Covid-19 impact on capital markets

 

02 December 2020 Wednesday

09 AM – 3 PM

 
Program 3 Capital Markets

Covid-19 and its impact on the global economy, human lives, communities and organizations is still rapidly evolving towards a globally significant financial crisis after nearly 8 months of stimulus payments across the global economy, corrective actions and health risk management. And yet we see daily events of capital market instability, bankruptcy declarations of large corporations, political upheavals impacting corporate values in some cases and loss of market confidence.

Apart from disrupting the demand and supply sides of all markets, the pandemic has also significantly destabilized financial markets. Since February 21, 2020, bond yields, oil, and equity prices have sharply fallen, and trillions of dollars, across almost all asset classes, have limping towards safety through managed stimulus infusions from government coffers. In the United States, 10-year bond yields have tumbled below 0.5 percent), and equity prices on major stock indices around the world have fallen. It appears, as of now, that the markets are trying to price using the worst-case scenario, which has increased volatility recently.

This course attempts to analyze and inform participants about the impact that the shocks to markets, demand and supply will have on liquidity and access to capital. The speculative grade capital debt is already indicating debt default potential. Private debt, including house hold and corporate debt is mushrooming due to job losses in the millions and market shrinkage. Investment grade market too has seen a degradation to B+ Rating for about 50% of the investments.

Objectives

Upon completion of this program, the participants will be able to learn the following:

  • How Central banks have intervened with various tools to calm the volatile capital markets
  • New cooperation between national and international governments, regulators and financial institutions to contain the adverse effects of the pandemic on the capital markets.
  • Why some regulators, such as the US Securities and Exchange Commission (SEC), have proactively granted relief for regulatory financial reporting to companies affected by COVID-19
  • How banks are supporting the markets’ access to capital by extending loans to hard-hit borrowers, renegotiating credit terms
  • Identify and establish a fresh surveillance system to consider the short- and medium-term financial risk, and regulatory compliance implications that are resulting from the continuing uncertainty around COVID-19.
Target Audience

While this programme is mainly designed for data users such as

  • Credit manager
  • Investment Managers
  • MLROs
  • Compliance Managers
  • Regulators

We believe that attendance by any professional in the field of banking, capital markets or financial services will be of great value to the teams in the session as well.

Methodology

The structure of the course has been designed to analyze specific and general implications for banking and capital markets firms. We consider the actions banks and capital markets should consider as they recover from the global pandemic in terms of Trade Credit and Compliance issues, Liquidity and Capital Management, Revenue and Cost Management, Loan Book Managements and new covenants in response to global crises, Trading and Hedging Strategies, Risks and Controls.

Course outline

Module 1:

Overview of the impact on Capital Markets and capital access. Reconstruction after recovery from the pandemic. What shape will the capital markets take in the reconstruction process?

Module 2:

Key areas of consideration for capital and banking markets as a first response to the global crisis. The Public and Private Sector Partnership in capital markets. How is this working today?

Module 3:

Leading with corporate actions in Trade Compliance and Credit, Liquidity and Capital Management, Revenue and Cost Management, Loan Book and restructuring of covenants post pandemic, Trading and Hedging Strategies, New Risks and Controls framework

Module 4:

Covid-19 General implications for banks and capital markets. Large bankruptcies, volatile corporate valuations, the oil market slump, global operational volatility, Digital and IT infrastructure rebuilding to manage emerging new risks, regulatory and compliance reporting in the age of Fintech and RegTech.

Class exercise and discussion:

IS THE PANDEMIC THE PORTAL FOR A CAPITAL MARKET POWERED BY ROBOTICS AND AI?

Duration

1 Day – 6 Hours

If you do not see the registration form, please enable cookies and refresh