Capital Markets

how to raise capital and drive M&A to accelerate digital transformation programs.

Banks earn income on the assets shown on their balance sheets. These assets include cash, loans to customers/clients, trading positions, and other investments – all of which must be funded by the bank on the liabilities and equity side of the balance sheet. This tutorial explores the various funding methods used by banks as well as the risks involved. These risks were exposed by the global financial crisis, with the result that regulators imposed strict requirements concerning bank funding and introduced a number of liquidity ratios in this regard. These are also described in this tutorial. In addition, the tutorial focuses on how various money market positions are created and covered, together with an explanation of the management of interest rate gap exposures on mismatched future cash flows.

While stock markets are more familiar to the general public, far more capital is raised by issuing debt rather than equity. Bond markets are a critical source of finance for governments, banks, corporations, and other borrowers. In the provision of such finance, these markets offer investors a practically unlimited array of risk and reward profiles. This tutorial will introduce you to the fundamentals of bonds as a fixed income instrument, covering the key features and terminology associated with these securities in addition to outlining the role of the major players in the market.

How can a borrower (issuer) ensure that its bonds raise sufficient funds at the best price? How are those bonds distributed amongst investors? As described in this tutorial, these two elements are addressed in different ways across bond primary markets. The tutorial also looks in detail at secondary market trading and settlement practices. Trading is largely over the counter (OTC) rather than exchange-based, with electronic marketplaces becoming increasingly more important in recent times.

Investment banking is the business of raising capital for companies and providing advising services on financing and merger activities. This tutorial looks at the typical structures associated with investment banks and their key activities and sources of revenue, namely M&A advice, underwriting, sales and trading, asset management, and prime brokerage.

The Canadian bond market is the one of the largest in the world. It is dominated by the market for government bonds, of which there are around CAD 300 billion outstanding. However, Canada's debt-to-GDP ratio was the lowest (and fastest declining) in the G7 in 2004 at only 42%. The continual fall in the debt-to-GDP ratio reflects both economic growth and the Canadian government's commitment to maintaining balanced budgets. In contrast, the corporate bond sector has grown significantly in recent years. In this tutorial, you will learn about the different types of bonds in the Canadian bond market. You'll also learn about the primary and secondary bond markets in Canada.

From its humble beginnings in the 1960s, when it developed out of the need for banks to avoid US domestic banking restrictions, the Eurobond (international bond) market has continued to thrive up to the present day. It has changed beyond recognition over the years and now represents an important source of funding for a variety of borrowers. Although it has been around since 1963, the Eurobond market is still in the relatively early days of its evolution (the first US government securities were authorized way back in 1790). The introduction of the euro has given it a further impetus and it is generally expected that the market will develop and grow even further in the coming years. This tutorial looks at Eurobonds, their features and characteristics and the different types in the market.

When the third stage of EMU began on January 1, 1999, bond markets in the euro area were redenominated in euro. Since then, the euro area has become a leading bond market, with total outstanding debt representing nearly half of the total outstanding debt worldwide. This tutorial focuses on the three largest debt-issuing countries in the euro area, namely France, Germany, and Italy.

A single, integrated cross-border securities market in Europe may ultimately be a pipe dream, yet the rate of consolidation between exchanges would suggest that it may actually be possible at some point. The Euronext merger between exchanges in Paris, Brussels, Amsterdam, and Lisbon, the merger between the London Stock Exchange and the Borsa Italiana, and the public listing of Deutsche Börse have perhaps been the most significant events in this regard. This tutorial looks in detail at equity market structures, procedures, and trading practices in three of Europe's leading markets: Germany, France, and Italy.

This tutorial focuses on the most basic derivatives building block, the forward transaction, which can take the form of an OTC forward contract or an exchange-traded futures contracts. The similarities and the differences between these two product types are examined, and you will discover how it is becoming increasingly difficult to distinguish between the two.

The futures market is perhaps the most visible of derivatives markets, and although volumes stalled in many major markets in the 1990s, this has changed in more recent years. This tutorial outlines the distinctive features of the futures market. It gives a snapshot of a rapidly evolving marketplace; products change, exchanges multiply and consolidate, and the very essence of trading is constantly in flux. A view of the current 'state of the game' is given, together with a more general description of the foundations of the futures industry

Many foreign exchange transactions settle on the spot date, but what happens if a market participant wants to exchange currency, say, in two months' time rather than in two days? The forward foreign exchange market, which accounts for almost two-thirds of the daily turnover in the entire FX market, provides a solution. A forward FX contract is simple a transaction agreed today that allows for the exchange of two currencies at a pre-specified settlement date in the future at a preset exchange rate. This tutorial describes these contracts, their relationship with the money markets, and the different forms they take. The tutorial also explores different settlement dates and how the market handles public holidays.

This tutorial describes how the growth of automated trading and changes in market regulation have led high frequency trading (HFT) to the forefront of new and innovative trading system design and implementation. While such developments have undoubtedly had a positive impact on financial markets, some practitioners argue that they are nothing but a disaster waiting to happen in an already fragile marketplace. The tutorial also outlines some key algorithmic trading strategies, with a focus on liquidity provision and technical trading since these are the most commonly implemented strategies by HFT firms. A number of exciting developments and innovations in information technology, communications, and data processing that are required to meet the ever-developing HFT landscape are also discussed.

Hong Kong is seen as the gateway to Mainland China; a commercial dynamo, strategically located in a region renowned for high levels of growth, and with close trading and business links to the rest of the Asian region. The Hong Kong equity market is an important source of capital for local companies and increasingly for companies incorporated in the People's Republic of China (PRC), with the result that it has managed to attract a significant amount of investment interest from overseas. This tutorial provides a detailed introduction to the various aspects of equity securities traded in Hong Kong, including the history and development of the market, the different securities traded and trading locations, leading stock indexes, listing requirements and procedures, and trading operations.

The Islamic financial markets can be broadly divided into sharia’-compliant money markets and capital markets. Modern financial markets, including depository institutions, cannot function without efficient and robust money markets. This is a challenge for Islamic finance as interest (riba) is forbidden and money market instruments are difficult to structure on a profit-loss sharing (PLS) basis. However, the industry is gradually witnessing more innovation and sophistication in money markets and is starting to address these challenges. The other strand of Islamic financial markets is capital markets. Islamic finance has had its greatest success here – especially in the area of sukuk, the Islamic equivalent of conventional bonds, and Islamic funds. This tutorial covers Islamic money and capital markets in detail. It describes the underlying principles that affect these markets, introduces various market instruments, and discusses equity screening criteria as well as the issues and challenges specific to Islamic markets

The Japanese bond market is one of the largest bond markets in the world. It is dominated by the market for Japanese Government Bonds (JGBs), with total amounts outstanding of over JPY 673 trillion in 2007. In this tutorial, you will learn about the different types of bonds in the Japanese bond market. You'll also learn about the primary and secondary bond market procedures in Japan.

This tutorial examines in detail not only the Japan Exchange Group, which includes the Tokyo Stock Exchange, but also the Japanese equity market as a whole. It provides a detailed introduction to various aspects of Japanese equity securities, including the history and development of the market, the various securities traded and trading locations, leading stock indexes, listing requirements and procedures, and trading operations.

Money market instruments are a very important subset of the capital markets. They offer short-term investors liquidity and (usually) high credit quality, but at a lower yield than is available in the bank deposit market. There are interest bearing and discount instruments to suit varied requirements. This tutorial describes the essential features of Treasury bills, certificates of deposit, commercial paper and bankers’ acceptances. We will examine the nature of these products, their features, how they are used, and their usefulness in today's markets.

The sector deep dive modules are designed to increase the digital fluency of our people, enabling them to better embrace our digital capabilities to serve our clients. Each module focuses on a sector to provide our people with a deeper understanding of how technology is changing the competitive landscape and the impact it may have on clients.

The UK bond market has undergone major changes and massive growth since the mid-1990s or so. Back then, the market was almost entirely dominated by UK government securities (gilts). Today, although gilt issuance still dominates, the UK bond market is a far more diverse place. This tutorial describes the various sectors of the UK bond market, beginning with the two main types of gilt (conventional and index-linked gilts). Gilt issuing and trading procedures are covered in detail, before the tutorial moves on to the non-gilt sector to describe the market for bank bonds, corporate bonds, listed retail bonds on the London Stock Exchange's Order Book for Retail Bonds (ORB), and unlisted mini-bonds.

The history of trading equity securities in London can be traced back over three centuries to the coffee houses of London. From such humble beginnings, the London Stock Exchange has grown to become generally regarded as the world's most active international equity market. It is also the world's leading location for initial public offerings (IPOs). This tutorial provides a detailed introduction to the various aspects of equity securities traded in London, including the history and development of the market, the different securities traded, the leading stock indexes, listing requirements and procedures, and trading operations.

The US bond market is the largest and most varied bond market in the world. This tutorial outlines the structure of the US bond market, presenting the different types of bonds and how they are traded on the primary and secondary markets.

The fortunes of the US stock market are felt worldwide, with the market inextricably linked to global equity market performance and significantly influencing the overall global economy. It is by far the most important market of its kind, containing not only the largest stock market in the world (the New York Stock Exchange) but also the world-famous NASDAQ, an electronic stock market that lists more companies and, on average, trades more shares per day than even the NYSE. This tutorial examines not only the NYSE and the NASDAQ, but the US equity market as a whole

The purpose of this study is to record the views and opinions of CFOs and heads of finance at private equity firms around the globe. Topics include CFOs’ strategic priorities, technology and data transformation, talent management, outsourcing, and the future landscape of the private equity industry.

Private equity CFOs are expanding their oversight beyond the traditional finance functions to include IT system implementation, investor relations and cybersecurity. CFOs are expected to take on an even more strategic role, assisting with the decision-making and deployment of new investment products, location strategy and a changing investor profile, while also keeping a mindful eye on increasing margin pressures.

At the same time, private equity CFOs also lead the effort to find ways to deploy innovative new technologies, particularly those that leverage next-generation data and robotics. As part of their more strategic mindset, thhelp to elevate their firms’ overall talent profile and interact more frequently with portfolio companies.

Private Equity (PE) firms now manage commitments of nearly US$3.4t globally, up from less than US$500b in 2000. In a significant shift, new capital from private markets has surpassed capital raised in public markets for the first time ever. This report analyzes this shift and its impact on the dynamics of the funding landscape. A new equilibrium: PE‘s growing role in capital formation and the critical implications for investors is a joint collaboration between and the Institute for Private Capital.

The purpose of this study is to record the views and opinions of CFOs and heads of finance at private equity firms around the globe. Topics include CFOs’ strategic priorities, technology and data transformation, talent management, outsourcing, and the future landscape of the private equity industry.

Private equity CFOs are expanding their oversight beyond the traditional finance functions to include IT system implementation, investor relations and cybersecurity. CFOs are expected to take on an even more strategic role, assisting with the decision-making and deployment of new investment products, location strategy and a changing investor profile, while also keeping a mindful eye on increasing margin pressures.

At the same time, private equity CFOs also lead the effort to find ways to deploy innovative new technologies, particularly those that leverage next-generation data and robotics. As part of their more strategic mindset, thhelp to elevate their firms’ overall talent profile and interact more frequently with portfolio companies.

Objectives: Recognize the key features associated with bonds Identify the main issuers and investors in the global bond markets and their respective motivations for issuing/investing Tutorial Overview While stock markets are more familiar to the general public, far more capital is raised by issuing debt rather than equity. Bond markets are a critical source of finance for governments, banks, corporations, and other borrowers. In the provision of such finance, these markets offer investors a practically unlimited array of risk and reward profiles. This tutorial will introduce you to the fundamentals of bonds as a fixed income instrument, covering the key features and terminology associated with these securities in addition to outlining the role of the major players in the market. Prerequisite Knowledge Financial Markets – An Introduction Tutorial Level: Introductory Tutorial Duration: 75 minutes NASBA CPE Credits: 1 Author: Peter Fraser Field of Study: Economics Creation Date: July 10, 2015 Expiry Date: July 10, 2017 Exam Expiry: You must take the tutorial exam within one year of starting the tutorial.

Objectives: - understand the concept of passive and active bond portfolio management - develop the strategies needed to manage a bond portfolio Tutorial Overview Before building a bond portfolio, an investor or portfolio manager must decide on the portfolio objective and strategy. This tutorial outlines the investment management process and the passive or active strategies employed by portfolio managers to achieve their investment objectives. Prerequisite Knowledge Bonds - An Introduction Tutorial Level: Intermediate Tutorial Duration: 50 mins

A closed-end fund (CEF) is an investment company that (usually) issues a fixed number of shares through a once-off public offering. Although not as popular as their open-ended cousin, mutual funds, CEFs are an important investment vehicle in their right. Despite the name similarities, the closed-end structure differs significantly from that of mutual funds. This tutorial explains these differences and describes many of the particular features and characteristics associated with the closed-end structure. The tutorial also provides detailed information about another type of pooled investment vehicle in the US, namely unit investment trusts (UITs).

CIS are funds that pool together money from different investors. By investing the funds in many different companies, the funds can be well-diversified. This tutorial explains the features of CIS and introduces the different categories of CIS; authorized, recognized and unregulated CIS. You will also learn about the attractions and drawbacks of investing in a CIS.

Stock market indices serve a number of important functions, such as providing a barometer of equity market performance, acting as benchmarks against which investment performance for is measured, and index investing. This tutorial looks at the different types of stock market index and the construction of these indices.

Objectives: Distinguish between the different types of equity security that are traded Identify some of the key stock valuation metrics used by fundamental analysts Recognize the key drivers of the changing structure and nature of global equity trading Tutorial Overview Equity markets have undergone profound changes in recent years. The majority of trading still takes place on stock exchanges, with the bulk of business concentrated in a small number of countries. But there has been consolidation among traditional exchanges, while the market has also seen fragmentation with the emergence of new trading venues. Alongside these developments, equity trading has been completely transformed by high frequency trading firms. This tutorial describes these structural changes in addition to providing an overview of some basic equity market concepts, such as the different types of equity security and fundamental stock valuation metrics. Prerequisite Knowledge Financial Markets – An Introduction Tutorial Level: Introductory Tutorial Duration: 75 minutes NASBA CPE Credits: 1 Author: Peter Fraser Field of Study: Economics Creation Date: July 10, 2015 Expiry Date: July 10, 2017 Exam Expiry: You must take the tutorial exam within one year of starting the tutorial.

Objectives: - explain the concept of green investing and how it originated - describe the various types of green investment Tutorial Overview Green investing is a form of socially responsible investing (SRI) that focuses on investing in businesses and technologies that are considered to be good for the environment. It encompasses sustainable (or clean) technologies that are less polluting and more energy-efficient, and can help reduce dependence on fossil fuels. This tutorial provides a broad overview of the green investment universe, including the different types of clean technology, green investment vehicles, market indexes, and global green initiatives. Prerequisite Knowledge Socially Responsible Investment (SRI) - An Introduction Tutorial Level: Introductory Tutorial

In simple terms, UCITS are investment funds regulated at a European level. The broad aim of the UCITS regulatory regime is to allow collective investment schemes to operate freely throughout the EU on the basis of a single authorization or "passport". Since their introduction in the mid-1980s, UCITS have become a phenomenal success with well over 6 trillion euro in assets under management today. The UCITS brand is now considered to represent one of the highest standards in the fund management industry. This tutorial describes the key provisions of the UCITS Directive and how it has evolved from the original UCITS Directive to the existing UCITS IV framework and the upcoming UCITS V (and UCITS VI) requirements. The tutorial also looks at the main attractions of UCITS funds from the point of view of both investors and fund managers.

Objectives On completion of this tutorial, you will be able to: Recognize the basics of ETFs, including how they are created, traded, and redeemed Identify the key features of ETFs that makes them such an attractive investment vehicle for many investors Recall the evolution of the ETF market and its development worldwide Tutorial Overview This tutorial covers the fundamentals of ETFs, beginning with the unusual way that these securities are constructed (and redeemed) and the key players involved in that process. The tutorial also covers topics such as ETF pricing, trading, investment strategies, and market development. The attractions of ETFs for investors are also described, as well as how they compare with other investment vehicles such as mutual funds. Prerequisite Knowledge Investment - An Introduction Tutorial Level: Introductory Tutorial Duration: 60 minutes NASBA CPE Credits: 1 Author: Patrick Pancoast Field of Study: Economics Creation Date: January 2, 2018 Expiry Date: January 2, 2020 Exam Expiry: You must take the tutorial exam within one year of starting the tutorial

Money market instruments are a very important subset of the capital markets. They offer short-term investors liquidity and (usually) high credit quality, but at a lower yield than is available in the bank deposit market. There are interest bearing and discount instruments to suit varied requirements. This tutorial describes the essential features of Treasury bills, certificates of deposit, commercial paper and bankers’ acceptances. We will examine the nature of these products, their features, how they are used, and their usefulness in today's markets.

This tutorial focuses on wholesale money markets, which are markets where the lending/borrowing or buying/selling of short-term funds and securities occurs between large institutions such as banks, institutional investors, corporations, and central banks. The tutorial describes the main market participants, including commercial banks and money market funds, and the key products, such as interbank lending, repos, short-term government securities (“bills”), and commercial paper (CP). The tutorial also looks at the major pricing issues in the money markets as well as some developments in recent years in relation to pricing benchmarks.

A mutual fund is an investment company that pools together money from many investors and invests it in stocks, bonds, or other securities. These funds offer investors a relatively easy and efficient means of accessing the capital markets, and are the most popular type of investment company in the US.

There are many factors influencing an investor’s choice of mutual fund. This tutorial describes the various considerations that investors must take on board when planning a mutual fund investment, including identification of investment goals, collation and assessment of fund information, evaluation of risk, analysis of fees and expenses, and consideration of the tax implications.

This tutorial looks at the many types of mutual fund available to investors, from equity funds that offer the potential for investment growth to income-generating bond funds and more conservative money market funds.

In financial markets, there are many examples of cash flows that occur at some point in the future but which need to be evaluated today. A cash flow in the future has a value today called the present value. This tutorial describes the concepts of present value and future value, and the relationship between them.

This paper summarizes EY’s views about the most important developments in the ETF industry and the most urgent areas for enhancements. We also offer some hypotheses about the future evolution of ETFs. As in prior years, our research finds much to celebrate in terms of creativity, innovation and growth. It also identifies a few areas of potential concern — but with challenge comes opportunity.

After you have read this article / abstract / book, you will need to prepare a written synopsis of what you have read and submit it as part of the evidence of learning to your counsellor.

The maintenance of accurate and timely recording of security registration is important as it affects entire post-trade operations. From processing dividend payments to security holders in relation to major corporate actions, the ability to control and identify who actually owns a security cannot be underestimated. This tutorial looks at the registration of the securities and, in particular, the role played in that process by registrars and transfer agents. The distinction between bearer and registered securities is explained, as well as the key differences between securities registered in the names of beneficial owners and those registered in nominee names. The functions of various other agents - many of which are performed by custodians - are described in detail, along with the requirements for the different types of security registration.

While stock markets are more familiar to the general public, far more capital is raised by issuing debt rather than equity. Bond markets are a critical source of finance for governments, banks, corporations, and other borrowers. In the provision of such finance, these markets offer investors a practically unlimited array of risk and reward profiles. This tutorial will introduce you to the fundamentals of bonds as a fixed income instrument, covering the key features and terminology associated with these securities in addition to outlining the role of the major players in the market.

The Canadian bond market is the one of the largest in the world. It is dominated by the market for government bonds, of which there are around CAD 300 billion outstanding. However, Canada's debt-to-GDP ratio was the lowest (and fastest declining) in the G7 in 2004 at only 42%. The continual fall in the debt-to-GDP ratio reflects both economic growth and the Canadian government's commitment to maintaining balanced budgets. In contrast, the corporate bond sector has grown significantly in recent years. In this tutorial, you will learn about the different types of bonds in the Canadian bond market. You'll also learn about the primary and secondary bond markets in Canada.

Convertibles are hybrid securities that typically pay a fixed coupon but can also be converted into the common stock of the issuer. This tutorial provides a broad overview of the key features and cost-benefits of convertible bonds and their main-sub-types, and outlines the main mathematical terminology used with such instruments.

From its humble beginnings in the 1960s, when it developed out of the need for banks to avoid US domestic banking restrictions, the Eurobond (international bond) market has continued to thrive up to the present day. It has changed beyond recognition over the years and now represents an important source of funding for a variety of borrowers. Although it has been around since 1963, the Eurobond market is still in the relatively early days of its evolution (the first US government securities were authorized way back in 1790). The introduction of the euro has given it a further impetus and it is generally expected that the market will develop and grow even further in the coming years. This tutorial looks at Eurobonds, their features and characteristics and the different types in the market.

When the third stage of EMU began on January 1, 1999, bond markets in the euro area were redenominated in euro. Since then, the euro area has become a leading bond market, with total outstanding debt representing nearly half of the total outstanding debt worldwide. This tutorial focuses on the three largest debt-issuing countries in the euro area, namely France, Germany, and Italy.

A single, integrated cross-border securities market in Europe may ultimately be a pipe dream, yet the rate of consolidation between exchanges would suggest that it may actually be possible at some point. The Euronext merger between exchanges in Paris, Brussels, Amsterdam, and Lisbon, the merger between the London Stock Exchange and the Borsa Italiana, and the public listing of Deutsche Börse have perhaps been the most significant events in this regard. This tutorial looks in detail at equity market structures, procedures, and trading practices in three of Europe's leading markets: Germany, France, and Italy.

The Japanese bond market is one of the largest bond markets in the world. It is dominated by the market for Japanese Government Bonds (JGBs), with total amounts outstanding of over JPY 673 trillion in 2007. In this tutorial, you will learn about the different types of bonds in the Japanese bond market. You'll also learn about the primary and secondary bond market procedures in Japan.

This tutorial examines in detail not only the Japan Exchange Group, which includes the Tokyo Stock Exchange, but also the Japanese equity market as a whole. It provides a detailed introduction to various aspects of Japanese equity securities, including the history and development of the market, the various securities traded and trading locations, leading stock indexes, listing requirements and procedures, and trading operations.

Municipal bonds, commonly referred to as ‘Munis,’ are debt securities issued by states, cities, counties, and other governmental entities. These securities help these entities raise capital for various public purposes – such as building schools, highways, hospitals, and other special projects. A primary feature of many municipal securities is that the interest received by investors is generally exempt from federal income tax, and may also be exempt from state and local taxes. The market for munis received a huge boost in 2009 with the introduction of Build America Bonds (BABs) as part of President Obama's American Recovery and Reinvestment Act to stimulate the economy and create new jobs. This tutorial provides a broad overview of the municipal bond market, focusing on the main features and issuers of these instruments and the regulatory bodies and legislation relevant to the market.

An option, just like a stock or bond, is a security. Options allow investors to adapt or adjust their position in response to any situation that arises. This course provides information on options, strategies used when trading options, pricing information and the accounting principles to apply when recording option activity.

Singapore is one of the key financial centres in Asia, being recognized in particular as the leading global foreign exchange trading hub outside London, New York, and Tokyo. It is also a major wealth management centre in the Asia-Pacific region. Leading financial institutions and other market participants regard Singapore as a springboard to capture regional opportunities. Located at the heart of Southeast Asia, it is strategically well placed to serve the fast-growing markets of the Asia-Pacific region. This tutorial provides a detailed introduction to the various aspects of equity securities traded in Singapore, including the history and development of the market, the different securities traded, leading stock indexes, listing requirements and procedures, and trading operations.

The UK bond market has undergone major changes and massive growth since the mid-1990s or so. Back then, the market was almost entirely dominated by UK government securities (gilts). Today, although gilt issuance still dominates, the UK bond market is a far more diverse place. This tutorial describes the various sectors of the UK bond market, beginning with the two main types of gilt (conventional and index-linked gilts). Gilt issuing and trading procedures are covered in detail, before the tutorial moves on to the non-gilt sector to describe the market for bank bonds, corporate bonds, listed retail bonds on the London Stock Exchange's Order Book for Retail Bonds (ORB), and unlisted mini-bonds.

The US bond market is the largest and most varied bond market in the world. This tutorial outlines the structure of the US bond market, presenting the different types of bonds and how they are traded on the primary and secondary markets.

The fortunes of the US stock market are felt worldwide, with the market inextricably linked to global equity market performance and significantly influencing the overall global economy. It is by far the most important market of its kind, containing not only the largest stock market in the world (the New York Stock Exchange) but also the world-famous NASDAQ, an electronic stock market that lists more companies and, on average, trades more shares per day than even the NYSE. This tutorial examines not only the NYSE and the NASDAQ, but the US equity market as a whole.