Capital Markets

The aim of these short product classes, which may be linked together for a full program, is to cover the "20% of information relevant 80% of the time". Our focus will be practical, putting theory into trading floor context, looking at risk/reward for pricing, client advisory and risk management. They may be useful as continuing education across the bank and new hire training.

The aim of these short product classes, which may be linked together for a full program, is to cover the "20% of information relevant 80% of the time". Our focus will be practical, putting theory into trading floor context, looking at risk/reward for pricing, client advisory and risk management. They may be useful as continuing education across the bank and new hire training.

The aim of these short product classes, which may be linked together for a full program, is to cover the "20% of information relevant 80% of the time". Our focus will be practical, putting theory into trading floor context, looking at risk/reward for pricing, client advisory and risk management. They may be useful as continuing education across the bank and new hire training.

The aim of these short product classes, which may be linked together for a full program, is to cover the “20% of information relevant 80% of the time”. Our focus will be practical, putting theory into trading floor context, looking at risk/reward for pricing, client advisory and risk management. They may be useful as continuing education across the bank and new hire training.

The aim of these short product classes, which may be linked together for a full program, is to cover the “20% of information relevant 80% of the time”. Our focus will be practical, putting theory into trading floor context, looking at risk/reward for pricing, client advisory and risk management. They may be useful as continuing education across the bank and new hire training.

The aim of these short product classes, which may be linked together for a full program, is to cover the “20% of information relevant 80% of the time”. Our focus will be practical, putting theory into trading floor context, looking at risk/reward for pricing, client advisory and risk management. They may be useful as continuing education across the bank and new hire training.

Insurance companies tend to have a bad reputation with bankers: boring, technical, old fashioned businesses, and with investors: confusing accounting disclosures, negative surprises in their results, volatile share price. Yet, insurance companies have improved their act since the internet bubble burst in 2001 and have invested in the development of advanced enterprise risk management systems. As a result, they have become sophisticated users of capital markets solutions such as derivatives to hedge their risks (not only catastrophe bonds to hedge catastrophic risk, or derivatives and dynamic hedging to hedge their financial risk, but also innovative derivatives to hedge their life longevity risk) and some of them seem to have weathered the credit crisis better than banks (with notable exceptions: AIG, monolines, sellers of variable annuities). Insurance companies are a very interesting sector for capital markets professionals because: a. they have opened up to more sophisticated solutions, b. some of the solutions are still being devised and therefore represent a potentially higher margin business. However, insurance companies’ clients often complain that bankers simply sell them the latest ‘hot product’ and are not sufficiently attuned to their specific business model, risks and needs. The purpose of this training is to simply demystify this sector, provide bankers with the jargon they need to understand insurance clients disclosure and understand how to link capital markets solutions to specific insurance companies needs.

A full-day class would include the analysis of a real life insurance company’s results with an assessment of performance, including embedded value definition and modeling.

The credit crisis has highlighted the importance and, at the same time, the limitation of hybrid securities as a source of capital for financial institutions in distress. At the onset of the crisis, some banks were quick to attract sovereign wealth funds investments with mandatory convertible notes as an alternative or in addition to private equity placements. Once the credit crisis brought some institutions close into insolvency, governments provided the much needed capital partly in the form of preference shares. Yet, as investors and rating agencies increasingly focused on net tangible equity as a measure of capital, those banks who could raised equity with large straight equity issues whilst the others reverted to converting preference shares into ordinary shares or sell assets. The regulators’ treatment of hybrid securities is still overly-complex, with different tiers of capital of different quality (Tier 1, innovative, non-innovative), not fully harmonized internationally (leading to the proliferation of bespoke increasingly complex structures) and one of the key topics of regulatory reform (improving the quality of bank capital). In this session, we discuss what regulators look for; compare it with rating agencies methodologies and with investors’ expectations.

The full-day class would include also the modeling in excel of the capital needs of a real life bank and the potential maximum contribution of different hybrid securities.

The credit crisis has highlighted the importance and, at the same time, the limitation of hybrid securities as a source of capital for financial institutions in distress. At the onset of the crisis, some banks were quick to attract sovereign wealth funds investments with mandatory convertible notes as an alternative or in addition to private equity placements. Once the credit crisis brought some institutions close into insolvency, governments provided the much needed capital partly in the form of preference shares. Yet, as investors and rating agencies increasingly focused on net tangible equity as a measure of capital, those banks who could raised equity with large straight equity issues whilst the others reverted to converting preference shares into ordinary shares or sell assets. The regulators’ treatment of hybrid securities is still overly-complex, with different tiers of capital of different quality (Tier 1, innovative, non-innovative), not fully harmonized internationally (leading to the proliferation of bespoke increasingly complex structures) and one of the key topics of regulatory reform (improving the quality of bank capital). In this session, we discuss what regulators look for; compare it with rating agencies methodologies and with investors’ expectations.

The full-day class would include also the modeling in excel of the capital needs of a real life bank and the potential maximum contribution of different hybrid securities.

The credit crisis has highlighted the importance and, at the same time, the limitation of hybrid securities as a source of capital for financial institutions in distress. At the onset of the crisis, some banks were quick to attract sovereign wealth funds investments with mandatory convertible notes as an alternative or in addition to private equity placements. Once the credit crisis brought some institutions close into insolvency, governments provided the much needed capital partly in the form of preference shares. Yet, as investors and rating agencies increasingly focused on net tangible equity as a measure of capital, those banks who could raised equity with large straight equity issues whilst the others reverted to converting preference shares into ordinary shares or sell assets. The regulators’ treatment of hybrid securities is still overly-complex, with different tiers of capital of different quality (Tier 1, innovative, non-innovative), not fully harmonized internationally (leading to the proliferation of bespoke increasingly complex structures) and one of the key topics of regulatory reform (improving the quality of bank capital). In this session, we discuss what regulators look for; compare it with rating agencies methodologies and with investors’ expectations.

The full-day class would include also the modeling in excel of the capital needs of a real life bank and the potential maximum contribution of different hybrid securities.