Formation/Cours

Introduction : Financing the economy

Two types of channels:

– Indirect financing through the banking system: loans

– Direct financing through capital markets: stocks and obligations

1) The different type of financial assets

– Fixed income assets: monetary market, obligations, /…)

– Stocks: private equity and stock market

– Derivatives and structured products

2) Basics of financial mathematics and concept of present value and Internal return rate

– Time value of money

– The concept of cost of capital

– Present value

– Internal return rate

3) Fixed income assets:

– Private and Public issues

– How to price a bond

– Risk typology: default, interest rate risk

– Spread and yield determination

– Measure of sensitivity to the changes in interest rates

– Impacts of monetary policy (central banks) to bond’s value and yield

4) Stocks:

4.1) Legal and financial aspects

4.2) Stock pricing, measure of performances and active portfolio management

– Principles of Financial analysis and business valuation

– Dividend growth model

– Discounted cashflow model

– CAPEM model

– Price earning ratio, EPS and ROE

– Value and growth strategy

– Stock picking

– Index management

4.3) Passive portfolio management

– Portfolio profitability analysis

– Portfolio risk measure

– Bêta calculation

– Markowitz diversification approach on portfolio risk

– « CAPEM »

5) Derivatives and alternative management

– Options

– Futures

– Credit default swap