At the end of the course, the participant is familiar with the interest rate risk and the derivative financial instruments used to manage it. The hedging techniques are clearly explained using examples inspired by current market conditions.

The presentation discusses:

• firm commitments (bond forward, currency forward, forward rate agreement, STIR, interest rate swap and cross currency swap);
• option contracts on these instruments (callable and putable bonds, currency options, cap, floor, swaptions). 

CONTENT

• Introduction 
  • Money market, currency market, capital market , credit market
  • Speculation, hedging, arbitrage 
• Interest rate 
  • Fixed and floating rate, simple interest and compound interest
  • Price, return, yield, forward rate, (modified) duration 
• Market instruments 
  • Deposit, zero coupon bond, coupon bond, floating rate note 
• No-arbitrage 
  • No-arbitrage pricing, ESTR and SOFR
  • Continuous interest, valuation models, law of one price, value adjustments 
• Forwards 
  • Bond futures, currency forward, forward rate agreement, STIR
  • Interest rate swap, cross currency swap 
• Options 
  • Call (put) on a bond futures, callable (putable) bond
  • Call (put ) on a foreign currency, on a STIR, on a  swap 
• Conclusions 
  • Risk Management 101 
•  Exercises & Appendix 

PRACTICAL INFORMATION

• Duration: 1 day of training (6 class hours)
• Hours: 09:00 to 17:00
• Location: Febelfin Academy: Phoenix building, Koning Albert II-laan/Boulevard du Roi Albert II 19, 1210 Brussels
• Language: This training will be given in English

You follow a ‘Classroom training’ in a group. You, the other participants and the teacher are all present in the same classroom at an agreed time. There is an opportunity for interaction and feedback, both from the participants to the teacher and vice versa. The teaching material consists as a basis of a presentation via the MyFA learning platform, supplemented with various other items (such as digital syllabus, presentation, audiovisual fragments, etc.).

Training material: PowerPoint presentation

• For those who wish to go beyond the basics
• Learn in a group, in a motivating and targeted way
• Deepen your knowledge and obtain recognized continuing professional development hours

• Be on time for the training. It’s best to arrive 10 minutes before it starts.
• Unexpected delay? Inform your on-location contact.
• Febelfin Academy’s reception desk can be reached at +32 (0)2 507 69 61.
• We recommend to review the learning material in advance and prepare your questions.

• To receive your (CPD) participation certificate for a classroom training, your presence and active participation are required throughout the entire session. Interaction is key to our trainings.
• Your (CPD) participation certificate will be published on your MyFA account the day following the course.
• Febelfin Academy wishes you a great learning experience.

The training course can be taken by various target groups:

• management, members of management and employees responsible for portfolio management and / or investment advice;
• management, members of the executive and employees of the product, risk, compliance, accounting, legal, tax, operational and administrative departments;
• members of the Board of Directors, management of operational bodies and collaborators of a pension fund (OFP);
• management, members of management and employees of monetary or controlling bodies.