Understanding the Financial Markets e-learning

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Title Time

Course Overview.

- Welcome and About Me: Mark Raffaelli CFA®, FRM®. 01.15
- Course Rationale, Target Audience & Pre-requisites. 02.27
- Course Overview 07.59
- Clients and Comments 00.42

1. Taking your first steps in the Financial Markets.

1.1 Section overview 03.06
1.01 Stating the not so obvious.  
Keywords:
  • Why you need yo know about money and investing.
  • Getting used to the big words / jargon.
  • Why there is No Free Lunch.
  • Scams.
 03.59
1.02 Where did money come from?   
Keywords:
  • Barter
  • Commodities
  • Inconvenience of Barter
  • Precious Metals
  • The big deal abount gold.
  • Weighing gold.
  • Coinage and minting
 07:01
1.03 Goldsmiths / Banks, Coins and Paper Money.   
Keywords:
  • Banking.
  • Golsmiths.
  • "Depositing" your gold.
  • Exchanging Receipts.
  • Lending out gold.
  • Interest.
  • Getting a kickback.
  • The move to the Central Banking System.
 05:49
1.04 The Gold Standard   
Keywords:
  • Paper Money.
  • The Gold Standard.
  • Arbitrage.
  • Illegal Arbitrage.
  • Electronic Money.
 03:24
1.05 Economics   
Keywords:
  • Economics definition.
  • The 4 scarce elements
 05:13
1.06 Capitalism   
Keywords:
  • Jargon: Public Sector and Private Sector.
  • Competition.
  • How money directs production.
  • Law of demand.
  • Law of supply.
  • Opportunity cost
 08:50
1.07 Government   
Keywords:
  • Why there is no such thing as pure capitalism and communism.
  • The impact on Government on an Economic system
  • The Capitalist, Communist, Socialist continuum.
 03:18
1.08 Communism   
Keywords:
  • The classless society
  • The problem of doing away with money.
  • The planned economy.
1.09 Socialism 05:10
1.10 Economic Policy   
Keywords:
  • Economic targets.
  • GDP.
  • Fiscal Policy and Monetary Policy.
 06:29
1.11 The Big picture of the Markets   
Keywords:
  • Market Places - the big picture
 00:45
1.12 A brief look at Commodities   
Keywords:
  • Commodities.
  • Soft Commodities.
  • Hard Commodities.
  • Precious metals vs base metals.
 02:20
1.13 On-Exchange versus OTC   
Keywords:
  • Exchanges
  • Trading OTC
  • Off Exchange
 02:33
1.14 Types of Trading and the 3 key phases of a transaction   
Keywords:
  • Key phases of the trade Lifecycle
  • Physical Trading and the "floor".
  • Screen and Telephone - Reuters and Bloomberg
  • Auctions
  • Electronic Trading
 04:29
1.15 Clearing a trade   
Keywords:
  • Clearing
  • Preparing for settlement.
 00:58
1.16 Settlement: Trading Spot versus a Derivative   
Keywords:
  • Understanding the word "Spot"
  • Spot Trading
  • Spot conventions locally and globally
  • Derivatives
 04:00
1.17 Business day conventions   
Keywords:
  • Business Day Convention
  • Next Business Day
  • Modified Following convention
  • Preceding Convention
 03:57
1.18 Section Summary 03.59

2. The Capital Markets.

2.01 Section overview 03.59
2.02 Introduction to the Capital Markets   
Keywords:
  • Introduction
  • Its all about making money.
 01:12
2.03 Putting together a business.   
Keywords:
  • The Business Plan Overview
  • Business Survival Rates
 01:17
2.04 The Business Plan: Strategic Issues   
Keywords:
  • The 4 P's
  • Your USP.
  • Value Proposition.
  • Customer Flow.
 04:03
2.05 The Business Plan: The Industry Issues.   
Keywords:
  • The Industry
  • Competiton
  • Speaking to the Buyers
  • Barriers to entry and Leglislation
 03:26
2.06 The Business Plan: Financial & Operational Issues.   
Keywords:
  • The Financial Issues.
  • Projected revenues and expenses.
  • How much cover to need - Working capital.
  • Opearational issues.
 03:13
2.07 The Business Plan: Risk & Personal Issues.   
Keywords:
  • Risk Issues.
  • Personal Issues.
  • Putting cover in place.
 02:44
2.08 Bad Reasons to set up a business!   
Keywords:
  • Being your own boss.
  • Hours you work.
  • Risk.
 01:16
2.09 Common Sense advice about setting up a business.   
Keywords:
  • Cash is king.
  • Testing the water.
  • Patents.
  • One step ahead.
  • Continually Learning.
  • Passion
 02:25
2.10 Jargon: Assets & Liabilities.   
Keywords:
  • Understaning Assets
  • Debtors, Inventory etc
  • Liabilities
  • Creditors and debts
 02:00
2.11 Raising Finance   
Keywords:
  • Sourcing the money
  • Raise Finance
  • Funding
  • Debt vs Shares
 01:45
2.12 Jargon: Book Value,Capital & Business entities.   
Keywords:
  • Capital
  • Net Worth
  • Book Value
  • Owners Equity
  • Loan stock
  • Types of Business entities
 03:28
2.13 Sole Proprietor   
Keywords:
  • Employees who earn extra income
  • The risk and consequences of being a Sole Proprietor
 02:10
2.14 Partnership   
Keywords:
  • Understanding Parternerships
  • Taxing the individuals
  • Liquidation of the partnership
 02:26
2.15 Private Companies   
Keywords:
  • Ownership
  • Share of profits
  • Voting
  • Reserves & Retained Earnings
 01:10
2.16 Limited Liability and Directors   
Keywords:
  • Directors.
  • Limited liability.
  • Assets belong to the company.
  • Solicitation of money.
 02:26
2.17 Public Companies   
Keywords:
  • PLC & LTD
  • Dealing with the Public
 02:43
2.18 Authorised Shares VS Issued Shares   
Keywords:
  • Defining Autorised vs Issued Shares
 02:52
2.19 Market Value vs Book Value of Shares   
Keywords:
  • Examples of the Book value versus Market value.
  • Valuation looking forward vs valuation at the present.
 04:55
2.20 Selling your Company   
Keywords:
  • Examples of how shares are issued and sold
  • Cashing in.
 04:45
2.21 The Liquidation Ranking.   
Keywords:
  • Absolute Priority Rule
  • Senior
  • Junior
  • Subordinated Debt
 05:49
2.22 Summary: Key features of Shares/Equity 01:24
2.23 Close Corporations.   
Keywords:
  • Close Corporation explanation
  • Members
  • CC's in the future
 01:17
2.24 The Start of the Book Build   
Keywords:
  • The Investment Bank
  • Beauty Contest
  • Lead manager / Underwriter
 3:08
2.25 Due diligenge & Prospectus   
Keywords:
  • Explanation of the Due diligence process
  • Filing
  • The Road Show / Book Build
 02:59
2.26 The Roadshow   
Keywords:
  • Making shares available to the public
  • Subscribing
  • Many versus few few shareholders
  • Underwiting
  • Best Effort Underwriting.
 05:00
2.27 Listing on a Exchange   
Keywords:
  • Explanantion of Listing
  • Listing Requirements
 01:38
2.28 Understanding Financial Instruments, Financial Securities, Financial claims   
Keywords:
  • Floating a Company.
  • Scrip.
  • Certificates.
  • Financial Instruments.
  • Financial Securities.
  • Financial Claims.
 01:10
2.29 Primary Market vs Secondary Market   
Keywords:
  • Explanation of Primary vs Secondary markets
  • Pari Passu
2.30 Private Placement 00:51
2.31 Raising Finance through Debt   
Keywords:
  • Quoting Interest rates
  • Accrued Interest
  • Amortising loans
  • Scheduling the payments
 03:27
2.32 How Governments and Corporates Borrow Money.   
Keywords:
  • Nominal, Principal, Face Value, Par value
  • Fixing interest rates
  • Floating Rate Notes
  • Coupons & coupon clipping
  • Defn: Money Markets, Notes, Bonds
  • Debt Securities, "Claims" and "Instruments"
  • Marketable and Negotiable
00:51
2.33 The process of Raising Debt Finance.   
Keywords:
  • Auctions
  • Primary dealers & Market Makers
  • Roadshows and placing document
 05:27
2.34 Debt - Primary & Secondary markets 011:27
2.35 Why we say buying and selling debt rather than lending and borrowing. 02:59
2.36 How do you determine the appropriate interest charge?   
Keywords:
  • Income Statement and Earning Ability
  • Balance Sheet - Net Worth. What can we take?
 00:56
2.37 Credit Buckets   
Keywords:
  • Credit Risk
  • Credit Risk Classification
 04:46
2.38 Credit Ratings   
Keywords:
  • Rating Agencies
  • Understanding the Rankings
 03:10
2.39 Local debt vs foreign debt.   
Keywords:
  • Soverign Rating
  • Local and Foreign Ratings
  • National Ratings
 02:06
2.40 Why do we refer to the Risk free rate (errorneoulsy)? 01:48
2.41 Investment Grade vs Speculative grade / junk. 01:02
2.42 Ranking the individual issues from an issuer 00:29
2.43 Yield to maturity: Other criteria to consider.   
Keywords:
02:36
2.44 Digging Deeper into the Money Markets: Intro   
Keywords:
  • The Fixed Rate
  • Who is borrowing?
 03:55
2.45 Understanding how banks make money   
Keywords:
  • Inter Bank Markets
  • Deposit Taking Institutions
 02:43
2.46 A run on a bank. 01:01
2.47 Regulatory requirements imposed on Banks.   
Keywords:
  • The Reserve Requirement
  • The Liquid Asset Requirement
  • The Basel Accord
 04:25
2.48 The Interbank market   
Keywords:
  • O/N
  • T/N etc
  • Broken Dates
 04:15
2.49 Understanding NCD's 04:18
2.50 Explanation of LIBOR & JIBAR   
Keywords:
  • Definition of Libor and Jibar
  • Credit Spread
  • Euro Libor vs Euribor
 05:59
2.51 A Taste of the Different Types of Money Market Instruments and Bonds   
Keywords:
  • Government / Treasury Bills
  • Commercial Paper
  • Treasury Bonds
  • Corporate Bonds
 06:34
2.52 The Global Debt Crises   
Keywords:
  • A Greek Analogy
 04:45
2.53 Yield To Maturity   
Keywords:
  • Discount
  • Premium
  • Par
 09:40
2.54 Wrap: Financing through Debt vs Equity   
Keywords:
  • Dilution
  • The Financial Markets Lifecycle
 03:23
2.55 A Look at Some Corporate Actions   
Keywords:
  • Classes of shares
  • Preferred Shares
  • Convertible Bonds
  • Convertible Bonds
 08:04
2.56 Section Summary 03.59

3. An Introduction to Trading

3.01 Section overview 03.59
3.02 Introduction to Trading 00:44
3.03 My Word is my Bond   
Keywords:
  • Setting the scene for our "trading market"
 01:33
3.04 Agency Style Trading 01:08
3.05 Principal Trading and the Bid Offer Spread.   
Keywords:
  • Making a double
  • Making a market
  • Making a two way price
  • Bid & offer
 02:04
3.06 Flow Style Trading 02:47
3.07 Prop Style Trading 00:48
3.08 The Quote Convention and Depth   
Keywords:
  • The Quote
  • Standard Size
  • Depth
 03:24
3.09 Taking the Offer   
Keywords:
  • Take
  • Mine
  • Pay
  • Long
 1:32
3.10 Giving the Bid   
Keywords:
  • Yours
  • Give
  • Short
 1:07
3.11 Long Positions 1:04
3.12 Short Positions   
Keywords:
  • Selling Stock you don't have!
 2:44
3.13 Naked Short Selling and why it is cool.   
Keywords:
  • Securities Borrowings / Lending
  • You probably sell short in your own life every day
 4:10
3.14 Naked Short Selling- A more realistic example 4:10
3.15 Arbitrage & Choice Prices 3:25
3.16 Some more Quote Etiquette 00:45
3.17 Trading: Art or Science?   
Keywords:
  • Bulls and Bears
  • Reading your counterparty
  • Positioning your quote
 03:01
3.18 Hedging 01:41
3.19 Delta Hedging 02:48
3.20 Speculating 01:22
3.21 Section Summary 03.59

4. An Introduction to Repos/ Carries / BuySell-Backs.

4.01 Section overview 03.59
4.02 Introduction & Definition   
Keywords:
  • The House analogy
  • Collateral
 01:58
4.03 Repos vs Collaterallised Loans   
Keywords:
  • Haircut
  • Why a Repo is not a Collateralised Loan
  • Sale and Repurchase Agreement
 2:46
4.04 The 2 legs of the Repos   
Keywords:
  • Repo vs Reverse Repo
  • Coupon Payments for a traditional Repo
 02:27
4.05 Brief recap of what we know about Repos so far.   
Keywords:
  • Typical Length of a Repo
  • Recap of components and legs
  • Liquidation
 01:40
4.06 Repos vs Carries vs Buy Sellbacks   
Keywords:
  • How we manage the coupon in a Traditional Repo
  • How we manage the coupon in a Buy SellBack
  • Manfactured dividend
 03:40
4.07 How Portfolio Managers enhance returns with Repos. 02:35
4.08 Trading Short and using Repos 04:35
4.09 Going Long and using Repos. 03:29
4.10 Section Summary 03.59

5. An Introduction to Investments and Investment Management

5.01 Section overview 03.59
5.02 Investment vs Speculation   
Keywords:
  • Investing and Diversification
  • Specualtion and Concentration
  • Get Rich Schemes
  • Investment Returns
 06:12
5.03 Asset Classes   
Keywords:
  • Definition of Asset Classes
  • Traditional Asset Classes
  • Alternative Asset Classes
 03:43
5.04 Investment Management   
Keywords:
  • Differnt Names for Investment Managers
  • Management Fees
  • Assets Under Management (AUT)
 01:48
5.05 Broad Categories of Fund Management. 01:16
5.06 Setting up a Fund and Trustees   
Keywords:
  • Asset Consultant
  • Seperate entity from the Company
  • The Plan Sponsor
  • The Trustees
 02:58
5.07 The Investment Mandate 03:39
5.08 Some important Investment Mandate Provisions 03:01
5.09 Appointing the Asset Manager 01:26
5.10 Buy side vs Sell Side Analysts 01:02
5.11 Outsourcing External Asset Managers 02:04
5.12 Jargon: Bulls vs Bears 01:45
5.13 Jargon: Market Capitilisation 01:02
5.14 Market Indices: Definition   
Keywords:
  • What are Indices
  • Broad Based Indices
 03:19
5.15 Types of Market Indices   
Keywords:
  • Sectors
  • Style Indices
 04:18
5.16 Ethical & Environmental Market Indices 01:03
5.17 Index Construction   
Keywords:
  • A Picture Analogy
  • Free Float Liquidity
 03:08
5.18 Price Weighted Indices 02:33
5.19 Value Weighted Indices 01:10
5.20 Total Return Indices 00:37
5.21 Relative vs Absolute Return 00:29
5.22 Long only Funds 00:41
5.23 Hedge Funds / Long Short Funds 05:05
5.24 The Problem of Tracking the Benchmark 01:36
5.25 Active vs Passive Investing. 01:37
5.26 Introduction to Unit Trusts 02:19
5.27 Section Summary 03.59

6. Understanding Retirement and Retirement Funds

6.01 Section overview 02.41
6.02 The big picture of retirement.   
Keywords:
  • Passive Income.
  • How much do you put away?
  • Replacement income and retirement gap.
  • Catering for the average.
  • Average lifespan and how it is changing.
 06:56
6.03 If you won the lotto, how would you know if it is enough to retire? 05:12
6.04 Retirement Schemes: Defind Benefit   
Keywords:
  • Benefit Plan and SuperAnnuation.
  • Schemes: Defined Benefit funds vs Defined contribution.
  • Looking at Defined Benefit.
 11:57
6.05 Retirement Schemes: Defind contribution (and taxation on contributions)   
Keywords:
  • Looking at Defined Contribution.
  • Taxation on contributions
 07:01
6.06 Pension funds versus Provident Funds   
Keywords:
  • How the Pension fund works on Retirement.
  • One third \ Two thirds.
  • Compulsory Pension Annuities.
    • Getting involved
  • Taxation when you retire.
  • Living annuities.
  • South African Provident funds.
 14:08
6.07 Retirement Annuities   
Keywords:
  • The old days versus the new days.
  • "Wrapping."
  • Advantages and Disadvantages of Retirement Annuities.
 09:04
6.08 Retirement funds: What if I Resign?   
Keywords:
  • Preservation funds and over options.
 03:14
6.09 Finding the balance and getting involved. 01:37
6.10 Section Summary 03.41

7. Types of Market Analysis and a Brief Look at Specualtion

7.01 Section overview 03.59
7.02 Intrinsic Value   
Keywords:
  • Traditional Flow
  • Determining the Fair Value
 03:56
7.03 Expected versus Unexpected Returns 04:58
7.04 Taking account of surprises 01:16
7.05 The Different Types of Analysis. 02:58
7.06 Fundamental Analysis. 00:38
7.07 Technical Analysis.< 01:55
7.08 Principles of Technical Analysis 01:03
7.09 Charting: Line Charts. 01:41
7.10 Charting: OHLC Charts. 01:41
7.11 Charting: Candlestick charts. 02:03
7.12 Wrapping up Technical Analysis. 00:28
7.13 Economic Analysis 01:24
7.14 Quantitative Analysis 00:57
7.15 Legal Analysis. 00:37
7.16 A Brief word of Speculation common sense. 01:56
7.17 Speculation: Setting up a stop loss. 01:23
7.18 Speculation: Some more Common sense 02:25
7.19 Section Summary 03.59

8. An Introduction to the Foreign Exchange (Fx) market.

8.01 Section overview 03.59
8.02 International Trade   
Keywords:
  • Imports vs Exports
  • Balance Of Payments
  • Current Account
  • Financial Account
 03:15
8.03 Spot FX   
Keywords:
  • Spot Convention for FX
  • Public Holidays
  • ISO convention
 01:56
8.04 Currency Pairs   
Keywords:
  • The Major Currency Pairs
  • Nicknames
  • Minor Currency Pairs
  • Emerging Market Currencies
 02:32
8.05 Base and Terms quotes 02:08
8.06 The Swift Convention and decimals 01:06
8.07 The FX Bid \ Offer quote and Pips 03:40
8.08 Cross Rates 01:36
8.09 Fixed Exchange Rates   
Keywords:
  • Printing Money
  • Fixed Exchange rates under the Gold Standard
 02:29
8.10 Floating Exchange Rates   
Keywords:
  • Bretton woods
  • IMF
  • Backing your currency with Dollars
  • Break from the Gold Standard
 05:48
8.11 Interest Rate Parity   
Keywords:
  • Strong versus weak currency
  • Inflation Targeting
  • Central Bank intervention
  • Inflluencing Interest Rates
 03:53
8.12 Section Summary 03.59

9. An Introduction to the Derivatives market.

9.01 Section overview 03.59
9.02 Introduction & Traditional (but incorrect) definition 01:21
9.03 Understanding Volatility and its impact on Business. 03:41
9.04 Forwards and Futures in Plain English 03:35
9.05 Options, SWAPS, FRAs and Credit Derivatives in Plain English. 04:32
9.06 Forwards 04:55
9.07 Why Futures came about 03:58
9.08 Future Contracts 00:51
9.09 Daily Settlement / Variation Margin. 05:05
9.10 Initial Margin 03:59
9.11 The Clearing House 02:29
9.12 Why I like futures 03:44
9.13 Options 01:06
9.14 Call Options   
Keywords:
  • Excercise the option
  • Premium
  • Expiry
  • Rights and Obligations
 05:03
9.15 Put Options.   
Keywords:
  • Excercise the option
  • Premium
  • Expiry
  • Rights and Obligations
 03:04
9.16 The difference between buying a call and selling a put 01:47
9.17 The Style of Options 02:37
9.18 Wrapping up options & ISDA 00:31
9.19 Section Summary 03.59

10 An Introduction to the Settlement in the markets.

10.01 Section overview 03.59
10.02 Recap of the Trade Life Cycle 02:15
10.03 The Front Office 03:16
10.04 The Middle Office 04:40
10.05 Other departments   
Keywords:
  • Static Data
  • Reconciliation
  • Compliance
  • Accounting
  • Internal Audit
 04:08
10.06 Capturing the Trade   
Keywords:
  • Trade Enrichment / Static data Defaulting
  • Validation
  • Trade Agreement and matching
  • SWIFT
 06:27
10.07 Settement: Custodians   
Keywords:
  • CSDP's
  • Instructions
  • Custodial Pre-matching
 04:22
10.08 Settlement Risk vs Settlement Failure   
Keywords:
  • Default
  • Penalities for failure
 02:44
10.09 SFIDVP vs FOP 02:45
10.10 Scrip   
Keywords:
  • Bearer
  • Registered securities
  • Transfer Agents / Seceraties
  • CSD
  • Immobilisation
  • Dematerialisation
  • NPS
 06:24
10.11 FOREX settlement   
Keywords:
  • Nostro
  • Vostro
  • CLS
 03:05
10.12 Section Summary 03.59

11. A brief look at Banks and the Central Bank

11.01 Section overview 03.59
11.02 Deposit Taking Institutions & types of Banks 01:45
11.03 Commercial Banks   
Keywords:
  • Definition of Commercial Banks
  • Services Offered
 03:35
11.04 Investment Banks   
Keywords:
  • Merchant Banking
  • Glass Steagall
  • IBD
 04:02
11.05 Investment Banks: Other Services   
Keywords:
  • Private Clients services
  • Private Equity
 04:12
11.06 Systemic Risk   
Keywords:
  • Herstatt Risk
  • The Birth of BASEL
  • Simplistic Explanation of the Basel Accord
 05:18
11.07 The Central \ Reserve Bank   
Keywords:
  • Control Inflation
  • Bank Supervisor
  • Economic Reports
  • Lender of Last Resort
  • Monetary Policy
 07:40
11.08 Section Summary 03.59

12. A very brief look at Insurance

12.01 Section Overview 00.42
12.02 Understanding Insurance 04:25
12.03 Life Insurance   
Keywords:
  • Explanation of life insurance.
  • Do you need it?
  • Tax implications
  • Types of cover.
  • Types of premiums.
  • The implications of a will.
  • Some questions to think about.
 12m21
12.04 Section Summary 02:04

13. Putting it all together in your own life

13.01 Going Forward 00:57
13.02 Personal Investment   
Keywords:
  • Rational Portfolio Approach
  • Financial Needs analysis
  • What the Financial Advisor should be doing
 03:54
13.03 Investing Yourself   
Keywords:
  • Empower yourself
  • Learn
  • Getting Rid of Debt
 05:03
13.04 Investing Yourself: Part 2   
Keywords:
  • Why paying off your home loan is a good idea
 01:18
13.05 Investing Yourself: Part 3   
Keywords:
  • Building a Reserve
  • Retail bonds
 02:04
13.06 Diversify Locally and Internationally   
Keywords:
  • Diversification
  • Adding another proprty to your portfolio
  • Equities vs Bonds
 09:49
13.07 Conduct Research   
Keywords:
  • Don't invest in something you don't understand
  • Doing your Homework
  • Be conservative with your estimates of growth after costs
 02:51

14. Everything must come to an end.

14.1 Course Wrap 01:16

15. Final Exam :)

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