Description

This internship will introduce you to the actors, the organization and the challenges of market finance activities. He will explain to you how derivatives, foreign exchange, rates, bonds, stocks, etc. work. It will allow you to understand the standards for measuring risks linked to capital markets.

Who is this training for ?

For whom ?

Junior sales and traders, players in middle-office or back-office. Accountants, treasurers and financiers. Business consultants and project management.

Prerequisites

Training objectives

Know the main players in the financial sector

Understand how derivative products work

Understand how interest rate and bond products work

Identify the standards for measuring risks linked to capital markets

Training program

• Overview of capital markets
  • The main players in the financial sector.
  • Capital markets in the financial sector.
  • Front-office, middle-office and back-office activity office.
  • Exercise: Complete an organizational chart of the Front to Back organization of a trading department.
• Financial vocabulary and asset classes
  • Rates, bonds and foreign exchange.
  • Stocks and indices, commodities and credit derivatives.
  • Organized market and over-the-counter trading grat.
  • Derivatives, underlying products and securities.
  • Vanilla, exotic and hybrid products.
  • Exercise: Translation of situations into everyday language described in trading rooms.
• Typologies of banking derivative products
  • Swap.
  • Forward & future.
  • Repo.
  • Vanilla options (call and put) and volatility.
  • Barrier and exotic options.
  • Practical work Identification of financial products based on their description.
  • Evaluation of the residual position of a portfolio of derivative products.
• Rates and bonds products
  • The rate market and bond market.
  • Rate swap, FRA (forward rate agreement), rate future.
  • Cap-floor and swaption.
  • The yield curve.
  • Bonds, coupons, yield, duration.
  • Futures on bonds.
  • Practical work Calculation of FRA pay-off, cap-floor and swaption.
  • Calculation of yield and duration of a bond.
• Foreign exchange products and stock and index products
  • The foreign exchange market and the stock and index market.
  • Spot, forward, NDF (non-deliverable forward), foreign exchange swap.
  • Foreign exchange option, quanto option.
  • Purchase and sale of shares, dividends, future and forward.
  • Option on stocks and indices (quanto and composite), warrant.
  • Practical work Calculation of forward pay-off, NDF and options.
  • Measuring the impact of a dividend payment on the price of a share.
• P&L, market value and market risk
  • Market value (calculation principle).
  • P&L (Product & Loss): concept and components.
  • Market, credit and operational risk.
  • Sensitivities (delta, gamma, vega, theta, rho).
  • Value at Risk.
  • Stress tests.
  • Work practices Identify the parameters determining the P&L of a portfolio.
  • Calculation of P&L.
  • Calculation of market value of simple products.
  • Calculation of delta, gamma and vega.