Funding Sources and the Capital Structure

What will you learn?

Debt and equity are the two main funding sources, representing over $300 trillion in financial assets globally. Over the past 5 years, China has played an increasing role both in the debt and equity markets.

Debt instruments include loans and bonds, and come in different shapes in terms of tenor, ranking and currencies, amongst others. Although common equity is the “purest” form of capital, other types of instruments exist as well.

After taking this module, you will understand what the main sources of funding are. More importantly, you will be able to recognize the types of risks related to the different features of debt instruments. You will also be able to determine the five essential qualities of capital.