This two-day course will give participants a thorough background and understanding of the main derivative products, both exchange traded and over the counter (OTC). These are futures, options and swaps with a step-by-step guide to the products, applications, risks and documentation. We also introduce participants to credit derivatives and focus on how the market is structured and the various participants.
We review market developments such as EMIR and the importance of timely and efficient settlement of trades and management of collateral.
Delegates will gain
An understanding of interest rates both short and long term, and the interplay between floating (bank loan) and fixed (bond) products
A clear understanding of the impact that currency and interest rate movements can have on a company
A practical introduction to the major risk management instruments and techniques
How derivatives and why derivatives are used to effectively manage risk
How to evaluate, monitor and control risks, and formulate an appropriate hedging policy
Range of swap types including “vanilla”, fixed/floating, basis and currency swaps,
Risk management with swaps
Definition and Key features
Terminology and the basics of volatility
Traditional Vs exotic options
Currency and Interest Rate Options
Definition and key features
Buying and selling credit protection
What is a Credit Event?
Credit Default Swaps
Applications and examples
CDS pricing in practice- global sovereign debt
ISDA Master Agreement
Regulations – Dodd Frank, EMIR
OTC to exchange migration
WHO SHOULD ATTEND
Anyone needing to know more about derivatives, including treasurers and their staff, accountants and auditors, financial controllers, bankers, credit and legal professionals. No prior knowledge is required.