Introduction to Financial Modeling
Hands-on introduction to three essential classes of financial models: corporate finance, risk management, and structured finance - practicing theory, accounting and technical implementation of each type.
This course is currently inactive. Please see the following alternative courses:
Learn now pay later with
To make it even easier to learn, you can finance your program through Affirm.
Loans offered through Affirm are available in the U.S. and Canada.
Module 1: Introduction to the Three Kinds of Models
- Accounting Basics
- Introduction to the language of finance
- Reading financial statements: cash flow statement, balance sheet and income statement
Module 2: Corporate Finance Models
- Ratio analysis models -- computing and interpreting
- Model assumptions and limitations
- Pro-forma projections -- creating and interpreting
- Model assumptions and limitations
- Introduction to discounted cash flows (DCFs)
- Time value of money and cash flow mechanics
- Introduction to the DCF valuation method
- Creating and interpreting DCF-based valuation models
- Model assumptions and limitations
Module 1: Risk Models
- Introduction to risk and reward in a financial context
- Key characteristics and limitations of discount-rate risk measures
- Creating and comparing discount-rate risk models
- Understanding key assumptions and model limitations
- Essential aspects of statistics and probability for financial modeling
- Basic models of probabilistically-measured risk
- Creation of probabilistically-measured risk models
- Understanding key assumptions and model limitations
Module 2: Structured Finance Models
- Introduction to structured finance: lending against cash flows
Module 3: A Basic Mortgage-Backed Security Model
- Aggregating the assets
- Modeling the basic cash flows
- Modeling prepayments and defaults
- Measuring risk
Module 4: A Basic Generalized Asset-Backed Security Model
- Considering the included assets
- Modeling the basic cash flows
- Modeling prepayments and defaults
- Measuring risk