Euromoney Audit Training

This Euromoney Training course is designed to give you a structured and comprehensive introduction to the current workings of the major international financial markets and products. Terms, concepts and products are explained as they are introduced and whilst no prior knowledge is required the course will also be of interest to delegates who wish to consolidate their passive 'book learning' with active practice of calculations, formulae, trading techniques and other market conventions.

How will this course assist you?

This 5-day course gives participants a thorough understanding of:

• International money flows: how the international financial system works
• Essential financial arithmetic: time value of money
• Raising long-term debt: issuing, pricing and market comparisons
• Money markets and syndicated loans
• Fundamentals of foreign exchange, interest rate and currency swaps, futures and options
• Equity markets and key ratio analysis

Who should attend?

• This expert course will be of benefit to new or recent recruits to banking and finance
• Experienced bank / finance staff with new responsibilities in money or capital markets

Day 1

The economy and financial institutions
– The national economy
– Economic indicators
– Different types of banks
– Wholesale vs. retail banks
– The pension fund and insurance industries
– Developments in the financial markets

Forecasting interest rates
– Forecasting techniques
– Fundamental models
– Technical analysis
– Yield curve theories
– Introduction to implied forwards

The time value of money concept
– Present and future values
– Using the HP17B calculator

The time value of money - practical exercises Delegates in small groups will work through a number of simple exercises to reinforce their understanding of the concepts and use of the calculator.

Day 2

Overview of the major instruments
– Risk vs. return
– Short maturity instruments
– The bond markets
– Foreign exchange
– Simple derivatives
– Equities

Introduction to the money markets
– Types of instruments
– The repurchase agreement
– Discount vs. interest bearing
– Short dated bonds

Money markets - practical exercises
In groups, delegates will work through a number of exercises to reinforce their understanding of the money markets

How the bond markets work
– What is a bond?
– The origination process
– Credit rating agencies
– The major markets
– Eurobonds
– Syndication role
– Fee structures

Day 3

Bond arithmetic
– Valuation techniques
– Analysing cashflows
– Types of yield
– Yield to maturity
– Zero yields
– Credit and quality spreads
– Mispriced bonds

Bond arithmetic
– The weighted average cashflow approach
– Macaulay duration
– The convexity adjustment
– Present value of a basis point

Bond markets - practical exercises
Delegates will work through a number of exercises to reinforce their understanding of bond arithmetic.

The foreign exchange markets
– Spot transactions
– Mechanics of a forward transaction
– The foreign exchange swap
– Different types of exposure
– Currency hedging decisions

Foreign exchange - case studies Delegates will calculate the number of foreign exchange “quotes” to reinforce their understanding of the methodology.

Day 4

Overview of the equity markets
– The concept of equity valuation
– Forecasting earnings
– Valuation models~
– Equity risk premiums

The tools of risk management
– Forward rate agreements
– Futures contracts
– Options on futures
– Interest rate swaps
– Interest rate options
– Caps and floors
– Currency swaps
– Swaptions
– Advantages and disadvantages

Day 5

Using derivatives - simple examples
– Risk management with derivatives
– Swaps and capital markets
– Asset swaps

Derivatives - practical exercises
Delegates will calculate the implied forward to reinforce their understanding of one of the foundations of derivatives.

Portfolio management - simulation
In small groups, delegates will manage a portfolio of equities, bonds and cash over four simulated calendar periods. The objectives are to maximise returns under simulated market conditions whilst obeying the trustee’s requirements. Delegates will also have the opportunity to reduce risk with the use of futures contracts and enhance return with options.

 

• Keith Corsby

  Keith Corsby is a specialist in Treasury and ALM with over 20 years experience in managing interest rate and foreign currency risks. Keith has developed a full balance sheet interest rate management system which includes Monte Carlo simulations to analyse forecast changes to the yield curve, as well as the impact of new investment and mortgage products to the current and project balance sheet. In addition he has developed and implemented interest rate risk strategies to maximise and protect profit margins. Keith has provided major oil companies with advice on the structuring, accounting and taxation of foreign currency options, resulting in multi-million dollar windfall profits.
  
  Keith was Assistant Treasurer to the UK-based Portman Building Society where his responsibilities included managing the liquidity books and the balance sheet. Prior to this, Keith gained extensive experience with Bank of America as the Senior Financial Engineer / Structured Finance Consultant and Executive Director / Chief Trader (FRNs, Euronotes and EuroCP). Keith was also with Ford Motor Company as a Manager in Banking, Portfolio and FX, a role which included the structuring and application of risk management strategies to specific underlying exposures as well as day-to-day corporate treasury management.

  Courses run by this instructor

  • Treasury Risk Management

Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.

Debt Capital Markets

15-17 Sep 2010 (London, United Kingdom)

This intensive 3 day course will teach you all you need to know about debt capital markets and will; provide a comprehensive review of the structure and workings of the international primary markets for debt, explore how and why to use debt primary markets for financing, how to structure the most appropriate financing for a borrower, how such a transaction should be syndicated and documented.

Covered Bonds

29 Nov 2010 - 1 Dec 2010 (London, United Kingdom)

This Euromoney training course is designed both for those that are new to covered bonds and also for issuers or investors who wish to add to their know-how and understand the latest developments in, and the forces driving, the postcrisis market.

Euromoney Bond & Fixed Income Academy

20-25 Sep 2010 (South of England, United Kingdom)
14-19 Feb 2011 (South of England, United Kingdom)
19-24 Sep 2011 (South of England, United Kingdom)

Expand your knowledge on the structure and application of bonds and fixed income products. This fully inclusive residential course allows you use the evenings to study, network or attend optional evening sessions - Classification of bond instruments - Yield curve analysis - Pricing methodolgies - Interest rate and currency swaps: uses and valuation - Bond trading and portfolio applications - Securitisation and asset-backed securities - Repo markets - Financial engineering with swaps

FX & Money Markets

11-14 Jan 2011 (London, United Kingdom)
28 Jun 2011 - 1 Jul 2011 (London, United Kingdom)

The foreign exchange and money markets are worth trillions and are the pivot of the financial markets, providing funding, investment opportunities and the conduit between all other financial markets. In recent years, the importance of the money markets has become even greater as financial institutions focus more closely on the management and diversification of their sources of liquidity, apply greater discipline to their funding and examine the attractions of short-term investment and trading strategies. This course provides a firm grounding in the instruments and activities of the international money and FX markets, sweeping away the confusion that can be created by the scale, speed and apparent diversity of the markets. The course focuses on the current profile of the markets and offers up-to-date insights. It also emphasises the integrated nature of the market - in particular, how different instruments perform the same or similar functions and the opportunities this provides for arbitrage and hedging. It also analyses the liquidity characteristics and risks of different instruments and funding strategies.

 

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