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Interest Rate & Foreign Exchange Currency Exposure Management Training Course
This training course teaches how to effectively manage your interest rate and foreign exchange currency exposures.
"I enjoyed the course. Course materials were easily absorbed. Even though we did not address the problems I have to deal with, I now have the tools I need." - W.R., Abu Dhabi National Energy Co
Have a question? Email us at:
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or call us at: (+852) 2273-4393Interest Rate & Currency Exposure Management Course Outline
DAY ONE- Overview of derivative markets and products
- Review corporate financial risks, internal and external constraints and risk/return payoffs
- Identify framework for setting corporate hedging policies
- Discuss structure of derivative markets and products
- Review derivatives marketing cycle
- Establish framework for measuring, reporting and managing Interest Rate risks
- Identify interest rate risks in mismatched asset vs. liability positons
- Analyze yield curves
- Calculate forward interest rates and create forward yield curves
- Discuss implications in traditional gapping strategies
- Review best practices used for quantifying risks in open gap positions
- Exercise I: Given a series of assumed transactions, participants will structure a future cash flow report, analyze imbedded financial risks, perform basic stress test functions on portfolio and calculate profit/losses using cost-to-close method.
- Establish framework for measuring, reporting and managing net exchange positions
- Define net exchange positions
- Identify key players in global currency and money markets
- Quantify risks in open net exchange positions
- Exercise II: Participants will structure a net FX position and liquidity blotter, analyze imbedded financial risks and calculate profit/lossess using mark-to-market process method.
- Interest Rate risk management through use of Libor forwards and Interest Rate swap contracts
- Identify and diagram floating-rate risk exposures
- Price Libor forwards (FRA's and IR swaps)
- Graph combined corporate pay-off profiles
- Discuss how one hedge vs. another transforms underlying coporate exposure to IR risk
- Compare advantages/disadvantages between FRA's vs. IR swaps
- Identify major players and hedging techniques between OTC and Futures
markets and contracts - Identify "unwind" methods used by hedgers, investors and market makers for IR swaps
- Calculate termination values using appropriate discounting techniques for IR swaps
- Group Exercises/Class Presentations
- Floating-rate risk management through use of options on Interest Rate's
- Review basic options terminology
- Discuss assumptions built into options pricing methods and price sensitivities imbedded in binomial models
- Graph combined pay-off profiles on interest rate options
- Structure appropriate corporate hedges using Libor caps, floors and collars
- Demonstrate and compare advantages/disadvantages between structuring derivative solutions using FRA's, IR swaps and options on interest rates
- Group Exercises/Class Presentations: In teams, particpants will review facts of the case and present comparative analysis on use of different options strategies and solutions
- Bond price risks and assets swaps
- Graph price sensitivities in investment portfolios
- Calculate modified duration and convexity on bond investment
- Discuss how to manage bond price risks using asset swaps
- Review IR swap rate conversions and structures
- Demonstrate institutional pricing and uses of futures markets and appropriate hedging techniques
- Structure and price "unwind" swaps
- Calculate swap termination gains/losses vs. gains/losses on bond
- Group Exercises/Class Presentations: In teams, participants will identify, structure and price derivatives solutions on a series of investment exposures
- Interest rate risk management through use of delayed-start and basis swaps
- Review corporate exposures requiring cashflow structures and pricing of delayed-start swaps
- Structure and price basis swaps
- Compare advantages/disadvantages in delayed-start swaps and basis swaps
- Creating Synthetic Securities using swaps and options
- Structure and price options on underlying bond positions combined with asset swaps
- Graph options payoff profiles
- Review options pricing methods and price sensitivities
- Define methods used for estimating volatility
- Structure Libor floors, caps and collar solutions on bond investment portfolios
- Determine gains/losses on bond, swap and options through mark-to-market process
- Compare Libor floor and cap price risks vs. bond price risks
- Group Exercises/Class Presentations: In teams, participants will identify, structure and price interest rate derivatives on investment portfolios using single and combined option strategies
- Introduction to foreign exchange markets
- Major players in FX markets and role of each
- Review quoting conventions and pricing techniques
- Discuss creation of forward FX markets and covered interest arbitrage
- Create FX book containing spot and forward transactions
- Discuss currency risk effect on cash
- Quick Quizz: In teams, participants will respond to a series of mini-cases and report findings in each case to the class
- Currency risk management through use of forward contracts
- Analyze structure of common corporate currency risk exposures
- Structure appropriate hedges through use of forward contracts (Outrights and NDF's)
- Discuss forward pricing techniques and calculate forward prices
- Graph FX forward pay-off profiles with/without underlying currency exposure
- Group Exercises/Class Presentations: In teams, participants will identify, structure and price currency forwards to hedge a variety of corporate currency exposures
- Currency risk management using options on foreign exchange rates
- Review pricing techniques and price sensitivities in binomial pricing models on FX rates
- Options Pricing Model: In teams and using an options pricing model, participants will identify an underlying currency corporate exposure, structure and price a single option strategy.
- Structure corporate hedges using single and combined option strategies on FX rates
- Graph pay-off profiles on FX options and show how combining hedge with underlying risk transforms corporate exposure
- Compare advantages/disadvantages between hedging through use of currency forwards vs. options of FX rates
- Case Study/Class Presentations: In teams, participants will identify, structure and price a series of option hedges on corporate exposures using both single and combinations of options on FX rates and present results to class.
What do clients say about this course?
"I enjoyed the course. Course materials were easily absorbed. Even though we did not address the problems I have to deal with, I now have the tools I need." - W.R., Abu Dhabi National Energy Co
"Excellent" - P.F., Lippobank, Indonesia
"Everything well prepared" - K.E., Bank Negara Indonesia, Indonesia
"Excellent...Trainer well organized and thoroughly walk thru the materials from basic to more challenging topic." - C.J., Standard Chartered Bank, Thailand
"Good course, it align my knowledge with theory." - W.Y., Bank Mizuho Indonesia
Who should attend?
- Bank and Corporate Treasury staff
- Treasury Dealers
- Finance managers
- Derivatives professionals
- Interest Rate professionals
- Forex and currency professionals
Have a question? Email us at:
or call us at: (+852) 2273-4393What do you get from Ethan Hathaway courses?
- Practical. Learn from experienced and active industry practitioners and what's being practiced by your peers.
- Applicable. Apply what you learn in your job and your career
- Specially designed courses by industry active experts for industry practitioners
- Valuable. Earn more revenue or save your organisation from monetary loss. You and your organisation will quickly earn back your investment on the course fee and more
- Enjoyable. Speakers who have a passion for their topic
- Clear. Turning complex concepts into easy to understand concepts
You gain knowledge and skills that make you valuable to your company and your career 
Instruction by industry experts 
Course notes and reference materials package
Daily lunch, snacks and refreshments
Certificate of completion
Meeting your industry peers
Ask questions relevant to your job
Limited seats - each session is limited to between 18-25 seats - Much, much more
Download the course brochure to learn more
Your course instructor
Janet Wilson: Janet G. Wilson is Founder and Managing Director of a US based consultancy. Prior to founding the firm, Janet spent 15 years with Citibank performing various treasury functions as well as developing and delivering training. Ms. Wilson managed a Foreign Exchange and Interest Rate Products Team in Texas and Mexico, where she was responsible for all phases of product risk assessment and documentation, marketing, training, distribution, and trading the bank's position. In her capacity as Director for Citibank's North American Investment Bank Training Center, Ms. Wilson developed and delivered their financial markets training curriculum for New York and Latin America. She received her BA, Magna Cum Laude, from the University of St. Thomas in Houston, Texas. Janet is fluent and teaches in Spanish in addition to English.
Dates & Locations & Fees
| Date | Location | Venue | Course Fee | Early Bird Fee | Register |
|---|---|---|---|---|---|
| 9 Aug - 12 Aug, 2010 | HK, Hong Kong | Marco Polo Prince Hotel | US$5098 | See Brochure |  |
| 26 Oct - 29 Oct, 2010 | SG, Singapore | Marina Mandarin Hotel | US$5098 | See Brochure | |
Early Birds Save Up To 30% Off the Regular Fee, download the brochure to learn more
Limited seats - Email us: for availability.
* Venue, dates, course fees, promotions, course content, course instructor are all subject to change
Can't find a session in a city near you?
If there's no session scheduled in a city near you, you have the following options:
- In-house training: If you have a group of 8 or more, consider having us run this course in-house for you
- Co-sponsored training: Between 5-7 people, consider a co-sponsored course - you agree to send this set number of people to the course if we run it in a city near you and Ethan Hathaway sells the remaining seats to other companies
- Distance learning: Less than 5 people, consider distance training format: live trainer presents over phone lines/web at pre-scheduled times (available only for select courses)
- Just tell us where you want the course: Let us know which city you'd like us to run this course in - we'll plan it if there's enough demand
Email us at: for more information regarding the above options.
Register for the course
You may book your place on the course by any of these methods:
- Online booking - simply click on the "Register Me" button next to the course date you wish to register and it will take you through our quick online registration procedure.
- Email us at: - please include your full contact details.
- Fax us the booking form (included in the brochure) to: +852 3014-0721
- Or call: +852 2273-4393 during normal office hours
Related Courses
- Foreign Exchange Risk Management Workshop
- Asset & Liability Management and Capital Adequacy Planning
- Market Risk Management Workshop
- Treasury Management School - Singapore, Hong Kong & Kuala Lumpur
- Derivatives School: Pricing & Trading - UK
- Derivatives Strategies: Instruments & Practical Solutions - Asia
- Treasury Management - UK, Europe & Dubai
- Treasury Risk Management Workshop
- Introduction to Financial Markets
Learn more about this course
Inside the course information booklet you'll find:
- Detailed course agenda of what you'll learn
- Eligible discounts
- Our course quality guarantee
- Course expert biography
- Course venue details
- Cancellation & refund policies
- Course registration form
- Printer-friendly PDF
- Small file size for fast & easy download
- Easy to share with colleagues & friends
Complete the details to the right and click on "Send me the booklet" to have the course booklet emailed to you immediately.
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