TARGET GROUP | Mid-level to senior officials in central banks, ministries of finance, and financial regulatory agencies who are interested in more advanced finance topics than those covered in the Financial Market Analysis course. Participants should have an advanced degree in economics or finance or equivalent work experience. The course requires heavy use of Microsoft Excel spreadsheets, with which Participants should have to be proficient. It is strongly recommended that applicants first complete the online Financial Market Analysis (FMAx) course.
DESCRIPTION | This course, presented by the IMF´s Institute for Capacity Development, is designed to give participants a foundation of financial instruments beyond the standard treatment of bonds and equity covered in the FMAx course. After a short review, the course takes on forwards, futures, swaps, and options and moves to combining these building block instruments with practical applications. Some time is devoted to policy implications, notably related to financial market regulation, though a separate course devoted to financial sector policies is recommended for those interested in this topic. Lectures introduce the underlying theory, while workshops and case studies allow participants to apply the techniques introduced and test their understanding of how and why some strategies and misuse of financial instruments can lead to large losses and financial instability. Participants are expected to prepare final presentations on a set of predetermined current financial market issues.
OBJECTIVES | Upon completion of this course, participants should be able to: Explain the economic rationale for various financial instruments and markets. Identify and use the building blocks presented in the course to construct financial instruments. Use basic pricing models to identify possible mispricing and misuse of financial instruments. Identify threats to financial stability in markets and instruments based on case studies of previous financial crises. Extract lessons from previous financial stability threats to try to prevent their recurrence.