An intensive 3 day program that teaches the techniques & strategies to become an effective player in FX markets:
- Examine the key characteristics of the FX markets
- Hedging the risks of major and “exotic” currencies
- Prospects for the “Euro”
- Forwards and “non-deliverable” forward controls
- Understanding FX swaps and arbitrage
- How the FX futures and options markets work
Day 1
INTRODUCTION TO FOREIGN EXCHANGE MARKETS
Currency movements today: volatility and risk
Managing currency exposures
· Market characteristics
· “Exotic” currencies
· The future of the “Euro”
SPOT MARKETS
Defining terms
· Transaction dates
· Value dates
· How currencies are expressed
· U.S. terms and European terms
Bid-offer spreads
Calculating cross rates
Exotic crosses
EXCHANGE RATE DETERMINATION
· Balance of payments
· The role of the central banks
· Fiscal and monetary policy
· Purchasing power parity
· Challenges of the European Monetary Union
· Understanding “currency boards”
FORWARD MARKETS
Calculating forward rates
· Discounts and premiums
· Hedging with forwards
SWAP MARKETS
· Deriving swap points
· Investment strategies and covered interest rate arbitrage
Day 2
SWAP MARKETS CONTINUED
· Exercises
· Forward forwards
FORWARD CONTRACT DEFAULT RISK
· Market risk and delivery risk
· Quantifying the risk
· Capital requirements and default risk
· Credit facilities and counterparty risk
FUTURES MARKET
· Contract characteristics
· Futures compared to forwards
· Calculating costs
· Margin requirements
· Hedging with futures
· Exercises
NON-DELIVERABLE FORWARD (NDFs)
· Origins and currencies
· Settlement mechanics
· Exercises
CROSS-CURRENCY SWAPS
· Markets and participants
· Role of the intermediary
· Comparative advantage
· Primary debt issuance and swaps
MORE ON CROSS-CURRENCY SWAPS
· Compared to forward contracts
· Pricing swaps
· Swaptions
· Exercises
Day 3
CURRENCY OPTIONS
· Definitions and types
· Puts/calls
· American/European
· OTC/listed
· Pricing options
MORE ON OPTIONS
· Practical applications
· Exotic options
· Hedging options
· Exchange-traded options
– Options on futures
– Calculating costs/margin requirements
STRATEGIES FOR MANAGING FOREIGN EXCHANGE EXPOSURE
Types of exposure
· Cash
· Transaction
· Translation
· Economic exposure
Internal exposure management techniques
A review of online trading platforms
Self-test
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Margaret E. Osius
Ms. Osius specialises in capital markets, risk management, and international project finance. She works with corporations, financial institutions, public agencies, law firms, and private equity investors. She has considerable
professional experience with the oil and gas, power, transport, and telecom sectors.
Ms. Osius began her career at JP Morgan Chase Manhattan Bank, where she structured highly leveraged transactions and project financings and advised clients on foreign exchange and other price risk management strategies. Ms. Osius was responsible for a team of analysts responsible for evaluating the quality of the bank’s global loan portfolio as well as that of its newly acquired affiliates. In that role she had extensive experience with workout and distressed debt. Ms. Osius has published articles in the business press and co-authored several self-study guides covering international project finance, trade and export finance, foreign exchange, and financial futures. The World Bank has published her articles on approaches to financial analysis in emerging markets.
From 2000 to 2007 Ms. Osius was a member of the Technical Advisory Panel (TAP) of the Public Private Infrastructure Advancement (PPIAF) managed by the World Bank. In 2006 and 2007 she was the TAP’s chairperson. The fund provides technical assistance to emerging market governments in order to encourage private involvement in infrastructure development. Ms. Osius received an M.B.A. from INSEAD, the European Institute of Business Administration, in Fontainebleau, France. Her B.A. degree is from Princeton University.
Courses run by this instructor
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.
11-14 Jun 2012 (New York, United States)
10-13 Dec 2012 (New York, United States)
This course will provide delegates with a solid foundation in fixed income analysis comparable to an MBA finance elective course and CFA® exam levels I and II. Delegates will receive an extensive set of course notes including many numerical problems and solutions and supplemental readings.
13-16 Nov 2012 (Miami, United States)
Este curso proveerá a los participantes los conocimientos necesarios para comprender una gran variedad de instrumentos del Mercado de Dinero y Mercados de Bonos entre los que se encontrarán T-Bills, papeles comerciales, STRIPS, ABS, FRN, CMO... En el curso se analizarán numerosos ejemplos de emisiones, formas de cotización, así como el cálculo de las diferentes medidas de rendimiento y de precios.
10-13 Sep 2012 (New York, United States)
In recent years, international bond markets have grown significantly in size and complexity as new derivative products continue to be introduced. As such, the skills needed to evaluate financing and investment opportunities in fixed income markets have evolved, and many new techniques must be considered. Synthetic (derivative) fixed income markets often dictate pricing in cash markets, a new phenomenon requiring a vastly different set of skills needed to assess opportunities and provide timely solutions.
9-12 Jul 2012 (Miami, United States)
5-7 Nov 2012 (New York, United States)
This three-day course has been designed to provide participants with an overview of the private equity industry and the investment process throughout the different stages of a company’s growth. It explains the investment process, objectives, financial instruments and negotiation options from the point of view of both the investor as well as the business owner.
10-12 Sep 2012 (New York, United States)
Real Estate Modeling is an intensive hands-on course that provides attendees with knowledge regarding both fundamental and challenging modeling issues in the real estate industry. Delegates will learn how to model mixed development projects, residential projects with multiple portfolios, cash flow waterfalls, and simulation of risk associated with different lease rolls. Sessions of the course will include effective presentation of model outputs and comprehensive scenario analysis. In addition, the program will enable delegates to develop their skills in a variety of modeling issues associated with setting-up inputs, working with flexible time periods and incorporating alternative financing structures.
22-24 Aug 2012 (Miami, United States)
With the financial world currently undergoing significant changes, one of the most important challenges in banking is to reinforce the syndicated loan function and to refresh techniques given the evolution of the syndicated loan market. This course enables you to ensure that your staff – whether bankers, lawyers or investment professionals – have the tools to cope with the new environment.
24-27 Jul 2012 (Miami, United States)
13-17 Aug 2012 (New York, United States)
13-16 Aug 2012 (New York, United States)
17 Aug 2012 (New York, United States)
Formal lecture sessions, innovative deals and numerous examples of projects in the oil and gas, power and water desalination sectors are drawn from around the world and discussed
throughout the course. You will develop a framework for recognising, and analysing qualitative and quantitative project risks. Formal lecture sessions, innovative deals and
numerous examples of projects in the oil and gas, power and water desalination sectors are drawn from around the world and discussed throughout the course. You will develop a framework for recognizing, and analyzing qualitative and quantitative project risks.
26-28 Nov 2012 (New York, United States)
This course is designed to increase participants’ understanding of the increasingly complex and sophisticated process of liquidity risk measurement and management exploring both its issues and challenges. The 2007- 2009 crisis has only accelerated the spread of “new” best practices. National and international regulators, including FSA and CEBS are adding more complexity.
All delegates will receive comprehensive course documentation for use before and during the program. This will enable you to return to your organization with an extensive and valuable source of information for future reference.”
24-27 Sep 2012 (New York, United States)
The objective of this Workshop is to provide the assisting delegates with the necessary tools, techniques and criteria in order to further develop the skills competencies, and knowledge that are essential in managing client relationships, investment risk, and communicating portfolio management solutions
This course has now expired please email us to find out when the course will next be running.