Investment Management Training
3 days course on Financial Market, Instruments & Functioning

Our Schedule

Day 1: Capital Markets, Equity Primer
Day 2: Fixed Income Basics, Money Market Bonds Markets, Eurobonds
Day 3: Derivative Market & Forex Market



DAY 1
PERIOD: 8.00 AM to 4.00 PM
Capital Markets
  • Macro Economics & Economic Indicators
    • Gross Domestic product
    • Inflation, deflation & stagflation
    • Unemployment rate, Consumer growth, Credit growth, Housing start, Balance of payment, Fiscal & monetary Policy indicators Milton Friedman view
  • verview of Capital Markets
    • Risk & Return
    • Public & Private Capital Markets
    • Financial Instruments
    • Capital Markets Participants
    • Whole sale Bank Vs. Retail Bank
    • Private Banking Vs. Merchant Banking
Tea Break 10.40 am to 11.00
Equity Markets
  • Overview of Equities
    • Types of Equity Instruments
    • Dividend Decision
    • Primary & Secondary Markets
    • IPO Pricing
    • Stock Exchanges, Stock Quotations,
    • Investing in Foreign Stocks
    • Stock Indices
  • Trading Concepts
  • Stock Valuation Methods
    • Dividend Discount Model
    • Two stage valuation model & multistage valuation
    • Discount factor & Growth Factor
    • Required Rate of Return
    • Technical Analysis Vs. Fundamental Analysis
Home Exercise & Case study 3.00 pm to 4.00 pm
  • Concept Review Objective questions
  • Review of Microsoft valuation
DAY 2
PERIOD: 4.00 PM to 8.00 PM
Money Markets 4.00 pm to 4.30 pm
  • Overview of Money Markets (CD, Repos, Interbank, T bills, Commercial Paper)
  • Discount Vs. Interest Bearing
  • Overnight Interbank Markets
  • LIBOR Definition & Methodology
Interest Rate Forecasting 4.30 pm to 5.00 pm
  • Forecasting techniques
  • Fundamental models
  • Technical analysis
  • Yield curve theories
  • Introduction to implied forwards
Fixed Income Basics 5.00 pm to 5.40 pm
  • Cash Flow
  • Time Value of Money
  • NPV & IRR
Tea Break 5.40 pm to 6.00pm
Bonds Markets 6.00 pm to 7.30 pm
  • Overview of Bonds
  • Bond Features
  • Bond Markets
  • Risks - Macaulay duration & convexity adjustment
  • Yield & credit quality Spread
Home Exercise & Case Studies
  • Concept Review Objective questions
  • Paper on current yield curve and stagflation fear
DAY 3
Eurobonds 7.30 pm to 8.00 pm
  • Overview of Eurobonds
  • Types of Eurobonds
  • Primary & Secondary Markets
  • New Issue Pricing
  • Domestic Bonds versus Eurobonds
Derivatives Market
  • Overview of Derivatives Markets
  • Types of Derivatives
  • Features of Derivative Products
  • SWAP Risk & Capital Adequacy
  • Options - Call, Put & Combinations
  • Interest Rate Options & Swaps
  • Caps & Floor, FRA’s
  • Currency Options
Financial Futures Market
  • Purpose of Financial Futures
  • Financial Futures Valuation
  • Interest Rate Futures & Hedging Strategies
  • Stock Index Futures & Hedging strategies Currency Futures
  • Risk Management with Derivatives – Practical Examples
  • Risks Involved in Financial Futures
Forex Markets
  • Overview of Forex Markets
  • Forex Markets Participants
  • Forex Quotations
  • Factors Affecting Exchange Rates
  • Mechanics of a forward transaction
Home Exercise & Case Studies
3 days course on Derivative Basics, Currency Derivatives & Hedging Investments - Islamic environment

Our Schedule

Day 1: Derivatives Primer
Day 2: Investments - Islamic environment
Day 3: Currency Derivatives & Hedging



DAY 1
Interest Rate Forecasting
  • Forecasting techniques
  • Fundamental models
  • Technical analysis
  • Yield curve theories
  • Introduction to implied forwards
Fixed Income Basics
  • Cash Flow
  • Time Value of Money
  • NPV & IRR
Tea Break
Forwards, Futures Market & Basics
  • Fundamentals of forward Market
  • Purpose & Mechanics of Financial Futures
  • Determinants of Forward & Futures prices
  • Futures market nuances – volume, Open interest, roll overs, Interest Rate Futures & Hedging Strategies
Equity Futures & Hedging mechanism 12.00 pm to 1.00 pm
  • Stock Index Futures & Hedging strategies
  • Currency Futures
  • Risk Management with Derivatives – Practical Examples Risks Involved in Financial Futures
Lunch Break 1.00 pm to 2.00 pm
Option Fundamentals 2.00 pm to 3.00pm
  • Properties of Option Market
  • Mechanics of Option Market
  • Call & Put option
  • American & European Option methods
  • Option Pricing – Black Scholes & binomial methods
  • Option Geeks
Option Trading Strategies 3.00 pm to 3.45 pm
  • Covered call
  • Protective Put
  • Straddle & Strangle
  • Bull Spread
  • Calendar Spread
Tea Break 3.45 pm to 4.00 pm
Swaps 4.00 pm t0 5.00 pm
  • Mechanics of interest rate swap
  • Currency Swap
  • Valuation of Currency Swap
  • Credit Default Swaps
Home Exercise & Case Studies
  • Concept Review Objective questions
  • Fall of Bearing & Nick Leason’s strategy failure
  • What happened on Black Monday & the lesson learnt
DAY 2
Course Outline:“Islamic way of Investment”
Overview of Islamic Financial System –Shari’ & Tabi Principles
  • Riba, Interest and Risk (Ghorm)
  • Riba, Trade and Sadeqah
  • Gharar Versus Ghorm
  • Shariah-Named Financing Contracts
    • Musharakah
    • Mudarabah
    • Muzara'ah
    • Deferred-payment sale
    • Salam
    • leasing
Characteristics of the Shariah-Named Financing Contracts
  • Sharing contracts:
    • Fairness and balance: No Interruption of Sharing
    • Implications of Wakalah
    • Profit per agreement and losses per capital
Tea Break 10.45 pm to 11.00 pm
Islamic Banking Products
  • Al-Bai bithaman Ajil Financing
  • Islamic Hire Purchase
  • Bay’al-Inah Overdraft
  • Al-Ijarah Thumma Al-Bai (AITAB) Car Financing
  • Al Rahn Islamic Pawn Broking
  • Salam and Istisna Financing
  • Musyarakah Mutanaqisah Home Financing
Islamic Deposits Sources of Funds
  • Attractive Mudarabah Deposit
  • Hibah and Demand Deposit
  • The negotiable Islamic Debt Certificate (NIDC)
Islamic Partnership
  • Equity Financing for Islamic Business
  • Islamic Venture Capital
  • Can Islamic banks really practice Musyarakah?
Lunch Break 1.00 pm to 2.00 pm
Legal Aspects of Islamic Banking
  • A need for Shariah trained Economists
  • Legal Disputes in the Islamic Banking Business
Islamic Bonds
  • Islamic Capital Market
  • Islamic Stock Market Index
  • Ethics & Stock Market
  • Investment s in Shariah Stocks – the moral factor
  • Shariah Stock Screening
  • Islam & Financial Derivatives –Qabd & Futures Contract
Tea Break 3.45 pm to 4.00 pm
Islamic Securitization and Sukuk
  • Bay’al Dayn and Islamic Bonds Secondary trading
  • AL Ijarah Munthahia Bittamleek Syndicated Facility
  • Structuring Islamic Bonds
  • Islamic Bonds – Fixed Coupons and Capital Protection.
  • Islamic Debt Securitization.
  • Islamic Fund management
  • Khiyar al Aib – An option to cancel the contract.
  • Currency Trading in Islam
Social Obligation of Islamic Banks
  • Assets that can be securitized - physical assets, material bligations, financial and material rights, usufructs and liquid assets
  • Shariah conditions for negotiability.
  • Objectives of securitization.
  • Securitization and liquidity.
  • Agents of securitization, or who can securitize?
  • Private Corporations
  • Islamic and conventional banks
  • Central banks and monetary authorities
Case Studies
  • Muqaradah Bonds
  • Mudarabah certificates
  • Shahamah and Shamam
DAY 3
Course Outline:“Currency Derivatives Hedging & Strategy”
Fundamental Analysis :Strength & Weakness of Traditional Exchange rate Model
  • Purchase Power Parity
  • PPT & Real Exchange Rate
  • The Monetary Approach
  • Interest Rate Approach
  • The Balance of Payment Approach
  • Gold Standards
  • Bretton Wood
  • The Fed
  • Exchange Rate Regimes – Fixed & Floating
  • Fixed & pegged exchange rate regime
  • The arrival of Euro
Two ways to Trade Forex & Regulations
  • Currency Futures
  • Contract Specifications
  • US Dollar Index
  • Regulation in the Forex Market
Tea Break 10.45 pm to 11.00 pm
Forex Lexicon
  • Currency Pairs
  • Major Currency & Minor Currency
  • Cross Currency
  • Base Currency
  • Currency Quote
  • Pips, Ticks & Margins
  • Bid, Ask & Spread
Order Management
  • Market Order
  • Limit Order
  • Stop Order
  • Order Placement & Execution
  • Open orders
Technical Analysis
  • Overview
  • Bar Charts
  • Trend lines
  • Support & Resistance
  • Reversal Pattern
  • Candlestick Chart
  • Point & Figure Chart
  • Indicators & Oscillators
  • Relative Strength Indicators (RSI)
  • Momentum Analysis
  • Moving Average
  • Bollinger Bands
  • Wave & Swing Analysis
  • Trading System
Lunch Break 1.00 pm to 2.00 pm
Technical Analysis – The Art of Charting
  • Basic Concepts
  • Challenge of Technical Analysis
  • The Art of Charting
  • Technical Analysis & Currency Market Practitioners
Currency Economics
  • Efficient Market
  • Speculation & exchange Rates
  • The J – Curve
  • The Real Effective Exchange Rate
Managing Currency Risk – Corporate Treasury FX strategies
  • Currency Risk
    • Transaction Risk
    • Translation Risk
  • Measuring Currency Risk – VaR & beyond
  • Hedging Strategies
    • Hedging Transaction Risk
    • Hedging the Balance Sheet
  • Benchmark for Currency Risk Management
Tea Break 3.45 pm to 4.00 pm
Managing Currency Risk – The Investor
  • Investor & Currency Risk
  • To Hedge or not to Hedge?
  • Absolute Returns – Risk Reduction
  • Passive Currency Management
  • Selection of Currency Hedging Benchmark
  • Relative Return – Adding Alpha
  • Active Currency Management Strategies
    • Differential Forward Strategies
    • Trend Following Strategies
  • Optimization of Carry Trade
  • Emerging Market & Currency Hedging
Managing Currency Risk – The Speculator
  • Interbank Dealer
  • Proprietary Dealers
  • Hedge Funds
  • Corporate Treasurers
  • Currency Overlay
Case Studies
  • Asian Currency Crisis
  • Concept Review Objective questions
3 day Training Program for a broking house in Abu Dhabi

Our Schedule

Day 1: Introduction to Market & Instruments
Day 2: Markets, Settlements Retails & Institution broking
Day 3: Broking Organization, Portfolio Mgmt & ADSM Laws



DAY 1
MORNING SESSION 9.00 am to 1.00 pm
INTRODUCTION TO CAPITAL MARKET...
  • Introduction to Macro-Economic Concepts
  • Investment Rationale
  • Capital Providers
  • Security Market
  • Security Market Instruments
  • Foreign Exchange Market
  • Market Intermediaries
  • Market Regulation – A global perspective
SECURITIES MARKET INSTRUMENT
  • Equity Market & Instruments
    • Shares
    • Debt Instruments
    • Other Securities
    • Derivatives
  • Debt Instruments
    • Government Debt
    • Corporate Debt
    • Euro Bonds
  • Benchmark , Computations & Market Data
  • Global Subscriptions – American, Global Depository Receipts
  • Derivatives
  • Exchange Traded Funds (ETF’s)
ACCOUNTING ANALYSIS........
  • Basic Principles of Accounting
  • Balance Sheet & analysis
  • Profit & Loss Statement
  • Cash Flow Statement
  • Financial Statement Analysis
Evening Session - Review & Exercise...................4.00 pm to 6.00 pm.
Practical Test
Lab – Black Monday

DAY 2
Morning Session 9.00 am to 1.00 pm
Primary & Secondary Market.
  • Method of Trading
  • Market in Financial Instruments Directive
  • Capital Requirements Directive (CRD)
  • Pre & post trade transparency Requirements
  • Transaction Reporting
  • London Stock Exchange (LSE) UK Equity
  • AIM & Regulations
  • London Stock Exchange International Equity Market
  • Other Equity Market
  • Dealing Methods
  • Market Data
  • Regulatory Information and Financial Communication
New Issues
  • Primary market & listing (New)
  • Prospectus
  • Bond Offering
  • Share Capital &changes to share ownership
Market Participants - Institutions
  • Relationship between Stock Exchange & Markets
  • Prime Brokerage & Equity Financing
  • Market Participant – Insurance Companies
  • Market Participant – Pension
  • Market Participant - Registrar
  • Market Participant – Depositories
Settlement
  • Settlement Process
  • Settlement process players and participation
Broker’s Guide to Equitor
Evening Session - Review & Exercise...................4.00 pm to 6.00 pm.
Practical Test
Lab – Current crisis & New Normal

DAY 3
Morning Session 9.00 am to 1.00 pm
BROKING ORGANISATIONS

  • Functions of a Typical Broking Outfit
  • Broker & Abu Dhabi Stock Exchange Relationship
  • Trading, Settlements & Reports
  • Exchange Certification Process
  • Corporate Actions
  • Ethics & Code of Conduct
Theory of Markowitz Portfolio Management & Risk Reduction
  • Diversification, RISK, Portfolio Hedging & Risk Reduction
  • Fundamentals of Risk Management
  • Concepts of Fundamental Analysis
  • Outline on Fundamental Analysis
  • Portfolio Management concepts – Efficient Frontier
  • Derivative Hedging Mechanism
  • Investment Management
  • Institutional Investment Advice
ADSM LAWS, Regulations & Rules
  • Abu Dhabi Stock Exchange – an Introduction
  • FEDERAL LAW NO. (4) ISSUED 29TH JANUARY 2000
  • EMIRATE LAW NO. (3) ADSE Establishment
  • ADSM - REGULATIONS
  • ADSM - RULES
  • Special Regulation for Takeover & Merger
  • Disclosure of interest
Evening Session - Review & Exercise...................4.00 pm to 6.00 pm.
Practical Test
Lab – Failure of LTCM