Banking and Capital Markets Fundamentals

Through this training, the participants build a core understanding of the banking world including the different types of banks and the key value drivers and performance indicators for a bank. The participants also review the role and main products of capital markets, namely equity and debt capital markets

Certificate of completion

Digital certificate - Included

• Banking and Capital Markets Fundamentals - Outline - download

Session 1

The Banking Sector

Through this session, the participants build a core understanding of the banking world including the different types of banks and the key value drivers and performance indicators for a bank. The financial statements of a bank are examined and analyzed and regulatory capital requirements are also introduced.

• How does a bank make money
• Different types of banks
  
  • Retail and commercial banks
  • Investment banks
  • Private banks
  • Other financial institutions: brokerage, asset management, private equity, hedge funds, etc.
• Bank financial statements
  
  • Comparison with a corporate
  • Key items of the balance sheet and income statement
• Role of regulatory capital
  
  • Introduction to Basel I to III
  • Available capital
  • Required capital
• Key performance indicators
  
  • Regulatory capital
  • Credit quality
  • Balance shee

Case study: Analysis of Barclays bank through its financial statements and regulatory reporting

Session 2

Capital Markets Fundamentals

In this session participants will cover the main functions of the capital markets. Most importantly, the key investors and investees are covered in detail. Participants will then examine the life of a corporate and consider the debt and equity funding options that are available.

• The role and functioning of capital markets
• Key capital market participants
  
  • Investees
  • Investors
• The corporate lifecycle and its funding options
• Introduction to Equity Capital Markets
  
  • Risk and rewards for equity investors
  • Pros and cons of equity finance
  • Return on equity and cost of equity
• Introduction to Debt Capital Markets
  
  • Risk-reward for debt investors
  • Pros and cons of debt finance
  • Return on debt and cost of debt

Session 3

Equity Capital Markets

In this session participants will cover the main products of the equity capital markets. Using a case company, the participants will tour through the equity capital markets, embracing IPOs, secondary offerings, and different share classes. Finally listing rules and some of the subtleties of the pricing of equities are examined.

• The corporate lifecycle and equity financing options
• Initial public offering
  
  • Process
  • Prospectus
  • Book building and arriving at a price
  • Quiet period
  • Stabilization and Greenshoe option
  • Modeling an IPO
• Secondary offering
  
  • Follow on placements
  • Modeling a follow on placement
• Share classes
  
  • Different classes
  • Preference shares
  • Pricing
  • Issuing shares in different markets
  • Modeling different classes of shares
• Listing rules
  
  • Key rules in main equity markets
  • Minority squeeze out
  • Compulsory purchase
• Share pricing
  
  • Cum and ex-div prices
  • Impact on multiples analysis
• Appendix: ADRs
• Appendix: Rights issues and Rights issue model

Case study: Analysis of the key features of the Facebook IPO in 2012

Session 4

Debt Capital Markets

In this session participants will cover the main debt products available to corporates. Using a case company, the debt capacity is calculated before different funding options. Both long and short term, and public and private financing options are explored. Finally, the bond issuance process and key documentation are discussed.

• The corporate lifecycle and debt financing options
• Short-term debt funding
  
  • Overdraft
  • Commercial paper
  • Revolving credit facility
• Long- term debt funding
  
  • Bank debt
  • Publicly issued bonds
• Introduction to credit spreads
  
  • Privately issued bonds
  • Credit facility agreement term sheets
• Debt financing as an acquisition currency
  
  • Bridge finance
• Debt maturity profiling
• Bond issuance process
• Bond accounting and all-in-cost

Case study: Analysis of the bond issuance of Apple since 2013

• Financial analysts in investment banks (FIG departments)
• Lateral hires in investment banks (FIG department)
• Junior or lateral hire in Equity or Debt Capital Markets (ECM/DCM)
• Junior equity research
• Junior investment managers
• Junior legal professionals
• All other interested Finance professionals

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