Investment Banking

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Transcript of Investment Banking

  • 1. InvestmentBanking

2. Investment Banking 3. Investment Banking Investment Banking Courses Global Risk Management Group Ltd offers a range of practically focused courses in Investment Banking. These courses designed to equip you with the skills and knowledge needed for a successful career as well as the qualifications to lift you above other candidates in the job market. We have developed an extensive range of high quality Investment Banking training courses. Financing and asset acquisition decisions form a critical area of finance for corporations as well as their financial advisors, including investment banks. The Investment banking courses are designed to develop in-depth knowledge of current best practices in investment banking. It is designed to familiarize delegates with all aspects of the corporate financing decision, as well as the internal (capital budgeting) and external acquisition of assets (M&A) and the function of capital markets. Development of these skills is important for finance positions within corporations, for lending officers within major banks, and advisory positions in investment banking. During these courses delegates will learn how to evaluate investment proposals, financial strategies & instruments, and the rationale and execution of mergers, acquisitions & divestitures. Specific topics cover how to make capital structure, dividend policy and debt structuring decisions, how to evaluate capital budgeting proposals for the internal acquisition of assets and how to buy other peoples assets or sell off assets no long needed by the firm (M&A). In the process participates will learn the key legal constraints on corporate activity and deepen your understanding of financial statements.Thorough these courses the participants are introduced to various types of asset securitization, investment banking operation, merger and acquisitions. Please find below more details of the courses: 4. Investment Banking2 days Asset Securitisation Course Highlights - How to recognise the right internal and external conditions and capitalise on them - Creating the right product and reaching the market - Risk management techniques to utilise in securitisation - The all-important rating process and how it can be managedCourse outline - Reduced cost of funding Introduction: the state of play- Funds at any cost - History and growth of securitisation - Receiveables management - Recent developments and trends - Standard deal technology Recognising the opportunity- Critical volume The players, their contributions and - Optimal timing or environment- Overcoming potential legal constraints commitments- Accounting and tax framework - Originator - Interest rate - Issuer - Criteria for a suitable receivables pool - Arranger - Lead manager Preparing for first-time - Credit enhancement providers - Legal advisers securitisation: creating the right - Trustees internal environment - Paying agents- Effectively reviewing contracts for possible constraints - Reference banks- Comprehensive analysis of systems - Liquidity provider - Review of procedures for administration of arrears - Guaranteed Investment Contract providermanagement and provisioning - Servicer - Developing ongoing policies for collateral - SPV Management - Cash flow modelling and analysis of the asset pool - Swap provider- Managing customer relations - Rating agenciesServicing requirements Rationale for securitisation - Servicing agreements - Maintenance of capital requirements- Third party and back-up servicing - Improving the balance sheet- The importance of segregating cashflows - Asset/liability management - The importance of managing cashflows - Diversification of funding - Reporting on the performance of securitised assets - Credit risk management - Potential benefits from servicing charges 5. Investment Banking Funding the assets - Compliance with the rating agencies - FRNs - How to manage the rating process - Conduit fundings - Asset Backed Commercial Paper (ABCP) Regulatory and legal - Private placements - regulatory issues - Bank loans - European regulatory issues - Combinations - Structuring the SPV - Cross border funding opportunities - Transferring or assigning the contracts- Profit extraction Multi seller conduits- Ongoing involvement - What they are - Who uses themTax issues - Structure- Corporation tax, Advance corporation tax, Stamp - The growth in use of multi seller conduits duty, withholding tax and VAT - Suitable assets- The relevance to different asset types - Cost calculations- Approaches to get round these issues - Benefits - MIRAS - Conduit management - Profit extraction- Tax symmetries and asymmetries Identification and mitigation- Hosepipesof risks for the various parties involved - Forms of risk - Risk management techniques available - Execution strategyCredit enhancement - Reasons behind credit enhancement - Internal and external sources - Using the originators own credit standing Course Fees - Optimum factors to take into account VAT to be included at the local rate, if applicable. - Analysis of recent credit enhancementCosts shown are per delegate inclusive of decisionsrefreshments, lunches and seminar materials. Cost - their logic and performanceof accommodation is not included.GBP 2700 Liquidity management The rating process Certificates of Participation - The role of rating agenciesCertificates of participation are remitted to course - Benefits each agency can bring participants upon request. 6. Investment Banking 2 daysCorporate FinancingThe aim of this course is to examine the theoretical underpinnings of corporate finance and see how they areapplied. There will be more emphasis on how corporate financing is really done by undertaking a series ofcase analyses and group discussions.This is not a theoretical course, but practical. Understanding how to apply theory to practical situations, to seethe essence of financing problems, is the key contribution of the course.This newly revised and updated introductory course draws upon both finance theory and practical applicationsto help managers understand the key concepts that underlie the analysis and execution of financial decisions.Starting with the objectives of the firm and its Chief Financial Officer, the course will teach students how toapply time value of money principles, the capital budgeting framework, and analysis of financing options whenmaking financial decisions. Course OutlineLearning Objectives and OutlineLearning Objectives: After completing this course you should be able to: Identify elements of corporate investment projects. Recognize elements and sources of corporate financing. Identify factors affecting the flow of corporate funds. Relate the Efficient Markets Hypothesis (EMH) to corporate financial decision making. Define the present value of money. Recognize the formulas involved in solving for different examples of present value. Recognize the formulas involved in solving for different examples of future value. Use a financial calculator to practice solving present and future value problems. Evaluate investments by calculating interest rates, annual bond yields, and stock prices. Discuss the factors that affect interest rates and borrowing costs for financing projects.Additional Objectives: Recognize the advantages of using Net Present Value versus Internal Rate of Returnto calculate the value of a project. Recall when and how to use the profitability index to rank the value of aproject. Determine the value of projects that have different life spans using the approaches called lowestcommon denominator and annual equivalency cash flow. Recognize the formulas for the after-tax weightedaverage cost of capital and capital asset pricing model and how they are used to determine the cost ofcapital. Identify the formulas for calculating cash flows resulting from investments and how they are used todetermine the profitability of a project. Recognize factors influencing a financing decision and characteristicsinfluencing the associated debt/equity mix. Recognize the significance of the debt-to-equity ratio to thefinancing decision and why firms may choose debt. Recognize the effects of leverage and its relationship tocost of equity (how financing decisions affect the value of a firm). Calculate the cost of equity under variousleverage ratios. 7. Investment Banking Introduction to corporate finance After-tax weighted average cost of capital Decisions of the corporate finance as discount rate manager Calculating cost of debt, equity and cash Maximizing the welfare of stockholders flows on investments Managing the flow of funds Maintaining access to markets andThe financing decision managing risk Modigliani and Miller propositions The implications of efficient markets Impact of bankruptcy and ownership structure on financing decisions Time value of money Impact of leverage on firm valuation Simple present value concepts Present value formulas and examples Simple future value concepts Future value examplesTime value applications Course Fees Prices and returns of bonds and equitiesVAT to be included at the local rate, if applicable. Bond amortization Costs shown are per delegate inclusive of refreshments, lunches and seminar materials. Cost Capital budgeting of accommodation is not included. Merits of using net present value vs.GBP 2000 internal rate of return Special capital budget problemsCertificates of Participation Examples: capital rationing, projects of Certificates of participation are remitted to course different lives participants upon request. 8. Investment Banking2 days Derivatives in Fund Management The Basics of Futures and Forwards - What is the underlying asset for these contracts? - Equity indices, government bonds, foreign exchange, short terminterest rates - What is the difference between a forward and future? - Exchange-traded vs OTCValuing Contracts - What is the fair value for a contrac