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Our courses are intended for a global audience, with each one being completely customisable to suit the needs of the individuals it is being delivered to.

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Bond Finance and Derivatives

  • Information

    This intensive 1 day course will demonstrate how and why good treasury practices can be cost-effective and can improve corporate treasury efficiency.
    Specifically, we will look at debt finance, both bank and bonds, and concentrate on the management of interest rate risk, the products and hedging methodology.
    Derivatives are risk management tools. We will look at the various derivative instruments, how they are used to hedge interest rate risk.


    What will I get out of it?
      A clear understanding of how and why a Corporate Treasury exists, and why the formulation and application of a Treasury Policy is essential.
      An understanding of interest rates both short and long term, and the interplay between floating (bank loan) and fixed (bond) products.
      An overview of Yield Curves, the rationale and practical examples.
      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

    Training Methodology
      This programme will be conducted along workshop principles, with formal lectures, Case Studies & interactive worked examples. Each learning point will be reinforced with practical exercises.


    Global Financial Markets and Treasury Overview
      Defining our terms – capital market inter-relationships
    o Money Markets
    o Medium Term /Syndicated Finance
    o Bond Markets/Equity
    o FX and Derivatives
      How finance is raised on the Global Markets?

    Corporate Treasury Activities
    A practical view of the various activities within a Treasury department
    The need for a Policy and Procedures Manual
    Ways and means of funding the business
    Bank lending, syndicated debt finance, bonds and fixed income

    Fixed Income (Bond) Markets
      Money Markets – Short term borrowing
      Base Rate vs LIBOR
      Bonds – long term finance
      Government vs Corporate issues, Corporate Bond spreads

    Bond structures, fixed, floating and hybrids
      Bonds and derivatives
      The Price/Yield Relationship
      Credit Ratings and the Ratings Agencies
      Structured Finance/Securitisation (ABS, MBS, ABCP)

    The Bond Issuing Process- the primary market
      Public offer or Private Placements
      A focus on the roles of the Issuer, Investor and Intermediary

    Yield Curves - The term Structure of Interest Rates
      Benchmark Yield Curves
      Models of the Yield Curve: Positive/Negative/Flat/Inverse/Segmented
      Rationale for shapes
    Examples and applications for both corporate issuers and investors

    First principles of hedging and the tools
    Should we be using derivatives?
    Exchange traded/OTC markets
    Definition and key features of:
    o Futures/forwards – short term interest rate futures (STIRS)
    o Forward Rate Agreements (FRA’s)
    o Options – IRO’s, caps, collars and floors
    o Swaps
    o Credit Derivatives
      The importance of documentation- ISDA

    Interest Rate and Currency Swaps
      The range of swaps
    o Vanilla IRS, fixed/floating
    o Basis swaps
    o Currency Swaps
    Case studies – Interest Rate Swaps in practice

    Register interest

    As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.

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