2. 2
UNC Certificate in Capital Markets
Course 1 Syllabus
Course 1: Introduction to Financial Markets
Lecturers: Stephen Weiss and ShellyLombard
Week 1: Illustrative Story and Lessons Learned: KirkKerkorian/Ford
Relevant Textbook Chapters: 1, 3
Economic Environment
- Role of the financial markets
- Economic policy
- Main economic indicators
Equity
- Ordinary shares
- Stock market indices
- Equity valuation
Week 2: Introduction, Illustrative Story and Lessons Learned: NickMaounis/
Amaranth
Relevant Textbook Chapters: 3, 4, 7
Main economic players
- Governments
- Central Banks
- Banks and Asset managers
- Households
- Corporates
Buy-side key players
- Definition
- Non-financial companies
- Retirement funds
- Insurers and mutual societies
- Asset managers
Fundamental Notions
- Asset classes
- Spot and forward
- Vanilla derivatives
3. 3
Week 3: Introduction, Illustrative Story and Lessons Learned: BillAckman/Targe
Relevant Textbook Chapters: 11
Options
- Profit and loss on options
- Using options
- Option strategies
Factors influencing the value ofoptions
- Variation of underlying
- Strike
- Time
- Volatility
Week 4: Introduction, Illustrative Story and Lessons Learned: Geoff Grant/ABS
Spread
Relevant Textbook Chapters: 14, 18
Fixed Income
- Overview
- Fixed-rate government bonds
- Bond valuation principles
- Interest rate risk
Credit Products
- Credit risk
- Rating agencies
- Credit spread
4. 4
UNC Certificate in Capital Markets Foundation
Course 2Syllabus
Course 2: Fixed Income Markets
Lecturer: Gregory Brown, PhD
Week 1: Money Markets
Relevant Textbook Chapters: 1, 2, 14,15, 25
- Introduction & Definition of Interest Rates
- Relationship between macroeconomics and interest rates
- Monetary policy of central banks
- Unsecured loans
- Secured loans
- Day count factors and Business day conventions
- Term structure of interest rates
- FRA and STIR (Short Term Interest Rate Futures)
Week 2: Bond Markets
Relevant Textbook Chapters: 5,17,18
- What is a bond?
- Origination
- Price quotation & accrued interests
- Credit spread, rating
- Credit Default Swap (CDS)
- Other types of bonds
Week 3: Bond Markets
Relevant Textbook Chapters: 17,31
- Pricing of a fixed-rate bond
- Bond price analysis
- Zero-coupon rates
- Duration
- Other sensitivities
- Bond management strategies (1)
Week 4: Bond Futures and Swaps
Relevant Textbook Chapters: 16, 17
- Characteristics and uses of bond futures
- Pricing principles for bond futures
- Characteristics and uses of interest rate swaps
- Bootstrapping the swap curve
- Pricing principles for interest rate swaps
5. 5
UNC Certificate in Capital Markets Foundation
Course 2Syllabus
- Building an asset swap
- Calculating I-spread, Z-spread and ASW spread
6. 6
UNC Certificate in Capital Markets Foundation
Course 3Syllabus
Course 3: Foreign Exchange (FX)Markets
Lecturer: Christian Lundblad, PhD
Week 1: Spot FX and MarketMechanisms
Relevant Textbook Chapters: 12
- Introduction to the foreign exchange market
- Specifics of the foreign exchange market
- Cross rates
- Monetary policies (1)
- Monetary policies (2)
- Chinese currencies
- Settlement
Week 2: Forward FX and FX Swaps
Relevant Textbook Chapters: 12, 28, 30
- Discounting cash flows
- Forward FX
- Examples (1)
- Examples (2)
- Non Deliverable Forward
- FX swaps
- Advantages of FX swaps
- Blackboard - Discount factor (1)
- Blackboard - Discount factor (2)
Week 3: FX Options – Valuation and ClientStrategies
Relevant Textbook Chapters: 11, 32
- FX options
- Principles of moneyless and valuation
- Valuation of FX options, Black and Scholes and Monte Carlo
- Hedging the FX risk (Vanilla options)
- Hedging the FX risk (Option strategies)
- Hedging the FX risk (Exotic options)
Week 4: Dynamic Management of a Portfolio of FXOptions
Relevant Textbook Chapters: 11
- The Greeks
- Delta-Neutral book management
- Option strategies
7. 7
UNC Certificate in Capital Markets Foundation
Course 3Syllabus
- Exotic options
- Volatility smile
- Building an asset
