- *Introductory
- In association with Quorum Training
A two day course for everyone needing to know more about derivatives, giving a step-by-step guide to the products, applications and risks. We introduce participants to credit derivatives - one of the fastest growing instruments in the market and focus on how the market is structured, the participants and look at new market developments such as Sarbanes-Oxley, IAS 39, Straight Through Processing (STP) and the importance of timely and efficient settlement of trades.
PROGRAMME
DAY 1
MARKET BACKGROUND
Definition
Futures, FRAs, options, swap
Exchange traded vs over the counter (OTC)
Credit risk and gearing
Overview of documentation - ISDA
MARKET PARTICIPANTS
The sell side vs the buy side
Brokers and custodians
Information providers, IT specialists
Post trade processing agents
UNDERLYING ASSET CLASSES
Interest rates, currency, equity, commodities, credit
FINANCIAL FUTURES
FORWARD RATE AGREEMENTS (FRAS)
Definition and key features
Terminology
Understanding forward/forward rates
Examples and applications
DAY 2
INTEREST RATE AND CURRENCY SWAPS
Definition and key features
Terminology
Range of swap types including 'vanilla', fixed/floating, basis and currency swaps
Risk management with swaps
CREDIT DERIVATIVES
Definition and key features
Buying and selling credit protection
What is a credit event?
Credit default swaps - Applications and examples
OPTIONS
Definition and key features
Terminology and the basics of volatility
Traditional vs exotic options
Currency and interest rate options
UNDERSTANDING THE BUSINESS PROCESS
MARKET INITIATIVES
:
"Complicated concepts were explained in a simplified way"