Investing in Latin American Markets

The financial world is currently riding the wave of globalization, allowing portfolio managers to diversity local risks by taking active bets in other markets. But the financial integration that has accompanied these trends has also increased the correlation of returns in the key markets of the world. This has given rise to new diversification opportunities in uncorrelated markets in the emerging world. This course will show participants the gains and obstacles of Latin American investments as a specific asset class.

The area offers a number of benefits and obstacles unique to the region. It has the protection of the Dollar Block, as well as higher income than other emerging regions (e.g. Asia, Africa), but it also has the challenge of poor political and financial market management. This could mean substantial opportunities for investors if reforms are carried out in an orderly fashion.

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CPE CREDITS
14.0
Consultants and financial advisers, portfolio managers and risk managers, corporate treasurers, capital and fixed income markets specialists, hedge fund managers and strategists.
No advance preparation required.
Students will be able to:
  • Demonstrate proficiency in the analytic tools needed to include Latin America as an asset class in their portfolios
  • Discuss confidently the benefits and obstacles associated with Latin American investment
  • Develop a model to diversify a portfolio with Latin American assets
Attendees must have a solid knowledge of basic financial and macroeconomic theories and portfolio management. A course in basic capital markets and fixed income markets will be helpful.
  • Investing in Emerging Markets
  • Fund Selection and Analysis for Professionals
  • Hedge Funds
  • Introduction to Private Equity Investments
    • Disclaimer:
    While NYIF endeavors to provide programs that are current and up-to-date, these programs, and the associated courseware, are provided on an "as is" basis. To the maximum extent permitted by law, NYIF disclaims all warranties of any kind, either express or implied, including, without limitation, implied warranties of merchantability, or fitness for a particular purpose, or of a particular result. NYIF does not warrant that any program or its courseware will meet any particular requirements or needs, or that the content of or courseware for any program will be error-free. Neither NYIF nor its licensors shall have any liability with respect to any loss or damage caused or alleged to have been caused directly or indirectly by reliance on the content or any courseware. For any program provided by NYIF, including, but not limited to, loss of consulting or anticipatory profits, or consequential damages.
    Day 1 - The Framework and Tools for Analyzing Latin America
    Political, Economic and Legal Risk
    • The country risk framework for analyzing Latin America
    • The taxonomy of crisis in the last three decades; banking, currency and current accounts
    • Why has Latin America lagged behind Asia and Eastern Europe?
    • The impact of regulation, openness in financial markets, and reforms

    Currency Risk and Correlation Risk

    • The modeling, parities and forecast of volatile exchange rates
    • The main hedging vehicles for exchange rate risk: derivatives and accounting strategies
    • Evidence and models to cope with FX risk and correlation risk
    • The benefits and perils of being in the

    Day 2 - Available Vehicles for Latin America Investing
    Capital Markets Investing in Emerging Economies: Latam Case
    • The instrument investable universe: Market sizes, liquidity, risk and returns
    • The efficient frontier with/without Latin America's emerging stocks
    • Benefits and risks in using Latin America's indices to enhance returns: the long term record

    Latam Emerging Economies Fixed Income and Other Markets

    • The instrument investable universe: Market sizes, liquidity, risk and returns
    • Adding Latin American bonds and other alternative assets to the efficient frontier
    • Benefits and risks in using Latin America universe of assets to enhance returns: the long term record

    Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

    Lunch is included for all students taking day classes.