Whoever has watched 'The Wolf of Wall Street' has likely struggled to understand the jobs, products, jargon that surround financial markets. Some of us are still trying to get our way out of this financial jungle and clarify the associated strategies. Demystifying financial instruments is the key objective of the step-by-step programme we propose below.
This training curriculum is designed around 5 complementary building blocks:
Derivative instruments – Module 1 - The essentials
Derivative instruments – Module 2 - Forwards and futures
Derivative instruments – Module 3 - Swaps
Derivative instruments – Module 4 - Options
Derivative instruments – Module 5 - Credit derivatives
Our modular approach allows each participant to select his/her entry point in the programme to best fit cumulated knowledge and experience on this wide topic.
Duration: 2h
Language: Available in English and French. The supporting material is only available in English.
Number of participants: up to 15
Available under intra-company course (i.e. dedicated session)
Objectives
By the end of this course, participants will be able to:
- define the general characteristics of swaps;
- gain an in-depth understanding of how swaps operate;
- list how swaps can best be used on the market: be it in isolation or in combination with other instruments;
- understand the valuation method and what can impact swaps' quotation;
- identify major risks associated and determine controls that may mitigate them.
Content
- Credit risk fundamentals:
- What are the 2 components to be quantified as a credit risk measure?
- The impact of credit risk on bond prices
- Credit risk management
- Credit derivatives: buying or selling protection
- The importance of ISDA: event of default in the sense of the ISDA agreement
- The credit derivatives market
- Credit Default Swaps (CDS):
- Principle
- CDS with recovery rate
- CDS on a basket – the case of iTraxx
- CDS packaged as a CLN (Credit Linked Note)
- Total Return Swaps (TRS)
The content of the session is illustrated by real market examples. It is given in an attractive, understandable way, avoiding mathematical developments.
Target audience
Anyone who wants to reach a sound understanding of the financial derivative instruments used by investment managers.
Our lead experts
This training will be coordinated by Frédéric Botteman, Partner at PwC Luxembourg.
The different modules will be animated by experts in derivatives.
Frédéric, Audit Partner, is specialised in the valuation of derivatives and illiquid securities. Thanks to this, he has gained a high expertise in the audit of guaranteed funds. He is also leading several SRI reporting for major IM players.
Frédéric is instructor in several courses linked to derivative instruments.
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