Financial Markets and Treasury Instruments (Full Course)

Master working capital management by optimizing supplier terms, client prepayments, and debt factoring to unlock cash and fund operations, while utilizing efficient payment processing and flexible debt facilities.

Explain debt facilities funding medium to long-term objectives, including amortizing term loans, revolving credit facilities, corporate bonds, convertible bonds, asset-based financing, and finance leases and operating leases.

Explore equity funding and how the capital asset pricing model estimates the cost of equity. Use the weighted average cost of capital to evaluate a company's overall funding mix.

Explore how betas reflect industry characteristics, substitutes, and life-cycle stages to explain volatility, with examples from luxury versus necessity goods, streaming disruption, and high fixed-cost structures.

Use levered and unlevered betas to value private companies by decomposing listed peers' beta into operating and tax shield components, then apply Hamada's equation to align with capital structure.

This case study shows how weighted average cost of capital, cheap debt, and government stimulus drive debt-based buybacks that lift share prices, sometimes misaligning with productivity.

Trace the business life cycle from launch to growth, maturity, and decline, examining funding and working capital needs and treasury decisions on debt, equity, and credit terms.

Explore the structure of financial markets, including money, bond, equity, forex, and commodities markets, and distinguish cash versus derivative instruments and the role of debt issuance and underlying assets.

Examine how governments, central banks, banks, pensions, insurers, dealers, and hedge funds shape market behavior through objectives, constraints, and liquidity needs.

Explore financial instruments, primary and secondary markets, OTC and exchange trading, and marking to market, plus the money market's instruments, settlement, and risk concepts.

Explore day count conventions and business day rules that calculate year fractions and accrued interest, including actual/360, actual/365, 30/360, and following, preceding, and modified following conventions.

Explore simple and compound interest, discount rates, and how different compounding frequencies affect effective and continuous rates, with formulas for converting between annual, monthly, quarterly, and more.

Explore money market instruments with a focus on treasury bills as short-term government discount securities. Understand how auctions, settlement dates, and yields drive bank demand and pricing.

Explore negotiable certificates of deposit and other money market instruments, their pricing, liquidity, and credit considerations, with examples of NCDs, CDs, commercial paper, and bankers’ acceptances.

Explore how central banks use monetary policy and interest rates to control money supply, inflation, and economic activity, and how reserve requirements, interbank markets, and bank supervision support financial stability.

Understand how the central bank uses open market operations, reserve requirements, and fractional reserve lending to influence base and broad money, inflation, and interest rates.

Understand how central bank benchmark rates like the fed funds and repo influence loan pricing, credit risk premiums, and overnight interbank dynamics.

Explore how Libor emerged from the eurodollar market and was replaced by sofr, and compare secured vs unsecured rates like Giba and the South African overnight index.

Explore arbitrage as risk-free profit from mispricing, the law of one price, and how replicating portfolios price derivatives in modern markets.

Explore forwards, a derivative tied to an underlying asset, traded over the counter with a fixed delivery price at maturity. See zero-cost pricing and replicating portfolios to avoid arbitrage.

Futures differ from forwards as exchange-traded, standardized contracts with daily settlement and margin calls, transferring credit risk to the exchange and enabling leverage through initial margin.

Explore how option contracts fix future prices and provide downside protection through the option premium, and distinguish call, put, European, American, and Bermudan styles.