Training Course on Securities Analysis and Portfolio Management for Investment Bankers

Course Outline

 

Module 1: Foundations of Financial Analysis and Valuation

ü  Overview of the investment banking landscape

ü  The role of financial analysis in investment decisions

ü  Review of financial statements: Income Statement, Balance Sheet, Cash Flow Statement

ü  Financial ratio analysis for equity and credit insights

ü  Understanding different valuation approaches (asset, income, market)

ü  Practical Session: Performing a comprehensive financial ratio analysis on a publicly traded company

Module 2: Equity Valuation: Discounted Cash Flow (DCF) Models

ü  Principles of DCF valuation

ü  Forecasting revenues, expenses, and capital expenditures

ü  Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE)

ü  Estimating the Weighted Average Cost of Capital (WACC) and Cost of Equity

ü  Terminal value calculation and sensitivity analysis

ü  Practical Session: Building a simple DCF model for a company from scratch

Module 3: Equity Valuation: Relative Valuation and Multiples

ü  Introduction to relative valuation methodologies

ü  Types of multiples: P/E, EV/EBITDA, P/B, P/S

ü  Identifying comparable companies and transactions

ü  Adjustments for differences in accounting policies, growth, and risk

ü  Advantages and disadvantages of using multiples

ü  Practical Session: Applying relative valuation techniques to a set of peer companies

Module 4: Fixed Income Securities Analysis and Valuation

ü  Characteristics of fixed income securities: bonds, notes, money market instruments

ü  Yield measures: yield to maturity, current yield

ü  Duration and convexity as measures of interest rate risk

ü  Credit risk analysis for bonds and bond ratings

ü  Valuation of callable and putable bonds

ü  Practical Session: Calculating duration and convexity for a given bond portfolio

Module 5: Derivatives: Valuation and Applications

ü  Overview of derivative instruments: futures, forwards, options, swaps

ü  Basic pricing concepts for derivatives

ü  Hedging strategies using derivatives

ü  Speculative applications of derivatives

ü  Risks associated with derivative instruments

ü  Practical Session: Analyzing simple options strategies (e.g., covered call, protective put)

Module 6: Modern Portfolio Theory (MPT) and Asset Allocation

ü  Risk and return concepts in portfolio theory

ü  Diversification and its benefits

ü  Efficient frontier and optimal portfolio selection

ü  Capital Asset Pricing Model (CAPM) and Beta

ü  Asset allocation strategies: strategic, tactical, dynamic

ü  Practical Session: Plotting asset returns and correlations for a hypothetical portfolio

Module 7: Portfolio Construction and Optimization

ü  Setting investment objectives and constraints

ü  Quantitative methods for portfolio optimization

ü  Factor models and risk decomposition

ü  Incorporating ESG (Environmental, Social, Governance) factors in portfolios

ü  Rebalancing strategies and costs

ü  Practical Session: Using a simple optimization tool to construct an efficient portfolio

Module 8: Portfolio Performance Measurement and Attribution

ü  Measures of portfolio performance: Sharpe Ratio, Treynor Ratio, Jensen's Alpha

ü  Benchmarking portfolio performance

ü  Performance attribution: breaking down returns by asset allocation and security selection

ü  GIPS (Global Investment Performance Standards)

ü  Challenges in performance measurement

ü  Practical Session: Calculating and interpreting key performance ratios for a given portfolio

Module 9: Behavioral Finance and Market Anomalies

ü  Introduction to behavioral finance

ü  Cognitive biases influencing investment decisions (e.g., overconfidence, anchoring)

ü  Emotional biases and their impact on markets

ü  Market anomalies: January effect, small-firm effect

ü  Strategies to mitigate behavioral biases

ü  Practical Session: Discussing how cognitive biases might affect investment banking deal flow or valuation judgments

Module 10: Advanced Topics in Investment Banking and Portfolio Strategy

ü  Mergers and Acquisitions (M&A) valuation considerations

ü  Leveraged Buyouts (LBOs) and private equity valuation

ü  Macroeconomic analysis for investment strategy

ü  Current trends in global financial markets

ü  Ethical considerations and professional conduct in investment management

ü  Practical Session: Analyzing a recent M&A transaction from a valuation perspective

About the Trainers

The training will be delivered by a team of highly experienced investment banking professionals, including former equity research heads, portfolio managers, and M&A specialists from leading global financial institutions. Our trainers possess deep analytical prowess, practical deal-making experience, and a nuanced understanding of capital markets. Their expertise ensures that participants gain cutting-edge knowledge and actionable skills to excel in the demanding world of securities analysis and portfolio management.

Quality Statement

We are committed to delivering high-quality, practical, and relevant training programs that empower professionals to excel in their roles and contribute significantly to the success of their organizations. Our courses are continually updated to reflect the latest industry trends, regulatory changes, and best practices.

Admission Criteria

ü  Participants should be reasonably proficient in English. 

ü  Applicants must live up to Phoenix Center for Policy, Research and Training admission criteria.

Terms and Conditions

1. Discounts: Organizations sponsoring Four Participants will have the 5th attend Free
2. What is catered for by the Course Fees: Fees cater for all requirements for the training – Learning materials, Lunches, Teas, Snacks and Certification. All participants will additionally cater for their travel and accommodation expenses, visa application, insurance, and other personal expenses.
3. Certificate Awarded: Participants are awarded Certificates of Participation at the end of the training.
4. The program content shown here is for guidance purposes only. Our continuous course improvement process may lead to changes in topics and course structure.
5. Approval of Course: Our Programs are NITA Approved. Participating organizations can therefore claim reimbursement on fees paid in accordance with NITA Rules.

Booking for Training

Simply send an email to the Training Officer on training@phoenixtrainingcenter.com and we will send you a registration form. We advise you to book early to avoid missing a seat to this training.

Or call us on +254720272325 / +254737566961

Payment Options

We provide 3 payment options, choose one for your convenience, and kindly make payments at least 5 days before the Training start date to reserve your seat:

1. Groups of 5 People and Above – Cheque Payments to: Phoenix Center for Policy, Research and Training Limited should be paid in advance, 5 days to the training.
2. Invoice: We can send a bill directly to you or your company.
3. Deposit directly into Bank Account (Account details provided upon request)

Cancellation Policy

1. Payment for all courses includes a registration fee, which is non-refundable, and equals 15% of the total sum of the course fee.
2. Participants may cancel attendance 14 days or more prior to the training commencement date.
3. No refunds will be made 14 days or less before the training commencement date. However, participants who are unable to attend may opt to attend a similar training course at a later date or send a substitute participant provided the participation criteria have been met.

Tailor Made Courses

This training course can also be customized for your institution upon request for a minimum of 5 participants. You can have it conducted at our Training Centre or at a convenient location.

For further inquiries, please contact us on Tel: +254720272325 / +254737566961 or Email training@phoenixtrainingcenter.com

Accommodation and Airport Transfer

Accommodation and Airport Transfer is arranged upon request and at extra cost. For reservations contact the Training Officer on Email: training@phoenixtrainingcenter.com or on Tel: +254720272325 / +254737566961