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Tag: capital market certification

Fundamentals of Capital Markets Certification: Capital Markets And Derivatives Training

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Every company has a finance division and participates in the capital markets. Therefore, many businesses hire capital markets professionals to assist and provide various financial services. This industry currently has many job opportunities, and a capital market certification from Imarticus Learning can help you land one. 

Understanding the Fundamentals of Capital Markets and Derivatives

Students who want to pursue a career in the capital markets need to enrol in a financial services and capital markets course. This will allow them to learn and specialise in various fields. However, there are a few fundamentals that you should know. 

Capital markets certifications usually include specific fundamental mathematics topics. These are simple and compound interest, a comparison between effective and nominal rates, the present value of an annuity, and conversion of present values into future values. As preparation for a career in the capital markets, you must know these fundamentals. 

You also need to learn about derivatives. In finance or capital markets, a derivative is a kind of contract. The value of this financial contract either depends on several assets, one underlying asset, or a particular benchmark. Derivatives usually occur between two parties, individuals or companies, who can trade over-the-counter, or on an exchange. If two parties use derivatives, they can trade any number of assets they want and carry the risks. Professionals in the capital markets have to assess the risks and financial securities that enable the derivatives to be created. 

While it is essential to know the basics, you need to receive in-depth knowledge. This is possible through a certificate course in financial services and capital markets. 

Where Can You Receive the Best Training in Capital Markets? 

Suppose you want to have a successful career in the financial sector, particularly in capital markets. In that case, you need to get certified as an expert in the field. At Imarticus Learning, we offer the Advanced Management Program in Financial Services and Capital Markets to ensure such expertise. This capital markets training program is focused on industry conditions and is in collaboration with IIM Lucknow. It is an intensive course that continues for three months. It focuses on various aspects of financial services, from fundamentals to capital markets, compliance, equity research, FinTech, risk management, and more. Therefore, you will get to choose which subject you wish to specialise on and learn from the experts. During the live lectures online, academicians and professionals will interact with students. We encourage all our students to interact and network with the experts and their peers. This will help you develop soft skills and allow you to have a presence and learn more. The curriculum that we have designed is an AMP curriculum, including simulations and Capstone projects. These projects will help you focus on industry problems and real-world issues to provide relevant solutions. We also ensure campus immersion for all students at IIM Lucknow. You will spend 36 hours on-campus, which will give you an opportunity for peer networking. 

The Advanced Management Program in Financial Services and Capital Markets is excellent for working professionals or graduates. We prefer students with a graduate degree and at least two years of work experience. However, you can apply if you have a diploma but considerable experience. Once you enrol, you will receive the best training. At the end of the course, you will be ready to enter the industry as an expert in financial services and capital markets. 

Financial Markets And Their Roles

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A financial market, unlike the other markets, is more of an intangible concept and basically refers to a marketplace where buyers and sellers usually participate in an exchange of assets such as equities, bonds, derivatives and currencies. The basic characteristic of any financial market comprises of transparent pricing, basic regulations regarding costs and fees and a number of market forces, that determine the prices of securities that trade. These financial markets can be found almost in every single country across the world, some of these may be small, with a very few numbers of participants, while some are huge in terms of the amount of money they trade, for example, the New York Stock Exchange.
It is basically investors, who have an access to a great number of financial markets and exchanges, that deal with a vast array of financial products. Some of these markets have always been open to private investors, while some have always remained, pretty much exclusive in terms of catering to major international banks and financial professionals. There are a variety of financial markets, which make up the field of finance.
Certification in Capital MarketsCapital Markets

These markets are where individuals and various organizations, deal with the trading of financial securities. There are a number of organizations and companies, that sell securities on these markets, in order to raise funds for themselves. This is why the capital markets consist of both primary as well as secondary markets. Any organization or corporation requires capital in order to finance its various operations, as well as to engage in long-term investments. In order to accomplish this, the corporation raises money through the sale of securities, basically bonds and stocks; all of which is in the name of the company.
Stock Markets

These are markets, which allow all of the investors to buy and sell the shares in publicly traded companies. They are popularly known to be the most vital area of a market economy, this is because they provide companies, with the access to capital and all the investors, with a chance to have a percentage of ownership in the company. This market is divided into primary markets as well as secondary markets.
Bond Markets
A bond refers to any debt investment in which, an investor loans money to an entity, this can be either corporate or governmental. This entity basically borrows the funds for a specific period of time Bonds are usually used by a number of companies, municipalities, states as well as governments, in order to finance a variety of projects and activities. This markets basically deals with buying and selling of bonds on the various credit markets, all over the world. This market is also referred to as the debt market or credit market or fixed-income market. The many types of bonds are corporate bonds, municipal bonds, notes and bills which are also known as treasuries and so on.
All of these markets require a financial professional, wither a corporate banker, investment bankers or portfolio manager and so on, to deal with their various aspects. The various attractive benefits that these markets offer are a result of a lot of finance aspirants seeking positions in the field of financial markets. Imarticus Learning is one of the best institute for finance and investment banking training and very much preferred by these professionals, in order to get a hang of how the markets work, through various certification courses in corporate finance, investment banking and so on.

What Is Portfolio Management In Stock Market?

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Financial Modelling is a very crucial analytics tool and is used by literally every vertical and industry. The experts at such models are in extremely high demand and get paid fantastic sums for their advice and proficiency.

The term equity portfolio management is widely used to beat the equity market and is the implementation and planning of various methodologies, strategies, and philosophies. The ultimate aim of investment analysis is to be able to make forecasts, investment decisions, and sound predictions of the investment.

The PM advises clients based on such forecasts and ratios of project management to make investment decisions on assets whether they are stocks, other securities, or financial instruments. This clearly points out that equity analysis and its science are applied to EPM.

The Investment Philosophy:

Professional PMs have to adhere to strictly defined parameters and rigid guidelines in policy for stock selection and investment management. The PMs work for companies that deal in an investments management company and cannot follow just about any investment philosophy or general methodologies when they manage their portfolios. Portfolio management is well regulated and has to adhere to the guidelines for market capitalization.

The investment philosophy in equity portfolio management thus needs one to understand the universe of investments and select efficient instruments prudently.

Sensitivity to taxes:

Pension funds and such instruments are not subjected to taxes though they are a part of the equity portfolios of many and are considered institutional instruments by the portfolio managers. The PM has more flexibility in managing his portfolio because these non-taxable instruments use exposure to dividend incomes and short-term gains in the capital when compared to the taxable instruments.

Factors affecting the portfolio:

The main factors considered by the PMs of taxable portfolios are: 

· The holding periods of stocks.

· Tax structure and tax-lots.

· Capital losses.

· Tax selling.

· Dividend income from the portfolios.

The taxable portfolios have a low turnover rate for portfolios and are successful in comparison to the non-taxable ones having a higher turnover rate. Building and managing the portfolios to create wealth is an ongoing process that takes a long time and hence efficient portfolio management is a vital factor.

Creating the model:

Maintaining and building a portfolio model is an essential part of Equity Portfolio Management. It may take on one or many portfolios in one product of equity investments. The matching of portfolios is undertaken to compare the individual portfolio against the model of the portfolios managed and known as the benchmarked portfolio.

Then, every portfolio stock is assigned a weight in percentages by a PM to form a weighted model for the portfolio. Modifications and changes to individual portfolios happen at this stage to provide a matched mix against the weighted mix. The computerization of such portfolio models is achieved through portfolio management software tools or done using Microsoft Excel.

Achieving Efficiency:

The important factor of making profits rests on how the Portfolio manages to achieve efficiency and productivity in the portfolio. The EPM achieves excellent efficiency by running all portfolios according to the standards set and in a similar manner. Rather than expert knowledge in 100 to 200 stocks the EPM needs to know all about 30 to 40 stocks in the portfolio.

These 30 to 40 stocks are used in the model and other portfolios are weighted against these by weight modifications. With equity markets constantly fluctuating the fall and rise of the stocks are necessarily changed by the EPM over the passage of time. This measure reflects the investment potential and decisions of the portfolio.

Why learn at Imarticus:

The equity portfolio management degree at Imarticus Learning is attractive because they offer the latest in technology and skills while training you in a very short period. They use the latest practical learning tools of using project work, assignments, sufficient assignments, tests, hands-on practice and bootcamps to reinforce your learning. They integrate modules in resume writing, mock interviews, soft-skill development, and personality development while offering convenient timings and modes for professionals and career makers. Their wide range of subjects offered is specific and need-based depending on the training skills required for making a career in financial analysis.

Conclusion:

EPM or equity portfolio management involves modeling the portfolio in an efficient manner whereby evaluation of key stocks can be assessed with the key metrics of stocks in a group of such stocks. It relies on equity analysis and portfolio management. The weights allocated to these stocks are adjusted in the models according to the rise and fall in the stock values to effectively read and optimize the return of all stocks/portfolio stocks in the group.

You can learn EPM by doing a financial modeling course at Imarticus Learning where statisticians and modeling experts thrive.

Ways Trade Execution Can Improve Your Capital Market Business!

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What exactly is Trade?
Trade is the exchange of items between two or more parties backed up by purchasing power. In a layman’s language, buying and selling of products and services are known as Trade.

What are Capital Markets?
Capital market is the kind of financial market where securities such as long-term debt, equities, etc. are traded frequently. This is a volatile market as the value of these securities and the interests and dividend rates involved with them keep fluctuating.

The capital market is further broken down into two categories: Primary Market & Secondary Market. The primary market is the capital market where new securities are bought and sold and the Secondary market is the one where the already issued securities are exchanged by various investors and companies.

Trade Execution and the Capital Market 
Whenever there is an exchange, trade comes into the picture, even in case of financial instruments. Financial instruments are heavily traded all around the globe every second. And with such exchange of securities, the trade aspect has to be clearly defined and should not be eclipsed by the volume of transactions. The capital market runs on the game of exchange. Such exchanges are facilitated by smooth trade execution, Asset Management Allocation, and a well-versed post-graduate diploma in Banking and Finance.The trade life cycle has to be optimized and every step has to deliver some value to make the process smooth and glitch-free. Mentioned below are the stages of the Trade Life cycle and how their execution leads to improvement in the capital market business.

  • Order Initiation

The order is initiated when the stocks of various companies are made to float in the market. Such a process can be called as “Security Existence Awareness”. Then an individual buyer or a company shows its intention to buy particular security with the help of their registered stock brokers. The brokers perform the buying and selling function for their respective clients in exchange for a small fee. After the order is placed, the brokers process the transaction, delivers the security or collect the money and transfer the benefit to his client.

  • Order Processing and Managing Potential Risks

A capital market is a place with fluctuating value. And with fluctuation, risks dawn in. To process the order, the broker must have a clear picture of the funds residing in his client’s account and also of the securities the client is interested in. If both the scenarios fall in line, the broker generates the receipt and processes the orders. If any default on the part of the client, the broker will have to keep a window up for such loopholes and manage the associated risks carefully. Also, the broker has to recover the additional charges from their clients efficiently.

  • Order Matching and Trade conversion

On the verification of what is required by the client, the particular securities are sent to exchange for verification of various details and allotment of the respective securities. The brokers charge a brokerage for executing the security trade function effectively and efficiently. The receipt of the order confirmation is then sent to the client and the details of the client are recorded by the broker for the allotment of a unique customer ID.

An agency that is commonly known as the custodian then intervenes in the settlement of any security deal. The custodian receives the details of the order from the exchange. This includes details like the type, price of the security, etc. This is done to make the custodian aware of an upcoming securities exchange. It is the job of a custodian to validate the details of the transaction and then show a green flag to the broker. This complicated process can be made much easier by proper capital market training.

  • Trade Settlement and Clearance

The trade is then settled after 2 days of a valid transaction. This is commonly known as a T+2 settlement. The clearance provider then informs the restrictions of the particular transactions which is followed by the settlement of balances. The securities are then allocated to the client in his DMAT account and the share value is credited to the companies raising capital. After completion of such a transaction, it is recorded by the Exchange offices.

What Are Some Technologies That Can Prove Beneficial For Retail Banking?

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What Are Some Technologies That Can Prove Beneficial For Retail Banking?

Financial institutions annually spend huge amounts running into billions of dollars a year on upgrading technology and undertaking system integration work. This is not a fad but an essential for their survival. But, in comparison to the newer banks and the capital market courses the technology of the new age is not only nimble and lightweight but is also more adaptable and faster than the older banks’ legacy systems.

Some areas where technology definitely impacts the banking services can briefly be summarized as below.

A. Customer authentication: Imagine a dual-control process with multi-factor authentication taken care of in a bank. It is possible only when the technologies keep pace with the customer demands and is possible only with the application of the latest developments in big data analytics, AI and ML.

B. Data Security: Data is being generated by the fraction of a second and its sheer volumes are nowhere better known than in retail banking. Storage of data is another sector where banks need to tread carefully because of the increased KYC norms. Innovations in cybersecurity, cloud storage, and such areas are not only essential but mandatory for compliance or regulatory norms and to gain customer trust, loyalty and confidence. Such futuristic technologies suitable for retail banking can be learned in Capital Market Courses.

C. Legal and KYC requirements: With financial markets tightening the noose around fraudulent investors and borrowers the regulatory environment is much more stringent than ever before. The bank’s documentation, its process, and technology have all been under regular scrutiny in recent times. It would be impossible if not for Regtech innovators and technology stepping in to make it feasible.

D. Integration with legacy technology: Banks are big acquisition businesses and this means mergers of legacy technology of the two entities. When such legacy systems are to be transitioned to a newer uniform technological platform it involves huge costs. Technology can definitely help integrate the legacy systems at reduced costs and without changing the existing infrastructure.

The areas and developments that will see changes:

Citing a 2018 outlook report from SIFMA there are four trends that will definitely see benefits and change in retail banking. They are:

1. AI will aid and enhance the processes of decision-making and investments.

2. Automatic processing and AI will see a huge change.

3. Blockchains and capital market courses will lead to technological innovations to make retail banking and the capital markets more investor-friendly and efficient.

4. Data security and protection will increase in importance.

How do the banks benefit?

According to the experts, bankers, analysts, consultants, etc that spoke to The Financial Times, the top 5 areas that have the potential to be successfully transformed by blockchains are

Settlement and Clearing:

The bank network is a tangled network of securities, investments, and loans that need to be recorded, settled and cleared on a daily basis. And, this costs billions of dollars annually to run. Accenture says that this area of settlement and clearing could save investment banks up to USD 10bn if they use blockchain technology for efficient settlement and clearing operations.

Payments:

Payments systems from the central banks globally are moving to explore blockchain technology and shifting payments system processes to blockchains and issue digital tokens that can be used on the stock markets and cashed in at the central banks. Commercial banks also have pushed forward with their own projects instead.

Trade finance:

LCs, trade finance, bills of lading, etc are still paper-transactions sent through post or fax globally. According to the R3 MD, Charley Cooper, this is an obvious area where banks can benefit from blockchains.

Customer Identity Verification:

Lenders are in reality trusted custodians of investor’s money and regulators will hold the banking agents responsible for authentication of records and checking the customer’s identity. This area is a vital banking-risk that blockchain-processing can easily overcome. It is an era of start-ups in the KYC blockchain-enabled systems. Some of them are Blockstack, Cambridge Blockchain, Credits, and Tradle.

Syndicated loans:

It takes a long 19 days for US companies to raise syndicated funds from banks. Early repayments and foreclosures are still done on paper. To address the efficiency of this area Credit Suisse and 19 similar-minded financial institutions formed a work-consortium with the blockchain enablers to put the syndicated loans Synaps on a blockchain framework.

Conclusions:

Taking capital market courses at Imarticus Learning can help you learn and reskill on such futuristic technologies for retail banking. Hurry and enroll. For more detailed information regarding this and for further career counseling, you can also contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Banglore, Hyderabad, Delhi, Gurgaon, and Ahmedabad.

How Should You Acquire Domain Knowledge In Capital Markets?

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Domain knowledge in project management is crucial when making a career in a banking project sector. Hence it would be great to do a course when looking to make a capital market for beginners career in this core sector. When starting your career there are many questions as to what one should do to assimilate knowledge quickly so one can move into a good banking career. The capital markets world over may differ in product offerings, trading practices, and regulations. However, the one constant has been the growing demand for skilled capital market personnel in banking circles.

What is the capital market?

The capital market instruments are: 

1. Shares: Share is a part of the ownership in the form of the share and forms the capital base of any company. The sharing unit can be traded in and many people hold shares to sell when the markets boom making huge profits.

There are two types of shares. Namely, 

  • Equity shares
  • Preference shares

2. Debentures: Companies issue debentures under the company’s seal as funds borrowed for a long term and form a part of the borrowed capital of the company. Such debentures carry a fixed interest rate and maturity period. These are the certificates issued

3. Bonds: To raise capital for projects governments and large companies issue bonds which are again long-term capital borrowings. Like the debentures bonds also carry a fixed interest rate and maturity period. The interest charged on such bonds is on the coupon rate.

4. Derivatives: These instruments derive from other underlying assets and securities. The selling price, function, risk, etc of the derivative depend on the assets underlying them.

Some examples of the Capital Market for beginners drawn from derivatives are

  • Futures
  • Swaps
  • Options
  • Exchange commodities
  • Traded Funds

EFFECTIVE STRATEGIES TO RIDE THE EDTECH WAVEHere are simple steps in a tutorial to increase domain knowledge especially in the capital market for beginners.

1. Research your knowledge to narrow down to your domain choices:

For example, if you want to be a domain expert in banking you must narrow down to the capital markets from the various services offered by investment banks. Next, add questions and actions to research and act upon them.

2. Question bank building:

Ask your questions of an expert on the subject of capital markets.

What questions to ask depends on your question list and domain knowledge. Rather than ask an obvious question try asking questions like-Do all asset classes get mark-to-market action? How are bad loans monitored? and such.

When and whom to ask questions is important. Never ask domain technical questions to the executive or a domain operations question to the accountant!

Record the answers for further reviews.

3. Do a course:

You have a variety of domain choices here related to the capital market domain.

·         WMI-Wealth Management Institute course

·         Do the CFA-Chartered Financial Analyst course

·         An MBA course with a finance domain focus

·         Do the MFE-Masters of Financial Engineering degree

·         Get experience in domain work: To get practical hands-on skills many students opt to take the financial professionals course at a reputed institute like Imarticus Learning.

4. Attend events:

This is the best place to learn more about domains. Build your domain knowledge with reading from 

  • Banking Associations / Magazines – FundSuperMart, The Asian Banker, WealthMatters, etc
  • Software vendors – FlexCube, Temenos, SAP, SilverLake, Finacle, etc 
  • Hardware vendors – HP, IBM and such
  • Consulting firms – Boston Consulting Group, McKinsey and Company, PWC, Accenture, IBM GBS, etc

5. Knowledgebase building: 

Create a base on hard disk from your records, questions, etc and build on it. Update it periodically and add indices to it to demarcate the domains.

6. Knowledge Communities: 

Join such communities for mentorship and issue resolutions in your domain from a peer group. You can teach, learn and explore domains at the same time!

7. Mentorship: 
This is crucial to emulate in domain expertise building.

8. Offer to help:
This method is a great way of gaining hands-on information and experience in domain knowledge.

9. Update Solutions Knowledge: 
Technology is evolving as are standard practices. Hence do continued domain learning to get ahead of the career curve.

Wrapping Up …

Acquiring domain knowledge is not difficult. There exist SO MANY things you can do to acquire such knowledge. Firstly start with a plan, build knowledge bases through MOOCs and online reading, question all your premises, enroll in courses, and take the support of community groups.

Do your capital market for beginners course at Imarticus Learning because they help you in all the above aspects, offer excellent mentorship, prepare you for certification exams, and go further with assured placements.

Their course has a comprehensive part, modules on soft skills, resume writing, mock interviews, and personality development too. Enroll today! For more details and further career counseling, you can also contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Hyderabad, Delhi, Gurgaon, and Ahmedabad.

DHFL Default and The Impact On Money Market Mutual Funds

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The facts:

  • The Medium-Term Fund DHFL Pramerica has a 37.42 per cent risk exposure and is the top among worst-hit MF schemes.
  • As on 30th April, about 165 MFs have had some risk-exposure to the DHFL MF and report a greater than 5 percent of AUM.

Action by rating agencies:

No wonder the rating experts ICRA and CRISIL were quick to downgrade Home-Financer DHFL after the interest default to investors on its NCD issues. The liquidity-starved DHFL missed its deadline for payment of investor interest on NCDs.

Earlier in the year, ILFS the largest NBFC player on the market defaulted on its payments causing the cash-crunch for other NBFCs as investors grew wary and the capital markets declined lending to shadow NBFC lenders.

The downgrades by ICRA and CRISIL from A4 to a miserable D on the DHFL commercial papers-CP are indicative of the lack of trust in NBFC sectors fund management. Of the total 850 Cr Rs outstanding-CPs, June will see the maturity of around 750 Cr Rs. Not only is the liquidity position poor, CRISIL states the chances of funds being raised on time given the market conditions, are also poor. This means DHFL will have no option but to defer the maturity payments too, adding to its woes.

Officials from DHFL clarified that according to the trust deed, a curative seven day period is present when interest payments are not made on the due date. The default starts only after this period according to them. Obviously given the pressures of the banks and market-leading areas to further funding for NBFCs the impact on the capital markets for MFs will be negatively impacted.

The statistics:

Currently, the MF schemes have an exposure value cumulatively of 5,336 Cr Rs on DHFL issued securities. Another 24 AM firms dealing in 165 MF schemes from DHFL MF, report exposure to it as on 30th April. Of this pool about 106 MFs report more than 5 percent exposure of their assets managed by them. According to insider sources the MFs have assessed the DHFL securities written-down values as 75 percent asset-value for most securities. The unsecured-bonds have a WDV of 100% according to them.

Medium-Term Fund DHFL Pramerica, is the most affected MF scheme with an exposure of 37.42 percent. The Floating Rate Fund DHFL Pramerica reports exposure of 31.94 percent, the %), the Short-term  Maturity Fund DHFL Pramerica of 30.47 percent, the Bond Fund of Tata Corporate a 28.21per cent and the Hybrid Fund of JM Equity a 24.61per cent exposure.

The NAV-drop of these MF funds is directly proportional to their DHFL MF exposure. Just as an example the Bond Fund by Tata Corporate saw a drop of 29.69 percent of its NAV on the night of DHFLs interest default.

The assessments:

In response to such drops in NAV the MF DHFL Pramerica, a conjoint-promoter of the AMC was considering funds inflow stoppage to the affected schemes of DHFL where interest payment obligations are unmet. In its written reply to a query by Mint,

The AMC spokesperson stated they were restricting the further purchases of the debt-affected schemes in a bid to safeguard investor interests in the MF schemes.

According to UTI Asset Management’s Fixed income head, Amandeep Singh Chopra, the regulatory guidelines were followed while the WDV and exposure were secured. A SEBI anonymous spokesperson added that it would assess the impact of the DHFL interest default on other MF schemes and if such MF securities were valued as per SEBI norms and guidelines. If the 25 percent exposure limit was breached SEBI contemplates penal action and asking the scheme affected to make good the losses and refund investors. The spokesperson also added that the MF DHFL Pramerica will be given a chance to explain why it breached and failed to limit the set investment limits of SEBI already communicated to them in writing.

Chairperson Dhruv Mehta of the Foundation of Independent Financial Advisors felt   SEBI should reassess the set limits for corporate groups and individual issuers. Plan Ahead Wealth Advisors’ Founder Vishal Dhawan cautioned investors to check the concentration risk- exposure of a particular group/issuer to arrive at the exposure of the MF.

Full Circle Financial Advisors and Planners Proprietor Kalpesh Ashar, says there is no information on how deep the impact of the problem is and that investors should refrain from trying to make a killing on such MFs when and if they recover. However, the DHFL Pramerica MF claims ignorance of any SEBI probe or violation of norms and SEBI guidelines.

In parting, such MF assessments can be learned best in a Capital Market Course at Imarticus Learning.

 

Trump’s Surprise Victory And Its Effects On The Financial Markets

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In the News, The United States of America just concluded the elections for the 45th president of the great superpower. With a clean sweep of both the House and the Senate, Donald Trump, the republican candidate has been elected as the President, much to the surprise of the whole world. While America was in the last leg of these elections, the financial markets world over had begun to feel ripples of change, but with his surprise win, a lot of the financial services companies were left rattled and in grave uncertainties. While the whole world was expecting an entirely different outcome, the way things progressed, it seemed like a recap of the whole Brexit situation, which left a lot of people from both finance and non-finance backgrounds equally shocked. While there was uproar in certain places, for instance the Time Warner Company, which saw a fall of 1.45% drop in its shares, which was incidentally threatened by Trump for concentrating the power in the hands of very few people.

The world news is strife with reports of a number of people losing a lot of money across borders. The Global bond investors have recorded a loss of about $337 billion, which is close to 22 lakh crores of rupees. The global value of the bonds’ market slid by $692 billion, which is over 46 lakh crores of rupees over the last three days. Presently there seems to be a lot of uproar and unrest, both in the country of America as well as on the global financial front. But there are a lot of people who believe that once things calm down a bit, there are very high chances of the financial companies, of accepting the stance of the President elect. Although the Trump campaign has been extremely devoid of any details on financial policy except for his claims and promises to freeze all new regulations, in terms of certain divisions between commercial banking and investment banking.

As Republicans have literally taken it all, in terms of both the Senate and the House, there are concrete chances of a lot of changes to the Dodd-Frank Act, which will the restructuring of the Consumer Financial Protection Bureau and raising the bank regulation over its current $50 billion level of assets. There are also theories, which state that Trump can turn to a different approach, which has been put forth by the chairman of the House Financial Services Committee Chairman, Jeb Hensarling, which basically deal with a bill, which extensively talks about the various segments of the Dodd-Frank and suggests alternative measures. Trump and his criticisms for the Wall Street are likely to support the deregulation of the industry and might prove to be a greater challenge for bigger firms. Another potential financial blow to the financial institutions, could be Hillary’s loss in the strong democratic states, which in turn give more courage to the progressive wing of the party. One thing is certain, that the legislature would not be able to break the giants in the banking sector apart, but would definitely have a lot of negative headlines for the biggest banks in the country. The markets still face a tumultuous situation as everyone gears to wait for the time when Trump, officially begins his presidency.

This, and a lot more, is one of the topics we discuss in our The Foreign Exchange and International Trade Prodegree program in India. You can also watch the video what our experts says about this video.

Role of Capital Market in Growth of Economy

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Capital Market is one of the most confronted sectors of the financial services industry. The dynamics of the changing global industry, including new regulations and business models have laid impact on the performance of the capital market and its instruments. Capital markets basically focus on wealth management and are engaged in cash management, asset management, protection, credit, retirement and estate planning, fixed income, equities, and financial and credit derivatives.
Indeed, capital market firms target customers with a range of products as solutions to individual wealth management needs. Apart from managing wealth products, capital market plays an important role by contributing to the growth of the country’s economy.

  • Provides several avenues for investment opportunities that encourage a thrift culture beneficial in increasing country’s savings and investment ratios that are essential for rapid industrialization.
  • In order to enhance economic productivity, it encourages the participation of private sector in productive investments by promoting public-private sector partnerships.
  • Improves the efficiency of capital allocation through competitive pricing mechanism for better utilization of scarce resources for increased economic growth.
  • It encourages equity capital investment and infrastructure development while complementing its effort in financing essential socio-economic development, through raising long-term project-based capital.
  • It helps in diffusing stresses on the banking system by matching long-term investments with long-term capital.

‘Imarticus Learning offers well-recognized Capital Market Course which will give you an edge on Capital Markets in today’s highly competitive finance industry.