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 contract? - Calculating the forward delivery settlement price - Basis, pricing contracts, ticks - Calculating the closing settlement price (EDSP) - Backwardation and contangoTrading Futures Contracts - The main derivative markets - Liffe, Eurex, CBOT, CME, Simex - Electronic vs open-outcry trading - Opening & closing out positions - Clearing - Role of the Clearing House - Novation, initial margin, guaranteed settlement - The role of clearing brokers - Securitising derivatives positions - Initial margin, cash buffers, using other collateral - Variation marginFutures - Valuing index futures - How do portfolio managers use index futures? - Efficient Portfolio Management (EPM) - Hedging, asset allocation, pre-allocation before the cash is received - Pricing and using stock futuresBond Derivatives - Change portfolio duration - Asset allocation: Bonds vs Equities 9. Investment Banking Currency Contracts their uses in efficient portfolio management. - Using currency derivatives for international The course also covers the regulations governing portfolio management the use of derivatives; accounting for derivative - Currency overlays and hedgingin portfolios and performance measurementattribution. Case studies and workshops form an Optionsintegral part of the course, to allow the delegates to - Using options in portfolio management - hedging, consolidate the information and provide the basis insurancefor group discussions. - Writing options to increase portfolio incomeRegulations Governing the Use of Derivatives by Portfolio Managers - FSA regulations - Efficient Portfolio Management Course Fees - New UCITS rulesVAT to be included at the local rate, if applicable. - Trustee regulationsCosts shown are per delegate inclusive of - Client restrictionsrefreshments, lunches and seminar materials. Costof accommodation is not included. HOW YOU WILL BENEFIT GBP 2500 This course provides a fast-track understanding of the main derivative tools that are available to Certificates of Participation investment managers. It introduces the conceptsCertificates of participation are remitted to course of forwards, futures and options before exploringparticipants upon request. 10. Investment Banking2 days Financial Institutions and capital market Course Objective: This course deals with the management of financial institutions and their interaction in the capital markets. The prime focus is on understanding financial institutions as businesses and within the context of regulation and global markets. Topics covered include the role and functioning of the financial system, intermediaries, risk management and regulation. Consideration is given to intermediary functions in financial groups (Retail and Commercial Banking, Investment Banking, Wealth Management & Insurance). In class discussions will also cover current topics such as Canadian bank mergers, international expansion, regulation and corporate governance issues.Achieving the Objective: Case discussions on strategic management issues in banking, insurance, capital markets and wealth management. Participant activities include in-class discussion based on prearranged readings, independent study, and case analysis. Participation in a group submission of two cases including a class presentation. Submission of a Position Paper on a topical current issue.Course outline Financial Intermediaries and Regulation of the Financial System Banking and Other Institutions Product Innovation: Securitization, Derivatives International Banking and Competition Investment Banking and Capital Markets Capital Markets: Regulation and Efficiency Wealth Management: Mutual Funds, Hedge Funds Institutionalization of the Capital Markets Wealth Management: Pension Funds Private and Public Governments Role as Reinsurer: FDIC, CDIC, CompcorpCourse Fees VAT to be included at the local rate, if applicable. Costs shown are per delegate inclusive of refreshments, lunches and seminar materials. Cost of accommodation is not included. GBP 2500Certificates of Participation Certificates of participation are remitted to course participants upon request. 11. Investment Banking 12. Investment Banking Financial Management This course focuses on the application of modern financial techniques to operating and investing decisions. It comprehensively analyses working capital management and capital budgeting decisions within the context of the firms business strategy. The course is designed for managers in non-financial functions and financial analysts and managers in financial lending organizations who make working capital loan decisions and it ensures students reach a proficient level of professional applicability.Course Outline This course examines two key asset-based financial decisions of the firm. The working capital decision examines financial planning and forecasting, cash, accounts receivable and inventory management, accounts payable, structured financing, leasing, and asset backed lending. The capital budgeting decision is analyzed in a hierarchical manner with different tools used for the increasingly risky long-term investment decisions of replacement, expansion, new product development, project financing and international expansion. 13. Investment Banking 14. Investment Banking Introduction to investment banking Duration of Course: one week programme The Importance Of Capital Markets This course is specifically designed for delegates who want go obtain a sound grasp of how the financial markets work, how banks are financed, their competitive edge and the services they provide to corporate clients. In particular, the various capital market instruments are covered. Delegates will also be able to understand why such financial instruments are necessary and their contribution towards risk reduction, Through financial engineering, delegates will see how the capital market practitioners use derivatives to tailor the needs of banking clients to suit the requirements of corporates who issue shares and bonds.Objectives of Capital Markets Course This course is introductory and is designed for professionals in investment banking. It is also suitable for experienced banking professionals who wish to get a broader understanding of the financial markets sector. The course introduces the delegates to the various products on the market and how they help banks corporates to achieve their objectives. Emphasis is placed on the valuation, risk management, regulatory and accounting perspective. Proprietary trading, investment trusts, unit trusts and hedge funds are also covered.Emphasis is placed on practical case Futures and forwards, including interestrate futures and FRAs studies. Options markets, including options pricing Identify the major sources of risk facing atheory and practical applications bank Be able to distinguish between Who Should Attend Operational, Credit and Market riskThis is an introductory course and will therefore Be able to establish effective controls to suit those who are working in investment banking. minimise riskThe course will appeal in particular to accountants Be familiar with ways to measure a banksand control staff from the middle and back office. exposure to Operational Risk The course will also be suitable for InformationTechnology and support staff including human Products Covered resources. Bond markets, including Eurobond and convertible bondsCourse Overview Equities markets, including valuation A. The Financial Markets techniques 1.Financial Institutions The money markets and foreign exchange Defining investment banks and how they marketsoperate Swaps and their applications Investment banking, stockbroking and 15. Investment Bankingfund managers initial public offerings Financial advisory services follow-on common stock issues 2.Impact of the Economy on the Financialconvertible issues Markets private placements The national economy and economic 5. Market Making, Trade & Invest indicators Investment banks broad range of investment The financial economy and its impact on products and financial instruments include: the markets money market instruments such as Recent developments in the financialcommercial paper, certificates of deposits, loan markets participations and bankers' acceptances The current political climate and its corporate securities: domestic and cross- effect on international capital markets border, high-grade and high-yield 3.Types of Marketsgovernment and quasi-government Cash and derivatives evaluation for Fixedsecurities, agency securities and municipal bonds Income/FX/Money and Equity marketsemerging markets investments: sovereign Risk and return in the markets and corporate bonds; local and global issues Hybrid securities: structured finance obligations and deposit preferred stocksecuritized obligations deposit convertible bondsequities deposit FRNscommodities such as base metals, bullion, Role of capital adequacy in the marketsenergy products, softs and agricultural products 4. Debt and Equity Underwriting foreign exchange and derivatives The firms broad-ranging debt capabilities include: exchange- traded future and options syndicated lending structured investment restructuring financeWorkshop: Delegates will be given a series of money market instruments, includingquestions relating to debt and equity underwriting. commercial paper.Fixed Income Markets high-grade securities1. Characteristics of fixed income investment high-yield securitiesHistorical context of fixed income versus securitized finance, including asset-backedother markets and mortgage-backed securitiesAdvantages and disadvantages of structured finance, including collateralized investing in fixed income loan obligations, collateralized debt obligations,Fixed income product overview and and credit derivativesinvestment variables emerging markets origination - sovereign Risks associated with investment in fixed and corporate bonds; local and global issuesincome project finance2.Eurobond markets private placement Government bond markets On the equity underwriting side, some of theseEurobond markets capabilities include: Origination, syndication and pricing of new 16. Investment Bankingissues Major equity markets Ratings Emerging markets Case Study: Calculation of various yield measuresClassification of equities of a bond with multiple call options. Semi-annualFinancial ratio analysis and annual yield calculationsEquity valuation: 3.Interest Rate Risk fundamental analysis Historical volatility measuresquantitative analysis Duration and convexitytechnical analysis Other volatility measures Capital Asset Pricing Model (CAPM) Current developments in measuring and 4.Equity portfolio management controlling fixed income riskModern Portfolio Theory 4. Yield Curve and Term StructureActive versus Passive investment Theories of term structurestrategies Strips and the spot (zero) curveAsset allocation Yield curve generation using bootstrappingPerformance measurement Forward rates E.The Derivatives Markets: Part Two C.Credit Market and Credit Derivatives 1. Understanding the options market 1.The credit markets Option definition and features Evaluation of corporate credit risk Payoff profiles Financial ratio analysisOption pricing factors The role of rating agencies Put call parity Analysis of the high yield bond market andCase Study: Arbitrage pricing credit derivatives 2. Trading the options markets D.Overview Financial Instruments Volatility measures 1.Swaps - the instruments and applications The Greeks Interest rate and currency swap definitions Options trading strategies Key players Managing and controlling risk in options Pricing and trading swaps Case Study: Delta hedging strategies and Risk/ Asset and liability swaps reward pay-off construction Case Study: Evaluation of both a synthetic FRN and 3.Approaches to managing risk swapped new Eurobond issue Identifying risk 2.Forwards and futures Measuring risk Contract definition and designManaging market and credit risk The role of marginIntroduction to Value-at-Risk The role of futures in the markets4. The Regulatory Environment Hedging, speculating and arbitraging with futures Case Study: Calculation of margin and hedging ratios 3. The equity markets 17. Investment Banking Course FeesCertificates of Participation VAT to be included at the local rate, if applicable. Certificates of participation are remitted to course Costs shown are per delegate inclusive ofparticipants upon request. refreshments, lunches and seminar materials. Cost of accommodation is not included. GBP 4250 18. Investment Banking 2 daysMergers and AcquisitionsThe course objective is to develop an understanding of the strategic asset acquisition and divestiture process.The focus of this course, however,will be to analyse merger and acquisitions decisions from a financial perspective emphasising valuation.This course provides a comprehensive overview of the major facets of the industry and the skills engagedin executing transactions. The anatomy of a deal from inception to post-merger integration is covered. Theworkshop addresses theories underlying M&A, domestic and global transactions, as well as key legal andaccounting issues. The program is designed to provide executives and professionals with an understandingof basic M&A principles and analysis grounded in the context of current market dynamics. Participantswill first consider the current state of the M&A market and how it fits within historic trends. Relatedly, thegroup identifies the market dynamics that influence M&A activity over time. Key factors of a successfulacquisition are examined and why many transactions fail (from the perspective of the acquirer). Specific typesof acquisition structures are reviewed and the implications for each are compared. After walking throughthe steps involved in the typical acquisition transaction, the workshop turns toward the important step ofdetermining a value of the acquisition target. Both intrinsic and relative value methods are presented, withthe help of illustrative cases. The final topic covers the financing products that may be employed to effect atransaction. Again, a case study is used to illustrate. Objectives:Participants will be able to: Recognise the common motivations for acquisitions and the reasons many are unsuccessful.Identify the methods of structuring a business acquisitionEvaluate the intrinsic and relative valuation methods for target companies. Follow the sequence ofevents of a typical transaction.Examine the structure used in financing M&A transactions. Course outlineDAY 1Mergers and Acquisitions Overview M&A market trends Why acquire? Key concepts Key Drivers of a Successful Acquisition What creates value in an acquisition? Why do some acquisitions fail? 19. Investment Banking Academic researchStructuring the Acquisition Synergy Financing mix Mezzanine Debt Case Study Bridge financing Debt capacity Acquisition Structure Debt Terms and Conditions Asset purchase Share purchase Case Study Merger Hostile Acquisition accountingSequence of Events Initial Negotiations Letter of Intent Agreement in Principle Course Fees Due DiligenceVAT to be included at the local rate, if applicable. Acquisition AgreementCosts shown are per delegate inclusive of Closingrefreshments, lunches and seminar materials. Costof accommodation is not included. DAY 2GBP 2000 ValuationCertificates of Participation Appraisal PrinciplesCertificates of participation are remitted to course Valuation Methodsparticipants upon request. 20. Investment Banking 2 daysSecuritisationCourse OverviewParticipants will gain a broad understanding of the process of securitisation, the drivers behind the marketand the needs of the various participants. In addition, delegates will be aware of the different forms of ABSstructure and the distinguishing features of each. Throughout the course there will be various exercises andcase studies to aid with the understanding of the material. Course ContentPrinciples of Asset Backed SecuritiesReasons for Creating Asset Backed Securities- Need for investment uplift- Greater awareness of credit risk- Better tools to assess credit risk- Perceived opportunities for arbitrage- Need to diversify and / or dissipate credit riskFeatures and Procedures of Securitisation- Cash flows of US fixed rate mortgages.- Mortgage prepayment option- Yield, average life and duration calculations- Creating and managing the pool- Conduit structures and short term assets- Application to auto loans, credit cards, trade receivables- Issues relating to over-collateralisation & ratings- Default experience and structured finance ratings- Pricing principles - spreads, guarantees, options- Default models- Sensitivity to interest rate changes- Using credit derivatives to replace or enhance the pool- Default swaps and total return swaps- CLNs, CDOs & SCDOs- Structuring a credit linked note- Coping with an event of default or variation (restructuring / takeover) 21. Investment Banking Course FeesCertificates of Participation VAT to be included at the local rate, if applicable. Certificates of participation are remitted to course Costs shown are per delegate inclusive ofparticipants upon request. refreshments, lunches and seminar materials. Cost of accommodation is not included. GBP 2000 22. We are here: Marble Arch Tower, 55 Bryanston Street London W1H 7AJMarble Arch TOWER Calls: Line 1: +44(0)845 299 0440, Line 2: +44(0)207 868 8099, Line 3: +44(0)207 868 8590, Line 4: +44(0)207 723 7011, Fax: +44(0)844 545 4684, Mobile: +44(0)790 497 4087. E-mail: training@bfsc.co.uk. Web: www.bfsc.co.uk