Overview

The Capital Market Immersion program provides a solid and deep introduction to the global capital markets. This course is designed to deliver a comprehensive, deep-dive into the functions and roles played by modern financial institutions and their key lines of business. The program is intended for professionals (or those about to enter the business) with foundational knowledge of the industry’s basic products and service, and how each functions. 

    The program's framework consists of lectures covering 7 separate topics: 

  1. The Capital Markets Road Map - Highlights the primary participants, issuers, investors, intermediaries in capital markets, what they trade there, and the applications to which market participants make use of the instruments and the roles they play.
  2. Fundamental Financial Math - Introduces you to a wide variety of calculations and related concepts that are used by financial market participants in a plethora of applications - calculating prices, rates of return, and yields for example.
  3. Yield Curve Dynamics - Covers a variety of issues relating to yield curves, their construction, and their use in a variety of analytical applications to assess risk and return.
  4. Fixed Income Securities - Introduces you to the market for fixed income securities, provides you with a lot of details on the characteristics of fixed income securities in general, as well as discuss specific characteristics of specific sectors of the fixed income market - insurers, investors, and a wide variety of concepts relating to the analysis and validation of those securities.
  5. Equity Products - Introduces equities by providing an overview of the types of products, including both direct and indirect products; and demonstrating types of shares and exchanges, investors, diversification and volatility.
  6. Futures & Options - Introduces derivatives in general, to demonstrate the common features of derivatives and how they differ from other sorts of financial instruments. Futures and options contracts' key characteristics will be identified, and contract features, pricing, applications, risk management, and hedging will be discussed.
  7. Interest Rate Swaps - A look at interest rate swaps in detail. First, swaps in general are introduced, then the structure of the most common type of interest rate swap - the fixed or floating interest rate swap - will be addressed. A variety of different structures, pricing and valuation, and applications - both risk management and speculative - will be discussed.

In all, there are 142 total lectures (video clips) and over 24 hours of total viewable content. This program also includes supplemental PDFs as downloadable attachments that you can use to follow along with each lecture's instructor.

Learning Outcomes

At the end of this course, you will be able to...

  • Describe the players, products, markets and applications of capital markets instruments.
  • Apply all the concepts of financial math, including NPV, IRR, PV, FV, to real business problems.
  • Interpret the meaning of yield curves and how financial markets and instruments drive pricing.
  • Explain the full range of fixed income instruments, their issuers and investors, and the ways these instruments are structured.
  • Detail equity markets products, players and market dynamics.
  • Determine uses and applications of futures and options.
  • Discuss the use, structure and pricing of interest rate swaps.

Course curriculum

  • 1

    Welcome to the course!

  • 2

    Slack Channel Discussion, Help + More

    • Slack Channel - Discussion Forum
    • If (and when) you need help...
    • Joining the Alumni Community
  • 3

    Capital Markets Road Map

    • Major Market Segments and Types of Instruments FREE PREVIEW
    • Major Market Segments and Types of Instruments-Slides
    • Economic Functions of Capital Markets
    • Economic Functions of Capital Markets-Slides
    • Securities Markets and Important Market Participants
    • Securities Markets and Important Market Participants-Slides
    • Commercial Banking and Investment Banking
    • Commercial Banking and Investment Banking-Slides
    • Primary and Secondary Markets
    • Primary and Secondary Markets-Slides
    • Primary Market Offerings
    • Primary Market Offerings-Slides
    • Roles of Financial Intermediaries
    • Roles of Financial Intermediaries-Slides
    • Comparing Securities to Derivatives
    • Comparing Securities to Derivatives-Slides
  • 4

    Financial Math - Interest Rate Conventions and Time Value of Money (1/3)

    • Interest Rates and Yields
    • Interest Rates and Rates of Return
    • Interest Rate Conventions and Time Value of Money Part 1
    • Interest Rate Conventions and Time Value of Money Part 2
    • Compound Interest
    • Time Value of Money and Bond Pricing
  • 5

    Financial Math - Debt Security Pricing (2/3)

    • Pricing Zero Coupon Bonds
    • Pricing Coupon Bonds
    • Bond Pricing Versus Bond Valuation
    • Pricing Discount Securities
    • Discount Rates Versus Bond Equivalent Yield
  • 6

    Financial Math - Bond Yields and Rates of Return (3/3)

    • Bond Yields
    • Yield to Maturity
    • Yield to Maturity Versus Rate of Return
    • Yield to Maturity as an Expression of Current Value
  • 7

    Yield Curve Dynamics - Introduction to Yield Curves (1/5)

    • Introduction to Yield Curves
    • Types of Yield Curves and Yield Curve Spreads
  • 8

    Yield Curve Dynamics - Duration and its Applications (2/5)

    • Introduction to Duration
    • Types of Duration
    • Modified Duration
    • Duration Illustration
    • Duration of Callable Bonds
  • 9

    Yield Curve Dynamics - The Level of Rates and Shape of the Yield Curve (3/5)

    • Yield Curve Shapes and the Level of Interest Rates
    • Yield Curve Theories
    • Yield Curves and the Business Cycle
  • 10

    Yield Curve Dynamics - Spot Rates and Forward rates (4/5)

    • Spot Rates and Spot Rate Curves
    • Calculation of Spot Rates
    • Bond Valuation and Rich/Cheap Analysis
    • Treasury Strips and the Strip Rate Curve
    • Forward Rates
    • Calculating Forward Rates
    • Forward Rate Applications
  • 11

    Yield Curve Dynamics - Total Return Analysis (5/5)

    • Total Return Analysis
    • Total Return Analysis Illustration
  • 12

    Fixed Income Securities

    • Introduction to Fixed Income Securities and Markets FREE PREVIEW
    • The Primary Market: Issuing Bonds to Borrow Funds
    • Similarity of Bonds to Loans & Bond Valuation Issues
    • Bond Contact Features
    • Bond Coupons, Accrued Interest and Bond Pricing Conventions
    • Day Count Conventions & Bond Retirement
    • Types of Risk
    • Sources of Return & Bond Yields
    • Bond Yields, Yield to Maturity and Rate of Return
    • Yield Curves
    • Yield Curves & Government Securities
    • Government Bonds & US Treasury Securities
    • Corporate Fixed Income Securities
    • Credit Risk of Corporate Securities & Trust Indentures
    • Secured and Unsecured Bonds
    • Convertible Securities
    • Preferred Stocks & Introduction to Structured Securities
    • Asset Securitization & Introduction to Mortgage Backed Securities
    • Mortgage Backed Securities
    • CMOs & Introduction to Asset Backed Securities
    • Credit Card and Auto Loan Asset Backed Securities
    • Collateralized Debt Obligations
    • CDOs and Money Market Instruments
    • Agency Securities & Regional/Local Government Debt Securities
  • 13

    Equities Products - Introduction (1/3)

    • Types of Products/Shares
    • Buying Shares & Equities
    • Tesco Example
    • Types of Shares and Exchanges
    • Depository Receipts
    • Types of Investors, Diversification and Volatility
  • 14

    Equities Products - Equity Indices (2/3)

    • Types of Indices Part I
    • Types of Indices Part II
  • 15

    Equities Products - How to Buy the Market (3/3)

    • Tracking Funds
    • Exchange Traded Funds (ETF's)
    • Introduction to Derivatives
    • Forward Contracts
    • Futures
    • Equity Swaps
    • Options
    • Structured Products (Warrants, Certificates and Notes)
  • 16

    Futures & Options - Introduction to Derivatives (1/6)

    • Types of Derivative Contracts and Their Characteristics
    • Derivatives Compared to Securities
    • Derivatives Defined
  • 17

    Futures & Options - Introduction to Futures Contracts (2/6)

    • Futures Terminology and Contract Features
    • Physical Delivery to Close a Futures Position
    • Cash Settlement, OTC Derivatives
    • Futures Clearinghouse and Third Party Contracts
    • Futures Margins and Futures Contracts
  • 18

    Futures & Options -Future Contracts Trading and Cash Flows (3/6)

    • Clearinghouse and Futures Trades
    • Comparing Futures Versus Underlying Positions
    • Futures Position Cash Flows and Hedging with Futures
    • Futures Positions: Risk and the Cost Taking Position
  • 19

    Futures & Options - Futures Pricing (4/6)

    • Cost of Carry/Carrying Charges
    • Cost of Carry Pricing and The Forward Pricing Curve
  • 20

    Futures & Options - Introduction to Options (5/5)

    • Option Fundamentals: Contract Features and Terminology
    • Option Contract Example: Long Call Positions
    • Option Pricing Basics
    • Time Value, Intrinsic Value and Moniness
    • Short Option Positions
    • Investment Characteristic of Options
    • Overview of Long Put, Short Call and Short Put Positions
  • 21

    Futures & Options - Option Pricing and Applications (6/6)

    • Option Pricing and Sensitivities (Option "Greeks")
    • Option Deltas
    • Delta Hedging
    • Delta Neutral Hedging Example
    • Black-Scholes and Option Volatility (Vega)
    • Implied Volatility and Volatility Trading
  • 22

    Interest Rate Swaps - Introduction to Interest Rate Swaps (1/5)

    • Introduction of Swaps
    • Interest Rate Swap Basics
    • Interest Rate Swap Contract Features
  • 23

    Interest Rate Swaps - Risk Management of Floating Rate Liabilities (2/5)

    • Fixed for Floating Interest Rate Swaps
    • Periodic Settlement Payments on Interest Rate Swaps
    • Hedging Cash Flow Uncertainty with Interest Rate Swaps
    • Net Interest Cost of a Synthetic Fixed Coupon Bond
  • 24

    Interest Rate Swaps - OTC Clearinghouses (3/5)

    • OTC Clearinghouses
    • Cleared Swaps Versus OTC Swaps Ex-Clearinghouse
    • Functioning of OTC Clearinghouses
  • 25

    Interest Rate Swaps - Swap Pricing and Valuation (4/5)

    • Terminating a Swap Before Maturity
    • Interest Rate Swap Pricing
    • Pricing Fixed for Floating Interest Rate Swaps
    • Valuing Swaps, Hedging Cash Flow Uncertainty
  • 26

    Interest Rate Swaps - Risk Management with Interest Rate Swaps (5/5)

    • Managing the Cash Flow Risk of Fixed and Floating Rate Assets
    • Basis Swaps (Fixed Versus Floating Swaps)
    • Capital Market Equivalents for the Fixed and Floating Rate Payers
    • Value Hedging, Asset Swaps
    • Variations in the Structure of Interest Rate Swaps
    • Structuring and Pricing Basis Swaps
  • 27

    Quizzes

    • Quiz 1
    • Quiz 2
    • Quiz 3
    • Quiz 4
    • Quiz 5
  • 28

    Final Examination

    • Final Examination
  • 29

    Next steps

    • Congrats! Here's what's next...
    • Yippee! You're an alumnus!
    • Alumni Slack Channel