Excel Modelling for Financial Markets
Information
Over a short space of time we have seen markets becoming ever faster, fuelled by savvier clients, increased competition and better technology. Staying ahead of the curve, has meant professionals in financial markets have also had to become faster and more creative in their solutions. This in turn has led to an increasing reliance on Excel models, in particular in trading, sales and risk management.
“Put simply and succinctly, despite the higher operational risk, Excel is everywhere - it is the primary front-line tool of analysis in the financial business. Most traders price deals in spreadsheets and enter them in large-scale deal capture systems afterwards"
Approach
The course is hands-on, with extensive use of exercises to reinforce the various techniques. As well as the many exercises there are a number of practical sessions, where delegates work systematically through larger scale problems. These include:
- Calculating discount factors from a swap curve
- Building a model for evaluating cashflows using a term structure, using lookup functions and interpolation
- Analysing imported data
- Understanding someone else’s model and developing ideas to make it more transparent
- Building a Black & Scholes option model. Creating a sensitivity matrix for small option portfolio, and using Solver to hedge the portfolio
In addition to copies of the slides, the delegates will take away numerous spreadsheets prepared by the course director containing lists of shortcuts, a comprehensive directory of Excel functions, with worked examples to illustrate the key functions. They will also take copies of the sheets they have built themselves, together with model answers.
Objectives
Objective
The objective of this 2-day training course is to give financial market professionals the tools they need to be more efficient and creative whilst building stable and transparent Excel models. In particular, there are two goals:
- Increase Productivity, by giving delegates the skills required to be faster and more efficient when analysing data and building models
- Reduce Risk, by discussing and illustrating the importance of design, structure and documentation
Schedule
Introduction
- Overview of Excel
- Organization of Excel functions
Financial Model Building
- How Financial functions are grouped
- Locating appropriate functions and potential pitfalls
- Logic and Date functions
- Lookup functions and interpolation
Keyboard Shortcuts
- Using keyboard shortcuts to speed up all standard tasks
- Tricks for efficient navigation of spreadsheets
- Changing Excels default options
Sensitivity and Scenario Analysis
- Data Tables and Scenarios
- XY Scatter Graphs
Data Manipulation and Analysis
- Solving common problems when importing data from other sources
- Tricks to speed up data manipulation using sorting and logic functions
- Analysing imported datasets
Auditing and Debugging
- Finding your way around other peoples spreadsheets; looking for common errors
- Using Audit; locating redundant parameters
- Using Watch and Evaluate Formula
Good Model Design
- Defining inputs, outputs and intermediate calculations
- Creating a logical flow of information
- Demarcation of logically related blocks
Statistical Functions for Pricing and Risk
- Statistical functions and Data Analysis Tools
- Using Solver and Goal Seek
Monte Carlo Simulations for Pricing
- Designing a Simulation model
- Random numbers
Add-Ins & Utilities
- Extending functionality through Add-Ins
- Sources of free utilities and help
Register interest
As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.