Investment

Banking
Investment Banking
 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 people’s 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:
Investment Banking

2 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 managed

Course 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 provider management 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 agencies
Servicing 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
 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 them Tax 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 - Hosepipes

of risks for the various parties

involved
- Forms of risk
- Risk management techniques available
- Execution strategy

Credit enhancement
- Reasons behind credit enhancement
- Internal and external sources
- Using the originator’s own credit standing
- Optimum factors to take into account
- Analysis of recent credit enhancement
decisions
- their logic and performance
Liquidity management
The rating process
- The role of rating agencies
- Benefits each agency can bring
Course 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 2700
Certificates of Participation
Certificates of participation are remitted to course
participants upon request.
Investment Banking

2 days
Corporate Financing
The aim of this course is to examine the theoretical underpinnings of corporate finance and see how they are
applied. There will be more emphasis on “how corporate financing is really done” by undertaking a series of
case analyses and group discussions.
This is not a theoretical course, but practical. Understanding how to apply theory to practical situations, to see
the 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 applications
to 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 to
apply time value of money principles, the capital budgeting framework, and analysis of financing options when
making financial decisions.

Course Outline
Learning Objectives and Outline
Learning 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 Return
to calculate the value of a project. Recall when and how to use the profitability index to rank the value of a
project. Determine the value of projects that have different life spans using the approaches called lowest
common denominator and annual equivalency cash flow. Recognize the formulas for the after-tax weighted
average cost of capital and capital asset pricing model and how they are used to determine the cost of
capital. Identify the formulas for calculating cash flows resulting from investments and how they are used to
determine the profitability of a project. Recognize factors influencing a financing decision and characteristics
influencing the associated debt/equity mix. Recognize the significance of the debt-to-equity ratio to the
financing decision and why firms may choose debt. Recognize the effects of leverage and its relationship to
cost of equity (how financing decisions affect the value of a firm). Calculate the cost of equity under various
leverage ratios.

Introduction to corporate finance
• Decisions of the corporate finance
manager
• Maximizing the welfare of stockholders
• Managing the flow of funds
• Maintaining access to markets and
managing risk
• The implications of efficient markets
Time value of money
• Simple present value concepts
• Present value formulas and examples
• Simple future value concepts
• Future value examples
Time value applications
• Prices and returns of bonds and equities
• Bond amortization
Capital budgeting
• Merits of using net present value vs.
internal rate of return
• Special capital budget problems
• Examples: capital rationing, projects of
different lives
Investment Banking
• After-tax weighted average cost of capital
as discount rate
• Calculating cost of debt, equity and cash
flows on investments
The financing decision
• Modigliani and Miller propositions
• Impact of bankruptcy and ownership
structure on financing decisions
• Impact of leverage on firm valuation
Course 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 2000
Certificates of Participation
Certificates of participation are remitted to course
participants upon request.
Investment Banking

2 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 term
  interest rates
- What is the difference between a forward and future?
- Exchange-traded vs OTC

Valuing 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 contango

Trading 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 margin

Futures
- 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 futures

Bond Derivatives
- Change portfolio duration
- Asset allocation: Bonds vs Equities
 Investment Banking

Currency Contracts their uses in efficient portfolio management.

- Using currency derivatives for international
portfolio management
- Currency overlays and hedging
Options
- Using options in portfolio management - hedging,
insurance
- Writing options to increase portfolio income
The course also covers the regulations governing
the use of derivatives; accounting for derivative
in portfolios and performance measurement
attribution. Case studies and workshops form an
integral part of the course, to allow the delegates to
consolidate the information and provide the basis
for group discussions.

Regulations Governing the Use of

Derivatives by Portfolio
Managers
- FSA regulations
- Efficient Portfolio Management Course Fees
- New UCITS rules VAT to be included at the local rate, if applicable.
- Trustee regulations Costs shown are per delegate inclusive of
- Client restrictions refreshments, lunches and seminar materials. Cost
of 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 concepts Certificates of participation are remitted to course
of forwards, futures and options before exploring participants upon request.
Investment Banking

2 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, Compcorp

Course 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 2500

Certificates of Participation
Certificates of participation are remitted to course participants upon request.
Investment Banking
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 firm’s 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.
Investment Banking
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 interest

studies.    •  Options markets, including options pricing
• Identify the major sources of risk facing a
bank
• Be able to distinguish between
Operational, Credit and Market risk
• Be able to establish effective controls to
minimise risk
• Be familiar with ways to measure a bank’s
exposure to Operational Risk
Products Covered
•  Bond markets, including Eurobond and
convertible bonds
•  Equities markets, including valuation
techniques
• The money markets and foreign exchange
markets
•  Swaps and their applications
rate futures and FRAs
theory and practical applications
Who Should Attend 
This is an introductory course and will therefore
suit those who are working in investment banking.
The course will appeal in particular to accountants
and control staff from the middle and back office.
The course will also be suitable for Information
Technology and support staff including human
resources.
Course Overview
A.        The Financial Markets
1.            Financial Institutions
•      Defining investment banks and how they
operate
•      Investment banking, stockbroking and

fund managers
•      Financial advisory services
2.         Impact of the Economy on the Financial
Markets
•      The national economy and economic
indicators
•      The financial economy and its impact on
the markets
•      Recent developments in the financial
markets
•      The current political climate and its
effect on international capital markets
3.         Types of Markets
• Cash and derivatives evaluation for Fixed
Income/FX/Money and Equity markets
• Risk and return in the markets
• Hybrid securities:
• deposit preferred stock
• deposit convertible bonds
• deposit FRN’s
• Role of capital adequacy in the markets
4. Debt and Equity Underwriting
The firm’s broad-ranging debt capabilities include:
• syndicated lending
• restructuring finance
• money market instruments, including
commercial paper
• high-grade securities
• high-yield securities
• securitized finance, including asset-backed
and mortgage-backed securities
• structured finance, including collateralized
loan obligations, collateralized debt obligations,
and credit derivatives
• emerging markets origination - sovereign
and corporate bonds; local and global issues
• project finance
private placement
On the equity underwriting side, some of these
capabilities include:
Investment Banking
• initial public offerings
• follow-on common stock issues
• convertible issues
private placements
5.  Market Making, Trade & Invest
Investment bank’s broad range of investment
products and financial instruments include:
• money market instruments such as
commercial paper, certificates of deposits, loan
participations and bankers' acceptances
• corporate securities: domestic and cross-
border, high-grade and high-yield
• government and quasi-government
securities, agency securities and municipal bonds
• emerging markets investments: sovereign
and corporate bonds; local and global issues
• structured finance obligations and
securitized obligations
• equities
• commodities such as base metals, bullion,
energy products, softs and agricultural products
• foreign exchange and derivatives
• exchange- traded future and options
• structured investment
Workshop: Delegates will be given a series of
questions relating to debt and equity underwriting.
.                Fixed Income Markets
1.            Characteristics of fixed income investment
• Historical context of fixed income versus
other markets
• Advantages and disadvantages of
investing in fixed income
• Fixed income product overview and
investment variables
• Risks associated with investment in fixed
income  
2.            Eurobond markets
• Government bond markets
• Eurobond markets
• Origination, syndication and pricing of new
Investment Banking
issues
• Ratings
Case Study: Calculation of various yield measures
of a bond with multiple call options. Semi-annual
and annual yield calculations
3.            Interest Rate Risk
• Historical volatility measures
• Duration and convexity
• Other volatility measures
• Current developments in measuring and
controlling fixed income risk
4.         Yield Curve and Term Structure
• Theories of term structure
• Strips and the spot (zero) curve
• Yield curve generation using bootstrapping
• Forward rates
C.        Credit Market and Credit Derivatives
1.         The credit markets
• Evaluation of corporate credit risk
• Financial ratio analysis
• The role of rating agencies
• Analysis of the high yield bond market and
credit derivatives
D.            Overview Financial Instruments
1.         Swaps - the instruments and applications
• Interest rate and currency swap definitions
• Key players
• Pricing and trading swaps
• Asset and liability swaps
Case Study: Evaluation of both a synthetic FRN and
swapped new Eurobond issue
2.            Forwards and futures
• Contract definition and design
• The role of margin
• The role of futures in the markets
• Hedging, speculating and arbitraging with
futures
Case Study: Calculation of margin and hedging
ratios
3.         The equity markets
• Major equity markets
• Emerging markets
• Classification of equities
• Financial ratio analysis
• Equity valuation:
• fundamental analysis
• quantitative analysis
• technical analysis
• Capital Asset Pricing Model (CAPM)
4.         Equity portfolio management
• Modern Portfolio Theory
• Active versus Passive investment
strategies
• Asset allocation
• Performance measurement
E.        The Derivatives Markets: Part Two
1.            Understanding the options market
• Option definition and features
• Payoff profiles
• Option pricing factors
• Put call parity
Case Study: Arbitrage pricing
2.            Trading the options markets
• Volatility measures
• The Greeks
• Options trading strategies
• Managing and controlling risk in options
Case Study: Delta hedging strategies and Risk/
reward pay-off construction
3.            Approaches to managing risk
• Identifying risk
• Measuring risk
• Managing market and credit risk
• Introduction to Value-at-Risk
4. The Regulatory Environment
 Investment Banking

Course Fees Certificates 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 of participants upon request.
refreshments, lunches and seminar materials. Cost
of accommodation is not included.
GBP 4250
Investment Banking

2 days
Mergers and Acquisitions
The 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 engaged
in executing transactions. The anatomy of a deal from inception to post-merger integration is covered. The
workshop addresses theories underlying M&A, domestic and global transactions, as well as key legal and
accounting issues. The program is designed to provide executives and professionals with an understanding
of basic M&A principles and analysis grounded in the context of current market dynamics. Participants
will first consider the current state of the M&A market and how it fits within historic trends. Relatedly, the
group identifies the market dynamics that influence M&A activity over time. Key factors of a successful
acquisition are examined and why many transactions fail (from the perspective of the acquirer). Specific types
of acquisition structures are reviewed and the implications for each are compared. After walking through
the steps involved in the typical acquisition transaction, the workshop turns toward the important step of
determining a value of the acquisition target. Both intrinsic and relative value methods are presented, with
the help of illustrative cases. The final topic covers the financing products that may be employed to effect a
transaction. 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 acquisition
• Evaluate the intrinsic and relative valuation methods for target companies. • Follow the sequence of
events of a typical transaction.
• Examine the structure used in financing M&A transactions.

Course outline
DAY 1
Mergers 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?

• Academic research
• Synergy
Case Study
Acquisition Structure
• Asset purchase
• Share purchase
• Merger
• Hostile
• Acquisition accounting
Sequence of Events
• Initial Negotiations
• Letter of Intent
• Agreement in Principle
• Due Diligence
• Acquisition Agreement
• Closing
DAY 2
Valuation
• Appraisal Principles
• Valuation Methods
Investment Banking
Structuring the Acquisition
• Financing mix
• Mezzanine Debt
• Bridge financing
• Debt capacity
• Debt Terms and Conditions
Case Study
Course 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 2000
Certificates of Participation
Certificates of participation are remitted to course
participants upon request.
Investment Banking

2 days
Securitisation
Course Overview
Participants will gain a broad understanding of the process of securitisation, the drivers behind the market
and the needs of the various participants. In addition, delegates will be aware of the different forms of ABS
structure and the distinguishing features of each. Throughout the course there will be various exercises and
case studies to aid with the understanding of the material.

Course Content
Principles of Asset Backed Securities
Reasons 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 risk
Features 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)
 Investment Banking

Course Fees Certificates 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 of participants upon request.
refreshments, lunches and seminar materials. Cost
of accommodation is not included.
GBP 2000
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London W1H 7AJ

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Calls:
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Mobile: +44(0)790 497 4087.
E-mail: training@bfsc.co.uk.
Web: www.bfsc.co.uk