Overview
The Capital Market Immersion program provides a solid and deep introduction to the global capital markets. This course is designed to deliver a comprehensive, deepdive into the functions and roles played by modern financial institutions and their key lines of business. The program is intended for professionals (or those about to enter the business) with foundational knowledge of the industry’s basic products and service, and how each functions.
The program's framework consists of lectures covering 7 separate topics:
 The Capital Markets Road Map  Highlights the primary participants, issuers, investors, intermediaries in capital markets, what they trade there, and the applications to which market participants make use of the instruments and the roles they play.
 Fundamental Financial Math  Introduces you to a wide variety of calculations and related concepts that are used by financial market participants in a plethora of applications  calculating prices, rates of return, and yields for example.
 Yield Curve Dynamics  Covers a variety of issues relating to yield curves, their construction, and their use in a variety of analytical applications to assess risk and return.
 Fixed Income Securities  Introduces you to the market for fixed income securities, provides you with a lot of details on the characteristics of fixed income securities in general, as well as discuss specific characteristics of specific sectors of the fixed income market  insurers, investors, and a wide variety of concepts relating to the analysis and validation of those securities.
 Equity Products  Introduces equities by providing an overview of the types of products, including both direct and indirect products; and demonstrating types of shares and exchanges, investors, diversification and volatility.
 Futures & Options  Introduces derivatives in general, to demonstrate the common features of derivatives and how they differ from other sorts of financial instruments. Futures and options contracts' key characteristics will be identified, and contract features, pricing, applications, risk management, and hedging will be discussed.
 Interest Rate Swaps  A look at interest rate swaps in detail. First, swaps in general are introduced, then the structure of the most common type of interest rate swap  the fixed or floating interest rate swap  will be addressed. A variety of different structures, pricing and valuation, and applications  both risk management and speculative  will be discussed.
In all, there are 142 total lectures (video clips) and over 24 hours of total viewable content. This program also includes supplemental PDFs as downloadable attachments that you can use to follow along with each lecture's instructor.
Learning Outcomes
At the end of this course, you will be able to...
 Describe the players, products, markets and applications of capital markets instruments.
 Apply all the concepts of financial math, including NPV, IRR, PV, FV, to real business problems.
 Interpret the meaning of yield curves and how financial markets and instruments drive pricing.
 Explain the full range of fixed income instruments, their issuers and investors, and the ways these instruments are structured.
 Detail equity markets products, players and market dynamics.
 Determine uses and applications of futures and options.
 Discuss the use, structure and pricing of interest rate swaps.
Course curriculum

1
Welcome to the course!
 About this course: Overview, Learning Outcomes, Prerequisites & Target Audience FREE PREVIEW
 Course Trailer FREE PREVIEW
 Instructor Bio: Doug Carroll
 A message from your instructor
 Key pointers for success in this course

2
Slack Channel Discussion, Help + More
 Slack Channel (Discussion Forum)
 If (and when) you need help...
 Joining the Alumni Community

3
Capital Markets Road Map
 Major Market Segments and Types of Instruments FREE PREVIEW
 Major Market Segments and Types of InstrumentsSlides
 Economic Functions of Capital Markets
 Economic Functions of Capital MarketsSlides
 Securities Markets and Important Market Participants
 Securities Markets and Important Market ParticipantsSlides
 Commercial Banking and Investment Banking
 Commercial Banking and Investment BankingSlides
 Primary and Secondary Markets
 Primary and Secondary MarketsSlides
 Primary Market Offerings
 Primary Market OfferingsSlides
 Roles of Financial Intermediaries
 Roles of Financial IntermediariesSlides
 Comparing Securities to Derivatives
 Comparing Securities to DerivativesSlides
 Fixed Income Markets

4
Financial Math  Interest Rate Conventions and Time Value of Money (1/3)
 Interest Rates and Yields
 Interest Rates and Rates of Return
 Interest Rate Conventions and Time Value of Money Part 1
 Interest Rate Conventions and Time Value of Money Part 2
 Compound Interest
 Time Value of Money and Bond Pricing

5
Financial Math  Debt Security Pricing (2/3)
 Pricing Zero Coupon Bonds
 Pricing Coupon Bonds
 Bond Pricing Versus Bond Valuation
 Pricing Discount Securities
 Discount Rates Versus Bond Equivalent Yield

6
Financial Math  Bond Yields and Rates of Return (3/3)
 Bond Yields
 Yield to Maturity
 Yield to Maturity Versus Rate of Return
 Yield to Maturity as an Expression of Current Value

7
Yield Curve Dynamics  Introduction to Yield Curves (1/5)
 Introduction to Yield Curves
 Types of Yield Curves and Yield Curve Spreads

8
Yield Curve Dynamics  Duration and its Applications (2/5)
 Introduction to Duration
 Types of Duration
 Modified Duration
 Duration Illustration
 Duration of Callable Bonds

9
Yield Curve Dynamics  The Level of Rates and Shape of the Yield Curve (3/5)
 Yield Curve Shapes and the Level of Interest Rates
 Yield Curve Theories
 Yield Curves and the Business Cycle

10
Yield Curve Dynamics  Spot Rates and Forward rates (4/5)
 Spot Rates and Spot Rate Curves
 Calculation of Spot Rates
 Bond Valuation and Rich/Cheap Analysis
 Treasury Strips and the Strip Rate Curve
 Forward Rates
 Calculating Forward Rates
 Forward Rate Applications

11
Yield Curve Dynamics  Total Return Analysis (5/5)
 Total Return Analysis
 Total Return Analysis Illustration

12
Fixed Income Securities
 Introduction to Fixed Income Securities and Markets FREE PREVIEW
 The Primary Market: Issuing Bonds to Borrow Funds
 Similarity of Bonds to Loans & Bond Valuation Issues
 Bond Contact Features
 Bond Coupons, Accrued Interest and Bond Pricing Conventions
 Day Count Conventions & Bond Retirement
 Types of Risk
 Sources of Return & Bond Yields
 Bond Yields, Yield to Maturity and Rate of Return
 Yield Curves
 Yield Curves & Government Securities
 Government Bonds & US Treasury Securities
 Corporate Fixed Income Securities
 Credit Risk of Corporate Securities & Trust Indentures
 Secured and Unsecured Bonds
 Convertible Securities
 Preferred Stocks & Introduction to Structured Securities
 Asset Securitization & Introduction to Mortgage Backed Securities
 Mortgage Backed Securities
 CMOs & Introduction to Asset Backed Securities
 Credit Card and Auto Loan Asset Backed Securities
 Collateralized Debt Obligations
 CDOs and Money Market Instruments
 Agency Securities & Regional/Local Government Debt Securities

13
Equities Products  Introduction (1/3)
 Types of Products/Shares
 Buying Shares & Equities
 Tesco Example
 Types of Shares and Exchanges
 Depository Receipts
 Types of Investors, Diversification and Volatility

14
Equities Products  Equity Indices (2/3)
 Types of Indices Part I
 Types of Indices Part II

15
Equities Products  How to Buy the Market (3/3)
 Tracking Funds
 Exchange Traded Funds (ETF's)
 Introduction to Derivatives
 Forward Contracts
 Futures
 Equity Swaps
 Options
 Structured Products (Warrants, Certificates and Notes)

16
Futures & Options  Introduction to Derivatives (1/6)
 Types of Derivative Contracts and Their Characteristics
 Derivatives Compared to Securities
 Derivatives Defined

17
Futures & Options  Introduction to Futures Contracts (2/6)
 Futures Terminology and Contract Features
 Physical Delivery to Close a Futures Position
 Cash Settlement, OTC Derivatives
 Futures Clearinghouse and Third Party Contracts
 Futures Margins and Futures Contracts

18
Futures & Options Future Contracts Trading and Cash Flows (3/6)
 Clearinghouse and Futures Trades
 Comparing Futures Versus Underlying Positions
 Futures Position Cash Flows and Hedging with Futures
 Futures Positions: Risk and the Cost Taking Position

19
Futures & Options  Futures Pricing (4/6)
 Cost of Carry/Carrying Charges
 Cost of Carry Pricing and The Forward Pricing Curve

20
Futures & Options  Introduction to Options (5/5)
 Option Fundamentals: Contract Features and Terminology
 Option Contract Example: Long Call Positions
 Option Pricing Basics
 Time Value, Intrinsic Value and Moniness
 Short Option Positions
 Investment Characteristic of Options
 Overview of Long Put, Short Call and Short Put Positions

21
Futures & Options  Option Pricing and Applications (6/6)
 Option Pricing and Sensitivities (Option "Greeks")
 Option Deltas
 Delta Hedging
 Delta Neutral Hedging Example
 BlackScholes and Option Volatility (Vega)
 Implied Volatility and Volatility Trading

22
Interest Rate Swaps  Introduction to Interest Rate Swaps (1/5)
 Introduction of Swaps
 Interest Rate Swap Basics
 Interest Rate Swap Contract Features

23
Interest Rate Swaps  Risk Management of Floating Rate Liabilities (2/5)
 Fixed for Floating Interest Rate Swaps
 Periodic Settlement Payments on Interest Rate Swaps
 Hedging Cash Flow Uncertainty with Interest Rate Swaps
 Net Interest Cost of a Synthetic Fixed Coupon Bond

24
Interest Rate Swaps  OTC Clearinghouses (3/5)
 OTC Clearinghouses
 Cleared Swaps Versus OTC Swaps ExClearinghouse
 Functioning of OTC Clearinghouses

25
Interest Rate Swaps  Swap Pricing and Valuation (4/5)
 Terminating a Swap Before Maturity
 Interest Rate Swap Pricing
 Pricing Fixed for Floating Interest Rate Swaps
 Valuing Swaps, Hedging Cash Flow Uncertainty

26
Interest Rate Swaps  Risk Management with Interest Rate Swaps (5/5)
 Managing the Cash Flow Risk of Fixed and Floating Rate Assets
 Basis Swaps (Fixed Versus Floating Swaps)
 Capital Market Equivalents for the Fixed and Floating Rate Payers
 Value Hedging, Asset Swaps
 Variations in the Structure of Interest Rate Swaps
 Structuring and Pricing Basis Swaps

27
Quizzes
 Quiz 1
 Quiz 2
 Quiz 3
 Quiz 4
 Quiz 5

28
Final Examination
 Final Examination

29
Next steps
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