This course has now expired please email us to find out when the course will next be running.
Debt Capital Markets
The Primary Markets have always been the main focus of attention by competing banks and by the media when looking at the international capital markets.
Course Objectives
Debt Capital Markets
The Primary Markets have always been the main focus of attention by competing banks and by the media when looking at the international capital markets. And yet to date there exists no comprehensive guide as to how the debt primary markets work. This course is designed to give those who need to understand the markets a solid grounding in how they work, and helps to unravel the jargon of the new issues business. The course covers the rationale for debt financing, the types of borrowers and the types of instruments available. It considers the investor's requirement for returns and security against the balance sheet implications for the issuer. The course reviews the various syndication customs, and practices and looks at the legal and regulatory requirements involved in bringing issues to the international markets.
This 3-day course:
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Provides a comprehensive review of the structure and workings of the International Primary Markets for Debt
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Takes newcomers to the Debt Primary Markets from the reasons for financing through to the conclusion of successful transactions
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Looks at structuring the most appropriate financing for a particular borrower and how such an offering should be syndicated and documented
Who Should Attend?
- All those newly involved in syndication and / or origination and corporate finance.
- All those responsible for managing these activities or needing to supply middle/back office support to these activities.
DAY ONE
Sources of finance
- Financing choices
- Cost of equity and debt
- Weighted Average Cost of Capital (WACC)
- Financial leverage
- Modigliani and Miller
- Purpose of funding
- Market conditions
Borrowers
- Borrower requirements
- Corporates
- SSAs
- Sovereigns
- Supranationals
- GGBs
- FIs
- Capital adequacy
- Basel I and II
- Basel III?
Credit
- Credit ratings
- Credit rating agencies
- Credit rating performance
- Credit rating process
- Regulation of CRAs
- Credit enhancement
Bond types
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History
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International bonds
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Public or private
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Floating rate notes
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Fixed rate
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Medium term notes
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Structured notes
Securitisation
DAY TWO
Working with swaps
Exercise: participants will be required to work out simple swap prices.
Investor protection
Liability management
- Types of transactions
- Bond buy backs
- Tender offers
- Exchanges
- Bondholders consent
- Opportunities and driving forces
- FI bond buy-backs and exchanges
- Regulatory considerations
Revision exercise: participants will break into syndicates and be given various borrower profiles subject to certain market conditions. Syndicates must devise the most appropriate borrowing strategy for the client drawing on the first day's analysis.
Syndication
- Syndicate roles
- The early years
- The 'bought deal'
- The 'fixed price re-offer'
- The 'Pot' system
- Stabilisation
DAY THREE
Selling restrictions and US regulations
- Selling restrictions
- Regulation S
- Rule 144A
- TEFRA C and D
ICMA and the IPMA Handbook
- ICMA's role
- IPMA Handbook
- Key recommendations
Bond pricing exercise: participants are given comparative pricings and are required to price a new issue and fill out the new issue term sheet.
Pricing and launch
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Pre-launch
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The mandate
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Roadshow
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Bookbuilding
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Pricing
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Launch
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Expenses
Legal and Documentation
Distribution and closing
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The roadshow
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Conflicts of interest
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Distribution
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Allotment
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Closing procedure
Regulatory challenges
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Chris O'Malley
Chris O'Malley is an economics graduate with 25 years of experience in the international debt markets (entirely on the sales and origination side of the business).
For 12 years, he managed sales teams: firstly heading the London sales team for Credit Suisse First Boston and then managing sales globally for Samuel Montagu, Midland Montagu and subsequently HSBC.
For HSBC, he then transferred to the origination desk, establishing a new issue business for the Middle East, India and Africa, successfully bringing many new issues to the loan and bond markets.
Chris was a consultant to the International Primary Market Association, and is now with the International Capital Market Association (since the merger of the trade associations), focussing on primary market practice, regulatory matters, education and IT/e-commerce initiatives.
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.
This course has now expired please email us to find out when the course will next be running.