


• Calculate and compare advantages and weaknesses of capital budgeting techniques,

especially the NPV and IRR of a project

• Stress test project selection decisions based on qualitative factors around valuation

• Calculate free cash flow forecasts and the challenges in determining their proper use

• Calculate the terminal value of a business and determine its appropriate use

• Calculate the enterprise and equity value of a business

• Discuss Behavioral Issues

• Discuss Relative Valuations Techniques among comparable companies

• Assess correct levels of cost of capital for projects and firms of varying levels of risk

• Explain the rationale for capital structure timing and how it can be implemented in a firm

• Discuss other valuation methods including CAPM and Arbitrage Pricing Theory

• Determine the optimal capital structure of a company and its dividend policy



• Financial Statement Analysis or equivalent knowledge





Duration: 1 day



Corporate Finance

This course examines more concepts in corporate finance including cash management, working

capital, dividend policy, and controllership. The focus is on introducing foundational corporate

finance concepts to participants and demonstrating how those concepts can be applied to a

business setting.

Course Objectives


• Use basic cash management for forecasting purposes

• Create models of required working capital

• Explain the fundamentals of dividend policy

• Describe various approaches to pricing strategy

• Discuss fundamentals of corporate controllership







Duration: 1 day



Corporate Finance — Mergers and Acquisitions

This hands-on course will introduce participants to structuring corporate finance transactions,

including capital raises, acquisitions, mergers, divestitures and leveraged buyout. The course will

include presentations by an instructor, historic transaction critiques and class discussion.

Participants will also work on a case study, preparing and presenting a structure recommendation.

Course Objectives


• Recognize different types of transactions and typical structures, including financing terms,

commitments and contingencies

• Discuss the merits of pursuing acquisitions, mergers, divestitures and leveraged buyout

alternatives

• Identify the risks inherent in each type of corporate transaction for majority and minority

investors

• Recognize the roles and responsibilities of capital markets agents in originating, structuring

and financing corporate finance transactions

• Discuss current trends in corporate finance transactions


• Corporate Capital Structure

• Corporate Finance or equivalent knowledge



Computers and Financial Calculators: Computers suggested


Duration: 1 day



International Finance

This course will provide an introduction to international differences in financial markets around the

world. The focus of the program is on understanding and critically evaluating financial differences

and the associated effects in the broader economy. Participants will learn how equity and debt

markets vary between countries, the associated legal differences that have impacted market

development, and the modern consensus regarding best practices in financial development

Course Objectives


• Describe international variations in capital markets around the globe and the resulting

impacts on the broader economy

• Explain the basic differences in legal structures internationally and how those differences

have affected the development and functioning of markets

• Assess the effectiveness of different choices in market structure internationally

• Identify best practices in modern financial markets

• Critically examine international financial markets for investment opportunities

• Recognize country-specific risks and its impacts on investment choices






Duration: 1 day



Commercial Real Estate Lending

This one-day interactive course introduces the participant to the expansive world of Commercial

Real Estate Lending. This foundational course reviews the origination process and due diligence a

present-day commercial lender exercises when underwriting a new loan. A variety of property

and loan types will be analyzed, and various real estate valuation methodologies will be

demonstrated. Particular focus will be on lender protections found in the legal documents

surrounding a commercial real estate loan. A broad examination of the risks surrounding CRE

loans as well as the early warning signals which should trigger internal lender discussions are

identified and discussed. Loan administration, loan servicing and special servicing (when things get

really bad!) will all be fleshed out.

Course Objectives


• Identify the different commercial real estate loan types

• Understand the various risks when lending against different property types and in

different economic cycles

• Describe the due diligence documentation and process a lender should employ before

putting capital at risk

• Explain the role of and the protections embedded in the commitment letter, promissory

note, and mortgage documents

• Identify what risks are associated with the different levels in the capital stack

• Qualitatively and quantitatively evaluate whether a borrower will be able to repay its

loan

• Identify the different bank examiner classifications of CRE loans






Duration: 1 day



Consumer Credit

Today’s consumer lending environment is driven by new competition and regulatory changes.

Successful bankers need to overcome these challenges and develop a knowledge base that

demonstrates their expertise to customers when selecting credit solutions.

Consumer Credit is a one-day workshop that provides the knowledge to the participants with the

information needed to evaluate a borrower’s request and recommend the appropriate solution.

Course Objectives


• Identify and assess different types of consumer credit including risks and pricing

• Examine several types of critical consumer protection regulations governing the extension

of consumer credit

• Evaluate the initial credit request while considering the customer’s character, capacity for

repayment, and collateral offered

• Examine the tools and techniques to prove the creditworthiness of the borrower and their

capacity for repayment including:

o Credit history evaluation and forms of income and expense verification

o Credit ratios

o Discretionary income calculations

o Collateral evaluation

• Apply the overall findings of a credit investigation and financial analysis to weigh the

credit risk and make an appropriate recommendation

• Discuss, in a high-level overview, proper loan documentation and appropriate collateral

interest






Duration: 1 day



Counterparty Credit Risk

The global credit crisis has brought on an increased focus on counterparty credit risk (CCR),

emerging as one of the most important issues in today’s financial markets. Understanding

derivatives and their respective cash flows is the starting point of identifying credit exposure

faced by counterparties. This course is designed to empower participants to identify, quantify,

understand and mitigate counterparty credit risk arising from derivatives across the major asset

classes. An intuitive non-quantitative approach will be employed throughout so that participants

develop a feel for risk/reward tradeoffs without relying on complex mathematical formulas.

Course Objectives


• Explain how counterparty credit risk arises and why measuring it is difficult

• Describe how counterparty credit risk may be mitigated through netting and

collateralization

• Construct and interpret measures of counterparty risk for derivative securities

• Show how netting and collateral affect exposure

• Calculate and interpret Credit Value Adjustment (CVA) and other counterparty risk prices

• Discuss the problems posed by wrong-way risk

• Interpret and apply regulatory requirements related to counterparty risk, including the

Basel III CVA charge


• Fundamental of the Capital Markets/Securities Industry






Duration: 1 day



Credit Portfolio Risk Management

This course starts off with analyzing the main factors associated with analyzing credit risk:

Exposure at Default, Loss Given Default and Probability of Default. Once credit exposures are

aggregated into a portfolio, correlation plays an important role, and this course evaluates how

the benefits and risks of correlation are measured. There are different approaches to modeling

credit risk, such as structural versus reduced form among others. These are analyzed, and the

types of models used on the Street are discussed, including KMV/Merton, Creditmetrics and

Creditrisk+, among others. The new regulatory environment, including the analytical approaches

to calculating credit risk capital allocations required by Basel II/III and Dodd-Frank will be

discussed. Finally, practical approaches to monitoring and controlling credit risk are presented.

Course Objectives


• Identify the main components of default risk:

o Exposure at Default (EAD)

o Loss Given Default (LGD)

o Probability of Default (PD)

• Analyze and measure the impact of correlation on credit portfolio risk exposures

• Compare and contrast different approaches to credit risk modeling

• Discuss different models frequently used on the Street

• Discuss the current regulatory environment regarding capital adequacy for credit risk


• Statistics

• Credit Risk Analysis or equivalent knowledge





Duration: 1 day



Credit Risk Analysis — Banks

This intense two-day course that provides an in-depth bank analysis framework to thoroughly

assess banks. The objectives are to help learners gain essential skills for evaluating banks and

other financial institutions with relevant examples and interactive group discussion that enhances

analytic skills. Presented as a combination of lecture, group and individual exercises, and group

discussion, using multiple case studies and exercises throughout the course to highlight specific

learning.

Course Objectives


• Describe components of a financial statement

• Distinguish risks in different business lines and products offered by financial institutions and

recognize how they are reflected in financial statements

• Recognize impact of different accounting standards/policies

• Use CAMELS framework and key ratios to make preliminary assessment of performance

of financial health of a bank






Duration: 2 days



Credit Risk Analysis — Corporates

This two-day course will teach participants the basics of financial analysis for large corporates.

An introductory session will discuss the implications of the credit cycle and defaults associated with

the cycle. Participants will evaluate the various aspects of fundamental credit analysis and

incorporate quantitative and qualitative factors in developing a sound credit rationale.

Course Objectives


• Explain how the Porter Model and SWOT analysis can assist the analyst:

o Industry and competitive analysis

o Evaluation of management

• Discuss who uses credit analysis and why

• Define the types of credit risk including:

o Lending, issuer, country, daylight, settlement

• Explain the importance of understanding the credit cycle

• Examine the different types of funding requirements a company has

• Examine financial forecasting techniques:

o Balance sheet, income statement, cash flow statement

o Multi-year forecasts

o Sensitivity analysis

• Recognize the different debt structures in loans and bonds:

o Senior debt, subordinated debt

o Structural subordination

• Discuss the role of covenants and collateral







Duration: 2 days



Credit Risk Analysis — High Yield

This one-day course is designed to deepen participants’ knowledge of the high-yield market.

Participants will gain an understanding of the current trends in the high-yield bond market,

identify different types of issuers and investors and analyze different types of bond structures.

Participants will also gain a deeper appreciation of the importance of credit risk analysis for high

yield securities.

The course will be a combination of lecture, group and individual exercises and group discussion.

One case study will be used throughout the course to highlight specific learning points.

Course Objectives


• Describe the development and size of the high yield market

• Discuss current trends in issuance and trading of high yield bonds

• Identify different types of high yield bond issuers and investors

• Analyze different high yield bond structures

• Compare and contrast advantages and risks of high yield bonds

• Evaluate perspectives on credit analysis and credit risk management

• Define recovery rates







Duration: 1 day



Credit Risk Analysis — Municipals

This intense two-day course provides an in-depth framework to assess municipalities. The

objectives are to help learners gain essential skills for evaluating both small and large

municipalities with relevant examples and interactive group discussion that enhances analytic skills.

Presented as a combination of lecture and group exercises, and group discussion, the course will

use two real cities to compare and contrast.

Course Objectives


• Identify the mechanics of how state and local governments raise capital

• Describe the different types of issuers and investors in the municipal market

• Compare and contrasting the different types of short- and long-term municipal debt

• Discuss the ratings process and the implication of ratings on the municipal debt market

• Enumerate the economic and political factors that influence municipal issuers

• Identify major warning signals of deterioration in the municipal market

• Analyze current developments in the municipal market in light of heightened fiscal

problems

• Develop and defend a Municipal Credit Rationale







Duration: 2 days



Credit Risk Analysis — Wholesale Credit for Small to Medium Enterprises (SMEs)

This two-day course will teach participants the basics of financial analysis for SMEs. SMEs offer

special challenges for bankers and regulators as the typical SME is unrated and has much less

information available to analyze. An introductory session will discuss the implications of the credit

cycle and defaults associated with the cycle. Participants will evaluate the various aspects of

fundamental credit analysis and incorporate quantitative and qualitative factors in developing a

sound credit rationale.

Emphasis will be placed on the importance of the 5 Cs of credit to assess credit quality (character,

capital, capacity, collateral and cycle) as well as the importance of internal risk rating systems in

determining Expected Loss. Participants will review the various sources of data available and

compare and contrast the data against other industry competitors. Practical real-world examples

will be given on how to spot credit problems in order to determine credit deterioration and how

to take appropriate action. External and market oriented early warning signs will also be

discussed. The course will be a combination of lecture, group and individual exercises and group

discussion. Participants will explore cases studies throughout the course to apply what they have

learned and demonstrate their corporate analysis skills.

Course Objectives


• Analyze industry and financial trends

• Compare financial statements of different companies across different time periods

• Appreciate the qualitative and quantitative approached to analyzing financial statements

• Explain the 5 Cs of credit

• Explain the importance of Expected Loss

• Analyze internal risk rating systems

• Discuss the merits and pitfalls of ratio analysis

• Discuss the various information sources available

• Explain early warning signs of credit deterioration







Duration: 2 days



Credit Risk Modeling

This interactive course is designed for those who are interested in learning about the major credit

risk models used by Wall Street and The City. Knowledge of basic credit concepts is assumed. The

course will be supplemented with exercises and a case study to reinforce concepts in the

presentation.

Course Objectives


• Define credit risk and its components

• Differentiate between the different components of default risk

• Identify credit scoring and internal rating systems of financial institutions

• Define credit risk measurement and its purpose

• Compare and contrast between widely used measurement models:

o Credit Metrics

o CVaR

o Merton

o KMV


• None but knowledge of basic credit concepts is assumed





Duration: 1 day



Crowdfunding and Online Lending

This course examines new methods of lending and borrowing via the emerging crowdfunding and

online lending industries. Participants will learn how the business models work, the risks and

prospective returns in the industry, basics of emerging regulation in the field, and what forces are

shaping the future of the industry. These areas are critical as they represent a major new trend in

financial services and an opportunity for the industry to adapt to new ways of doing business.

Course Objectives


• Explain the terminology related to online lending and crowdfunding

• Describe the business model entailed in online lending and crowdfunding

• Explain risks associated with both online lending and crowdfunding

• Identify the differences among online lending, traditional lending, and crowdfunding

• Diagram the movement and transfer of financial assets in emerging areas like online

lending and crowdfunding


• Market Structure — A Micro Look





Duration: 1 day



Detecting Early Warning Signs

This program gives practical real-world examples of how to spot credit problems early in order

to take appropriate action. We begin by examining the current state of the credit markets with

emphasis on the importance of the credit cycle. Where can an analyst find the early warning

signs? Specifically, we will discuss clues in financial statements and analyze warning signs in the

income statement and balance sheet, review the Auditor’s report and proxy statements, discuss

covenant violations and analyze off-balance sheet activities. Discussion will also cover external

and market oriented early warning signs.

Course Objectives


• Reviewing a general framework for analyzing financial statements specific to banks

• Learning to appreciate the importance of solid risk management organization, policies &

practices

• Defining risk and differentiate between different risk impacting banks

• Discussing credit risk drivers

• Explaining the role of portfolio management

• Describing the implication of non-bank subsidiaries

• Explaining the implication of off-balance sheet liabilities

• Spotting financial statement aspects easiest to manipulate

• Identifying early warning signals of credit quality deterioration in banks







Duration: 1 day



Loan Portfolio Risk Management

This one-day course introduces participants to a strategic framework for portfolio credit risk

management focusing on the integration of priorities, culture, risk strategy, and risk controls. Risk

management consists of two components — 1) the types and magnitude of risks assumed

(Quantity of Risk), and 2) how the institution manages the risk (Quality of Risk Management). This

aspect is emphasized throughout the day.

Course Objectives


• Utilize a structured framework to model and manage the financial institution’s loan

portfolio

• Identify and understand the components of Strategic Loan Portfolio Management:

o Establishing priorities

o Selecting a culture

o Determining risk strategy

o Implementing Risk Controls

• Identify and understand the importance of the components of the Quantity of Risk:

o Transaction risk

o Intrinsic risk

o Concentration risk

• Assess the institution’s Quality of Risk Management that works in tandem with the Quantity

of Risk assumed

• Assess common lender mistakes in managing portfolio credit risk






Duration: 1 day



Collateralized Debt Obligations

Collateralized Debt Obligations (CDOs) may be subdivided into two categories, Collateralized

Bond Obligations (CBOs) and Collateralized Loan Obligations (CLOs). In each case the underlying

assets dictate the name of the security. Similar to other securitized products, the assets are

pooled, and a new security is issued which is backed by the underlying securities or loans. During

the crisis some CBOs were backed by sub-prime mortgages resulting in investor losses. The

Volcker Rule doesn’t allow banks to buy covered funds which in this case means CDOs backed by

bonds are not eligible to be purchased by banks. CLOs have a distinct advantage going forward.

CLOs are often grouped as CLO 1.0, CLO 2.0 and with the Volcker rule, some are calling newly

issued CLOs, post Volcker rule, CLO 3.0. The key to understanding valuation is to understand the

credit of the underlying assets, how the security is structured, and the default assumptions used.

Course Objectives


• Explain the basic asset securitization structure

• Describe the basic structures of CBOs and CLOs

• Discuss the features and characteristics of these products

• Explain the basics of pricing

• Identify the differences between funded vs. unfunded structures



• Fixed Income or equivalent knowledge





Duration: 1 day



Credit Default Swaps — Single Name and Index

Credit Default Swaps (CDS) are one of many factors seen as contributing to the credit crisis. The

European sovereign debt problem and the US budget crisis have thrown CDS to the forefront

again. This course covers the features and characteristics of single name CDS as well as basic

pricing and applications. The course concludes with a thorough investigation of credit indices and

their applications.

Course Objectives


• Describe the features and characteristics of Credit Default Swaps (CDS)

• Apply credit default swaps

• Explain the fundamentals of pricing and risk measures

• Identify the risks associated with credit default swaps

• Analyze credit indices







Duration: 1 day



Credit Derivatives

Historically, decisions on whether to advance money to a customer rested with the lender. The

advent of credit derivatives allows for capital markets participants to shift the credit risk

associated with loans and securities. Credit default swaps (CDS) dominate the credit derivative

landscape. Other types of credit derivatives discussed include total returns swaps and credit

indexes. Cash instruments covered include collateralized debt obligations (CDOs) along with

collateralized loan obligations (CLOs) and collateralized bond obligations (CBOs). Credit linked

notes (CLNs) are also discussed.

Course Objectives


• Describe the features and characteristics of credit derivatives

• Comprehend the risks associated with credit derivatives

• Know how credit derivatives are used in the financial markets

• Identify respective market participants

• Explain the fundamentals of pricing


• Fundamental of the Capital Markets/Securities Industry or equivalent knowledge





Duration: 1 day



Credit Derivatives — Advanced

With yields in the US and elsewhere apparently stuck at low levels, many investors are looking to

credit as a source of yield. But credit markets offer a vast and sometimes bewildering array of

cash and derivatives investments to investors and assessing risk and opportunity in credit markets

has been made more complex by market and regulatory responses to the credit crisis.

In this interactive course, we examine the trading opportunities offered by a range of credit

derivatives, including single-name credit default swaps (CDS), CDS index swaps and structured

credit instruments. Attending the course will help you understand how credit risk is priced in these

instruments and will improve your ability to construct, analyze and control trades that express

outright or relative value views in credit markets.

Course Objectives


• Identify factors that drive credit spreads and why credit spreads vary across the capital

structure for a given company

• Explain, interpret and compare standard credit spread measures that are used in the

market

• Identify and analyse risk factors in single-name CDS transactions

• Construct and analyze trading strategies for single-name CDS contracts

• Explain how CDS premiums are related to expected loss

• Describe how default correlation is traded in structured credit markets

• Calculate implied risk-neutral default probabilities from CDS premiums

• Describe the market for structured credit, including cash and synthetic collateralized debt

obligations (CDO), synthetic single-tranche CDOs, tranches based on CDS indexes, and

default baskets

• Identify risk factors in structured credit


• Credit Derivatives

• Credit Modeling or equivalent knowledge

Program Level: Advanced




Duration: 1 day



Credit Trading Strategies

Credit markets have a variety of trading opportunities depending on credit spreads, volatility in

credit markets, credit worthiness, and liquidity. Trading can range from outright positioning to

relative value within the same credit, between credits and between different credit instruments.

The program will focus on the practical realities of the market, rather than taking an excessively

mathematical or academic approach, and discuss how liquidity, carry and rolldown impact credit

trading.

Course Objectives


• Identify and compare credit risk across single name and index products: bonds, loans,

single name and index CDS including corporate, financial, and sovereign CDS

• Develop an intuitive understanding of the pricing of different instruments and the drivers

of their credit spreads

• Examine the various trading strategies that credit investors utilize, including single name

trading, relative value between bonds and CDS, curve trades and capital structure trades


• Credit Default Swaps or equivalent knowledge





Duration: 1 day



Derivatives

How do asset managers, dealers and corporations use derivatives to manage risk? This interactive

course evaluates the features and characteristics of various derivative products, including interest

rate swaps, futures and forwards and options. Various applications are explained along with

fundamental pricing and the risks inherent in using derivative products.

This interactive, hands-on course is designed for participants that have little to no knowledge of

derivatives.

Course Objectives


• Explain the features and characteristics of plain vanilla derivatives:

o Interest rate swaps

o Futures and forwards

o Options

• Demonstrate fundamental pricing of the respective products

• Identify the risks

• Apply the products







Duration: 1 day



Equity Derivatives

This course is designed to provide participants with a foundational understanding of the various

equity derivative products. The features and characteristics, risks, and basic pricing of equity

futures, swaps, options, equity-linked notes, warrants and convertibles will be discussed. Basic

trading and hedging strategies for portfolio management will be covered.

Course Objectives


• Explain the features and characteristics of equity futures, forwards, swaps, options,

convertibles and warrants

• Identify the risks associated with these various equity derivatives

• Discuss how these products are priced in the market

• Recognize various applications used by traders and portfolio managers for speculation

and hedging



• Equity Markets or equivalent knowledge





Duration: 1 day



Fixed Income Derivatives

This interactive one-day course describes how various asset managers apply derivatives. Based

on their objectives, portfolio managers will use derivatives to hedge, speculate, increase return, or

arbitrage. Although the main focus will be on mutual funds, other asset managers such as

insurance companies, pension funds and hedge funds will also be evaluated. Annual reports and

prospectuses will be used to determine portfolio objectives and derivative applications in a case

study format.

Course Objectives


• Analyze futures, swaps and cash to create passive index strategies

• Demonstrate how to alter asset allocation using a variety of derivatives

• Analyze credit default swaps and their application in fixed income portfolio management

• Discuss foreign exchange forwards and their application in foreign funds

• Analyze hedging mortgage backed securities using interest rate swaps and swaptions

• Illustrate how equity dividend swaps are used

• Evaluate portable alpha


• Derivatives

• Portfolio Management

• Fundamentals of the Capital Markets/Securities Industry or their equivalents





Duration: 1 day



Futures and Forwards

This course is designed to introduce the participant to the futures and forwards markets.

Specifically, this course introduces the features, characteristics, and differences between the two

markets. An overview of the basic applications of these products is explored. Margin

requirements and the settlement process for the futures markets are investigated.

Course Objectives


• Describe the features and characteristics of futures and forwards

• Define a futures contract

• Demonstrate how to price a futures contract

• Apply futures contracts for speculating and hedging

• Identify the risks associated with futures

• Compare and contrast futures and forwards






Duration: 1 day

http://www.gfmi.com/training.0500.php



Options

This interactive course focuses on the fundamentals of options. Examples are used from all of the

major asset classes. The course guides the participant through the language of options and builds

a foundation such that the beginner gets a handle on the basics of pricing and applications. The

approach during the valuation session is intuitive and non-mathematical. This will help the

participant understand how the price of the option changes given a change in the various pricing

components. Option strategies are analyzed at the initiation of the trade as well as after the

trade. Portfolio management strategies using options are evaluated and their underlying

rationale discussed.

Course Objectives


• Describe the features and characteristics of options

• Apply basic option strategies in trading and portfolio management

• Identify the risks associated with options

• Explain the basics of pricing and describe the variables required for option pricing models






Duration: 1 day



Option Adjusted Spreads

This course examines the risk and return measurements associated with callable structures, such as

mortgage backed securities. Whereas non-callable corporate bonds are priced as a spread to

US Treasuries, bonds with embedded call options trade on an option adjusted spread (OAS) to

Treasuries/swaps. This course will define OAS and introduce effective duration as the

appropriate risk measure for bonds with embedded options. Bloomberg screens are used to

understand which variables affect OAS, including interest rate changes, shifts in the yield curve,

and volatility. Effective convexity is examined.

Course Objectives


• Discuss and contrast different yield curves

• Explain different risk and return measures, including:

o Nominal spreads

o Z-spreads

o Option adjusted spreads

o Effective duration and convexity

• Identify the variables that affect OAS


• Fixed Income

• Bond Math or equivalent knowledge





Duration: 1 day



Options — Beyond the Basics

This interactive course evaluates option pricing with a heavy emphasis on volatility. The main

pricing models will be analyzed with this emphasis in mind. Utilizing this new-found pricing

knowledge, various trading strategies will be examined. Trades are evaluated at initiation and

after the trade is made. The Greeks are then introduced and applied using single options.

Attention is then turned to running an options book and interpreting the Greeks in an option

portfolio.

Course Objectives


• Evaluate the option price with particular focus on volatility

• Analyze advanced trading strategies

• Define and apply the Greeks

• Evaluate running an options book


• Options or equivalent knowledge


Advance Preparation: Working Knowledge of Excel



Duration: 1 day



Running an Interest Rate Swap Book

A swaps book is similar to a house in that it requires a foundation to ultimately manage the risks

associated with the identification, measurement and management of the swaps book. The

foundation for a swaps book includes the features and characteristics of the instruments,

understanding yield curves for valuation and pricing, and properly grouping the cash flows to

identify the amount of risk along the curve and in the portfolio. Risk limits and the relevant reports

are also discussed.

Course Objectives


• Identify the features, characteristics, and differences between Eurodollar futures, forward

rate agreements (FRAs) and interest rate swaps

• Describe how forward cash flows are grouped and how the corresponding risk

measurements, along the yield curve and portfolio, are used to measure and manage risk

• Analyze how different yield curve interpolation methodologies and assumptions affect

valuation

• Identify market and counterparty credit limits required for this business

• Discuss risk management reports and limits

• Analyze the swaps book in the context of a portfolio


• Swaps

• Futures and Forwards






Duration: 1 day



Swaps

This course is designed to introduce the participant to the swaps markets, including interest rate

swaps, currency swaps and equity swaps. The course begins by outlining the key features and

characteristics in generic swap contracts. An overview of the risks associated with swaps, including

credit risk and market risk, are explored. This is followed by an explanation of how interest

rates swaps are used in asset liability management, specifically, transforming a fixed

rate liability or asset into a floating rate liability or asset. The structural differences between

currency and foreign exchange swaps are covered and how currency swaps are used to manage

currency risk is explored. Equity index swaps are outlined and how portfolio managers use them is

examined. The course finishes with a review of other types of swaps, including asset swaps,

forward swaps, constant maturity swaps, amortizing and accreting swaps, and roller coaster

swaps. Key elements of the International Swap and Derivatives Association (ISDA) documentation

will also be discussed.

Course Objectives


• Examine the features and characteristics, applications, pricing and risks associated with

swaps, including:

o Interest rate swaps

o Asset swaps

o Currency swaps

o Other types of swaps







Duration: 1 day







Swaps — Intermediate

Course Objectives


• Describe the yield curve including the different types and sources

• Explain spot and forward curves and their application in valuation and pricing interest

rate swaps

• Differentiate between LIBOR and OIS discounting

• Discuss the role of Eurodollar futures in pricing and valuation of interest rate swaps

• Analyze managing the market risks associated with running an interest rate swaps book

• Explain the pricing and application of interest rate options



• Swaps

• Futures and Forwards






Duration: 1 day



Economic Forecasting

This course will provide an introduction to economic forecasting using modern techniques and

methods. With the increasing globalization of financial markets, economic forecasting has taken

on added importance, not just for assessing the US economy, but also for examining economies

abroad. The focus on this course is on quantitative modeling skills for economic variables ranging

from high level metrics like GDP to industry specific metrics like bad loans.

Course Objectives


• Recognize the importance and role of economic forecasting in modern finance

• Identify the key factors to consider when evaluating an economic model

• Select determinants of economic outcomes from a list of potential variables

• Build models to forecast economic variables of interest

• Critically evaluate existing economic models used in stress tests and other macroeconomic

scenario analysis

• Identify key risk issues in any given macroeconomic model






Duration: 1 day



Economic Issues for Equity Investors

Why are bottom up investors so frustrated? Macro trends and correlation among asset classes

have a seemingly iron clad grip on equity values. As investors reach for return, what role do

emerging markets play? Are BRICs still the main focus? How is the uncertainty of the value of the

US Dollar and potential trade wars influencing investors’ perception of future values? Will the

current uncertainty in regulatory reform impact stock prices? These and other economic issues are

all examined in this one-day interactive course.

Course Objectives


• Define risk

• Identify factors influencing equity markets:

o Macro — Country, economic, and technical

o Financial

• Identify financial risks influencing the equity market

• Define economics and how it influences global equity investors:

o Stock markets and derivatives

• Identify key economic data and indices and their importance to equity market participants

• Discuss current economic drivers influencing global equity markets






Duration: 1 day



Macroeconomics, Central Banks, and Their Impact on Asset Values

Traditional factors impacting the values of financial assets include various economic variables as

well as monetary and fiscal policy. This course examines both the traditional forces and ‘macro’

trends currently in the marketplace. The Federal Reserve’s extraordinary steps during the credit

crisis and the state of quantitative easing are explored. How will the record US budget deficits

influence global asset valuation? Why has the 30-year risk free interest rate been trading at

higher levels than the corresponding interest rate swap yield? These and other current issues will

be examined.

Course Objectives


• Define macroeconomics and fiscal policy and how they influence global capital markets

• Identify how monetary and fiscal policy influence inflation and interest rates

• Establish why inflation and interest rate levels are key to macroeconomics and growth

• Determine why economic developments are important to global financial markets

• Identify key economic indicators that impact inflation and asset price levels

• Discuss and evaluate the current economic environment with regard to market prices






Duration: 1 day



Macroeconomics, the Federal Reserve, and Fiscal Policy

Traditional factors impacting the values of financial assets include various economic variables as

well as monetary and fiscal policy. This course examines both the traditional forces and ‘macro’

trends currently in the marketplace. The Federal Reserve’s extraordinary steps during the credit

crisis and the state of quantitative easing are explored. Why is gold reaching new highs? How

will the record US budget deficits influence global asset valuation? Why is the 30-year risk free

interest rate trading at higher levels than the corresponding interest rate swap yield? These and

other current issues will be examined.

Course Objectives


• Define macroeconomics and fiscal policy and how they influence global capital markets

• Identify how monetary and fiscal policy influence inflation and interest rates

• Establish why inflation and interest rate levels are key to macroeconomics and growth

• Determine why economic developments are important to global financial markets

• Identify economic indicators that impact inflation and asset price levels

• Compare and contrast the impact of inflation and interest rates on capital market

products

• Discuss the main functions of the Federal Reserve

• Describe the structure of the Federal Reserve System

• Explain the role of the Federal Reserve and its impact on interest rates and the economy

• Examine the Federal Open Market Operations Committee and their decision-making

process

• Identify the tools at the Federal Reserve’s disposal to manage monetary policy

• Examine the various responses by the Fed to the credit crisis






Duration: 1 day



Equity Markets

This course covers the fundamentals of the equity markets including the purpose and role in

companies’ financing strategies, and the features, characteristics and risks of the various products

traded. An understanding of these products, from both the investor’s and issuer’s viewpoint will be

discussed.

Course Objectives


• Define equity and its role in companies’ financing strategies

• Discuss the size of the US and global equity markets and compare them to the US and

global bond markets

• Enumerate and describe the issuers in capital markets and their needs

• Identify investors in capital markets and their needs

• Describe characteristics of equity products:

o Stocks

o Preferred shares

o Warrants

o Hybrid capital

o Equity indices and products based on them:

▪ Equity linked notes and funds

• Compare and contrast advantages and risks of equity products

• Identify some key equity trading strategies:

o Differentiate between role of hedgers and speculators

• Debate controversy over short selling

• Evaluate recent regulatory influence and developments in equity markets






Duration: 1 day



Equity Modeling

This course is designed for finance professionals who have the knowledge of the valuation

process. The course is focused on building financial models of equity valuation in excel, and then

stress testing those valuation models under alternative future scenarios. A class case will be used,

and students will be expected to do some preparation before the class. Students are also

expected to have and be able to use a financial calculator or have knowledge of Excel.

Course Objectives


• Review mechanics of business valuation

• Discuss primary and secondary sources necessary to create a model

• Analyze stock reports to see how analysts value companies

• Create a model to value a company


• Equity Valuation


Advance Preparation: Financials of chosen company to familiarize with the numbers in advance

of class



Duration: 1 day



Equity Valuation

This course provides the fundamentals of Equity Valuation. Topics include common valuation

methodologies, determining the performing the following calculations for equities: Weighted

Average Cost of Capital (WACC), Discounted Cash Flow (DCF) and DCF valuation and

Comparables Based Valuation Techniques (Comps). Exercises and stock reports will be used in this

interactive full day course.

Course Objectives


• Define and describe mechanics of business valuation

• Calculate the cost of debt and WACC

• Enumerate and describe different ratios used in relative valuation

• Define discounted cash flow and valuation

• Describe shareholder value creation

• Create a framework for choosing the appropriate valuation techniques

• Compare and contrast advantages and disadvantages of different valuation techniques







Duration: 1 day



Financial Modeling

This one-day course is an introduction to financial modeling methodologies such as discounted cash

flow models frequently utilized by financial organizations. As part of the course, participants

build cash flow projection models and then develop NPV, IRR, and DCF analysis around them. The

core elements of a cost of capital model will be explored and decomposed into debt and equity

components. The focus is on estimating WACC based on estimates of equity cost of capital and

debt cost of capital. Common approaches to assessing both market and credit risk will also be

evaluated.

Course Objectives


• Analyze the role of debt and equity in a firm’s capital structure

• Build DCF, IRR, and NPV models

• Determine hurdle rates and internal rates of return for projects and investments

• Calculate the weighted average cost of capital of a firm

• Assess the components of market and credit risk models


• Equity Markets






Duration: 1 day



Market Structure and Risks

This course covers basics of evaluating market structure and identifying areas of concern and red

flags. The course defines, describes, and demonstrates tests to evaluate bid-ask spreads in stocks

and ETFs, volatility and event risk around firm events, market volatility, and the effects of

regulatory and industry tools like circuit breakers and up/down limits.

Course Objectives


• Discuss the various metrics of equity market structure

• Assess the market performance and individual stock/ETF performance for liquidity,

market-depth, etc.

• Explain how to test for unusual behavior in a security before and after an event

• Evaluate unusual trading patterns such as market volatility or abnormal stock/options

trades using data




Computer and Financial Calculators: Computer


Duration: 1 day



Financial Statement Analysis

This interactive course will introduce participants to key financial statement analysis terminology

and uses of financial ratios by different stakeholders. The course will be comprised of a lecture,

case studies, and an exercise analyzing credit and equity reports.

Course Objectives


• Explain who uses financial statements and why

• Compare financial statements of different companies and the same company across

different time periods

• Appreciate the qualitative and quantitative approaches to analyzing financial statements

• Discuss the role of the auditor and the various opinions available

• Describe the purpose and framework for analyzing financial statements:

o Balance Sheet, Income Statement, Cash Flow Statement

• Recognize the importance and pitfalls of ratio analysis

• Explain the importance of the Management Discussion & Analysis (MD&A) and the

footnotes



Advance Preparation: Equity and credit reports on select companies



Duration: 2 days



Financial Statement Analysis — A Critical View

This interactive course will review the particulars of financial statement analysis and the ways in

which some companies may take advantage of US GAAP accounting standards to potentially

mislead stakeholders with their publicly reported results. Since different ratios are important for

each industry, the trainer endeavors to analyze several different companies in various industries

to illustrate learning points. The course will be comprised of a lecture, case studies, and exercises

analyzing credit and equity reports.

Course Objectives


• Appreciate the qualitative and quantitative approaches to analyzing financial statements

• Discuss the role of the auditor and the various opinions available

• Explain the role that management judgement plays in the Balance Sheet, Income

Statement, and Cash Flow Statement

• Recognize the importance and pitfalls of ratio analysis

• Explain the importance of the Management Discussion & Analysis (MD&A) and the

footnotes

• Explain how companies can manipulate revenues to boost earnings

• Recognize how and why management teams may adjust expenses to control EPS

• Identify the misapplication of cash flows in the three sections of the statement of cash flows

• Review the balance sheet and identify line items which may be (under)overstated

• Compare financial statements of different companies and the same company across

different time periods


• Financial Statement Analysis





Duration: 1 day



Bond Math

This interactive course introduces the participant to the fundamental tenets of bond valuation and

risk measurement. Through a variety of interactive exercises, the course participant will calculate

present and future value. This leads directly into pricing a bond. Different yield measures are

examined, and the participant will construct a basic yield curve. Using the price of a bond as the

foundation, modified duration is calculated, and its applications are explained. Convexity is

introduced (but not calculated!). Different day count conventions are explored. The course

concludes with examining and calculating spot and forward curves and discussing their

applications.

Course Objectives


• Describe and calculate present and future value

• Price a bond

• Discuss yield conventions

• Explain industry day count and interest conventions

• Calculate and apply duration and dollar value of a basis point (DV01)

• Explain and apply convexity

• Construct a yield curve

• Calculate and explain applications of spot and forward curves







Duration: 1 day



Fixed Income

This one-day interactive course introduces the participant to the expansive world of Fixed Income.

The course evaluates the features of a government bond and uses it as a foundation to describe

the dizzying array of other bonds ranging from plain vanilla corporates to asset backed

securities. A variety of applications will be analyzed including various issuers to asset managers

to arbitrageurs. Particular focus will be on mutual funds and how they create alpha. Risks,

including credit and market, are identified and discussed. Risk measurements such as duration and

convexity are described and how they are used to help manage and control market risk will be

discussed.

Course Objectives


• Explain the features and characteristics of fixed income securities

• Describe how the fixed income markets operate

• Price a bond

• Identify the risks and risk measurements associated with these instruments

• Identify fixed income market participants

• Analyze applications of fixed income instruments

• Evaluate economic variables that influence the value of the securities






Duration: 1 day



Leveraged Loan Fundamentals

This course will provide participants with an introduction to the key aspects of Leveraged Loans.

The course examines key trading issues in the leveraged loan market, discusses the differences in

trading between par/near-par and distressed loans, and covers the fundamental structure of the

leveraged loans market versus the bonds market. The course also examines the current market

conditions in the leveraged loans market, changes occurring in the market, and the outlook for the

market going forward.

Course Objectives


• Describe the purpose and uses of Leveraged Loans in the business world today

• Identify the terminology used in Leveraged Loans

• Discuss the Leveraged Loan market today and historically

• Explain the benefits of leverage loan investments

• Identify key risk issues involved in Leveraged Loans






Duration: 1 day



Money Markets

This course introduces the fundamentals of the money markets. Topics include the features and

characteristics, issuers and buyers, and the different types of money market instruments. Pricing of

the different instruments is explored using examples of a variety of products. A discussion of

LIBOR rates and curves and their determinants are examined in the context of these instruments.

Course Objectives


• Identify the features and characteristics of money market securities

• Identify the main money market instruments: T-bills, interbank cash markets, repos,

brokered CDs, commercial paper and bankers’ acceptances

• Calculate accrued interest using appropriate day count conventions

• Convert between money market, discount rate and effective yield

• Interpret market quotations between the varying instruments

• Identify the different risks associated with money market debt






Duration: 1 day



Yield Curve Analysis

This course examines yield curves: their shapes, uses and derivation. The course can be designed

for the cash and/or derivative markets. Construction of curves begins with the benchmark

government curve followed by the derivation of the spot and forward curve. The sources of the

data (e.g. the government or the swap curve) and when to use the respective data are discussed.

More sophisticated techniques for interpolation are explored. This is followed by a discussion on

credit and the spreads between corporate bonds — the government benchmarks. What are the

correct spreads to use when choosing fixed income instruments? Is it the nominal spread, the z-

spread or option adjusted spread (OAS)? These spreads and more are analyzed in this course.

Course Objectives


• Describe the construction and analytical applications of yield curves

• Explain theories regarding the level and shape of yield curves

• Develop ability to apply yield curves in valuation/analysis of debt securities including a

variety of spreads

• Demonstrate uses of yield curves in fixed income trading and portfolio management


• Fixed Income






Duration: 1 day




Foreign Exchange — Spot and Forward FX and Their Applications

This hands-on course examines the fundamentals of foreign exchange. The features and

characteristics, applications, basics of pricing and risks are examined. Applications are explored

for the main products including spot, forwards and options. A wide variety of applications are

discussed from different end users’ vantage points including banks, assets managers, institutional

investors and speculators.

Course Objectives


• Describe the features and characteristics of spot and forward FX

• Explain the role of a market maker and end user

• Demonstrate how to price forward FX

• Apply forward FX from different client perspectives

• Discuss impact on FX from the credit crisis

• Explain and apply FX Options






Duration: 1 day



Foreign Exchange Options

This course starts off reviewing the fundamentals of options including trading conventions and

quickly moves into valuing FX options. Managing the risks including delta hedging and the Greeks

will be explored. A variety of applications such as hedging, zero cost collars and structured

products are evaluated.

Course Objectives


• Explain the basics of FX Options

• Analyze option valuation including volatility, smiles and skews

• Apply FX options including option trading strategies and structured products

• Identify and manage the risks associated with FX Options; Delta, gamma, theta and vega


• Foreign Exchange — Spot and Forward FX and Their Applications or equivalent

knowledge

• Options





Duration: 1 day



Annuities — Return of a Pre-Financial Crisis Product

This course provides an in-depth look at annuities, a product that was commonly sold when interest

rates were higher in the years leading up to the financial crisis of 2008, but which dropped off

significantly as interest rates fell. With interest rates now rising again, annuities sales are coming

back quickly. Firms from Prudential to Voya are focusing on selling these complex and potentially

fee-laden products. This course examines what annuities are, how they are sold, the risks and red

flags to watch out for, and the differences in fees and disclosures between different types of

annuities.

Course Objectives


• Describe what annuities are and the differences between various types of annuities

• Identify the risks inherent in annuities and how they are presented to investors

• Explain how annuities are sold and what the market outlook for the products are

• Discuss red flags around annuities products and the disclosures involved with these

products





Recommended CPE Credits: 8 for VILT / 7 for ILT

Duration: 1 day



Asset Liability Management (ALM) and Risk Management in Insurance Companies

Insurance companies employ a variety of strategies to manage risks. For example, some strategies used to manage net interest margins may include strategic asset allocation and the use of derivatives within an overall internal risk management framework. Depending on the goals of the program, the interest rate sensitivities of the assets may be matched with the interest rate sensitivities of the liabilities. Or they may mismatch these sensitivities, known as a duration mismatch or gap, in an attempt to earn a higher net interest margin. Further, customer behavior and the market environment may change impacting sensitivities. Companies’ business mix, e.g., variable life, fixed annuities or stable value funds, will also play a role in managing net interest margin. Liquidity is managed by analyzing cash flows to ensure there is cash on hand to meet ongoing obligations. This can be achieved by setting internal benchmarks and monitoring these flows on an ongoing basis. Capital also plays a vital role in ALM and risk-based capital is addressed. Asset liability management is often interwoven with risk management. Risk management may include additional metrics, such as value at risk or stress scenario or may simply be part of the ALM process. Often risk management is separate from ALM. Finally, some of the largest insurance companies fall within the Dodd-Frank Act adding another layer of regulatory requirements.

Course Objectives


• Define and explain the role of asset and liability management within the context of an insurance company

• Recognize that risk management is a process and a culture

• Analyze risk measurements

• Explain and analyze ALM strategies to manage risk

• Describe duration and how it is used to manage interest rate risk

• Analyze how derivatives are used to hedge

• Discuss liquidity and how it is managed

• Explain risk-based capital



• Derivatives or equivalent knowledge Program Level: Intermediate Advance Preparation: None Computers and Financial Calculators: Calculators Recommended CPE Credits: 7 Duration: 1 day



Financial Statement Analysis — Insurance Companies — Overview

The 1-day Financial Statement Analysis Program provides participants with a broad

understanding of the financial information that is used to assess the financial strength and

performance of insurance companies. The course focuses on the value of balancing qualitative

and quantitative analysis, the benefits and limitations of ratio analysis and the need to adjust the

analytic approach to reflect the key drivers of performance for the company. In addition, the

course addresses the approach used by rating agencies and insurance regulators to assess the

credit risk of insurance companies.

The program is built around a series of group exercises and an illustration case, which are

designed to demonstrate the application of key learning points. The illustration case will be a life

insurance company.

Course Objectives


• Identify the information contained in the financial statements of an insurance company and

why the focus of the financial analysis would differ from other sector/industries

• Discuss the key differences in the presentation of an insurance company’s financial

statements under US GAAP versus statutory accounting

• Identify key ratios used in financial statement analysis and the importance of balancing

quantitative and qualitative analysis

• Discuss the benefits and limitations of key financial ratios

• Identify how equity analysts, credit analysts, and rating agencies analyze financial

statements and ratios for insurance companies

• Evaluate some of the key information contained in the footnotes to the annual report and

other supplemental information




Advance Preparation: Equity and credit reports on select companies



Duration: 1 day



Fundamentals of Insurance

Course Objectives


• Discuss industry definitions & structure including:

o Definition of risk & insurance

o The role of insurance companies

o Differences between Property & Casualty and Life companies

o Overview of the global insurance marketplace

o Insurance vs. Reinsurance

o Two accounting standards

o Types of ownership structures (stock, mutual, mutual holding companies)

• Recognize the primary factors determining insurance financial strength:

o Profitability (the ability to earn income)

o Liquidity (the ability to convert assets into cash to pay claims and/or fund

policyholder liabilities)

o Leverage (the ability to produce, grow or expand business through borrowing)

• Explain industry regulation including:

o State oversight for licensing, monitoring, consumer protection

o Coordination by the National Association of Insurance Commissioners (NAIC)

o Securities and Exchange Commission (publicly registered “stock” insurers and

holding companies)

o Federal legislation:

▪ Financial Services Modernization Act of 1999

▪ Dodd-Frank Wall Street Reform & Consumer Protection Act of 2010, which

created the Federal Insurance Services Office






Duration: 2 days



Insurance Company Business and Financial Analysis — Level I

This 2-day Business and Financial Analysis Program provides participants with a broad

understanding of the dynamics of the insurance industry, the business models of insurance

companies and the financial information that is used to assess the financial strength and

performance of insurance companies. The course focuses on understanding the fundamentals of

the insurance business, the products offered and the business and financial drivers, as well as the

overall financial reporting both on a statutory and GAAP accounting basis. The approach links the

industry and product information to the financial reporting aspects of the insurance industry. In

addition, the course addresses the approach used by rating agencies and insurance regulators to

assess the risk in insurance companies.

This program is built around a series of group exercises and illustration cases, which are designed

to demonstrate the application of key learning points. The illustration cases will be a life insurance

company and a P&C insurance company so that learners can distinguish and identify the different

business drivers and financial reporting accounts associated with each.

Course Objectives


• Identify the risks inherent in the different business models (life, P&C and reinsurance) and

the products offered by each

• Describe the operations and structure of an insurance company and describe the business

flow in key product lines

• Explain the key regulatory concepts used in the insurance industry

• Recognize how the business model and the product mix is reflected in the financial

statements

• Determine the key differences in the presentation of an insurance company’s financial

statements under US GAAP versus statutory accounting

• Calculate and apply the key ratios used in financial statement analysis to assess an

insurance company’s financial strength, performance and risk profile

• Discuss the benefits and limitations of key financial ratios




Computers and Financial Calculators: Calculators only


Duration: 2 days



Insurance Company Business and Financial Analysis — Level II

This 2-day Business and Financial Analysis Program provides participants with a deeper understanding of the dynamics of the insurance industry, the business models of insurance companies, and the financial information used to assess financial strength and performance. This 2-day course focuses on understanding the impact of regulation on the insurance products offered and the implications for our various business functions. It includes a discussion regarding the causes of insurance company insolvency and the relationship to regulations.

An in-depth financial analysis of an insurance company will also be covered during the course. The specific focus here will be on the income statement in terms of revenue generation, allowable and distributable earnings, and reserving policies and approaches. The balance sheet will be analyzed with a focus on investment risk and the duration matching of the liability structure.

This program is built around the introductory (“Level I”) program and uses a series of group exercises and in-depth case studies, designed to demonstrate the application of key learning points. The cases will include two major insurance companies so that learners can distinguish and identify the key business differences and their implications for financial performance.

Course Objectives


• Identify the risks which might lead to insurance company insolvency and the regulations designed to protect against this

• Describe the impact of regulations on the products and operations of an insurance company

• Explain the key dynamics that drive the income statement and cash flow of the company

• Determine how the business model and the product mix is reflected in the balance sheet of an insurance company

• Apply the key ratios used in financial statement analysis to assess an insurance company’s financial strength, performance and risk profile

• Recognize the limitations of benchmarking of the case study insurance firm’s performance against key competitors


• Introduction to Insurance Company Business and Financial Analysis — Level I Program Level: Intermediate to Advanced Advance Preparation: None Computers and Financial Calculators: Calculators; laptops for case studies Recommended CPE Credits: 14 Duration: 2 days



Insurance Compliance

In today’s complex product market, Insurance Company personnel must be equipped to

understand, observe and implement both legal and regulatory issues administered by state,

federal as well as international self-regulatory and government agencies. The Insurance

Compliance Course is the first step in addressing how to identify, recognize and apply applicable

policy and procedures to your business line.

Course Objectives


• Identify the features and characteristics regarding industry products

• Recognize the interaction between the product provider and regulatory agencies

• Develop an understanding regarding the impact to business units (operations) in light of

Compliance requirements






Duration: 1 day



Municipal Securities

This one-day course is designed to deepen participants’ knowledge of the municipal market and

municipal securities. Participants will gain an understanding of how state and local governments

raise capital, different types of short- and long-term municipal debt, the ratings process and the

implication of ratings on municipal securities.

The course will be a combination of lecture, group and individual exercises, and group discussion.

One case study will be used throughout the course to highlight specific learning points.

Course Objectives


• Identify the mechanics of how state and local governments raise capital

• Describe the different types of issuers and investors in the municipal market

• Compare and contrast the different types of short- and long-term municipal debt

• Discuss the ratings process and the implication of ratings on the municipal debt market







Duration: 1 day



Municipal Securities — Advanced

This course offers participants additional experience with the municipal bond industry including

exposure to trading strategies, municipal bond credit evaluations, municipal bond default rates

and risks, and municipal bond derivatives such as tender option bonds. The focus of the course is

on understanding the municipal markets and how investors use municipal bonds in strategies

today. Regulatory considerations such as rules promulgated by the MSRB are also discussed. A

past course dealing with basic bond terminology is required.

Course Objectives


• Describe various municipal bond investment strategies

• Explain the characteristics of municipal bond investors and their investment profile

• Describe the role that municipal bonds play in a portfolio setting

• Discuss advanced municipal bond investment strategies such as Tender Option Bond

programs

• Explain the characteristics of municipal bond markets and regulations such as the oversight

by the Municipal Securities Ruling Board (MSRB)


• Municipal Securities or equivalent knowledge





Duration: 1 day



Exchange Traded Funds

Exchange Traded Funds (ETFs) come in all shapes and sizes. This course explores the different

asset classes found in ETFs as well as the differences between ETFs and other investment vehicles,

such as Mutual Funds. The motivations behind asset managers to buy or sell the underlying asset

will be explored. In addition, the impact of ETFs on valuations and volatility in the market will be

discussed. Specific prospectuses will be evaluated.

Course Objectives


• Compare and contrast ETFs and other investment vehicles

• Discuss why ETFs have become so popular

• Identify applications including asset allocation

• Discuss motivations for executing transactions within these investment vehicles

• Explain the impact ETFs have had on asset classes, sectors and individual securities







Duration: 1 day



Exchange Traded Funds — Advanced

This course examines advanced concepts in ETFs. ETFs as an asset class have grown significantly in

the last decade. The proliferation in the number of ETFs has led to many complex issues arising in

the space. The first two sections of the class examine different types of ETFs such as leveraged

ETFs, fixed income ETFs, international ETFs, industry ETFs, and factor-model ETFs. The selection

process for assets included in these ETFs is discussed, and the risks behind these ETFs are

examined. In the second half of the class, we examine ETFs and their use by industry. It addresses

issues including how external asset management clients use ETFs and what are they looking for

when considering ETFs, the arbitrage opportunities in the ETF space, how hedge funds use ETFs,

the process and selection criteria issues hedge funds have around ETFs, hedge fund replication in

ETF products from firms like Goldman Sachs, and how active management products like the new

NextShares ETFs are changing the market.

Course Objectives


• Describe various types of ETFs

• Recognize the process of investing in ETFs and hedging the risks of those investments

• Explain asset management process and the selection criteria for ETFs

• Assess the risks and opportunities for arbitrage in the ETF space

• Explain emerging ETF asset classes like actively managed ETFs and hedge-fund replication

ETFs


• Exchange Traded Funds class or equivalent knowledge





Duration: 1 day



Mutual Funds

Mutual Funds (MF) are one of the most widely held investments globally. There are many different

asset categories that in which MFs can invest in. Each fund will explain their investment strategy in

a prospectus. The portfolio management process is reviewed and different active strategies in

beating a benchmark are analyzed. The concepts of asset allocation and choosing securities are

reviewed. Various risk measures, such as the Sharpe ratio, as well as information ratios, will be

evaluated. In addition, MFs have to follow strict regulatory guidelines. Specific fact sheets and

results from different funds will be explored.

Course Objectives


• Compare and contrast MF and other investment vehicles such as ETFs

• Explain prospectuses, expense ratios and other key aspects of a mutual fund

• Differentiate between active and passive management

• Identify strategies and applications utilized by active managers

• Analyze and discuss risk measurements

• Discuss the importance of outside services such as Morningstar Ratings







Duration: 1 day



Beyond the Trade Lifecycle — Operations Uncovered

This one-day program provides an overview of critical areas in Operations that support stock

record, margin, securities lending and corporate actions. The assumption is that the participant has

already taken the Lifecycle of a Trade course, which covers confirmation, clearance and

settlement. Process flows that support these functional areas are a major focus of the program,

but attention is also given to potential gaps and exposures that present operational risk. For

example, the mishandling of corporate action events costs the industry millions of dollars each

year in the form of direct losses because of operational errors, as well as sub-optimal trading

decisions. This can result in a negative financial impact for investors and the service providers,

whether brokers or custodians. Securities lending transactions and repo activity are discussed, not

only in light of revenue generated, but also, identifying what can go wrong. Reg T margin is

another important component of operations and this program provides an overview of how this

activity is managed by the Broker/Dealer. Interdependencies in operations among entities such as

investment managers, custodians, clearing houses and depositories are evaluated in light of recent

trends in industry automation. Besides providing an overview of how these businesses are normally

supported, the program content promotes discussion of real-life “war stories” that provide

examples of how these events, if not properly managed and reported, can have a negative

impact on broker/dealers, investors, custodians, and the financial markets.

Course Objectives


• Identify mission-critical functions within the Operations area that support Stock Record,

Securities Lending, Margin Lending, and Corporate Actions

• Compare the roles of broker/dealers, clearing firms, prime brokers and custodians and

their interdependencies in supporting these areas

• Describe the events and processes that occur because of both mandatory and voluntary

Corporate Actions, such as mergers and acquisitions and tender offers

• Evaluate the importance of how a stock record is used to demonstrate possession and

control of both firm and client assets

• Distinguish the areas of operational support needed for Reg T Margin processing

• Analyze the process flows related to both stock loan and repo and the associated risks


• Lifecycle of a Trade or equivalent knowledge





Duration: 1 day



Collateral Management

One of the major aftermaths of the credit crisis is a heightened focus on counterparty credit risk.

Collateral helps mitigate this risk. This course focuses on the management of that collateral. Many

of the trading desks give rise to collateral management. Work flows from tracking a trade,

margin, non-delivery and escalation processes are all examined. Terminology and documentation

will be addressed. Risks surrounding collateral management will be identified along with new

capital adequacy rules.

Course Objectives


• Describe and explain the workflow required in collateral management

• Discuss applications that give rise to collateral management

• Explain counterparty credit risk (CCR)

• Discuss documentation required

• Highlight issues arising during the collateral management process


• Lifecycle of a Derivatives Trade

• Lifecycle and Clearing of an OTC Trade and basic credit knowledge is assumed





Duration: 1 day



Corporate Actions

This one-day program provides an intensive overview of major corporate action event types for

equity and fixed income securities, how they are processed and industry best practices for

managing risk and controlling costs. Major corporate action event types are explained, along with

the motives of issuers and investors, and the conditions that trigger an event.

Course participants gain an understanding not only of the process flows required for corporate

actions in US and international markets, but also of the potential gaps and exposures that create

operational risk and the potential for losses. Interdependencies among entities such as investment

managers, custodians, fund administrators, clearing houses and depositories are included. The

impact of corporate actions on the front-office, securities lending, derivatives and settlements is

also discussed.

The program content promotes discussion of corporate action case studies with real-life “war

stories”, the risks involved, and how these risks are managed with control steps and procedures.

Participants will engage in discussion about the current state of corporate actions event processing

and the challenges presented by resource-intensive data management issues, communication

among all parties to an event, and global securities markets with sometimes discordant

requirements.

Course Objectives


• Identify the various types of Corporate Actions

• Describe the process flow from announcement to reconciliation

• Compare participants’ role in the process

• Analyze the characteristics of Mandatory and Voluntary Corporate Actions

• Identify the risk probabilities and the sources of risk






Duration: 1 day



Clearing Houses, Settlement Systems and Depositories

This one-day program provides a comprehensive overview of clearing houses, settlement systems, and depositories. The focus will be on trades for both securities and derivatives. As trading, clearance and settlement platforms globally undergo significant changes because of changing regulatory requirements, control, compliance and risk management considerations continue to be of utmost concern to market participants. Internationally, eroding profit margins for exchange clearing member service providers require increased attention to the management of costs and resources for both trading and operations. This program uncovers the activity that occurs in the local market exchange, clearance and settlement venues, as well as cross-border activity through international settlement systems including Euroclear and Clearstream.

The program content includes content covering the SWIFT network and standards as the backbone for cross-border securities trade processing. Changes are occurring at SWIFT that global market participants need to be aware of, and this program will include a discussion of how SWIFT is used in conjunction with local market settlement systems and what changes are expected in the near future.

Course Objectives


• Explain the various participants and their roles in the domestic and international trading, clearance and settlement of equity and debt securities, and futures and options contracts

• Recognize how trade executions are fed from market places to clearing and settlement providers

• Analyze the infrastructure for exchange-traded and OTC activity in the U.S., including exchanges for equities and derivatives

• Review clearing houses including; the NSCC, FICC, OCC and ICE

• Describe how member requirements, margin and collateral funding in Central Counterparty Systems protect the safety and soundness of the financial markets

• Analyze the purpose and waterfall of risk for Default, Clearing, and Guaranty Funds

• Analyze the settlement systems provided for both Euroclear and Clearstream, including transactions for Bridge settlement between the two

• Identify and discuss major trends in the global trading clearance and settlement environments, initiatives for global standards, shortened settlement cycles, and new regulatory requirements


• Fundamentals of the Capital Markets Industry or equivalent knowledge Program Level: Intermediate Advance Preparation: None Recommended CPE Credits: 7 Duration: 1 day



Fails and Fails Management

This course aims to provide a comprehensive introduction to the functions and procedures used to

identify, clean up, and prevent failed trades. The program content examines the significant issues

facing market participants around failed and unsettled trades. Fail management is an important

component of operational risk management.

Participants will explore the many risks, including operational, market and credit risk associated

with failed trades and why fail rates have been growing in recent years, as markets and

exchanges proliferate. These global markets introduce their own complexity with regards to

different approaches, legal requirements and rules when dealing with failed trades, including

suspending and defaulting trade activity.

Course Objectives


• Describe the trade and settlement cycles and the point at which failed trades occur

• Understand how failed trades are identified in books and records systems

• Explain the relationship between fails and market, credit, and operational risks

• Explain the implications and costs of fails, including financial and regulatory

• Identify the reasons why trades fail and why fail rates continue to rise

• How uncovered short sales can result in trades failing

• Analyze why ETF’s are so vulnerable to failed trades

• Summarize the importance and methods of preventing fails

• Describe the actions required to clean up failed trades

• Describe the use and economics of security borrowing and reverse purchase agreements in

fails management

• Compare fail rates in specific markets

• Review the steps that markets are taking to reduce fail rates

• Explain market differences in the management of fails, including fail penalties and fines






Duration: 1 day



Global Securities Clearance and Settlement

This program provides a comprehensive overview of Global Securities Clearance and Settlement

processing for trades that occur on a cross-border basis. The focus will be on trades for sovereign

debt in markets including the Americas and Europe. As clearance and settlement platforms

globally undergo significant changes because of new regulatory requirements, the Operations,

Cash Management, and Accounting areas of international bond trading participants need to

secure compliance. At the same time, they will have to maintain ever higher standards of risk

management, best practices and cost-effective processing. This program uncovers the activity that

occurs in the local market settlement systems for securities and cash, as well as settlement through

international settlement systems including Euroclear and Clearstream.

The program covers the SWIFT network and standards which have been the backbone for

domestic and international securities trade processing. Changes are occurring at SWIFT that

global market participants need to be aware of. This program will include a discussion of how

SWIFT is used in global trade lifecycle activity, and what changes are expected in the near

future.

Course Objectives


• Identify the participants and their roles in the domestic and international clearance and

settlement of sovereign debt

• Identify the functional components of the post-execution trade lifecycle through settlement,

custody and corporate actions, specifically as it relates to sovereign debt

• Compare the clearing and settlement infrastructures for sovereign debt markets in the US,

and major Latin American and European markets, including clearing houses and national

depositories

• Evaluate the settlement systems provided for both Euroclear and Clearstream, including

transactions for bridge settlement between the two

• Map the SWIFT message types to the trade lifecycle

• Recognize major trends in the global clearance and settlement environments, initiatives for

global standards, shortened settlement cycles, and new regulatory requirements







Duration: 1 day



Hedge Fund Operations

This one-day program uncovers the structure and function of the Operation that supports a Hedge

Fund in the arena of alternative investments. Starting with the processes that support the

interaction between the fund manager and the broker/dealer when the deal is executed, to the

settlement and control of assets at the Prime Broker, participants will gain an appreciation of

areas of operations risk related to Hedge Funds.

As the industry has moved to a multi-prime model, the role of the Fund Administrator has

broadened to include services beyond fund accounting to areas such as collateral management.

This program will describe what a fund administrator provides, as well as the communication and

interfaces required for a commercially sound operation at the Fund.

The program content includes discussion of recent industry events, such as the aftermath of the

Lehman and the resulting spotlight on hypothecation agreements between Hedge Funds and their

Prime Brokers.

Course Objectives


• Describe how a hedge fund originates and agreements with investors

• Explain the structure of a “fund of funds”

• Identify the components of the Operation needed to support a Hedge Fund

• Compare the single vs. multi-prime model

• Evaluate the role and interfaces of a Fund Administrator

• Follow the lifecycle of a trade initiated by a Hedge Fund


• Hedge Funds or equivalent knowledge





Duration: 1 day



Lifecycle of a Trade

This course is designed to provide an overview of the lifecycle of a trade in fixed income and

equity cash securities, from the inception of an order through confirmation, clearing,

and settlement. The roles of industry utilities, such as clearing houses and settlement agencies, for

cash securities are highlighted.

Course Objectives


• Identify the critical functional areas related to the lifecycle of a trade from the inception

of the customer’s order through the settlement, as well as the follow-up required for the

effective prevention and management of failed trades

• Recognize the importance of risk management provided by clearing houses

• Discuss how clearing and settlement are structured in both the US and International

marketplaces

• Distinguish types of operational risks that have a potential impact on the firm and their

customers, in both the domestic and international arenas

• Analyze the source of costs of processing trades

• Gain perspective on the relationship between an institutional customer’s custodian and the

bank broker/dealer in the flow of post-execution activity






Duration: 1 day



Lifecycle of a Trade — Commodities

This program introduces participants to the trade lifecycle for commodities trading. Types of

trades include spot and derivative trades in various commodity types such as energy, metals, etc.

Included are commodity swaps, futures, forwards, and options. Participants follow the sequence of

activity that occurs “behind the scenes” on trade date once a commodities trade is executed

through the final exchange of value on settlement date.

Course Objectives


• Recognize how commodity trades are executed among brokers, dealers, their customers

and inter-dealer brokers

• Identify the critical functional areas related to moving commodity trades forward to

settlement, including confirmation and clearance

• Distinguish types of operational risks related to commodity trades that have a potential

impact on the bank and its customers, as well as the industry as a whole

• Examine specific post-execution processes related to commodity, especially as it relates to

issues surrounding physical settlements






Duration: 1 day



Lifecycle of a Trade — Derivatives

This one-day program provides an introduction to the lifecycle of both listed and OTC Derivative

trades. Participants will explore the functional building blocks of middle and back office

operations that support trade lifecycle activity, from the inception of an order or request for

quote (RFQ) through clearance and settlement of payments. Areas of operational risk and

exposure will be highlighted throughout the program. The program content includes an

introduction to the basic product characteristics of derivative contract types.

Course Objectives


• Understand the basics of derivative products: Forwards, Futures, Options and Swaps

• Analyze the functional building blocks of the trade lifecycle of a derivatives trade

• Identify the participants and their roles, including the customers, bank broker/dealer,

interdealer broker, exchanges and SEF’s (Swap Execution Facilities), clearing houses,

custodians and prime brokers

• Distinguish the role of Clearing Houses and the margin process

• Evaluate collateral management processing

• Be able to explain why novations are done and how they are processed

• Consider the impact of industry regulatory changes, such as Dodd-Frank regulation on

derivative trade processing


• Fundamentals of the Capitals Markets/Securities Industry or equivalent knowledge





Duration: 1 day



Lifecycle of a Trade — Fixed Income

This program introduces participants to the trade lifecycle for Fixed Income products, including

government securities, corporate and municipal bonds, and MBS products. Also included is the

lifecycle of a repo. Participants follow the sequence of activity that occurs “behind the scenes” on

trade date once a trade is executed through the final exchange of assets on settlement date.

Course Objectives


• Identify the critical functional areas related to moving fixed income trades forward to

settlement

• Distinguish types of operational risks that have a potential impact on the firm and its

customers, as well as the industry as a whole

• Analyze the various sources of trade costs







Duration: 1 day



Lifecycle of a Trade — Foreign Exchange

This program introduces participants to the trade lifecycle for foreign exchange trades.

Participants follow the sequence of activity that occurs “behind the scenes” on trade date once an

FX trade is executed through the final exchange of currencies on settlement date.

Course Objectives


• Recognize how FX trades are executed among brokers, dealers, their customers and inter-

dealer brokers. Spot, Options, Swaps, Futures and Forwards are included.

• Identify the critical functional areas related to moving FX trades forward to settlement,

including confirmation and clearance

• Identify services provided by CLS Clearing and SWIFT messaging

• Distinguish types of operational risks related to FX trades that have a potential impact on

the bank and its’ customers, as well as the industry as a whole

• Examine specific post-execution processes related to FX trade lifecycle activity, including

Nostro account management and reconciliation


• Foreign Exchange or equivalent knowledge





Duration: 1 day



Lifecycle and Clearing of OTC Derivatives Trade

This one-day program provides an introduction to the trade lifecycle and clearing of OTC

Derivative trades. Participants will explore the functional building blocks of middle and back

office operations that support OTC derivatives trade lifecycle activity for both dealer and end-

user trades. Areas of operational risk and exposure will be highlighted throughout the program.

The program content includes an introduction to the basic lifecycle stages of an uncleared or

bilateral swap, but the main focus is on CCP clearing for both dealer and client trades. The

industry is still in transition as the trade lifecycle of an OTC Derivative requires re-engineering to

comply with the demands of CCP. The program will highlight emerging trends, issues, challenges,

and questions still to be addressed.

Course Objectives


• Analyze the functional building blocks of the trade lifecycle of an OTC derivatives trade

• Identify the participants and their roles, including the customer or end-user, bank

broker/dealer, interdealer broker, exchanges and SEF’s (Swap Execution Facilities),

clearing houses, custodians and prime brokers

• Distinguish the role of Clearing Houses and the margin process

• Evaluate the collateral management process for swaps

• Be able to explain why novations are done and how they are processed

• Consider the impact of industry regulatory changes, such as Dodd-Frank regulation on

OTC derivative central counterparty clearance (CCP)





Advance Preparation: Understanding of OTC Derivative product types



Duration: 1 day



Mutual Fund Operations

The program content provides an introduction to the business structure of a typical mutual fund

with a focus on its supporting operational lifecycle and functions. The variety of mutual funds

available to investors will be described and compared. Along with types of mutual funds, the

program content includes definitions and characteristics of the various fund classes. Participants

will understand how mutual funds are sold and distributed, including the calculation of sales

charges and fees (such as 12b-1fees). Differentiation between those expenses allocated to the

fund investors and the fund manager will be made. All the participants in the mutual fund industry,

including the Fund Manager the Transfer Agent, the Fund Administrator, the Distributors, and the

Custodian and the roles that they play will be thoroughly examined. Participants will become

familiar with the services afforded to the mutual fund and brokerage communities through DTCC,

in particular, fund/SERV and networking. The Lifecycle of a Mutual Fund trade, from its inception

as an order through its settlements will be analyzed.

Course Objectives


• Identify the role and responsibility of the fund’s service providers, including custodians,

transfer agents and administrators, fund accountants and providers of shareholder

services

• Recognize interfaces required for underwriters/distributors/wholesalers/sales agents and

identify investor types and motivations

• Describe the schematics of fund managers compensation programs






Duration: 1 day



Operational Risk Management

This one-day program uncovers the essential framework and components of managing

operational risk in the financial industry. The Basel Committee defines Operational Risk as “the

risk of loss resulting from inadequate or failed internal processes, people, and systems, or from

external events”. Participants will examine Operational Risk Management (ORM) as the process

of identifying, monitoring and controlling operational risk. This course focuses on how both buy

side and sell side firms, along with their service providers such as custodians, prime brokers and

fund administrators employ industry best practices to manage operational risk.

Using recent case studies, participants will explore practical tools that are critical elements of an

operational risk assessment program and explore how these tools are applied to financial firms.

Risk assessment techniques will be examined and include how to capture, report and investigate

operational risk events. Firm-wide consolidated risk reporting that summarizes exposure, incident

escalation and Key Risk Indicators (KRI’s) will be analyzed. The program content includes other

operational risk metrics that are used to ensure transparency and enable strategic decision

making. Best practices for the implementation of gatekeeping functions and controls will be

discussed using real-life examples and case studies.

Course Objectives


• Recognize specific operational risk issues in financial institutions

• Describe the Basel II Risk-based regulatory framework for Operational Risk

• Identify key risk metrics and benchmarks

• Employ operational risk assessment techniques

• Evaluate and design effective internal controls

• Discuss some of the potential implications of Dodd-Frank

• Review/explain how risk and quality can be measured






Duration: 1 day



US Brokerage Operations

This two-day program provides an intensive overview of Brokerage Operations in the US

securities industry. A detailed picture of operations encompasses the trade lifecycle process for

both equity and fixed income products, from order and trade execution through clearance and

settlement. Custody and control topics include a description of stock record, margin, stock loan

and asset services.

Participants gain an understanding of the way a typical broker/dealer firm organizes its

operation within functional areas. Process flows that support these functional areas are a major

focus of the program, but attention is also given to potential gaps and exposures that present

operational risk. Highlighted interdependencies in brokerage operations among entities such as

investment managers, custodians, clearing houses and depositories are included.

The program content promotes discussion of real-life “war stories” involving operational risk

indicators, such as trade breaks, fails, suspense entries, DK’s, and cancels/corrects. Participants

will learn how these events, if not properly managed and reported, can have a negative impact

on broker/dealer firms, customers, counterparties, and marketplaces.

Course Objectives


• Identify mission-critical functions within the lifecycle of a trade, from the inception of an

order through settlement, as well as the follow-up required for the effective management

of failed trades

• Explain the critical functions of new account and product reference or (static) data set-up

• Gain perspective on the interactions between the operation of a brokerage firm and the

industry infrastructure, including confirmation/affirmation service providers, clearing

houses and the depository

• Analyze metrics related to the control of trade activity, including fails, breaks,

cancels/corrects, STP levels, and the cost per trade

• Compare the roles of broker/dealers, clearing firms, prime brokers and custodians

• Describe the impact of operational risk on Corporate Action processing

• Evaluate the importance of books and records, including how a stock record is used to

demonstrate possession and control of both firm and client assets

• Distinguish the areas of operational support for margin and stock loan businesses within

broker/dealers

NOTE: A one-day version of this program, which covers the events in the Lifecycle of a Trade,

with a particular focus on the post-execution (i.e., Middle-, Back-Office and Operations) functions

is also available in the “Lifecycle of a Trade” class.









Duration: 2 days



Alternative Investments in Portfolio Management

The past decade has seen yields in the US remain stubbornly low. Investment managers are

searching for yield and are returning to alternative investment as risk comes back in vogue.

Commodities have shown how volatile they can be. Private equity flows are bouncing back as

financing returns to the market, and hedge fund assets under management are also increasing;

both businesses, however, have been significantly transformed by the credit crisis.

In this interactive course, we examine how alternative investments fit into an overall asset

allocation strategy and identify risks that are specific to alternative investments. Attending the

course will help you develop a deeper understanding of what drives pricing and risk in

alternative investments and make you better equipped to judge how and under what

circumstances alternative investments might improve the risk-adjusted performance of your

portfolio.

Course Objectives


• Identify alternative investments

• Describe how alternative investments fit into an overall asset allocation strategy

• Analyze pricing and risks of the different alternative investments

• Discuss risk adjusted returns


• Portfolio Management or equivalent

• Knowledge of debt and equity markets





Duration: 1 day



Asset Allocation

Asset allocation is part of the overall investment process. Investment managers are guided by

written policies formally known as investment guidelines. A good portion of realized return is

often associated with asset allocation. Investors, however, may approach this differently. For

example, an institutional investor, such as an insurance company, needs to consider matching the

sensitivity of their assets with the sensitivity of their liabilities. An asset manager such as a Mutual

Fund will be judged against a benchmark/index. Asset allocation is more than just changing

amounts invested in different assets or sectors. Understanding the risks/limits when reallocating

needs to be taken into account. For example, there may be restrictions on the amount a manager

may be allowed to underweight or overweight a particular sector, or duration limits determining

the amount of interest rate risk. Further there is a difference between strategic and tactical asset

allocation.

Course Objectives


• Describe the steps in asset allocation

• Differentiate between:

o Strategic and tactical asset allocation

o Institutional investors and asset managers

• Describe key asset classes and their respective behavior — equities, fixed income and

commodities

• Discuss asset sub-sector and product offerings in the market

• Develop the rationale for asset allocation decisions

• Appraise market cycles and applicable strategies for tactical asset allocation







Duration: 1 day



Derivatives — Applications in Equity and Bond Portfolio Management

This interactive one-day course describes how various asset managers apply derivatives. Based

on their objectives, portfolio managers will use derivatives to hedge, speculate, increase return, or

arbitrage. Although the main focus will be on mutual funds, other asset managers such as

insurance companies, pension funds and hedge funds will also be evaluated. Annual reports and

prospectuses will be used to determine portfolio objectives and derivative applications in a case

study format.

Course Objectives


• Analyze futures, swaps and cash to create passive index strategies

• Demonstrate how to alter asset allocation using a variety of derivatives

• Analyze credit default swaps and their application in fixed income portfolio management

• Discuss foreign exchange forwards and their application in foreign funds

• Analyze hedging mortgage backed securities using interest rate swaps and swaptions

• Illustrate how equity dividend swaps are used

• Evaluate portable alpha


• Derivatives

• Portfolio Management






Duration: 1 day



Fixed Income Portfolio Management

The course starts off by examining the first steps in portfolio management: Investment objectives,

determining risk tolerance and selecting a benchmark. Based on the portfolio objectives, how does

the current economic environment impact the portfolio? Fixed income sectors are examined in the

overall context of asset allocation. Strategies such as barbells and bullets are explained. Core

fixed income as a strategy will be analyzed. The course concludes with evaluation of portfolio

performance.

Course Objectives


• Discuss different investment objectives

• Analyze current economic environment and integrate with investment policy statements

• Apply asset allocation in the context of specific investment policy statements

• Evaluate portfolio performance








Duration: 1 day



Portfolio Management

The last few years have witnessed unprecedented volatility in the capital markets. Active

managers have switched between risk on and risk off trades. As the markets continue to evolve, a

thorough understanding of the basics is essential. This hands-on course examines the investment

process, risk and return and strategies to increase return. Differences between asset managers

and institutional fund managers are explored. The course wraps up by analyzing metrics on the

portfolio’s performance.

Course Objectives


• Describe terminology used in portfolio management

• Evaluate the investment process and understand differences between entities, such as

mutual funds and pension funds

• Explain the tradeoff between risk and return

• Apply different strategies in both equity and fixed income markets

• Evaluate the results of portfolio returns







Duration: 1 day



Risk Management in Investment Management

Asset managers are exposed to a myriad of investment risks. This course explores the different

risks and how they are properly identified, measured, managed and controlled. Various risk

measurements are compared and contrasted including the Sharpe and information ratio. How

these risk measures are used in portfolio performance will be addressed. Annual reports from

various asset managers will be examined in the context of risk management. Major risk

management cases will be explored.

Course Objectives


• Identify market and non-market risks

• Recognize that risk management is a culture

• Explain various risk measurements

• Describe the procedures to control risk

• Discuss major risk management cases related to asset managers including the credit crisis


• Portfolio Management or equivalent knowledge





Duration: 1 day



Algorithmic and High Frequency Trading

This course gives participants hands-on experience with the type of trading that is commonly

termed algorithmic and high frequency trading. The focus of the class is on using data to

understand how traders develop computerized strategies to buy and sell stocks and the back-

testing involved in this. The course gives participants familiarity with the tools that are increasingly

dominating trading today. The focus of this class is NOT computer programming or operations,

but rather the strategy that goes into algo trading.

Course Objectives


• Discuss algorithmic and high frequency trading and the results they are having on markets

• Assess the risks and benefits of funds and strategies built around algo trading

• Explain how a trader develops and tests an algo trading strategy

• Analyze trends in the industry which may impact the future of the space




Computers and Financial Calculators: Computer


Duration: 1 day



Big Data

This course will provide an introduction to the practices and procedures involved with Big Data

analysis. Participants will learn what Big Data is and why it is being discussed as a revolutionary

approach to many aspects of business and finance. Participants will get hands-on experience with

gathering, merging, and cleaning Big Data databases. The program will also entail critical

evaluation of existing datasets to check for potential problems or concerns over data integrity.

The course will also include a discussion of information governance.

Course Objectives


• Describe the purpose and uses of Big Data in the business world today

• Identify the terminology used in Big Data and quantitative analysis programs in general

• Build a dataset based on gathering data from multiple sources and merging those

databases into a single unified set

• Clean a database through automated methods like winsorizing and evaluation of

univariate metrics to determine accuracy of inputs

• Identify key risk issues involved in Big Data and the role that information governance

plays






Duration: 1 day



Big Data — Advanced

This course will provide training on advanced practices and procedures involved with Big Data

analysis. The course is intended as a follow-up to the intermediate Big Data course. Participants

will learn how to use advanced techniques to deal with complex business problems faced by

regulators and businesses alike. The course will cover advanced techniques including geospatial

analysis, loess regression, probit regressions, neural networks, and cluster analysis.

Course Objectives


• Explain how to perform analysis of relational and geographic data using geospatial

analysis and cluster analysis

• Use regression techniques to control for unobservable effects

• Use comparative analysis techniques like difference-in-difference analysis

• Apply loess regression to Big Data

• Discuss neural networks, machine learning, and alternative methods of analysis


• Big Data or equivalent Knowledge





Duration: 1 day



Big Data — Intermediate

This course will provide training on more advanced practices and procedures involved with Big

Data analysis. The course is intended as a follow-up to the introductory Big Data course.

Participants will learn how to use more advanced analytical techniques to analyze large datasets

and draw conclusions. Participants will get hands-on experience with analysis of Big Data

databases including significant exposure to multivariate analysis and scenario analysis. The course

will also review the limitations of Big Data analysis and when Big Data is most and least useful.

Course Objectives


• Explain how to perform analysis of datasets using Big Data

• Run analysis techniques include regressions using a large dataset

• Use predictive analytics techniques in scenario analysis

• Examine tools in Big Data to help deal with issues like predicting loss events or pricing

securities

• Identify key risk issues involved in Big Data analysis


• Big Data or equivalent knowledge





Duration: 1 day



Business Intelligence (BI) — The Fundamentals of BI, What it Does, and Why It’s So Essential

Business intelligence; the term is bandied about so frequently today that it might seem like

everyone except you already understands it. The truth is that, like its partner Big Data, business

intelligence is actually not well understood at all. Most people who talk about business intelligence

have at best a general notion of what it means and almost no experience with actually using BI in

a meaningful way. However, BI is an important new tool for modern business. Advances in

computing power can now give businesses ways to analyze data that they never could before.

With these advances, firms can make decisions about pricing, marketing, new products, and

resource allocation more effectively than they have ever been able to in the past. Major

corporations like Kroger are starting to use BI to help determine what products they should

advertise to specific customers. General Electric is using BI to more efficiently run its industrial

maintenance schedules. Citi is using BI to help proactively figure out the maximum interest rates

various customers are willing to pay. BI is useful in all of these settings and a lot more.

Course Objectives


• Define business intelligence

• Explain how business intelligence works on a theoretical basis

• Discuss the broad advantages and disadvantages of business intelligence

• Explain in general terms what steps firms need to take to implement business intelligence

• Identify areas where business intelligence can alter the way a company conducts

operations


• Participants should be familiar with basic financial and accounting concepts

• In addition, a basic understanding of concepts in statistics, such as data, mean, median and

standard deviation, is helpful but not required





Duration: 1 day



Data Analysis

This course is designed to the necessary foundation in statistical theory needed to understand the

practical problems that arise in financial data analysis. The course is designed to bring

participants through the theory and into the practice of financial data analysis. Practical

applications of these tools will be reviewed and discussed.

The course begins with an Introduction to Statistical Tools, designed to provide participants with a

solid foundation in traditional statistical methods necessary for any informed study of financial

data. Working with actual financial data, the participants are guided through the basics of

financial data modeling, analysis and risk assessment.

The second section addresses issues associated with Statistical Analysis and Financial Modeling

and identifies risk metrics associated with financial data. Simple but realistic examples of financial

modeling techniques will be used.

Course Objectives


• Identify relevant sources of information

• Navigate and use tools to find and obtain necessary data

• Apply a framework to identify what data is important, why, when, and how

• Articulate findings from the applied framework






Duration: 1 day



Microsoft Excel for Financial Service Professionals — Introduction

This course will provide course participants with knowledge of the basics of Microsoft Excel.

Participants will learn how to navigate the program, input and format data, write formulas and

create charts. Participants will become much more productive by learning to effectively organize

data, set up spreadsheets, and copy formulas for efficiency. Commonly used functions and tools

will be introduced. Parsing, sorting, and filtering data will be covered as well. This course is

hands-on, and participants are expected to have computers and follow along with the instruction.

Many exercises will be provided to help reinforce concepts.

Course Objectives


• Set up and organize a spreadsheet

• Format data using the various preset formatting styles, create customized formats

• Apply conditional formatting

• Apply data validation to prevent potential errors

• Use formulas to perform calculations using mathematical operators and Excel’s built in

functions such as: SUM, MAX, MIN, COUNT, COUNTIF, SUMIF

• Concatenate and parse text using both static and dynamic methods

• Sort and filter data

• Understand basic logical functions (IF, AND, OR)

• Create charts to visualize data




Computers and Financial Calculators: Laptops are required during the training


Duration: 1 day



Microsoft Excel for Financial Service Professionals — Intermediate Level with Shortcuts, Tips, and Tricks

This course is meant to build on knowledge of Excel basics. Participants will improve speed and

efficiency through the use of keyboard shortcuts and other tips. Topics include: conditional

formatting, data validation, advanced logical statements (nested IFs), VLOOKUP, HLOOKUP,

CHOOSE, INDEX, and MATCH among other functions. PivotTables and PivotCharts will be

covered. Much of the time will be spent working through a project involving manipulating and

analyzing a large amount of financial data. The functions introduced will be reinforced by

working on the dataset in a realistic scenario. This course is hands-on, and participants are

expected to have computers and follow along with the instruction. Many exercises will be

provided to help reinforce concepts.

Course Objectives


• Use keyboard shortcuts to quickly navigate Excel

• Build efficient dynamic models in Excel

• Use advanced functions to analyze data and test out different scenarios

• Add customized controls to your spreadsheets:

o VLOOKUP, HLOOKUP, CHOOSE, INDEX, MATCH

• Concatenate and parse text using both static and dynamic methods

• Apply conditional formatting to quickly spot issues or build checks

• Apply data validation to prevent potential errors

• Build PivotTables and PivotCharts to quickly aggregate and summarize large datasets


• Basic familiarity with Microsoft Excel





Duration: 1 day



Microsoft Excel for Financial Service Professionals — Advanced

This course will provide course participants with advanced knowledge of Microsoft Excel.

Participants will work with advanced text editing and cleaning functions. Exercises will include

functions related to: VLOOKUP, HLOOKUP, CHOOSE, MATCH, INDEX, OFFSET. The course will

cover advanced PivotTables and PivotCharts. Participants will test out scenarios through the use of

goal-seek and data tables. Several Excel add-ins will be introduced: Data Analysis for regression

analysis, and Solver for optimization. Participants will learn to work with, and build their own,

array functions. The course will also consist of a brief introduction to VBA, covering such topics as

recording macros and using macros to create keyboard shortcuts. VBA is particularly useful to

automate situations where a series of actions must be repeated for different files or at different

times. This course is hands-on, and participants are expected to have computers and follow along

with the instruction. Many exercises will be provided to help reinforce concepts.

Course Objectives


• Use advanced functions to analyze data and test out different scenarios:

o Goal-Seek, Data Tables for sensitivity analysis

o Add customized controls to your spreadsheets

o VLOOKUP, HLOOKUP, CHOOSE, INDEX, MATCH, OFFSET

o Advanced text editing and cleaning

o Advanced use of PivotTables and PivotCharts

o Data Analysis add-in for regression analysis and forecasting

o Solver add-in for optimization

o Array functions

o Brief introduction to VBA to record and edit macros


• Understanding of Microsoft Excel at an Intermediate Level





Duration: 1 day



Microsoft Excel for Financial Service Professionals — VBA

This course is for anyone who wants to learn Visual Basic for Applications (VBA). Typically,

participants have advanced knowledge of Microsoft Excel to be ready for programming in VBA.

VBA is often used when a series of actions is repeatedly performed. By coding your sequence of

actions in VBA, you can automate this process, saving lots of time. The course does not require any

prior programming experience.

We begin by using Microsoft Excel’s macro recorder and then learn to interpret and edit the

underlying code. Participants will then learn how to work within modules to build macros

(subprocedures) and user-defined functions. Programming topics that will be covered include:

declaring variables, looping, debugging, creating input and message boxes, using logic in your

code, working with controls and building userforms. This course is hands-on, and participants are

expected to have computers and follow along with the instruction.

Course Objectives


• Record and edit VBA macros (subprocedures)

• Create user-defined functions (UDFs)

• Declare and work with different types of variables

• Incorporate existing Excel functions inside the VBA code

• Understand how to debug your code

• Use looping to efficiently repeat certain actions

• Incorporate logic in your code

• Extract and user inputs through input and message boxes

• Work with controls and build userforms


• Advanced knowledge of Microsoft Excel





Duration: 1 day



Predictive Analytics

This course offers an introduction to predictive analytics based on the techniques used in Big Data

analysis and Business Intelligence. Participants will learn how to apply predictive analysis tools to

forecast financial and economic variables in a variety of contexts using a range of statistical

techniques. Predictive analytics techniques can be used for decisions ranging from testing for

fraud to optimizing pricing and revenues. Participants will discuss and build hands on tools for use

in a variety of settings

Course Objectives


• Discuss an overview of Big Data and Business Intelligence for those lacking a background

in the area

• Identify the role of predictive analytics in business settings today

• Describe at a high level the theory behind predictive analytics and the settings in which

the tools are useful

• Explain the advantages and disadvantages of predictive analytics techniques

• Build predictive analytics models using fixed effects analysis, random effects analysis,

logit models, and censored Tobit models






Duration: 1 day



Quantitative Methods — Advanced

This course will build upon the foundations explored in the introductory level quantitative methods

class. Participants will examine multivariate techniques for numerical analysis in order to gain a

greater understanding of how to analyze and review large amounts of data. This type of “big

data” analysis is an increasingly important part of many areas of business including the financial

industry. Understanding how correlations between variables interact and how complex linkages

between multiple variables can impact asset values and financial reporting results, is an important

facet in modern quantitative analysis roles.

Course Objectives


• Describe and calculate different types of correlations in data sets

• Explain the basics of multivariate data analysis and the tools that are needed to examine

how a single variable like asset value can be impacted by multiple other factors

simultaneously

• Explain how to use regression analysis tools like Ordinary Least Squares to deal with

multivariate analysis issues

• Recognize the limitations on regression analysis and how to deal with those limitations

through statistical solutions

• Calculate the impact on variables of interest like asset values or revenues when multiple

other factors, like macroeconomic headwinds, impact those variables


• Foundational Quantitative Methods





Duration: 1 day



Quantitative Methods for Derivatives

This course introduces and offers practical guidance in the implementation of quantitative methods

for the pricing and analysis of derivative securities. We begin with a brief review of key concepts

in derivatives pricing: arbitrage, hedging, probability, conditional expectation and risk-neutral

valuation. We then show how these ideas can be applied to compute prices and perform risk

analysis for derivative securities, concentrating for the most part on tree-based methods and

simulation (Monte Carlo) techniques. Participants will gain hands-on experience in analyzing,

manipulating and modifying models for a range of derivative instruments, including vanilla and

exotic options, swaps and credit derivatives; all modelling will be in an Excel/VBA framework.

Participants should have some prior familiarity with options and other derivative securities and be

comfortable working in Excel. No previous programming experience or knowledge of VBA is

required.

The course is conducted as a workshop in which participants acquire information and develop new

skills by working together to complete a series of exercises.

Course Objectives


• Explain the relevance of hedging costs and arbitrage to derivatives pricing

• Outline the principles underlying risk-neutral valuation of derivatives

• Construct and implement binomial models for European and American options

• Outline the principles of simulation or Monte Carlo methods

• Construct simulated paths for asset prices

• Use Monte Carlo methods to price European options

• Show how Monte Carlo methods can be extended to price more complex derivatives,

including contracts with path-dependent payoffs (e.g. Asian options) and contract on

multiple underlying assets


• Derivatives

• Options and familiarity with excel, is assumed





Duration: 1 day



Smart Beta and Factor Models

This course deals with the concepts of Smart Beta and Factor models which served as the basis for

the 2013 Nobel Prize in economics and are one of the most important developments in the

investment arena in the last 30 years. The course covers standard factor models and smart beta

strategies and gives the participants the tools to evaluate new strategies in the space. The course

also delves into the risks associated with Smart Beta investing including the risks associated with

the increasingly prominent group of ETFs focused on Smart Beta and Factor Investing.

Course Objectives


• Describe Smart Beta and Factor Investing

• Discuss the rules-based quantitative investment strategies as used by iShares, AQR, and

others

• Explain factor model strategies and the theory behind them

• Apply investment analysis techniques to quantitative investing strategies


• Big Data is recommended, but not required





Duration: 1 day



Statistical Analysis

This program is designed to give the participants the necessary foundation in statistical theory

needed to understand the practical problems that arise in financial data analysis. The course is

designed to bring participants through the theory and into the practice of financial data analysis.

Practical applications of these tools will be reviewed and discussed.

We begin with an Introduction to Statistical Tools, designed to provide participants with a solid

foundation in traditional statistical methods necessary for any informed study of financial data.

Working with actual financial data, we guide the participants through the basics of financial data

modeling, analysis and risk assessment.

The second section addresses issues associated with Statistical Analysis and Financial Modeling

and identifies risk metrics associated with financial data. Simple but realistic examples of financial

modeling techniques will be used.

There will be a strong emphasis on hands-on analysis and group discussion.

Students will have access to Excel and a financial calculator.

Course Objectives


• Identify hidden trends and biases in data

• Measure portfolio diversification risk reduction

• Interpret the impact of probability on financial outcomes

• Evaluate measures of financial performance

• Explain the relationship between return and risk


• Bond Math





Duration: 1 day



Textual Analysis in Finance

This course will provide an introduction to the practice of textual analysis in a financial setting. The

focus of the course is on using quantitative data from social media settings, analyst commentary,

political commentary, company transcripts, and articles about financial markets. The course gives

participants the skills to analyze this data in a quantitative fashion and draw salient empirical

conclusions.

Course Objectives


• Describe the current state of the art on textual analysis

• Build a textual analysis data dictionary to enable empirical examination of qualitative

data

• Create a database of qualitative data for empirical analysis

• Explain the techniques used to convert qualitative data to quantitative data

• Evaluate the results of quantitative textual analysis

• Identify key opportunities and risks that are derived from empirical examination of text

data






Duration: 1 day



Anti-Money Laundering/Anti-Terrorist Financing (AML/ATF) Compliance

This course is an overview of the issues facing the financial and regulatory community related to

money laundering and terrorist financing. The many players in the financial community including

banks, non-bank financial institutions, money services businesses, cash-intensive businesses,

armored car business, securities dealers, and insurance brokers (to name just a few) have a

regulatory and a moral obligation to ensure that their businesses are not used by criminals to

facilitate and fund criminal and terrorist activities. The regulatory community has an obligation to

understand and implement current and updated industry standards and business norms as these

relate to the oversight of the financial industry.

Course Objectives


• Define money laundering and terrorist financing

• Recognize the need for a comprehensive AML/ATF program

• Identify the need for knowing the customer, conducting customer due diligence, and

identifying, monitoring, and reporting customer suspicious activity

• Learn from current enforcement actions and other law cases how to improve their own

AML/ATF program

• Apply international conventions (European Union Directives, Financial Acton Task Force

Recommendations, etc.) to US initiatives






Duration: 1 day



Broker/Dealer Compliance

Trying to maneuver through the plethora of Broker/Dealer Compliance requirements can be

overwhelming and at times frustrating. No one enjoys spinning their wheels while reporting

deadlines loom. This one-day course assists professionals in identifying the rules, regulations and

guidance applicable to their firms’ business model.

Course Objectives


• Describe the features and characteristics regarding the SEC laws and regulations plus

FINRA rules and guidance as they apply to Brokers Dealers (B/Ds)

• Identify the regulatory landscape for evolving business models

• Discuss SEC and SRO oversight

• Describe Operational, Sales Practice, Capital and Books & Records Requirements:

o Suitability

o Know Your Customer

o Protection of Seniors

o Fiduciary Duty

o Privacy

• Develop an understanding regarding the impact to business units (operations) considering

Compliance and Supervisory requirements:

o Culture of compliance

o Understand the importance of preparing for regulatory examinations

o Information barriers and conflicts of interest

o Branch and OSJ inspections

o Role and structure of compliance

o Role of internal audit

o Compliance versus supervision

o Regulatory examinations and audits

o ERISA and new Fiduciary Rule

o AML

o Cyber-security






Duration: 1 day



Conducting an Internal Forensic Audit — A How-to Primer

Every organization faces the risk of financial loss due to both intentional fraud and errors in

complex, sophisticated systems dependent on large scale databases. Obtaining an in-depth

knowledge of fraud and how it can be detected and prevented is essential to maintaining the

financial integrity of any organization, large or small. By implementing a robust forensic audit

capability within an organization, it will help protect the firm from the influences of hidden error,

crime, fraud, and corruption.

This course is an overview of the issues involved with understanding the concept of forensic audit,

how to conduct a forensic audit, and the importance of conducting risk-based forensic audits to

identify, and the importance of having a robust forensic audit program.

Course Objectives


• Explain the increasing importance of fighting fraud within the organization

• Identify the functions a forensic audit serves

• Understand the various roles the auditor must assume in conducting a forensic audit

• Explain common fraud schemes and determine the best internal control measures to

counteract the fraud risk

• Identify indicators for heightened fraud risk and assess risks present through internal

control deficiencies

• Apply various evidence-gathering techniques used to detect fraud






Duration: 1 day



Corruption, Fraud, and Cyber Crime — How Market Integrity is Impacted

This course provides an overview of corruption, fraud, and cybercrime issues facing the financial

industry and the consumer. The curriculum provides an overview of industry best practices and

regulatory requirements in the securities industry and provides general oversight tools that can be

applied to various organizational structures and products.

Course Objectives


• Gain an understanding of the evolution of regulatory structures and security industry rules

in the United States, as they pertain to corruption, fraud and cybercrime

• Recognize corruption risks and understand associated Acts

• Discuss new account diligence practices, “know your client” principles, and red flags

associated with fraud

• Learn the principles of the FFIEC Cybersecurity Assessment Tool

• Be cognizant of key risk concepts: Operational Risk, Reputational Risk, Strategic Risk and

Credit Risk

• Learn how to develop oversight techniques and recognize controls methods for the

identification, minimization and containment of risks associated with corruption, fraud and

cybercrime






Duration: 1 day



Cybersecurity, Cybercrime and Information, and Data Compliance

In today’s world and more in the digital online future, all organizations — small and large and

especially regulated industries — face an ever-increasing number of information-related security

challenges and risks against a backdrop of increasing national and global compliance and audit

standards and legislation.

Cybersecurity is the protection of data from theft and damage, business information, people’s

identities, and how all businesses can be better equipped to work more safely in an increasingly

online world where sensitive and personal information is stored, shared, and communicated.

Cybercrime are offences that are committed against individuals or groups with a criminal motive

to intentionally harm the reputation of the victim or cause physical or mental harm or loss using

modern telecommunication networks such as Internet (chat rooms, emails, notice boards and

groups) and mobile phones (messaging).

This course covers effective strategies, techniques, systems, polices, and procedures to establish

stronger cybersecurity and cybercrime controls, reduce operational risk, and improve online

working whilst covering international best practices, ISO standards, compliance, audit, and

industry regulations.

Course Objectives


• Review and understand how the banking sector can take into account national Government

and industry body cybersecurity/cybercrime initiatives and how personnel including legal

and compliance, risk managers, internal auditors, IT can monitor, protect and manage

internal controls

• Identify today’s and tomorrow’s cybersecurity and cybercrime threats, issues, and risks;

how to set up policies, train users, create strategies, and implement systems and tools to

help protect data, information and people’s identities — making online working more

secure

• Manage the growing volume of confidential, sensitive and business information and data

to protect, keep safe, and communicate securely against a backdrop of increasing cyber

threats, as well as privacy, legal, and compliance regulations

• Meet international standards, legal, compliance, e-discovery, information security

(ISO27001), records management (ISO 15489), US SEC and other industry standards

related to cyber security and information compliance








Duration: 2 days



Dodd-Frank Act

This course will provide an overview of the Dodd-Frank Act regulatory framework. The recent

financial crisis highlighted the need for significant reform in the way that financial institutions were

regulated, both domestically and internationally. This course will review the current framework

and the implementation status of various aspects of the DFA.

Course Objectives


• Identify the goals of the Dodd Frank Act (DFA)

• Evaluate key components of regulatory reforms and how they address key risk and

capital management concepts

• Recognize the implications of the DFA for financial institutions

• Recognize the effects that the DFA will have on oversight and supervision of financial

institutions






Duration: 1 day



Due Diligence — How to Gather and Utilize Information to Make Informed Decisions

Due diligence is the process used to make the best possible, well-informed decisions in any

situation. It is an investigative process, utilizing a standard of care, to create a comprehensive

picture of the situation to empower better decision making.

This course is an overview of the issues involved with understanding the concept of due diligence,

conducting due diligence in the day-to-day work stream, and the importance of having a good

due diligence program in place for organizations.

Course Objectives


• Define due diligence

• Recognize the need/requirement for due diligence

• Assess the risks related to having a poor due diligence program

• Identify the areas of your organization involved with the due diligence process

• Identify the tools needed to develop a good due diligence program for your organization






Duration: 1 day



Emerging Trends in Securities Fraud

This course delves into two important and growing areas of securities fraud: affinity fraud and

microcap fraud. The first half of the course focuses on affinity fraud, including common tactics and

red flags related to the fraud, and then examines key cases in the area.

The second half of the class examines microcap fraud including issues such as pink sheet fraud,

stock touting, and reverse stock split loan fraud. The focus is on identifying the types of companies

used in this type of fraud and red flags investors and regulators can look for. The class involves

significant use of case studies and discussion.

Course Objectives


• Discuss the terminology and typical characteristics associated with emerging securities

frauds

• Assess the red flags and other key characteristics related to securities fraud

• Explain high profile fraud cases and the risks they presented to the investing public

• Analyze trends in the securities industry and the on-going evolution of fraud in the space






Duration: 1 day



Fintech Innovation — How to Keep Pace with Rapidly Evolving Digital Finance Technologies

Innovations in digital finance have the potential to change the face of the financial services industry. Fintech also has the potential to transform how the financial markets operate in so many ways — from streamlined market operations to more affordable ways to raise capital and to advise investors.

However, it is critical to understand and evaluate how these fintech innovations operate in order to protect investors from potential pitfalls. By gaining a better understanding of digital finance, it will pave the way to identify potential risks — not only to educate investors but also how best to regulate these innovative technologies, both now and in the future.

The purpose of this course is to gain a better understanding of the digital finance landscape and how these technologies work. This will help identify potential risks and regulatory challenges, and potential regulatory gaps surrounding these groundbreaking technologies, which currently include: Blockchain, automated investment advice (or robo-advisers), online marketplace lending, and crowdfunding.

Course Objectives


• Gain a better understanding of existing new technologies and how they work, including: o Blockchain o Automated investment advice (or robo-advisers) o Online marketplace lending o Crowdfunding

• The impact of recent innovation on: o Investment advisory services o Trading, settlements, and clearance activities o Online marketplace lending o Capital formation

• Identifying regulatory issues to investor protection in the fintech era

• Ways to ensure regulations keep pace with these rapidly evolving innovations

Suggested Prerequisites: None Program Level: Foundational Advance Preparation: None Computers and Financial Calculators: N/A Recommended CPE Credits: 7 Duration: 1 day



Foreign Currency Exchange (Forex) Lifecycle Compliance

The volume created by foreign currency exchange markets exceeds four trillion dollars a day.

With trading activity on the rise, both domestic and international regulators are continually

seeking to establish comprehensive guidelines for the financial industries participating in the

market.

Course Objectives


• Explain the features and characteristics regarding trading in foreign exchange (forex)

• Develop an understanding regarding the basic forex trading process

• Recognize the basic provisions enforced domestically and internationally as they apply to

forex

• Discuss the interaction between the product provider, regulatory agencies, self-traders

and advisers in the forex market






Duration: 1 day



Hedge Fund Compliance

Mitigating potential risks associated with Hedge Fund regulatory compliance is a daily challenge.

The Hedge Fund Course equips participants in understanding what is needed to create and

implement a robust, comprehensive plus transparent compliance program.

Course Objectives


• Identify the features and characteristics regarding Hedge Funds

• Recognize the basic provisions as they apply to Hedge Funds

• Explain the interaction between the product provider, regulatory agencies and Investment

Advisers


Hedge Fund risk and transparency






Duration: 1 day



Investment Adviser Compliance Essentials

This interactive one-day course introduces the participant to the intricate world of registered

investment adviser compliance. During the course we will discuss who must register as an

investment adviser and review the registration process. We will also review key fiduciary duties,

as well as important requirements of the Investment Advisers Act (“the Act”) and associated rules.

This review will incorporate selected SEC enforcement actions, no-action letters, speeches and

other guidance to reinforce the material presented. Further, we will discuss key skills and

competencies CCOs and regulators must develop and employ to effectively fulfill their

responsibilities. Finally, we will discuss industry trends and emerging issues, as well as SEC

examination priorities and recent risk alerts.

Course Objectives


• Define who meets (or is exempt from) the definition of an investment adviser

• Describe who must register as investment adviser and explain the registration process

• Explain key fiduciary duties associated with acting as an investment adviser

• Communicate fundamental requirements of the Act and associated rules

• Describe key skills and competencies associated with high-performing CCO and regulators

• Explain industry trends, emerging issues and SEC examination priorities






Duration: 1 day



Investment Adviser Compliance Program Focus

This interactive one-day course expands on certain topics and concepts addressed in the

Investment Adviser Compliance Essentials course. During this course we will take a deeper dive

into Rule 206(4)-7, examining key elements of an effective written compliance program, including

the vital role of ongoing analyses/assessments to ensure the compliance program remains

dynamic and effective. We will also expand our analysis of Section 204A of the Investment

Advisers Act (i.e., prevention of misuse of nonpublic information) and Rule 204-1 (i.e., code of

ethics rule) to assess the role of policies, procedures and controls in promoting compliance with

federal securities laws and encouraging ethical behavior. Further, we will review laws and

regulations beyond the Act and associated rules, which advisers must observe. Finally, we will

discuss proposed SEC rules and recent risk alerts intended to address emerging and evolving

risks.

Course Objectives


• Discuss Rule 206(4)-7 history, requirements and best business practices for an effective

written compliance program

• Describe how to conduct gap reviews/risk assessments to identify necessary compliance

program enhancements

• Discuss the role of policies, procedures and controls (including codes of ethics) in promoting

appropriate and ethical behavior

• Describe other laws and regulations pertaining to investment advisers

• Demonstrate familiarity with proposed regulations and recent SEC risk alerts


• Investment Adviser Compliance Essentials or equivalent knowledge





Duration: 1 day



Mutual Fund Compliance

This course assists participants in identifying compliance policies and procedures intended to meet

the rules, regulations and requirements for open-ended funds as well as the companies, investors

and advisers utilizing the products associated with the investment vehicle. This course will also

address how to design a compliance program focused on preventing, detecting and correcting

potential violations of the Federal Securities Laws.

Course Objectives


• Identify Mutual Fund types and categories

• Describe the features and characteristics regarding the SEC laws and regulations and

applicable FINRA rules as they apply to Mutual Funds

• Identify trends in Mutual Funds-passive versus active management

• Describe the operation of mutual funds

• Discuss securities lending and short selling in Mutual Funds

• Discuss proxy voting


Compliance requirements:

o Relevant Investment Adviser Requirements

• Discuss the interaction between the product provider, regulatory agencies and consumer

• Review new Mutual Fund liquidity requirements

• Explain Rule 12b-1- Self Reporting Initiative






Duration: 1 day



Volcker Rule Compliance

The Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA) was passed into law in

2010. The DFA contains many titles and provisions intended to enhance the safety and soundness

of the US banking system and was drafted as a response to many of the adverse outcomes of the

Great Financial Crisis.

The Volcker Rule (the Rule), drafted largely by former Federal Reserve Chairman Paul Volcker, is

a provision of the DFA that specifically prohibits regulated commercial banking entities from

engaging in “proprietary (read: speculative) trading” with their own capital. The Rule also

severely constrains these entities from investing in “covered funds” (hedge funds and private-

equity funds). This course will address the major components of the Rule as well as the implications

of the rule for regulated banking entities. Best practices for developing a compliance framework

to address the requirements of the Rule will be described.

Course Objectives


• Explain the scope of the Volcker Rule (Section 619 of the Dodd-Frank Act)

• Identify the types of entities affected by the Volcker Rule

• Understand the limits and prohibitions on proprietary trading under the Rule

• Assess whether transactions meet the terms of “covered funds” under the Rule

• Describe the impact of the Rule on certain securitizations such as CLOs

• Develop the framework for a Volcker Rule compliance program






Duration: 1 day



Corporate Governance for Financial Institutions

This course will provide an introduction to the design and implementation of a best practice

corporate governance structure at a depository financial institution. Governance has taken on a

higher profile in the past few decades in the wake of a number of corporate scandals and

failures. Sarbanes-Oxley, Dodd-Frank, and other legal and regulatory requirements have also

raised the standards for entities of all kinds. This course will focus on some of the key governance

issues faced by regulated depository financial institutions.

Course Objectives


• Describe the structures and reporting relationships needed to effectively manage the

decision-making process within a bank

• Identify the correct roles, relationships and accountability between the key internal

stakeholders in the bank, including the Board of Directors, senior management, and

shareholders/ownership

• Describe the appropriate allocation of responsibilities between senior management and

the various Committees of the bank to ensure that key risks related to corporate

governance are addressed

• Understand the importance of balancing the interests of internal stakeholders with the

requirements of external stakeholders (regulators, external auditors, rating agencies, etc.)

• Assess the effectiveness of corporate governance activities within the overall enterprise

risk management processes of the bank

• Identify key reputational risk issues faced by banks and other firms






Duration: 1 day



Enterprise Risk Management

Over the years Enterprise Risk management (ERM) has had a number of definitions. One such

definition from the society of Risk Managers is “a strategic business discipline that supports the

achievement of an organization’s objectives by addressing the full spectrum of its risks and

managing the combined impact of those risks as an interrelated risk portfolio” This course is

designed to give participants exposure to dealing with various enterprise risk management

scenarios such as cyber security threats and poor controllership practices. The course reviews

standard operating procedures in enterprise risk management and offers participants practice in

assessing and dealing with risk management concerns. A heavy focus in the course is on case

studies and analysis of real-life situations. What might seem as an ideal solution for one institution

may not work at another. Effective enterprise risk management needs to be tailored to the needs

of the specific organization.

Course Objectives


• Identify events and circumstances that involve an organizational risk

• Assess the likelihood of a risk playing out and severity of that risk

• Determine a response strategy to mitigate the risk

• Monitor the risk control process and recommend additional corrective action as needed


• (Recommended but not required) Risk Management in Financial Institutions — A

Foundational Approach





Duration: 1 day



Fiduciary and Fiduciary Principles

This course is an introduction to the complex world of trust and the fiduciary. Professional

fiduciaries are used in a wide variety of financial products, from personal trusts and employee

retirement accounts, to project finance and public debt offerings. Fiduciaries have unique and

specific responsibilities and operate in a wide range of capacities. Fiduciaries are a key player in

the financial industry and understanding their role, duties, and accountabilities is essential to the

understanding of financial services. This course will provide an overview of law, regulation, and

industry best practices with a focus on products and standards including Prudent Person Theory.

Course Objectives


• Describe, define and explain the role of a fiduciary, a grantor, and a beneficiary

• Apply Prudent Person Theory to fiduciary products

• Recognize different types of trust and fiduciary capacities

• Determine when it is appropriate to be a fiduciary and when it is not

• Explain the Fiduciary Rule and the Fiduciary Standard






Duration: 1 day



Risk Management in Banks’ Capital Markets Trading Activities

Risk management begins with the identification, measurement, management and controlling of risk.

This course identifies the risks associated with spot, forward, option and credit trading in the front

office. A variety of tools have evolved over the years that will be analyzed including Value at

Risk (VaR), scenario analysis, stress testing and backtesting. The newer kid on the block will also

be examined: expected shortfall. These tools, along with reports (summary versus desk level),

limits and monitoring will be analyzed. How Basel III, capital and liquidity, impact the front office

is investigated. Lastly, the new Volcker requirements are considered.

Course Objectives


• Identify the myriad of risk factors faced by capital market participants

• Determine the various risk measurements used to quantify risk:

o DV01

o Greeks

o CS01

• Explain the qualitative risk measures used to control risk


• Fundamentals understanding of Capital Markets



Computers and Financial Calculators: Calculator


Duration: 1 day



Risk Management in Financial Institutions — A Foundational Approach

This course examines risk management across the capital markets industry using a non-technical

approach. Risk management and regulation continue to evolve in the industry owing to the credit

crisis. The risk management process will be explored from the board of directors to portfolio

managers and trading desks, right on through to operations. The various risk factors that financial

institutions face will be identified. Specifically, market risks faced by participants will be

identified and the major risk measurements will be explored. For example, what is the difference

between DV01 and duration and how does a trading desk use these metrics versus a mutual fund.

What about the bigger picture on liquidity and capital? What impacts has Basel III had on

dealers’ inventory and market liquidity? What are the new liquidity requirements at banks and

mutual funds? These and other risks such as counterparty credit risk will be explained. Various

cases will be discussed throughout, and annual reports and fact sheets will be used to support the

main goals of the course.

Course Objectives


• Explain the risk management process

• Identify the myriad of risk factors faced by capital market participants

• Determine the various risk measurements used to quantify risk

• Explain the qualitative risk measures used to control risk

• Discuss the effects of changes in regulation on markets including liquidity and systematic

risk







Duration: 1 day



Risk Management — Managing Market Risk in Financial Institutions

Risk management begins with the identification, measurement, management and controlling of risk.

This course identifies the risks associated with spot, forward, option and credit trading at both

bank trading desks and asset managers. A variety of tools have evolved over the years that will

be analyzed such as the Greeks, DV01 and CS01. Special focus will be on interest rates and how

trading desks at banks and asset/portfolio manager’s mange and hedge these positions.

Volatility will be defined and analyzed as it is an important risk factor in the valuation of

different market variables such as interest rates, foreign exchange, equity price and commodity

prices. Finally, correlation between markets will be explored as well as how valuation is impacted

by correlation and basic forecasting techniques for future correlation levels.

Course Objectives


• Identify the myriad of market risk factors faced by capital market participants

• Determine the various risk measurements used to quantify market risk:

o DV01/duration

o Greeks — Delta, gamma. Theta, vega and rho

o CS01

• Analyze volatility and its role in market valuation

• Discuss correlation and its impact on valuation


• Risk Management in Financial Institutions — A Foundational Approach





Duration: 1 day



Risk Management Level I — Internal Controls, ERM, and the Three Lines of Defense

This course will provide course participants with an overview of the importance of risk

management with a focus on the specific needs of financial institutions. The recent financial crisis

highlighted the need for a comprehensive view of risk management across the entire enterprise,

and the Institute of Internal Audit’s Three Lines of Defense framework has subsequently become a

best practice. This course will review the current framework for measuring capital adequacy and

stress testing at the largest and most complex financial institutions.

Course Objectives


• Assess the importance of corporate governance at a financial institution

• Identify the key components of a widely adopted internal control framework

• Explain the role of Enterprise Risk Management within a financial institution

• Describe each of the Three Lines of Defense and their applicability to a bank






Duration: 1 day



Risk Management Level II — Applied Risk Management

This course will provide course participants with an overview of the tools necessary to measure

and assess multiple risks across a financial institution’s balance sheet. The tools that are most

widely used to manage the banking book’s interest rate risk, the trading book’s market risk, the

loan and investment portfolio’s credit risk, and the liquidity risk of the overall institution are

discussed and explained. Specific exercises and case studies are used to illustrate the structure

and dynamics of each of these tools. Relevant regulatory requirements associated with these

applications are also discussed.

Course Objectives


• Assess the factors associated with measuring and managing:

o Interest rate risk in the banking book

o Market risk in the trading book

o Credit risk in the loan and investment portfolios

o Liquidity risk across the entire balance sheet


• Risk Management Level I or equivalent knowledge





Duration: 1 day



Value at Risk (VaR)

This course will provide participants with an introduction to the methods of calculating value at risk

in loan portfolios and securities portfolios at a financial institution. Value at Risk has taken on an

enormously important role for financial institutions of all types in the wake of the Financial Crisis

of 2008. Adding to that, there has been new regulatory and legal focus on the issue for entities

of all kinds thanks to statutory and rules changes over the past few years. This course will focus on

methods of calculating value at risk in a variety of circumstances.

Course Objectives


• Explain what value at risk is and how it should be measured across a variety of securities

including stocks, bonds, and loans

• Explain theoretically why a seemingly diverse set of assets may present greater risks than

one would expect from simple single asset examination

• Identify the metrics that should be used to assess cross asset risk in a portfolio of assets

• Demonstrate how to find a range of possible losses for a portfolio of assets to determine

capital adequacy

• Assess the effectiveness of diversification efforts by financial institutions

• Explain measures that can be taken in the presence of an unacceptably high level of value

at risk at a financial institution


• Participants should understand simple financial concepts such as present value and the

calculation of returns and have some familiarity with financial markets and instruments.

• They should also be comfortable with the use of basic statistical concepts such as

probability distribution, mean and variance to describe possible gains or losses on

portfolios.

• No advanced knowledge of mathematics or statistics is required.





Duration: 1 day



Value at Risk (VaR) — Advanced

In this course we demonstrate how to conduct sensitivity analysis and forecasting related to Value

at Risk (VaR) measures. Participants will use Monte Carlo simulation procedures to examine how

risk changes under a variety of potential scenarios. We will discuss how to use these Monte Carlo

simulations as part of a portfolio of tools to examine a range of downside risks based on normal

and non-normal distributions of risk outcomes. The course is conducted as a workshop with

participants completing a series of exercises using Excel spreadsheets.

Course Objectives


• Run Monte Carlo Simulations to obtain estimates of Value at Risk

• Explain how sensitivity analysis can help to construct confidence intervals around VaR point

estimates

• Use confidence intervals to forecast changes in VaR under a variety of possible future

scenarios

• Recognize the limitations on VaR and discuss alternative approaches to deal with risk

management needs

• Calculate the impact on VaR from changes in other values such as increasing correlation in

asset returns


• Value at Risk





Duration: 1 day



Repurchase Agreements and Securities Lending

This one-day course is designed to provide fundamental knowledge of repurchase agreements,

securities lending and their differences. The course starts off explaining the basics of the repo and

sec lending markets. Traditional applications are examined. How the Federal Reserve uses repos

is discussed as well as explaining the applications of more complex strategies.

Course Objectives


• Describe the features and characteristics of secured financing:

o Repo agreements

o Securities lending programs

• Demonstrate the applications and uses of these products

• Identify the key risks associated with managing these products







Duration: 1 day



Securities Lending and Borrowing — An Operations Perspective

This one-day course provides a “behind-the-scenes” perspective of a business that has experienced record levels of growth, producing a critical source of revenue for both the buy-side and the sell-side of financial industry. It is intended for an audience who is interested in receiving an overview of the securities lending business, including the motivation of participants, the lifecycle of a securities lending transaction, and resulting risks.

The main types of securities lending transaction activity will be covered, including stock borrow/loan, repo/reverse repo, tri-parties, buy/sell backs, and dollar rolls. Participants will gain perspective on the historical evolution of this market, its place in the international financial markets today, as well as regulatory considerations, both for the US markets and abroad.

The role of institutions, investment managers, bank broker/dealers, custodians, prime brokers and industry organizations such as clearing houses and centralized securities depositories will be examined. The program will also provide insight into the “Lessons Learned” from the recent global financial crisis, and trends in the securities lending business in the post-Lehman era.

Course Objectives


• Discuss the securities lending market including: o Identifying participants and their different motivations o Explaining reasons for borrowing/lending

• Recognize and comprehend the different types of securities lending transactions

• Explain the lifecycle of a securities lending transaction

• Review and assess collateral management

• Identify and discuss risk management and regulatory considerations: o Review applicable case studies



• Equity Markets

• Fixed Income or equivalent knowledge Program Level: Foundational Advance Preparation: None Computers and Financial Calculators: N/A Recommended CPE Credits: 7 Duration: 1 day



Asset Backed Securities

Asset Backed Securities (ABS) are created through a process called securitization. This interactive

course examines the features and characteristics of ABS. A variety of deals in different asset

classes will be analyzed using actual pre-sale reports. Factors influencing pricing such as

prepayments and default rates will be evaluated. A brief overview of the factors causing the

credit crisis will be discussed. The Dodd Frank Act and other current issues will be considered.

Changes in the methodologies used by rating agencies since the credit crisis will also be discussed.

Course Objectives


• Describe the features and characteristics of ABS

• Evaluate issuer and investor applications

• Discuss fundamental pricing concepts

• List the major categories of collateral classes

• Identify the risks associated with ABS








Duration: 1 day



Mortgage Backed Securities

Mortgage Backed Securities (MBS) is one of the largest fixed income sectors, second only to U.S

Treasuries. This course evaluates the features of MBS, such as prepayments, and their impact on

valuation. Risks measurements including effective duration, effective convexity and option

adjusted spreads are explored. Bloomberg screens are used to solidify the major points.

Collateralized Mortgage Obligations (CMOs) are also examined. The course will primarily focus

on agency MBS, but private labels will be introduced, and their features and characteristics

discussed. Agency Collateralized Mortgage Obligations (CMOs) are examined utilizing parts of a

prospectus to highlight the major features. Finally, how these instruments may fit into a fixed

income portfolio strategy will be explored.

Course Objectives


• Identify the features and characteristics of agency MBS, CMOs and private label MBSs

• Analyze prepayment dynamics and the respective measurements:

o SMM, CPR, and PSA

• Discuss the variety of risk measurements associated with MBS’s

• Analyze Bloomberg screens available to market practitioners for investment and risk

management purposes

• Evaluate basic structures of CMOs

• Describe portfolio management strategies








Duration: 1 day



Securitization

This course is designed to provide an introduction to Securitization. The course starts off by

discussing a generic securitization structure and the motivations for issuers and investors. The

process of bringing a new issue to market will be discussed. Credit and prepayment performance

of underlying collateral, including residential and commercial mortgages, are examined. Re-

REMICS will be explained. Risk and return measures will be analyzed.

Course Objectives


• Explain the features and characteristics of securitization

• Differentiate between securitization and asset backed securities

• Identify the main applications of securitization

• Recognize the main risks

• Discuss the main terminology used in the marketplace

• Identify the different structures in the market








Duration: 1 day



Convertible Bonds and Equity Linked Securities (ELS)

Convertible bonds are a unique and complex asset class which combine, in a single instrument,

components of fixed income debt, common stock, and equity and fixed income options. This

program is designed to take the mystery out of convertible bonds and similar equity linked

securities and encourages participants to explore the structure and mechanics of these securities,

why companies issue them (often in conjunction with other securities or derivatives), why different

investor classes purchase them, the drivers of pricing and valuation, and an awareness of

embedded risks. Goals include understanding key dynamics in common sense and less quantitative

ways, and in gaining sufficient confidence to engage others on the topic in a professional manner.

Participants should expect an interactive and case-oriented format.

Course Objectives


• Discuss terminology and structure of convertible bonds and ELS

• Describe their pricing in common sense non-quantitative ways

• Explain why companies issue convertible bonds and ELS

• Discuss applications of convertible bonds and ELS

• Identify embedded risks associated with these products


• Fixed Income






Duration: 1 day



Structured Products and Their Applications

This course defines convertible bonds, warrants and structured securities such as equity-linked

notes. The typical features and characteristics of a convertible bond are examined and benefits

to issuers and investors are identified. The calculation and interpretation of a convertible’s

premium and parity are presented. Market factors affecting the value of a convertible are

explored. Various convertible trading strategies such as convertibles/equity switches, asset swaps

and convertible arbitrages are analyzed. The discussion then turns to warrants, describing the

features and characteristics of a warrant and the differences between warrants and options. How

a warrant’s premium, parity and breakeven are calculated and interpreted follows. Equity-linked

structures are then introduced including principal protected notes and preferred equity

redemption cumulative stock.

Course Objectives


• Define structured products

• Explain the fundamental building blocks

• Apply basic derivatives and be able to construct structured products

• Discuss the fundamentals of pricing

• Identify the risks associated with these products







Duration: 1 day





Robo Advisers and the RIA Environment

This course delves into the environment for Registered Investment Advisers and the rise of Robo

Advisers. Participants will walk away understanding how Robo Advisers work and how the RIA

environment is changing as a result of trends like the disintermediation of many investment

companies today. The course will also delve into how the regulatory and competitive situation has

evolved for RIAs in the market. The course entails a significant amount of case work.

Course Objectives


• Discuss the market situation that has led to the rise of Robo Advisers

• Assess the risks and benefits of Robo Advisers for investors

• Explain how the broader RIA industry has evolved over the last decade

• Describe trends in the RIA industry which may impact the future of the space


• Exchange Traded Funds

• Wealth Management





Duration: 1 day



Wealth Management Industry

The term wealth management is thrown around plenty, in the boardrooms of private client firms, in

trade and mainstream articles and by financial advisers in front of clients. Still, most professionals

are hard pressed to actually define the term with any degree of precision. Wealth management

is the ability of an adviser or advisory team to deliver a full range of financial services and

products to an affluent client in a consultative way. Financial advisers are increasingly embracing

wealth management as a way to provide additional services to clients and broaden the range of

their practices. This course explores the industry and what regulators and practitioners need to

know about it.

Course Objectives


• Describe the tools used in wealth management

• Differentiate between wealth management and financial advising

• Describe key benchmarks and processes used by wealth managers

• Discuss costs and benefits of wealth management for individuals

• Develop a sample wealth management plan and explain the risks inherent in the plan

• Appraise market cycles and applicable strategies in each stage of the cycle


• Robo Advisers and the RIA Environment





Duration: 1 day


APPENDIX — Course Descriptions in Alphabetical

Order

Appendix


APPENDIX — Course Descriptions in Alphabetical Order

Algorithmic and High Frequency Trading ................................................................................... 142

Alternative Investments in Portfolio Management .................................................................... 134

Annuities — Return of a Pre-Financial Crisis Product ............................................................... 100

Anti-Money Laundering/Anti-Terrorist Financing (AML/ATF) Compliance ........................... 160

Applied Regulatory Stress Testing Techniques ............................................................................... 8

Artificial Intelligence in Finance ...................................................................................................... 18

Asset Allocation ............................................................................................................................... 135

Asset Backed Securities.................................................................................................................. 194

Asset Liability Management (ALM) and Risk Management in Insurance Companies ......... 101

Asset Liability Management (ALM) in Banks ................................................................................... 9

Basel III for Banks and Non-Banks ................................................................................................. 10

Basel III Framework .......................................................................................................................... 11

Beyond the Trade Lifecycle — Operations Uncovered .......................................................... 116

Big Data — Advanced .................................................................................................................. 144

Big Data — Intermediate.............................................................................................................. 145

Big Data ........................................................................................................................................... 143

Blockchain Technology in the Capital Markets ............................................................................ 20

Blockchain, Bitcoin, and Cryptocurrencies..................................................................................... 19

Bond Math .......................................................................................................................................... 90

Broker/Dealer Compliance ........................................................................................................... 161

Business Intelligence (BI) — The Fundamentals of BI, What it Does, and Why It’s So

Essential ...................................................................................................................................... 146

Capital Adequacy (CCAR) and Stress Testing (DFAST) ............................................................. 12

Clearing Houses, Settlement Systems and Depositories .......................................................... 119

Collateral Management ................................................................................................................ 117

Collateralized Debt Obligations ................................................................................................... 56

Commercial Real Estate Lending .................................................................................................... 42

Commodities Markets ....................................................................................................................... 30

Conducting an Internal Forensic Audit — A How-to Primer .................................................... 162

Consumer Credit ................................................................................................................................ 43

Convertible Bonds and Equity Linked Securities (ELS) .............................................................. 198

Corporate Actions ........................................................................................................................... 118

Corporate Capital Structure — Advanced.................................................................................. 37

Corporate Capital Structure ........................................................................................................... 36

Corporate Finance — Mergers and Acquisitions ........................................................................ 39

Corporate Finance ............................................................................................................................ 38

Corporate Governance for Financial Institutions....................................................................... 178

Corruption, Fraud, and Cyber Crime — How Market Integrity is Impacted....................... 163

Counterparty Credit Risk ................................................................................................................. 44

Credit Default Swaps — Single Name and Index ..................................................................... 57

Appendix


Credit Derivatives — Advanced .................................................................................................... 59

Credit Derivatives ............................................................................................................................. 58

Credit Portfolio Risk Management ................................................................................................ 45

Credit Risk Analysis — Banks ......................................................................................................... 46

Credit Risk Analysis — Corporates ............................................................................................... 47

Credit Risk Analysis — High Yield ................................................................................................ 48

Credit Risk Analysis — Municipals................................................................................................. 49

Credit Risk Analysis — Wholesale Credit for Small to Medium Enterprises (SMEs) ............ 50

Credit Risk Modeling ........................................................................................................................ 51

Credit Trading Strategies ............................................................................................................... 60

Crowdfunding and Online Lending ............................................................................................... 52

Crypto Wallet ................................................................................................................................... 21

Cybersecurity, Cybercrime and Information, and Data Compliance .................................... 164

Data Analysis ................................................................................................................................... 147

Derivatives — Applications in Equity and Bond Portfolio Management .............................. 136

Derivatives ......................................................................................................................................... 62

Detecting Early Warning Signs ...................................................................................................... 53

Dodd-Frank Act ............................................................................................................................... 166

Due Diligence — How to Gather and Utilize Information to Make Informed Decisions ... 167

Economic Forecasting ........................................................................................................................ 74

Economic Issues for Equity Investors ............................................................................................... 75

Electronic Trading ............................................................................................................................. 22

Emerging Markets ................................................................................................................................ 2

Emerging Trends in Securities Fraud............................................................................................ 168

Energy Markets ................................................................................................................................. 31

Enterprise Risk Management......................................................................................................... 179

Equity Derivatives ............................................................................................................................. 63

Equity Markets ................................................................................................................................... 80

Equity Modeling ................................................................................................................................ 81

Equity Valuation ................................................................................................................................ 82

Exchange Traded Funds — Advanced ....................................................................................... 113

Exchange Traded Funds ................................................................................................................ 112

Fails and Fails Management ......................................................................................................... 120

Fiduciary and Fiduciary Principles ............................................................................................... 180

Financial Modeling ........................................................................................................................... 83

Financial Statement Analysis — A Critical View ........................................................................ 87

Financial Statement Analysis — Insurance Companies — Overview ................................... 102

Financial Statement Analysis ........................................................................................................... 86

Fintech Innovation — How to Keep Pace with Rapidly Evolving Digital Finance

Technologies .............................................................................................................................. 169

Fixed Income Derivatives................................................................................................................. 64

Fixed Income Portfolio Management .......................................................................................... 137

Fixed Income ...................................................................................................................................... 91

Appendix


Foreign Currency Exchange (Forex) Lifecycle Compliance ..................................................... 170

Foreign Exchange — Spot and Forward FX and Their Applications ...................................... 96

Foreign Exchange Options .............................................................................................................. 97

Fundamentals of Insurance ............................................................................................................ 103

Fundamentals of the Capital Markets/Securities Industry ........................................................ 23

Futures and Forwards ....................................................................................................................... 65

Global Securities Clearance and Settlement ............................................................................ 121

Hedge Fund Compliance ............................................................................................................... 171

Hedge Fund Operations ................................................................................................................ 122

Hedge Fund Strategies — Advanced ............................................................................................. 5

Hedge Fund Strategies ....................................................................................................................... 4

Hedge Funds ......................................................................................................................................... 3

Hedging Techniques in the Capital Markets ................................................................................ 24

Initial Coin Offerings ........................................................................................................................ 25

Insurance Company Business and Financial Analysis — Level I ............................................. 104

Insurance Company Business and Financial Analysis — Level II ............................................ 105

Insurance Compliance ..................................................................................................................... 106

International Finance ........................................................................................................................ 40

Investment Adviser Compliance Essentials .................................................................................. 172

Investment Adviser Compliance Program Focus ........................................................................ 173

Leveraged Loan Fundamentals ...................................................................................................... 92

Lifecycle and Clearing of OTC Derivatives Trade ................................................................... 128

Lifecycle of a Trade — Commodities ......................................................................................... 124

Lifecycle of a Trade — Derivatives ............................................................................................ 125

Lifecycle of a Trade — Fixed Income ........................................................................................ 126

Lifecycle of a Trade — Foreign Exchange ................................................................................ 127

Lifecycle of a Trade ....................................................................................................................... 123

Liquidity Risk Management Level II — Applied Liquidity Risk Management ........................ 14

Liquidity Risk Management ............................................................................................................. 13

Loan Portfolio Risk Management ................................................................................................... 54

Macroeconomics, Central Banks, and Their Impact on Asset Values ....................................... 76

Macroeconomics, the Federal Reserve, and Fiscal Policy.......................................................... 77

Market Structure — A Micro Look ................................................................................................. 26

Market Structure and Risks .............................................................................................................. 84

Microsoft Excel for Financial Service Professionals — Advanced ......................................... 150

Microsoft Excel for Financial Service Professionals — Intermediate Level with Shortcuts,

Tips, and Tricks ......................................................................................................................... 149

Microsoft Excel for Financial Service Professionals — Introduction ...................................... 148

Microsoft Excel for Financial Service Professionals — VBA ................................................... 151

Model Risk Management ................................................................................................................. 15

Money Markets ................................................................................................................................. 93

Mortgage Backed Securities ........................................................................................................ 195

Municipal Securities — Advanced ............................................................................................... 109

Appendix


Municipal Securities ........................................................................................................................ 108

Mutual Fund Compliance ............................................................................................................... 174

Mutual Fund Operations ................................................................................................................ 129

Mutual Funds .................................................................................................................................... 114

Natural Gas Markets ....................................................................................................................... 32

Operational Risk Management .................................................................................................... 130

Option Adjusted Spreads ................................................................................................................ 67

Options — Beyond the Basics ........................................................................................................ 68

Options ............................................................................................................................................... 66

Portfolio Management ................................................................................................................... 138

Predictive Analytics ........................................................................................................................ 152

Private Equity ....................................................................................................................................... 6

Quantitative Methods — Advanced ........................................................................................... 153

Quantitative Methods for Derivatives ......................................................................................... 154

Repurchase Agreements and Securities Lending ....................................................................... 190

Risk Management — Managing Market Risk in Financial Institutions ................................... 183

Risk Management in Banks’ Capital Markets Trading Activities ............................................ 181

Risk Management in Financial Institutions — A Foundational Approach .............................. 182

Risk Management in Investment Management........................................................................... 139

Risk Management Level I — Internal Controls, ERM, and the Three Lines of Defense ...... 184

Risk Management Level II — Applied Risk Management ....................................................... 185

Robo Advisers and the RIA Environment ..................................................................................... 202

Running an Interest Rate Swap Book............................................................................................. 69

Securities Lending and Borrowing — An Operations Perspective ........................................ 191

Securitization ................................................................................................................................... 196

Smart Beta and Factor Models .................................................................................................... 155

Statistical Analysis .......................................................................................................................... 156

Structured Products and Their Applications ............................................................................... 199

Swaps — Intermediate .................................................................................................................... 71

Swaps .................................................................................................................................................. 70

Technical Analysis ............................................................................................................................. 27

Textual Analysis in Finance ........................................................................................................... 157

Trading — Market Makers, End Users and Proprietary Traders ............................................ 28

US Brokerage Operations ............................................................................................................ 131

US Power Markets ............................................................................................................................ 33

Value at Risk (VaR) — Advanced ............................................................................................... 187

Value at Risk (VaR) ......................................................................................................................... 186

Volcker Rule Compliance ............................................................................................................... 175

Wealth Management Industry...................................................................................................... 203

Yield Curve Analysis ......................................................................................................................... 94

Appendix


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