Financial Institutions & Markets: Risk Management | Products

Understand how banks, insurance companies, funds, and markets manage risk, derivatives, and financial products.

The course discusses about the Derivative market and understanding the forward contracts, futures contracts, options, swaps. It also emphasizes on the execution of options strategies. These tutorials will help you kick start your career in this exciting market. All countries have financial markets, which invariably play a key role in their economic growth story. A financial market acts as the intermediary between the investors willing to invest their money and the companies needing the money to expand their business. The size of the financial markets varies across economies, wherein it is relatively smaller in developing nations but large and organized in the world’s developed economies, like NASDAQ. Nevertheless, irrespective of their size, their contribution to the economy remains the same globally.

Section 1: Introduction

This opening section introduces the course structure and provides a high-level overview of financial institutions and markets. Learners gain clarity on how different segments of the financial system are interconnected.

Section 2: Banking

This section focuses on the core functions and risks faced by banks. Topics include market risk, credit risk, operational risk, banking regulations, underwriting, IPOs, advisory services, trading activities, and the originate-to-distribute lending model.

Section 3: Insurance

Learners explore how insurance companies operate, including life insurance, property and casualty insurance, and pension plans. The section covers mortality tables, premium calculations, longevity and mortality risks, catastrophic bonds, key ratios, and insurance regulations.

Section 4: Fund Management

This section explains pooled investment vehicles and fund management structures. Students learn how pooled funds operate, how returns are generated, and how research supports investment decision-making.

Section 5: Derivatives and Futures

An introduction to derivatives markets, this section explains futures contracts and hedging strategies. Learners understand how derivatives are used to manage risk and enhance portfolio outcomes.

Section 6: Markets

This section dives into the structure of financial markets, including exchanges and OTC markets. Topics include counterparties, central clearing, CCPs and credit risk, hedging strategies, optimal hedge ratios, portfolio beta management, and forward and futures pricing.

Section 7: Foreign Exchange Markets

Learners gain an understanding of foreign exchange markets, FX quotations, transaction risk, and interest rate parity. The section highlights how currency risk is measured and managed in global markets.

Section 8: Options Markets and Strategies

This section introduces options markets and option pricing concepts. Topics include option moneyness, option-like structures, Greeks (including Theta), and a wide range of trading strategies such as spreads, box spreads, and combination strategies.

Section 9: Interest Rate Derivatives

A practical overview of interest rate instruments, covering risk-free rates, compounding frequency, bond valuation, forward rate agreements, pricing conventions, and foreign currency swaps.

Section 10: Corporate Bonds

This section focuses on corporate bond fundamentals and credit ratings, helping learners understand credit risk assessment and fixed income investing from a corporate perspective.

Section 11: Mortgage Markets

The final section introduces mortgage fundamentals and mortgage pools, explaining how mortgage-backed structures function within the broader financial system.