Financial News Training

Excel Modelling for Financial Markets

1st - 2nd June 2010

London

PART I : SPREADSHEETS

KEY FUNCTIONS FOR MODEL BUILDING

  • Financial, Logic, Date and Lookup functions
  • Finding appropriate functions and avoiding potential pitfalls

Case studies:

  • Calculation of NPV of irregular cashflows from zero curve.
  • Lookup and interpolation of zero coupon rates


INCREASING EFFICIENCY

  • Using keyboard shortcuts to speed up standard tasks
  • Tricks for efficient navigation of spreadsheets
  • Changing Excel's default options


SENSITIVITY ANALYSIS

  • Data Tables
  • Multi- dimensional scenario analysis
  • Using XY graphs efficiently

Case studies:

  • Using data tables to create a spot-vol matrix for an option portfolio
  • Creating complex scenario analysis to stress test portfolio


DYNAMIC DATA

  • Using Offset, Indirect to create dynamic references
  • Advanced use of names
  • Arrays

Case studies:

  • Calculate historical vol, using a parameterized window length


STATISTICS

  • Regression, Volatility, Correlation and Percentile functions
  • Data Analysis Toolpak


OPTIMIZATION

  • Goal Seek
  • Solver

Case studies:

  • Creating zero coupon curves from portfolio of swaps


PART II: VBA
FUNCTIONS

  • Writing a Function( ) macro
  • Difference between VBA and Worksheet functions
  • Finding your way around VBA Help

Case studies:

  • Create a Black ‘76 option pricing function


VARIABLES AND CONSTANTS

  • Variable types, Dim statement, Scope of variables
  • Establishing good practice
  • Constants
  • Arrays, Dynamic Arrays


CONTROL STRUCTURES

  • Branching: If...then and Select Case
  • Looping: For…Next, Do While etc…
  • Breaking out of loops, jumping to another part of the code, terminating the program

Case studies:

  • Use looping to calculate implied vols


OBJECTS, METHODS & PROPERTIES

  • Understanding the Excel Object Model: Properties, Methods, Collections
  • Range Object, Cells, Offset, Resize etc…
  • Workbooks and Worksheet Objects
  • Using the Macro record facility

Case studies:

  • Automating repetitive tasks taking advantage of the object methods


SUB-ROUTINES

  • Writing Sub-routines
  • Getting data in and out of the program
  • Using InputBox, MessageBox, StatusBar
  • Random numbers
  • Using Solver in VBA

Case studies:

  • Build a Monte Carlo model to price options
  • Use Solver in a loop to create an Efficient Frontier

DEBUGGING

  • Breakpoints, Watch and Local windows
  • Debug, Immediate

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