Fair Value Measurements of Financial Instruments: Valuation and Risks

Overview

An overview of the fundamentals of valuation.

This course focuses on valuation complexities and risks, covering the fundamentals of valuation across all asset classes, including market mechanics, best use practices, the use of the highest-level inputs in accordance with the FASB ASC 820 fair value hierarchy, valuation methodologies and models, usable data sources, variance handling, and FASB ASC 820 fair value leveling. Additionally, this course takes a look at the key traits and valuation drivers of each of the major asset classes, including debt securities, equity securities, derivatives, and funds and indices.

Highlights

Key Topics

• Valuation fundamentals
• Debt securities
• Equity securities
• Derivatives
• Funds and indices

Prerequisites

None

Objectives

Learning Outcomes

• Identify general market mechanics, various asset classes, and features that may require more complex handling.
• Differentiate equity and debt securities from other financial instruments.
• Choose and document appropriate valuation models and common inputs.
• Identify security features that require more complex handling and associated valuation risks.
• Identify the key valuation drivers for equity securities.
• Distinguish derivatives from other financial instruments.
• Compare various trading and clearing mechanisms for derivative products.