Bank forecasting & valuation - advanced topics
Course
Inhouse
Description
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Type
Course
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Level
Advanced
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Methodology
Inhouse
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Class hours
2h
This course looks at: Investment banking activities. Advanced valuation topics and techniques
About this course
None
Reviews
Course programme
- Investment banking activities
- Advanced valuation topics and techniques
- Economics and disclosure of key modern activities
- Securitisations: recognition / derecognition and fees
- Trading portfolio
- Expansion of derivatives: benefits and exposure to counterparty risk
- Expansion of repos and securities lending: link with prime brokerage
- Funding structure and asset liability mismatch
- Risk measurement: economic capital vs. regulatory capital
- Changing competitive landscape
- Consolidation
- Failures and state intervention
- Impact on banks performance
- Economic profit models
- Definition of economic profit
- Demonstrating the equivalence between DCF and economic profit valuation under same assumptions Forecasting the trading book
- Fades
- Constructing fades for banks
- Fading capital growth and profitability to sustainable level
- Extracting and valuing free cash flow and economic profit with fades
- Sum-of-the-parts valuation of banks
- Building a group forecasting model bottom-up
- Key drivers by business
- Retail banking
- Corporate banking
- Asset management
- Investment banking
- Aggregating business lines in group forecasts
- Allocating capital
- Valuation considerations and trading multiples for sub-sectors
- Valuing capital surplus/deficit
- Valuing foreign country subsidiaries
- Impact of foreign exchange on forecasts, cost of equity and valuation
Bank forecasting & valuation - advanced topics